Baker Hughes Company Announces First-Quarter 2025 Results
Baker Hughes (BKR) reported strong Q1 2025 results with orders of $6.5 billion and revenue of $6.4 billion. The company achieved attributable net income of $402 million and adjusted EBITDA of $1,037 million, up 10% year-over-year.
Key financial metrics include GAAP diluted EPS of $0.40, adjusted diluted EPS of $0.51, and free cash flow of $454 million. The company returned $417 million to shareholders, including $188 million in share repurchases.
The Industrial & Energy Technology (IET) segment secured $3.2 billion in orders, including first-time data center awards totaling over 350 MW of power solutions. The company maintained a strong pipeline in LNG, FPSO, and gas infrastructure projects. The Oilfield Services & Equipment (OFSE) segment demonstrated margin improvement despite revenue decline.
Baker Hughes (BKR) ha riportato risultati solidi nel primo trimestre 2025 con ordini per 6,5 miliardi di dollari e ricavi per 6,4 miliardi di dollari. L'azienda ha realizzato un utile netto attribuibile di 402 milioni di dollari e un EBITDA rettificato di 1.037 milioni di dollari, in crescita del 10% su base annua.
I principali indicatori finanziari includono un utile per azione (EPS) diluito GAAP di 0,40 dollari, un EPS diluito rettificato di 0,51 dollari e un flusso di cassa libero di 454 milioni di dollari. La società ha restituito 417 milioni di dollari agli azionisti, di cui 188 milioni in riacquisti di azioni.
Il segmento Industrial & Energy Technology (IET) ha ottenuto ordini per 3,2 miliardi di dollari, inclusi premi per data center per la prima volta, per un totale di oltre 350 MW di soluzioni energetiche. L’azienda ha mantenuto un solido portafoglio di progetti in LNG, FPSO e infrastrutture per il gas. Il segmento Oilfield Services & Equipment (OFSE) ha mostrato un miglioramento dei margini nonostante il calo dei ricavi.
Baker Hughes (BKR) reportó resultados sólidos en el primer trimestre de 2025 con pedidos por 6.5 mil millones de dólares y ingresos por 6.4 mil millones de dólares. La empresa logró un ingreso neto atribuible de 402 millones de dólares y un EBITDA ajustado de 1,037 millones de dólares, un aumento del 10% interanual.
Las métricas financieras clave incluyen un EPS diluido GAAP de 0.40 dólares, un EPS diluido ajustado de 0.51 dólares y un flujo de caja libre de 454 millones de dólares. La compañía devolvió 417 millones de dólares a los accionistas, incluyendo 188 millones en recompra de acciones.
El segmento Industrial & Energy Technology (IET) aseguró pedidos por 3.2 mil millones de dólares, incluyendo premios por primera vez en centros de datos que suman más de 350 MW en soluciones de energía. La empresa mantuvo una sólida cartera en proyectos de GNL, FPSO e infraestructura de gas. El segmento Oilfield Services & Equipment (OFSE) mostró mejora en los márgenes a pesar de la caída en ingresos.
Baker Hughes (BKR)는 2025년 1분기에 65억 달러의 수주와 64억 달러의 매출로 강력한 실적을 보고했습니다. 회사는 귀속 순이익 4억 200만 달러와 10% 증가한 10억 3,700만 달러의 조정 EBITDA를 달성했습니다.
주요 재무 지표로는 GAAP 희석 주당순이익(EPS) 0.40달러, 조정 희석 EPS 0.51달러, 그리고 4억 5,400만 달러의 잉여 현금 흐름이 포함됩니다. 회사는 주주들에게 4억 1,700만 달러를 환원했으며, 이 중 1억 8,800만 달러는 자사주 매입에 사용되었습니다.
