SLB Stock Falls After Q1 Profit Drop on Middle East Disruptions

TLDR

• SLB’s Q1 net income fell 6% to $752 million (50 cents/share), down from $797 million a year earlier
• Middle East conflict forced the company to demobilize operations across multiple countries
• Revenue rose 2.7% to $8.72 billion, beating analyst estimates of $8.63 billion
• Adjusted EPS came in at 52 cents, just above the 51-cent consensus estimate
• Adjusted EBITDA dropped 12% to $1.77 billion; no full-year guidance was issued

SLB’s stock dropped 3.7% in premarket trading Friday after the oilfield services company reported a decline in first-quarter profit, with the ongoing Middle East conflict weighing heavily on its operations.

SLB N.V., SLB

CEO Olivier Le Peuch described it as “a challenging start to the year.” The company was forced to demobilize operations in several countries after customers moved to protect personnel and facilities.

Net income fell 6% year-over-year to $752 million, or 50 cents a share. That compares to $797 million, or 58 cents a share, in Q1 2025.

On an adjusted basis, EPS came in at 52 cents — a penny above the 51 cents analysts had expected, according to FactSet.

Revenue rose 2.7% to $8.72 billion, topping Wall Street’s forecast of $8.63 billion. The top-line beat wasn’t enough to offset concern over profitability.

Adjusted EBITDA fell 12% to $1.77 billion, which appeared to be a key driver of the stock’s premarket decline.

North America Bright Spot, International Drags

North American revenue jumped 26% to $2.17 billion, a strong showing that provided some offset to the broader weakness.

International revenue, however, fell 3.8% to $6.47 billion — reflecting the direct impact of Middle East disruptions on SLB’s global footprint.

The well construction and reservoir performance divisions saw the most pronounced impact from the conflict, the company said.

SLB did not issue full-year financial guidance. The company did reaffirm its capital investment target of $2.5 billion for 2026, slightly above the $2.4 billion spent in 2025.

CEO Eyes Recovery in 2027

Le Peuch said the conflict has “accelerated” the rebalancing of global liquid supply and demand while exposing vulnerabilities in the energy supply chain.

He expects countries to prioritize supply diversification and invest in domestic resource development once the conflict eases.

Le Peuch also forecast more investment in short-cycle projects in North America and Latin America, along with deepwater offshore developments.

Back in January, SLB had suggested its regional struggles were behind it. Friday’s results told a different story.

The stock was trading at $52.70 in premarket, down from Thursday’s close.

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