SLB N.V. (NYSE:SLB)

The company demonstrates generally positive operating cash flow throughout the observed period, though with fluctuations. Net income exhibits an initial increase from 2021 to 2023, peaking at US$4,275 million, before declining in 2025 to US$3,451 million. Adjustments to reconcile net income to cash provided by operating activities are consistently positive and substantial, contributing significantly to overall operating cash flow. However, investing and financing activities consistently represent net cash outflows.

Operating Activities

Net cash provided by operating activities increased significantly from US$4,651 million in 2021 to US$6,637 million in 2023, before stabilizing around US$6.6 billion in 2024 and 2025. This positive trend is largely driven by net income and adjustments for non-cash items like depreciation and amortization, and changes in working capital. A notable decrease in receivables and inventories in 2022 contributed to the strong cash flow, but these improvements were not sustained in subsequent years. Accounts payable and accrued liabilities show significant increases in 2022 and 2023, followed by a substantial decrease in 2024, impacting operating cash flow.

Investing Activities

Net cash used in investing activities is consistently negative, indicating substantial investments. Capital expenditures remain relatively stable, ranging from approximately US$1.6 billion to US$2.0 billion annually. APS investments also represent a significant ongoing cash outflow. The company engaged in several acquisitions and divestitures, resulting in net cash outflows, particularly in 2024 and 2025. Proceeds from sales of assets, including APS projects and shares of other companies, partially offset these outflows, but were insufficient to generate positive cash flow from investing activities. A significant inflow from cash acquired in the ChampionX acquisition is observed in 2025.

Financing Activities

Net cash used in financing activities is consistently negative, driven primarily by dividend payments and stock repurchase programs. Dividend payments remain relatively stable, while the stock repurchase program increases substantially in 2024 and 2025. Proceeds from the issuance of long-term debt provided some cash inflow in 2023 and 2024, but were outweighed by debt repayments. Changes in short-term borrowings are relatively small and fluctuate year to year. The company experienced a significant net cash outflow in financing activities in 2025, largely due to the increased stock repurchase program.

Cash Position

The company’s cash position increased from US$844 million in 2021 to US$2,900 million in 2023, demonstrating effective cash management despite significant investing and financing outflows. However, cash decreased to US$3,036 million in 2025, indicating a potential shift in cash flow dynamics. The net increase or decrease in cash mirrors the combined effects of operating, investing, and financing activities.

Overall, the company generates strong cash flow from operations, but consistently utilizes these funds for investments, shareholder returns (dividends and stock repurchases), and debt management. The increasing reliance on stock repurchases in recent years represents a significant use of cash. Fluctuations in working capital components and the timing of acquisitions and divestitures significantly impact cash flow patterns.