[Management View]
Schlumberger reported $8.5 billion in revenue for Q2 2025, up 1% sequentially, driven by international market growth and steady digital sales. Adjusted EPS was $0.74, up $0.02 from Q1 2025 but down $0.11 from Q2 2024. The integration of ChampionX is expected to deliver $400 million in annual pretax synergies within three years.

[Outlook]
Second-half 2025 revenue is forecasted between $18.2 billion and $18.8 billion, with flat EBITDA margins compared to Q2 2025. The digital business will be reported as a separate segment starting in Q3 2025, supported by expanding Delphi platform adoption.

[Financial Performance]
- Revenue: $8.5 billion, up 1% sequentially
- Adjusted EPS: $0.74, up $0.02 QoQ, down $0.11 YoY
- Pretax Segment Operating Margin: 18.5%, up 20 basis points sequentially
- Adjusted EBITDA Margin: 24%, up 21 basis points sequentially

[Q&A Highlights]
Question 1: David Anderson (Barclays) asked about the flat second-half guidance and customer behavior changes since OPEC started bringing barrels back.
Answer: Olivier Le Peuch explained that the guidance reflects growth driven by the production system and ChampionX combination, offsetting headwinds in selective markets. He noted that major adjustments in international markets are largely behind, with resilience expected assuming commodity prices remain range-bound.

Question 2: David Anderson (Barclays) inquired about deepwater activity and concerns about near-term slowing.
Answer: Olivier Le Peuch acknowledged white space development and project shifts but highlighted a rich pipeline of advantaged projects. He expressed excitement about activity in the Americas and the Eastern Hemisphere, driven by gas markets and offshore projects.

Question 3: Scott Gruber (Citigroup) asked about the growth outlook for the production business and revenue synergies.
Answer: Olivier Le Peuch emphasized the unique combination of Schlumberger and ChampionX portfolios, focusing on optimizing production and recovery phases. He highlighted the integration of digital capabilities and end-to-end solutions as key growth drivers.

Question 4: Scott Gruber (Citigroup) inquired about capital intensity and free cash flow metrics.
Answer: Olivier Le Peuch noted that capital investments are at maintenance levels, with ChampionX reducing capital intensity. He emphasized a focus on free cash flow margin, aiming to exceed 10% of revenue on a full-cycle basis.

Question 5: Arun Jayaram (JPMorgan) asked about global upstream spending trends and regional impacts.
Answer: Olivier Le Peuch discussed resilience in the Middle East and Asia, with adjustments in North America and Latin America. He highlighted a directional rebound driven by market rebalancing, capacity expansion, and offshore projects.

Question 6: Arun Jayaram (JPMorgan) requested a breakdown of expectations for Q3 vs. Q4.
Answer: Olivier Le Peuch provided guidance for slightly higher Q3 revenue sequentially, with a significant uptick in Q4 driven by ChampionX and seasonal digital sales.

Question 7: Neil Mehta (Goldman Sachs) asked about leveraging ChampionX assets and customer feedback.
Answer: Olivier Le Peuch highlighted the complementary portfolios and market access, with customers interested in integrated solutions and digital capabilities.

Question 8: Neil Mehta (Goldman Sachs) inquired about segment-level margin trends.
Answer: Olivier Le Peuch indicated that digital margins will increase, production systems will maintain or improve, and reservoir performance and well construction will remain flat.

Question 9: Roger Read (Wells Fargo) asked about the pace of synergies and integration process.
Answer: Olivier Le Peuch and Stephane Biguet discussed faster execution of supply chain synergies and strong integration planning, with positive customer feedback.

Question 10: Roger Read (Wells Fargo) inquired about Mexico's gas supply goals and market dynamics.
Answer: Olivier Le Peuch noted ongoing restructuring and readiness to respond to market opportunities, with active projects outside Pemex.

Question 11: Josh Silverstein (UBS) asked about digital business growth and contributions from Delphi Cloud and AI platforms.
Answer: Olivier Le Peuch confirmed continued double-digit growth and significant uptick in the second half, with strong adoption of digital platforms.

Question 12: Josh Silverstein (UBS) requested additional disclosures on AI and SaaS products.
Answer: Olivier Le Peuch highlighted the early success of the Lumi platform for data and AI adoption, with ongoing momentum and customer interest.

[Sentiment Analysis]
Analysts were generally positive, focusing on the integration of ChampionX and digital expansion. Management maintained a confident tone, emphasizing resilience and growth opportunities.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|-------------------------------|---------|---------|---------|
| Revenue | $8.5B | $8.4B | $8.6B |
| Adjusted EPS | $0.74 | $0.72 | $0.85 |
| Pretax Segment Operating Margin| 18.5% | 18.3% | 18.7% |
| Adjusted EBITDA Margin | 24% | 23.8% | 24.1% |

[Risks and Concerns]
- Market volatility and macroeconomic uncertainty
- Potential impact of tariffs on margins
- Integration challenges with ChampionX
- Regional geopolitical risks affecting operations

[Final Takeaway]
Schlumberger delivered solid Q2 2025 results, driven by international market growth and digital sales. The integration of ChampionX is expected to enhance the company's portfolio and deliver significant synergies. Management provided a cautiously optimistic outlook for the second half of 2025, with revenue growth and stable margins. The digital business will play a crucial role in driving future growth, supported by expanding platform adoption and new AI products. Despite market uncertainties, Schlumberger remains well-positioned to capitalize on long-term opportunities in the oil and gas sector.