산업 및 에너지 기술(IET) 부문은 32억 달러의 수주를 확보했으며, 데이터 센터 관련 최초 수주로 350MW 이상의 전력 솔루션을 포함했습니다. 회사는 LNG, FPSO, 가스 인프라 프로젝트에서 강력한 파이프라인을 유지했습니다. 석유 서비스 및 장비(OFSE) 부문은 매출 감소에도 불구하고 마진 개선을 보여주었습니다.
Baker Hughes (BKR) a annoncé de solides résultats pour le premier trimestre 2025 avec des commandes de 6,5 milliards de dollars et un chiffre d'affaires de 6,4 milliards de dollars. La société a réalisé un résultat net attribuable de 402 millions de dollars et un EBITDA ajusté de 1 037 millions de dollars, en hausse de 10 % par rapport à l'année précédente.
Les principaux indicateurs financiers comprennent un BPA dilué GAAP de 0,40 dollar, un BPA dilué ajusté de 0,51 dollar, et un flux de trésorerie disponible de 454 millions de dollars. L'entreprise a reversé 417 millions de dollars aux actionnaires, dont 188 millions en rachats d'actions.
Le segment Industrial & Energy Technology (IET) a obtenu 3,2 milliards de dollars de commandes, incluant pour la première fois des contrats pour des centres de données totalisant plus de 350 MW de solutions énergétiques. La société a maintenu un solide carnet de commandes dans les projets de GNL, FPSO et infrastructures gazières. Le segment Oilfield Services & Equipment (OFSE) a montré une amélioration des marges malgré une baisse du chiffre d'affaires.
Baker Hughes (BKR) meldete starke Ergebnisse für das erste Quartal 2025 mit Aufträgen in Höhe von 6,5 Milliarden US-Dollar und Umsätzen von 6,4 Milliarden US-Dollar. Das Unternehmen erzielte ein zurechenbares Nettoergebnis von 402 Millionen US-Dollar und ein bereinigtes EBITDA von 1.037 Millionen US-Dollar, was einem Anstieg von 10 % im Jahresvergleich entspricht.
Wichtige Finanzkennzahlen umfassen ein GAAP verwässertes Ergebnis je Aktie (EPS) von 0,40 US-Dollar, ein bereinigtes verwässertes EPS von 0,51 US-Dollar und einen freien Cashflow von 454 Millionen US-Dollar. Das Unternehmen gab 417 Millionen US-Dollar an die Aktionäre zurück, darunter 188 Millionen US-Dollar für Aktienrückkäufe.
Der Bereich Industrial & Energy Technology (IET) sicherte sich Aufträge in Höhe von 3,2 Milliarden US-Dollar, darunter erstmalige Aufträge für Rechenzentren mit insgesamt über 350 MW Energiesystemen. Das Unternehmen behielt eine starke Pipeline in den Bereichen LNG, FPSO und Gasinfrastrukturprojekte bei. Der Bereich Oilfield Services & Equipment (OFSE) zeigte trotz Umsatzrückgang eine Margenverbesserung.
- Adjusted EBITDA increased 10% year-over-year to $1,037 million
- Secured first data center awards worth 350+ MW of power solutions
- Record IET RPO of $30.4 billion
- Strong margin improvement in OFSE segment despite revenue decline
- Returned $417 million to shareholders through buybacks and dividends
- Net income decreased 12% year-over-year to $402 million
- Orders declined 14% sequentially to $6.5 billion
- OFSE revenue decreased 8% year-over-year
- Free cash flow declined 10% year-over-year to $454 million
Insights
Baker Hughes delivered mixed Q1 results with flat revenue but improved adjusted profitability year-over-year, offset by significant sequential declines.
Baker Hughes' Q1 2025 financial performance presents a nuanced picture. Despite flat year-over-year revenue of
The sequential declines across key metrics are concerning but partially reflect seasonal patterns. Revenue dropped
Baker Hughes maintained strong cash generation with operating cash flow of
The record IET RPO of
Baker Hughes strategically diversifies beyond oil and gas with data center entry while maintaining LNG leadership despite challenging market conditions.
