SLB N.V. (NYSE:SLB)

The financial performance presented demonstrates a generally positive trajectory from 2021 to 2024, with a slight deceleration in 2025. Revenue exhibited consistent growth over the period, although the rate of increase slowed in the final year. Profitability metrics generally improved, but experienced fluctuations due to various non-operating items. Cost structures increased alongside revenue, but were managed effectively to expand gross margins initially.

Revenue Growth

Revenue increased from US$22.929 billion in 2021 to US$36.289 billion in 2024, representing a substantial growth rate. However, revenue decreased slightly to US$35.708 billion in 2025, indicating a potential slowdown in growth momentum. Product sales contributed significantly to this growth, nearly doubling from US$7.327 billion to US$14.508 billion over the five-year period.

Profitability Analysis

Gross margin expanded from US$3.658 billion in 2021 to US$7.460 billion in 2024, reflecting improved operational efficiency and pricing power. However, gross margin decreased to US$6.507 billion in 2025. Operating income followed a similar pattern, increasing from US$2.765 billion to US$5.804 billion before declining to US$4.368 billion in 2025. This decline in 2025 is partially attributable to increased restructuring, impairment, and merger & integration expenses.

Cost Structure

Cost of revenue increased consistently with revenue growth, rising from US$19.271 billion in 2021 to US$29.201 billion in 2025. While costs increased, the rate of increase was generally lower than revenue growth, contributing to the expansion of gross margins in the earlier years. Increases in costs of both services and product sales were observed. Significant increases in restructuring, impairment, and merger & integration expenses were noted in 2025, impacting overall profitability.

Non-Operating Income & Expenses

The company experienced considerable fluctuations in non-operating income. Gains from various sales (Palliser APS project, investment, Liberty shares, real estate, repurchase of bonds) and unrealized gains on marketable securities contributed positively to income in specific years. However, these were offset by losses on Blue Chip Swap transactions and, increasingly, by restructuring and impairment charges in 2024 and 2025. Interest income remained relatively stable, while interest expense showed a modest increase over the period.

Net Income & Earnings Attribution

Net income attributable to SLB increased from US$1.881 billion in 2021 to US$4.461 billion in 2024, mirroring the trend in operating income. A decrease to US$3.374 billion was observed in 2025. Net income attributable to noncontrolling interests remained relatively consistent, though increasing slightly over the period. The earnings of equity method investments also showed a positive trend, contributing to overall profitability.

Overall, the period demonstrates a period of strong growth followed by a potential stabilization or slight contraction in 2025. The increase in non-operating expenses in 2025 warrants further investigation to determine the underlying causes and potential impact on future performance.