SLB

SLB is the scale leader in oilfield services and the FY2025 numbers show a high-quality but cyclically pressured business. Revenue of $35.7B fell 1.6% YoY (and management notes it fell 6% organically ex-ChampionX, as declines in Saudi Arabia, Mexico and offshore Sub-Saharan Africa overwhelmed digital growth), while net income dropped 24.4% to $3.37B and diluted EPS fell the same 24.4% to $2.35. That earnings hit is partly self-inflicted/transitory — the all-stock $4.9B ChampionX deal added 6.7% to the share count (diluting EPS) and Q4 carried $561M of charges & credits — but it still leaves margins compressed: 9.4% net margin and 12.9% ROE are unremarkable for a company trading at 20.5x trailing EPS and 2.0x sales.

The balance sheet is the bull case. Equity grew 23.6% to $26.1B, long-term debt fell 11.6% to $9.74B, liabilities/equity is a comfortable 1.06x, and current assets ($19.5B) cover current liabilities ($14.7B) at 1.33x. Cash generation is intact: $6.49B operating cash flow against just $1.69B capex implies ~$4.1B free cash flow (matching management's figure), funding the $1.60B dividend and a commitment to return more than $4B to shareholders in 2026. This is a company that compounds cash through the cycle rather than one in distress.