Baker Hughes is executing a strategic transformation that extends beyond traditional energy sectors. The company's expansion into data center power solutions with first-time awards totaling over 350 MW represents significant diversification. This move into rapidly growing digital infrastructure leverages the company's gas turbine technology while reducing dependence on traditional hydrocarbon development cycles.
Simultaneously, Baker Hughes has strengthened its leadership position in LNG with multiple strategic wins. Key awards include liquefaction train equipment from Bechtel for North American LNG, framework agreements with NextDecade for Rio Grande LNG Facility (Trains 4-8), and an agreement with Argent LNG for a 24 MTPA export facility utilizing Baker Hughes' modular NMBL solution and LM9000 turbines.
The company's digital transformation initiatives are gaining traction across sectors, with Cordant Asset Performance Management deployments for ADNOC Offshore and mining companies in Australia. These solutions create recurring revenue streams while embedding Baker Hughes deeper into customer operations.
Regional challenges are evident in OFSE performance, with revenue declining across all regions except modest growth in Middle East/Asia. Most concerning is the
Baker Hughes' strategic partnership with Frontier Infrastructure to develop carbon capture solutions for data centers represents an innovative intersection of decarbonization technology with digital infrastructure growth, positioning the company at the nexus of energy transition and digital transformation.
First-quarter highlights
- Orders of
$6.5 billion , including$3.2 billion of IET orders. - RPO of
$33.2 billion , including record IET RPO of$30.4 billion . - Revenue of
$6.4 billion , consistent year-over-year. - Attributable net income of
$402 million . - GAAP diluted EPS of
$0.40 and adjusted diluted EPS* of$0.51 . - Adjusted EBITDA* of
$1,037 million , up10% year-over-year. - Cash flows from operating activities of
$709 million and free cash flow* of$454 million . - Returns to shareholders of
$417 million , including$188 million of share repurchases.
HOUSTON and LONDON, April 22, 2025 (GLOBE NEWSWIRE) -- Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the first quarter of 2025.
"Baker Hughes started the year strong, building on the positive momentum from 2024 and setting multiple first-quarter records. Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments. The operational transformation and streamlining efforts have created a solid foundation to optimize margins and enhance returns, even in a challenging environment," said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
"In our IET segment, we booked
"In OFSE, EBITDA remained resilient as our margins saw noticeable improvement compared to last year even while segment revenue fell. This is a testament to the team's hard work in changing the way the business operates."
"Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio. We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value."
"I want to thank our employees, whose hard work, dedication and focus have been instrumental to the continued success of Baker Hughes. As we continue to execute our strategy amidst an uncertain macro backdrop, we remain committed to our customers, shareholders and employees," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
| Three Months Ended | Variance | ||||||||||
| (in millions except per share amounts) | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | ||||||
| Orders | $ | 6,459 | $ | 7,496 | $ | 6,542 | (14 | %) | (1 | %) | |
| Revenue | 6,427 | 7,364 | 6,418 | (13 | %) | — | % | ||||
| Net income attributable to Baker Hughes | 402 | 1,179 | 455 | (66 | %) | (12 | %) | ||||
| Adjusted net income attributable to Baker Hughes* | 509 | 694 | 429 | (27 | %) | 19 | % | ||||
| Adjusted EBITDA* | 1,037 | 1,310 | 943 | (21 | %) | 10 | % | ||||
| Diluted earnings per share (EPS) | 0.40 | 1.18 | 0.45 | (66 | %) | (11 | %) | ||||
| Adjusted diluted EPS* | 0.51 | 0.70 | 0.43 | (27 | %) | 19 | % | ||||
| Cash flow from operating activities | 709 | 1,189 | 784 | (40 | %) | (10 | %) | ||||
| Free cash flow* | 454 | 894 | 502 | (49 | %) | (10 | %) | ||||
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
Quarter Highlights
Baker Hughes expanded its leadership position in liquefied natural gas ("LNG") in the first quarter, including a liquefaction train award from Bechtel for a project in North America, where the Company will provide four main refrigerant compressors driven by LM6000+ gas turbines and four expander-compressors. This award builds on the previously announced December 2024 award and further demonstrates the strength of the Company's collaboration with Bechtel to support North America LNG development.
