Baker Hughes Co Earnings
In the first quarter of 2025, Baker Hughes Company demonstrated solid performance by aligning itself with evolving market demands. The company continues its momentum from 2024, reporting earnings marked by strategic wins, particularly in its Industrial & Energy Technology (IET) segment. The results reflect Baker Hughes' robust operational strategies and an adaptable business model that helped navigate challenging environments.
Baker Hughes Co Results
To provide a comprehensive overview of Baker Hughes' financial results, the key financial metrics are outlined below:
| Metric | Q1 2025 (USD) | Q1 2024 (USD) | Year-over-Year % Change |
|---|---|---|---|
| Total Revenue | $6,427 million | $6,418 million | +0.14% |
| Net Income | $402 million | $455 million | -11.64% |
| Adjusted EBITDA* | $1,037 million | $943 million | +10% |
Note: The percentages indicate the change where applicable.
Revenue Breakdown
Baker Hughes operates through two key segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). The revenue performance in these segments is summarized below:
| Segment | Q1 2025 Revenue (USD) | Year-over-Year % Change |
|---|---|---|
| IET | $2,928 million | +11% |
| OFSE | $3,499 million | -8% |
Revenue Segments Analysis
Industrial & Energy Technology (IET): This segment reported notable growth, with revenue increasing 11% year-over-year, driven primarily by gains in Gas Technology Equipment and Climate Technology Solutions. Bookings in IET reached $3.2 billion, signifying a 9% year-over-year increase. This includes the first orders for data center power solutions, demonstrating Baker Hughes' strategic entry into new markets, as well as continued strong performance in LNG, FPSO, and gas infrastructure projects.
Oilfield Services & Equipment (OFSE): Despite facing revenue declines, the OFSE segment posted significant improvements in EBITDA margins due to structural cost reductions and productivity enhancements. While orders decreased by 12% sequentially, OFSE managed to secure significant deals, such as a multi-year integrated completions systems contract from Petrobras and a substantial award from ExxonMobil Guyana for specialty chemicals services offshore.
Key Developments
During the first quarter of 2025, Baker Hughes solidified its leadership in LNG technology, securing a liquefaction train award from Bechtel for a North American project. Baker Hughes will supply compressors and gas turbines, showcasing its collaboration with Bechtel. Additionally, the company signed framework agreements with LNG operators to provide turbine and compressor technology for major LNG projects in the U.S.
The company also made strides in the power solutions market for data centers, exemplified by its partnership with Frontier Infrastructure to accelerate carbon capture and storage solutions. Collaborations extend globally, from compressor station modernization projects in Algeria with SONATRACH to equipment and services awards for a Middle East gas processing plant expansion.
Comments from Company Officers
Lorenzo Simonelli, Chairman and CEO, highlighted the impressive start to the year, driven by ongoing transformation initiatives and excellent execution. Simonelli noted the resilience of IET revenue growth and took pride in setting first-quarter records despite economic uncertainties. He expressed optimism about Baker Hughes' position to achieve sustainable growth, emphasizing the team’s hard work in adapting business operations.
Dividends and Share Repurchases
Baker Hughes demonstrated its commitment to shareholders by returning $417 million, which includes $188 million in share repurchases. This is testament to the company’s focus on delivering value by optimizing capital allocation to enhance shareholder returns.
Baker Hughes Co Stock Forecast
The strategic achievements and financial performances in Q1 2025 positioned Baker Hughes favorably for future growth. Based on the latest free cash flows, strong order pipeline, and significant market position in LNG and subsea solutions, the company projects positive momentum for its stock.
Stock Price Forecast: - High projection: $1.60, driven by continued execution of strategic growth initiatives and robust demand in energy technology markets. - Low projection: $1.30, considering potential fluctuations in the broader macroeconomic conditions or unforeseen operational challenges.
These forecasts are based on current financial performance, business updates, and market conditions. Given Baker Hughes’ market capitalization of approximately $34.35 billion, company projections suggest it remains a strong player in the energy technology market.
Disclaimer: Projections are inherently speculative and actual stock market performance may differ due to a myriad of factors.
Overall, Baker Hughes presents an optimistic outlook with strategic initiatives paving the way for sustained shareholder value and innovation at the cutting edge of energy and industrial solutions.
