SLB — SLB Limited

Deep-value report: SLB Limited (formerly Schlumberger Limited / SLB N.V.)

Analysis date: September 1, 2026 · Price: … (NYSE) · Market cap: … · EV ≈ … · Sector: Energy / Oil & Gas Equipment & Services · Single currency: USD (reporting and price)

Primary sources: SEC EDGAR — 10-K FY2021–FY2025 (latest filed 01/23/2026, CIK 0000087347), 10-Q Q1–Q3 2025, 10-Q Q1 2026 (04/29/2026) and Q2 2026 (07/29/2026, downloaded today), 8-K earnings releases Q1 and Q2 2026, 8-K from 08/31/2026 (Kelvion acquisition, Exhibit 99), DEF 14A 2026 (02/26/2026); data pack data-pack-SLB-20260901.md (XBRL companyfacts + yfinance); simulation mc-SLB-20260901.json; EIA STEO August 2026 and financial press for oil-price context.

Executive summary

SLB is the world’s largest supplier of services and technology for the oil industry: … revenue in FY2025, 109,000 employees, operations in over 100 countries, the #1 or #2 position in practically every service line it enters. The business is real, the moat is real, and cash generation is remarkably stable: free cash flow of … (2023), … (2024), … (2025) and … over the last 12 months — three and a half years in which free cash flow hasn’t left the …–4.12 bn band, despite a 24% collapse in net profit between 2024 and 2025 (10-K FY2025, “Changes in Liquidity” section). That’s the signature of a business with a durable competitive position.

The problem isn’t the business. It’s the price. On July 31, 2026, when the prior deep report was written, the stock was at … Today it’s at … — … in five weeks and a 12-month high (12-month low: …). The re-rating doesn’t come from oilfield fundamentals: TTM adjusted EBITDA (…) is below FY2025 (…) and 11% below FY2024 (…), while the adjusted EBITDA margin fell from 25.0% (2024) to 23.7% (2025) and 21.2% in Q2 2026. The re-rating comes from the AI infrastructure narrative: Data Center Solutions grew 121% in 2025 and 63% in the first half of 2026, and yesterday, August 31, 2026, SLB announced the Kelvion acquisition for … cash plus … assumed debt — a German maker of heat exchangers and thermal management, at ~11× estimated 2026 EBITDA.

The arithmetic of value. Owner earnings for the SLB shareholder, calculated from the FCF bridge below, are … mn over the last 12 months (CFO … mn − capex … mn − APS investments … mn − capitalized exploration data … mn − … mn distributed to OneSubsea and Capturi minorities). At 1,506 mn diluted shares, that’s … per share, i.e. an FCFE yield of 4.3% at … — a multiple of 23.4× free cash flow. The 5-year historic median of the same multiple was 13.8×. A two-stage DCF, with 5% growth over ten years and a …% discount rate, gives …/share, a margin of safety of …. To justify … at an already generous discount rate of …, you need free cash flow to grow ~9% a year for ten years, at a company whose free cash flow has been flat for three and a half years.

The Monte Carlo simulation (20,000 scenarios, same central assumptions, with OE ±25% lognormal, g₁ σ=3pp, r σ=100bp) gives a 5.5% probability the stock is undervalued and only a 0.9% probability of a margin of safety above 30%. Of the five triangulated models, four give margins between … and …; the only one close to the market price is the bull scenario, which assumes Data Center Solutions hits its …–5 bn revenue target in 2028 AND the rest of the portfolio grows — and it still comes out at ….

Estimated value: …–…/share, median … Not a narrow range, but the entire range is below the price.

Verdict: AVOID AT CURRENT PRICE. This isn’t a short thesis — the business is too good and the balance sheet too solid for that. It’s a patience thesis: SLB was a reasonable buy at …–40 (where it sat between June 2025 and January 2026, exactly when the company was aggressively buying back shares at an average of …) and it’s a bad buy at … The entry zone remains below … — below the historic median free-cash-flow multiple, not below some analyst target.