During the quarter, Industrial & Energy Technology ("IET") signed key strategic framework agreements with LNG operators. The Company agreed to provide gas turbines and refrigerant compressor technology, along with maintenance services, for Trains 4 to 8 of NextDecade's Rio Grande LNG Facility. Baker Hughes also reached an agreement with Argent LNG to provide liquefaction and power solutions and related aftermarket services for its proposed 24 MTPA LNG export facility in Louisiana. The project will employ Baker Hughes' NMBL™ modularized LNG solution, driven by the LM9000 gas turbine, while also utilizing the Company's iCenter™ and Cordant™ digital solution, to enhance the plant's operational efficiency.
Baker Hughes also demonstrated its continuous commitment to critical gas infrastructure projects with a strategic win in the North America pipeline compression market. The award includes the provision of two gas compression stations for a total of 10 Frame 5/2E gas turbines and 10 centrifugal compressors, anti-surge valves and critical spare parts.
In the first quarter, Baker Hughes made significant progress in reliable and sustainable power solutions deployment for data centers. In addition to being awarded over 350 MW of NovaLT™ turbines to power data centers with various other customers, the Company partnered with Frontier Infrastructure to accelerate the development of large-scale carbon capture and storage ("CCS") and power solutions for data centers and industrial customers in the U.S. This partnership will leverage technologies and services across the Baker Hughes enterprise by providing CO₂ compression, NovaLT™ gas turbines, digital monitoring solutions, well construction and completion services.
In continued demonstration of Gas Technology's lifecycle offerings in IET, the Company received several aftermarket service awards during the quarter. In Algeria, the Gas Technology Services ("GTS") team is partnering with SONATRACH to deliver an upgrade solution for the modernization of a key compressor station. In the Middle East, Gas Technology received multiple equipment and services awards to support one of the world's largest gas processing plants. The scope includes rejuvenation of two existing gas turbines to drive new compressors and the supply of a third compression train to support production expansion.
IET's Industrial Solutions gained momentum with its Cordant™ Asset Performance Management ("APM") solution, securing several contracts with customers across multiple regions. ADNOC Offshore will deploy the full APM suite to enhance production availability and efficiency. In the Americas, a large international oil company will conduct a proof of concept across multiple equipment trains, to support a shift from proactive to predictive maintenance. In Australia, the Company signed agreements to develop asset maintenance strategies for new mine sites supporting truck fleet maintenance.
Oilfield Services & Equipment ("OFSE") received a significant award from ExxonMobil Guyana to provide specialty chemicals and related services for its Uaru and Whiptail offshore greenfield developments in the country's prolific Stabroek Block, highlighting the differentiated capabilities of our Production Solutions offering. For this multi-year contract, the scope will cover topsides, subsea, water injection and utility chemicals to help ExxonMobil Guyana achieve optimal production.
OFSE continues to leverage the Company's innovative solutions to help Petrobras unlock Brazil's vast energy supply. In the quarter and following an open tender, Baker Hughes received a significant, multi-year fully integrated completions systems contract from Petrobras across multiple deepwater fields. A range of Baker Hughes' technologies, including the new SureCONTROLTM Premium interval control valve, has been specifically tailored to meet the needs of the country's offshore developments.
OFSE secured a multi-year contract with Dubai Petroleum Establishment, for and on behalf of Dubai Supply Authority, to provide integrated coiled-tubing drilling services for the Company's Margham Gas storage project. This follows a third-quarter 2024 IET award for integrated compressor line units for the same project, demonstrating growing commercial synergies across Baker Hughes' diverse portfolio.
