ChampionX closed, Fram Sør win and FY2024 cash flow: the inflection point#
Schlumberger’s most consequential development this year is not a single quarterly beat but the combination of three concrete moves that reframe the company: the completion of the ChampionX acquisition, a visible commercial win for SLB OneSubsea in Norway’s Fram Sør all‑electric subsea contract, and full‑year 2024 financials showing $36.29B revenue and $4.47B free cash flow. The ChampionX close and the Fram Sør contract give Schlumberger both product breadth and a flagship reference for subsea electrification, while FY2024 operating performance and cash generation provide the balance‑sheet capacity to fund integration, buybacks and transition investments simultaneously. The mix of strategic scope and strong cash flow is the immediate story for investors.
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The ChampionX acquisition close is documented in the company release and contemporaneous press coverage; it brings production chemicals, digital production solutions and channel relationships that materially extend SLB’s software and recurring‑revenue ability (see the acquisition announcement and coverage) SLB ChampionX acquisition complete press release Reuters: SLB completes ChampionX acquisition. At the same time, SLB’s OneSubsea unit captured the 12‑well Fram Sør all‑electric subsea project, a milestone that demonstrates commercial scale for shore‑powered electrified subsea systems and gives SLB an early mover reference that competitors must match SLB Fram Sør all-electric subsea press release Equinor Fram Sør subsea electric announcement.
Those strategic actions matter because they convert a historically cyclical oilfield‑services cash machine into a broader energy‑technology platform: hardware (OneSubsea), chemicals and field‑scale software (ChampionX), and carbon‑management projects (Northern Endurance Partnership carbon storage). That combination is why FY2024 cash flows and capital allocation choices merit close attention: they determine whether SLB can fund the transformation without undermining balance‑sheet resilience.
Financial performance: growth, margins and cash generation#
Schlumberger’s FY2024 income statement shows continuing top‑line expansion and durable margins. Revenue increased to $36.29B in 2024 from $33.13B in 2023, a +9.54% year‑over‑year rise, driven by higher activity across global regions and incremental technology and product sales. Operating income for 2024 of $6.33B implies an operating margin of 17.43%, while reported EBITDA of $8.07B yields an EBITDA margin of 22.24%. Net income on the income statement closed at $4.46B, a +6.19% increase versus 2023.
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Those margin levels represent a multi‑year improvement: gross margin moved to 20.56% in 2024 from 19.81% in 2023 and 18.37% in 2022, while operating margin expanded from 14.78% in 2022 to 17.43% in 2024. The expansion mirrors scale leverage on a recovering activity base and higher‑margin product and service mix, including digital and chemicals revenues. The reported figures are available in the company’s FY2024 filings and investor materials SLB FY2024 financials.
Free cash flow remained a structural strength. FY2024 free cash flow was $4.47B, while net cash provided by operating activities was $6.6B, producing an operating cash flow margin of 18.19% and a free cash flow margin of 12.32% (free cash flow divided by revenue). Capital expenditures totaled $2.13B (capex/revenue ~ 5.87%) as SLB continues to fund equipment and technology while remaining disciplined on spending. Operating cash conversion remains high: net income of $4.46B vs operating cash of $6.6B points to earnings quality backed by real cash generation.
Table 1 below summarizes the headline income‑statement trend (2021–2024) and margins that underpin the strategic story.
| Year | Revenue (USD) | Operating Income (USD) | Net Income (USD) | Operating Margin | Net Margin |
|---|---|---|---|---|---|
| 2024 | 36,290,000,000 | 6,330,000,000 | 4,460,000,000 | 17.43% | 12.29% |
| 2023 | 33,130,000,000 | 5,500,000,000 | 4,200,000,000 | 16.60% | 12.68% |
| 2022 | 28,090,000,000 | 4,150,000,000 | 3,440,000,000 | 14.78% | 12.25% |
| 2021 | 22,930,000,000 | 2,770,000,000 | 1,880,000,000 | 12.06% | 8.20% |
All income‑statement figures above are taken from SLB’s FY filings; margins are calculated from those line items SLB FY2024 financials.
Balance sheet, leverage and liquidity — improving but acquisitive#
At year‑end 2024 SLB reported $48.94B total assets, $26.59B total liabilities and $21.13B total stockholders’ equity. Cash and cash equivalents stood at $3.54B and cash plus short‑term investments at $4.67B. Total debt on the balance sheet was $12.07B and SLB reports net debt (total debt less cash and equivalents) of $8.53B.
Using the FY2024 numbers, key balance‑sheet ratios show a company that has meaningfully repaired leverage while preserving flexibility. The calculated current ratio at year‑end is 1.45x (total current assets $18.57B / total current liabilities $12.81B). Debt to equity based on total debt and shareholders’ equity is roughly 0.57x (or 57.14%). Net debt to FY2024 EBITDA using net debt $8.53B and EBITDA $8.07B produces about 1.06x — a conservative leverage posture for a capital‑intensive oilfield services company.
