Baker Hughes Releases Third Quarter 2024 Financial Results
Baker Hughes Company (NASDAQ: BKR) reported its third-quarter financial results for 2024, showcasing solid performance despite modest declines in some areas relative to expectations.
Key Financial Metrics
| Metric | Q3 2024 Actual | Q3 2024 Consensus | Year-Over-Year Change | Quarter-Over-Quarter Change |
|---|---|---|---|---|
| Revenue | $6.9 billion | $7.22 billion | +4% | -3% |
| Adjusted Diluted EPS | $0.67 | $0.61 | N/A | N/A |
| Adjusted EBITDA | $1.208 billion | N/A | +23% | +7% |
The results indicate Baker Hughes exceeded EPS consensus with $0.67 against the forecasted $0.61, though the revenue fell short of the expected $7.22 billion, landing at $6.9 billion. Moreover, the company showed improved earnings supported by operational performance and EBITDA margin enhancement to 17.5%, which marked its highest since inception.
Revenue by Segment
| Segment | Q3 2024 Revenue | Year-Over-Year Change |
|---|---|---|
| Oilfield Services & Equipment (OFSE) | $3.963 billion | +0.3% |
| Industrial & Energy Technology (IET) | $2.945 billion | +9% |
The IET segment exhibited strong performance, showcasing significant growth driven by Climate Technology Solutions and Gas Technology. The OFSE segment maintained steady revenue growth, albeit at a slower pace. The decline in IET orders reflects some year-over-year headwinds, predominantly within Gas Technology Equipment.
Operational Highlights
- New record with $2.9 billion in IET orders, including significant contracts with Dubai Petroleum Establishment.
- Sustained EBITDA margin improvement and increasing adoption of digital solutions like Leucipa across operations in the Permian Basin.
- Introduction of CarbonEdge, a digital solution designed for CO2 flow monitoring across Carbon Capture, Utilization, and Storage (CCUS) infrastructure.
Management Comments
Lorenzo Simonelli, Chairman and CEO, highlighted the company's strategic execution consistency and operational discipline, recognizing the value of record EBITDA performance and across-the-board margin enhancements. The high order volume and strategic partnerships, particularly within IET, underpin the sustainable growth trajectory and client trust in Baker Hughes.
Dividends and Share Repurchase Program
Baker Hughes returned $361 million to shareholders, including $152 million in share repurchases, illustrating its commitment to shareholder value.
Forward Guidance and Stock Price Movement
No specific forward guidance for the next quarter was discussed. Post-earnings, Baker Hughes' stock saw a reduction of approximately 1.29%.
These results demonstrate Baker Hughes' relatively resilient performance in an uncertain market environment, leveraging its innovative technology solutions and strategic focus on long-term growth.
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