The Company drove growth in Mature Assets Solutions, signing a multi-year framework agreement with Equinor to help establish a new Center of Excellence for Plug & Abandonment work in the North Sea. Based within OFSE's operations in Bergen and Stavanger, Norway, this hub will ensure economical, reliable solutions are implemented to responsibly abandon each well, allowing Equinor to maximize value of their assets and allocate more resources to exploration and discovery.
On the digital front, OFSE received an award from the State Oil Company of Azerbaijan Republic ("SOCAR") to expand deployment of Leucipa™ automated field production solution for all its wells, including those with non-Baker Hughes electric submersible pumps, in the Absheron and Gunseli fields. Leucipa also marked its first deployment in Sub-Saharan Africa through an agreement with the NNPC/FIRST E&P joint venture, which will utilize the platform across its offshore wells in the Niger Delta.
Consolidated Financial Results
Revenue for the quarter was
The Company's total book-to-bill ratio in the first quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.
Net income as determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), for the first quarter of 2025 was
Adjusted net income (a non-GAAP financial measure) for the first quarter of 2025 was
Depreciation and amortization for the first quarter of 2025 was
Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2025 was
The sequential decrease in adjusted net income and adjusted EBITDA was primarily driven by lower volume in both segments, partially offset by productivity and structural cost-out initiatives. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by increased volume in IET including higher proportionate growth in Gas Technology Equipment ("GTE") and productivity, structural cost-out initiatives and higher pricing in both segments, partially offset by decreased volume and business mix in OFSE and cost inflation in both segments.
Other Financial Items
Remaining Performance Obligations ("RPO") in the first quarter of 2025 ended at
Income tax expense in the first quarter of 2025 was
Other (income) expense, net in the first quarter of 2025 was
GAAP diluted earnings per share was
Cash flow from operating activities was
Capital expenditures, net of proceeds from disposal of assets, were
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
Oilfield Services & Equipment
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Segment results | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | |||||||||
| Orders | $ | 3,281 | $ | 3,740 | $ | 3,624 | (12 | %) | (9 | %) | ||||
| Revenue | $ | 3,499 | $ | 3,871 | $ | 3,783 | (10 | %) | (8 | %) | ||||
| EBITDA | $ | 623 | $ | 755 | $ | 644 | (18 | %) | (3 | %) | ||||
| EBITDA margin | 17.8 | % | 19.5 | % | 17.0 | % | -1.7pts | 0.8pts | ||||||
| (in millions) | Three Months Ended | Variance | |||||||||
| Revenue by Product Line | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | ||||||
| Well Construction | $ | 892 | $ | 943 | $ | 1,061 | (5 | %) | (16 | %) | |
| Completions, Intervention, and Measurements | 925 | 1,022 | 1,006 | (9 | %) | (8 | %) | ||||
| Production Solutions | 899 | 974 | 945 | (8 | %) | (5 | %) | ||||
| Subsea & Surface Pressure Systems | 782 | 932 | 771 | (16 | %) | 1 | % | ||||
| Total Revenue | $ | 3,499 | $ | 3,871 | $ | 3,783 | (10 | %) | (8 | %) | |
| (in millions) | Three Months Ended | Variance | |||||||||
| Revenue by Geographic Region | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | ||||||
| North America | $ | 922 | $ | 971 | $ | 990 | (5 | %) | (7 | %) | |
| Latin America | 568 | 661 | 637 | (14 | %) | (11 | %) | ||||
| Europe/CIS/Sub-Saharan Africa | 580 | 740 | 750 | (22 | %) | (23 | %) | ||||