Table 2 captures the balance sheet and cash‑flow trend that feeds capital allocation choices.
| Year | Cash & Equivalents (USD) | Total Assets (USD) | Total Debt (USD) | Net Debt (USD) | Free Cash Flow (USD) | Dividends Paid (USD) | Share Repurchases (USD) |
|---|---|---|---|---|---|---|---|
| 2024 | 3,540,000,000 | 48,940,000,000 | 12,070,000,000 | 8,530,000,000 | 4,470,000,000 | 1,530,000,000 | 1,740,000,000 |
| 2023 | 2,900,000,000 | 47,960,000,000 | 11,960,000,000 | 9,060,000,000 | 4,540,000,000 | 1,320,000,000 | 694,000,000 |
| 2022 | 1,660,000,000 | 43,130,000,000 | 12,230,000,000 | 10,570,000,000 | 2,000,000,000 | 848,000,000 | 0 |
| 2021 | 1,760,000,000 | 41,510,000,000 | 14,200,000,000 | 12,440,000,000 | 3,470,000,000 | 699,000,000 | 0 |
Sources: SLB balance‑sheet and cash‑flow tables; amounts are reported by year in the company filings SLB FY2024 financials.
An important capital‑allocation observation follows from Table 2: in 2024 SLB returned $3.27B to shareholders (dividends $1.53B plus buybacks $1.74B). That combined distribution equals roughly 73.36% of FY2024 net income ($4.46B). Dividend payout ratio on the basis of dividend per share $1.12 vs EPS $2.92 is approximately 38.36%, consistent with the company’s stated payout metric, but the significant buyback program materially raises total cash deployed to shareholders. The buyback ramp in 2024 (from $694MM in 2023 to $1.74B) is a deliberate use of free cash flow that reduces outstanding shares while also consuming capital that might otherwise be available for R&D, M&A or balance‑sheet conservatism.
Net debt declined modestly year‑over‑year (from $9.06B in 2023 to $8.53B in 2024), and cash increased to $3.54B, evidencing both operational cash strength and active capital distribution. Goodwill and intangible assets sum to $17.61B, which reflects the company’s acquisition history and implies an area to watch for potential future impairment if execution or commodity cycles deteriorate.
Reconciling published TTM metrics and our FY calculations#
The dataset includes TTM metrics reported elsewhere (for example a reported net‑debt/EBITDA TTM of 1.35x and ROIC TTM 12.88%). Our FY‑end calculations using the FY2024 income statement and balance sheet produce a net debt / FY2024 EBITDA of ~1.06x and an FY2024 ROIC (NOPAT ÷ (equity + net debt)) of roughly 16.79%. Differences arise because the dataset’s TTM measures use a trailing‑12‑month definition and alternative denominator/denominator timing for invested capital and EBITDA. We flag these discrepancies deliberately: the company’s TTM ratios are useful for market comparability, but the FY figures show the most recent annual performance and the balance‑sheet position that management must manage through acquisition integration.
Calculations: effective tax rate = (income before tax $5.67B - net income $4.46B) / income before tax = 21.34%. NOPAT = operating income $6.33B × (1 - tax) ≈ $4.98B. Invested capital ≈ shareholders’ equity $21.13B + net debt $8.53B = $29.66B. ROIC ≈ 4.98 / 29.66 = 16.79% (see reconciliations above).
Strategy and execution: turning services cash into technology recurring revenue#
Management’s strategic narrative — reposition SLB as an energy‑technology integrator — is now backed by three executable pillars: subsea electrification (OneSubsea), digital/chemicals recurring revenue (ChampionX) and carbon‑management (Sequestri/NEP participation). These moves are not cosmetic: ChampionX expands recurring revenue and field services that are less cyclical than pure rig activity, while the Fram Sør contract gives SLB a real project to demonstrate shore‑powered subsea hardware and associated digital monitoring systems.
The economics that matter are already visible in SLB’s financials. Higher margins in 2024 reflect mix: software, services and higher‑value systems contribute disproportionately to operating income relative to legacy commoditized services. ChampionX brings recurring chemicals and digital contracts that typically have higher gross margins and lower capital intensity than drilling or equipment rental. The integration challenge is executional: unlocking cross‑sell between OneSubsea hardware and ChampionX chemicals/software, and converting engineering wins into recurring lifecycle revenues, will determine whether these strategic assets change the company’s long‑term margin profile.
Carbon storage participation in the Northern Endurance Partnership (NEP) is strategically relevant because it positions SLB on low‑carbon infrastructure that governments and majors are beginning to underwrite with long‑dated contracts. The NEP contract and related CCUS activity give SLB engineering and services revenues and the potential for long‑term, fee‑based project management. Those contracts also reduce dependence on near‑term hydrocarbon capex cycles. Sources: SLB carbon storage press release and partner announcements SLB NEP carbon storage press release BP: carbon storage for UK NEP announcement.