| Middle East/Asia | 1,429 | 1,499 | 1,405 | (5 | %) | 2 | % | ||||
| Total Revenue | $ | 3,499 | $ | 3,871 | $ | 3,783 | (10 | %) | (8 | %) | |
| North America | $ | 922 | $ | 971 | $ | 990 | (5 | %) | (7 | %) | |
| International | $ | 2,577 | $ | 2,900 | $ | 2,793 | (11 | %) | (8 | %) | |
EBITDA excludes depreciation and amortization of
OFSE orders of
OFSE revenue of
North America revenue was
Segment EBITDA for the first quarter of 2025 was
Industrial & Energy Technology
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Segment results | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | |||||||||
| Orders | $ | 3,178 | $ | 3,756 | $ | 2,918 | (15 | %) | 9 | % | ||||
| Revenue | $ | 2,928 | $ | 3,492 | $ | 2,634 | (16 | %) | 11 | % | ||||
| EBITDA | $ | 501 | $ | 639 | $ | 386 | (22 | %) | 30 | % | ||||
| EBITDA margin | 17.1 | % | 18.3 | % | 14.7 | % | -1.2pts | 2.4pts | ||||||
| (in millions) | Three Months Ended | Variance | |||||||||
| Orders by Product Line | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | ||||||
| Gas Technology Equipment | $ | 1,335 | $ | 1,865 | $ | 1,230 | (28 | %) | 9 | % | |
| Gas Technology Services | 913 | 902 | 692 | 1 | % | 32 | % | ||||
| Total Gas Technology | 2,248 | 2,767 | 1,922 | (19 | %) | 17 | % | ||||
| Industrial Products | 501 | 515 | 546 | (3 | %) | (8 | %) | ||||
| Industrial Solutions | 281 | 320 | 257 | (12 | %) | 10 | % | ||||
| Total Industrial Technology | 782 | 835 | 803 | (6 | %) | (3 | %) | ||||
| Climate Technology Solutions | 148 | 154 | 193 | (4 | %) | (23 | %) | ||||
| Total Orders | $ | 3,178 | $ | 3,756 | $ | 2,918 | (15 | %) | 9 | % | |
| (in millions) | Three Months Ended | Variance | |||||||||
| Revenue by Product Line | March 31, 2025 | December 31, 2024 | March 31, 2024 | Sequential | Year-over- year | ||||||
| Gas Technology Equipment | $ | 1,456 | $ | 1,663 | $ | 1,210 | (12 | %) | 20 | % | |
| Gas Technology Services | 592 | 796 | 614 | (26 | %) | (4 | %) | ||||
| Total Gas Technology | 2,047 | 2,459 | 1,824 | (17 | %) | 12 | % | ||||
| Industrial Products | 445 | 548 | 462 | (19 | %) | (4 | %) | ||||
| Industrial Solutions | 258 | 282 | 265 | (8 | %) | (2 | %) | ||||
| Total Industrial Technology | 703 | 830 | 727 | (15 | %) | (3 | %) | ||||
| Climate Technology Solutions | 178 | 204 | 83 | (13 | %) | 114 | % | ||||
| Total Revenue | $ | 2,928 | $ | 3,492 | $ | 2,634 | (16 | %) | 11 | % | |
EBITDA excludes depreciation and amortization of
IET orders of
IET revenue of
Segment EBITDA for the quarter was
Reconciliation of GAAP to non-GAAP Financial Measures
Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.
Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA
| Three Months Ended | ||||||||
| (in millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||
| Net income attributable to Baker Hughes (GAAP) | $ | 402 | $ | 1,179 | $ | 455 | ||
| Net income attributable to noncontrolling interests | 7 | 11 | 8 | |||||
| Provision (benefit) for income taxes | 152 | (398 | ) | 178 | ||||
| Interest expense, net | 51 | 54 | 41 | |||||
| Depreciation & amortization | 285 | 291 | 283 | |||||
| Restructuring | — | 258 | — | |||||
| Inventory impairment(1) | — | 73 | — | |||||
| Change in fair value of equity securities(2) | 140 | (196 | ) | (52 | ) | |||
| Other charges and credits(2) | — | 38 | 30 | |||||
| Adjusted EBITDA (non-GAAP) | 1,037 | 1,310 | 943 | |||||
| Corporate costs | 85 | 84 | 88 | |||||
| Other income / (expense) not allocated to segments | 1 | — | — | |||||
| Total Segment EBITDA (non-GAAP) | $ | 1,124 | $ | 1,394 | $ | 1,030 | ||
| OFSE | 623 | 755 | 644 | |||||
| IET | 501 | 639 | 386 | |||||
(1) Charges for inventory impairments are reported in "Cost of goods sold" in the condensed consolidated statements of income (loss).
(2) Change in fair value of equity securities and other charges and credits are reported in "Other (income) expense, net" on the condensed consolidated statements of income (loss).
Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.
Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes
| Three Months Ended | |||||||||
| (in millions, except per share amounts) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||
| Net income attributable to Baker Hughes (GAAP) | $ | 402 | $ | 1,179 | $ | 455 | |||
| Restructuring | — | 258 | — | ||||||
| Inventory impairment | — | 73 | — | ||||||
| Change in fair value of equity securities | 140 | (196 | ) | (52 | ) | ||||
| Other adjustments | — | 30 | 32 | ||||||
| Tax adjustments(1) | (32 | ) | (650 | ) | (6 | ) | |||
| Total adjustments, net of income tax | 108 | (485 | ) | (26 | ) | ||||
| Less: adjustments attributable to noncontrolling interests | — | — | — | ||||||
| Adjustments attributable to Baker Hughes | 108 | (485 | ) | (26 | ) | ||||
| Adjusted net income attributable to Baker Hughes (non-GAAP) | $ | 509 | $ | 694 | $ | 429 | |||
| Denominator: | |||||||||
| Weighted-average shares of Class A common stock outstanding diluted | 999 | 999 | 1,004 | ||||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.51 | $ | 0.70 | $ | 0.43 | |||
(1) All periods reflect the tax associated with the other (income) loss adjustments.
Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.
Table 1c. Reconciliation of Net Cash Flows From Operating Activities to Free Cash Flow
| Three Months Ended | |||||||||
| (in millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||
| Net cash flows from operating activities (GAAP) | $ | 709 | $ | 1,189 | $ | 784 | |||
| Add: cash used for capital expenditures, net of proceeds from disposal of assets | (255 | ) | (295 | ) | (282 | ) | |||
| Free cash flow (non-GAAP) | $ | 454 | $ | 894 | $ | 502 | |||
Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.
| Financial Tables (GAAP) | ||||||
| Condensed Consolidated Statements of Income (Loss) | ||||||
| (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| (In millions, except per share amounts) | 2025 | 2024 | ||||
| Revenue | $ | 6,427 | $ | 6,418 | ||
| Costs and expenses: | ||||||
| Cost of revenue | 4,952 | 4,976 | ||||
| Selling, general and administrative | 577 | 618 | ||||
| Research and development costs | 146 | 164 | ||||
| Other (income) expense, net | 140 | (22 | ) | |||
| Interest expense, net | 51 | 41 | ||||
| Income before income taxes | 561 | 641 | ||||
| Provision for income taxes | (152 | ) | (178 | ) | ||
| Net income | 409 | 463 | ||||
| Less: Net income attributable to noncontrolling interests | 7 | 8 | ||||
| Net income attributable to Baker Hughes Company | $ | 402 | $ | 455 | ||
| Per share amounts: | ||||||
| Basic income per Class A common stock | $ | 0.41 | $ | 0.46 | ||
| Diluted income per Class A common stock | $ | 0.40 | $ | 0.45 | ||
| Weighted average shares: | ||||||
| Class A basic | 992 | 998 | ||||
| Class A diluted | 999 | 1,004 | ||||
| Cash dividend per Class A common stock | $ | 0.23 | $ | 0.21 | ||
| Condensed Consolidated Statements of Financial Position | ||||
| (Unaudited) | ||||
| (In millions) | March 31, 2025 | December 31, 2024 | ||
| ASSETS | ||||
| Current Assets: | ||||
| Cash and cash equivalents | $ | 3,277 | $ | 3,364 |
| Current receivables, net | 6,710 | 7,122 | ||
| Inventories, net | 5,161 | 4,954 | ||
| All other current assets | 1,693 | 1,771 | ||
| Total current assets | 16,841 | 17,211 | ||
| Property, plant and equipment, less accumulated depreciation | 5,168 | 5,127 | ||