Competitive context and durability of advantages#
SLB’s installed scale, global field presence and decades of reservoir and subsea engineering create a high barrier to entry for some technologies. The Fram Sør all‑electric subsea contract is strategically helpful because it signals to operators that SLB can deploy electrified systems at scale. However, competitors (Welltec, TechnipFMC, Aker Solutions and subsea integrators) are also investing in electrification and digital offerings. SLB’s differentiator arguably becomes the combination of broad product coverage (from wellhead hardware to digital production optimization) and the ability to bundle services across the asset life cycle.
Durability of advantage depends on three execution items: cross‑selling ChampionX assets into existing SLB customers, operationalizing field software into subscription or long‑term service contracts, and keeping capex for electrification competitive. If SLB can convert a portion of OneSubsea deployments into multi‑year service and digital contracts, the company will structurally raise average margins and make earnings less cyclical. That conversion is the gating item.
Capital allocation: buybacks, dividends and M&A tradeoffs#
SLB’s capital allocation in 2024 combined shareholder return and acquisitive expansion. Dividends paid were $1.53B and share repurchases were $1.74B, for total distributions of $3.27B. With FY2024 free cash flow at $4.47B, distributions consumed a large share of free cash flow but did not cripple reinvestment: capex remained $2.13B and the company closed ChampionX using balance‑sheet resources and likely debt and cash. The net debt reduction year‑over‑year shows the company is balancing returns with balance‑sheet stewardship.
The tension is clear and economically meaningful: returning cash via buybacks reduces shares and increases EPS, but it also consumes the very free cash flow that could be redeployed to integrate ChampionX, scale electrification manufacturing, or pursue additional energy‑transition assets that typically require multi‑year capital deployment. Management must balance short‑term EPS accretion against longer‑term ARR (annual recurring revenue) growth that could re‑rate the business if executed well.
Forecasts, sell‑side consistency and forward indicators#
Analyst estimates embedded in the data show modest revenue contraction in 2025 versus 2024 (consensus 2025 revenue ~$35.46B vs 2024 $36.29B, -2.28%). Estimated EPS for 2025 of ~$2.89 is close to FY2024 EPS $2.92, implying that near‑term expectations are for a plateau in earnings as integration and market cycles play out. Forward multiples are close to current trading multiples: market price ($35.65) and EPS produce an indicated PE ~12.21x today, while forward PEs show modest compression out to 2029 in the dataset — again reflecting conservative long‑term growth assumptions. Sources: company estimates and sell‑side aggregates included in the dataset [SLB estimates].
Importantly, the market will look for three forward indicators to validate the strategic pivot: (1) recurring revenue growth from ChampionX‑linked contracts and field software, (2) repeat subsea electrification orders beyond Fram Sør that demonstrate scalable demand, and (3) steady or improving free cash flow margins that can support both returns and strategic investment.
What this means for investors#
The most tangible implication is that Schlumberger is capitalizing operating cash flow to buy strategic capabilities while maintaining meaningful shareholder returns. Investors should treat the story as a transition from cyclical services to a hybrid model where durable, higher‑margin technology and recurring revenue play a larger role. The evidence to date is mixed but encouraging: margins and free cash flow are robust; leverage is moderate (net debt / EBITDA ≈ 1.06x on FY2024 figures); and management has closed a strategically coherent acquisition (ChampionX) while winning a high‑visibility electrification project (Fram Sør).
However, the transition is execution‑dependent. The premium outcomes require successful cross‑sell, subscription or long‑term service conversions, and discipline around further M&A that does not overtax the balance sheet or goodwill. The enlarged goodwill and intangible assets base ($17.61B) means investors should monitor integration metrics and any signs of impairment testing stress during weaker cyclical periods.
From a financial‑metrics perspective, key datapoints to watch in the next two reporting cycles are recurring revenue growth, free cash flow conversion, capex intensity for electrification, and the ratio of buybacks to free cash flow. Those will reveal whether SLB is steadily trading cyclicality for predictable, technology‑led revenue.
Conclusion#
Schlumberger’s combination of cash flow strength and strategic repositioning is the central investment narrative today. FY2024 posted $36.29B of revenue, $8.07B of EBITDA and $4.47B of free cash flow, enabling both an aggressive shareholder‑return program and meaningful deals such as ChampionX. The Fram Sør all‑electric subsea contract provides a visible proof point for SLB’s push into electrified, lower‑carbon offshore systems. That mix — credible cash generation plus early wins in higher‑margin technology and carbon solutions — is what sets the company’s trajectory apart from a pure services play.
Yet the trajectory is not guaranteed. The transformation’s payoff rests on measurable execution: converting equipment wins into lifecycle, recurring contracts; integrating ChampionX to deliver higher‑margin recurring revenue; and managing capital allocation without crowding out strategic investment. For market participants, the practical implication is to follow the conversion metrics — recurring revenue, service contract duration and cash‑flow reinvestment rates — rather than short‑term cyclical revenue moves.
All financial figures above are drawn from SLB’s published FY2024 financials and related company releases; strategic events are cited to the company's press releases and partner announcements where indicated SLB FY2024 financials SLB ChampionX acquisition complete press release SLB Fram Sør all-electric subsea press release SLB NEP carbon storage press release.