| Goodwill | 6,126 | 6,078 | ||
| Other intangible assets, net | 3,927 | 3,951 | ||
| Contract and other deferred assets | 1,680 | 1,730 | ||
| All other assets | 4,368 | 4,266 | ||
| Total assets | $ | 38,110 | $ | 38,363 |
| LIABILITIES AND EQUITY | ||||
| Current Liabilities: | ||||
| Accounts payable | $ | 4,465 | $ | 4,542 |
| Short-term debt | 55 | 53 | ||
| Progress collections and deferred income | 5,589 | 5,672 | ||
| All other current liabilities | 2,485 | 2,724 | ||
| Total current liabilities | 12,594 | 12,991 | ||
| Long-term debt | 5,969 | 5,970 | ||
| Liabilities for pensions and other postretirement benefits | 985 | 988 | ||
| All other liabilities | 1,356 | 1,359 | ||
| Equity | 17,206 | 17,055 | ||
| Total liabilities and equity | $ | 38,110 | $ | 38,363 |
| Outstanding Baker Hughes Company shares: | ||||
| Class A common stock | 990 | 990 | ||
| Condensed Consolidated Statements of Cash Flows | ||||||
| (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| (In millions) | 2025 | 2024 | ||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 409 | $ | 463 | ||
| Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
| Depreciation and amortization | 285 | 283 | ||||
| Stock-based compensation cost | 50 | 51 | ||||
| Change in fair value of equity securities | 140 | (52 | ) | |||
| Benefit for deferred income taxes | (53 | ) | (24 | ) | ||
| Working capital | 218 | 209 | ||||
| Other operating items, net | (340 | ) | (146 | ) | ||
| Net cash flows provided by operating activities | 709 | 784 | ||||
| Cash flows from investing activities: | ||||||
| Expenditures for capital assets | (300 | ) | (333 | ) | ||
| Proceeds from disposal of assets | 45 | 51 | ||||
| Other investing items, net | (55 | ) | 13 | |||
| Net cash flows used in investing activities | (310 | ) | (269 | ) | ||
| Cash flows from financing activities: | ||||||
| Dividends paid | (229 | ) | (210 | ) | ||
| Repurchase of Class A common stock | (188 | ) | (158 | ) | ||
| Other financing items, net | (85 | ) | (59 | ) | ||
| Net cash flows used in financing activities | (502 | ) | (427 | ) | ||
| Effect of currency exchange rate changes on cash and cash equivalents | 16 | (17 | ) | |||
| Increase (decrease) in cash and cash equivalents | (87 | ) | 71 | |||
| Cash and cash equivalents, beginning of period | 3,364 | 2,646 | ||||
| Cash and cash equivalents, end of period | $ | 3,277 | $ | 2,717 | ||
| Supplemental cash flows disclosures: | ||||||
| Income taxes paid, net of refunds | $ | 207 | $ | 108 | ||
| Interest paid | $ | 50 | $ | 48 | ||
Supplemental Financial Information
Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.
Conference Call and Webcast
The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, April 23, 2025, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company's website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: www.investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.
These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:
- Economic and political conditions - the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
- Orders and RPO - our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
- Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas.
- Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.
About Baker Hughes:
Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward - making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
Media Relations
Adrienne Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com
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