Baker Hughes Company BKR reported fourth-quarter 2024 adjusted earnings of 70 cents per share, which beat the Zacks Consensus Estimate of 63 cents. The bottom line also improved from the year-ago level of 51 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total quarterly revenues of $7,364 million surpassed the Zacks Consensus Estimate of $7,094 million. The top line increased from the year-ago quarter’s $6,835 million.
The strong quarterly earnings were primarily driven by higher operational performances across both segments and an improving EBITDA margin.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Dividend Hike
As of Jan. 31, 2025, Baker Hughes declared an increased quarterly cash dividend of 23 cents per share of Class A common stock, payable on Feb. 21, 2025, to shareholders of record as of Feb. 11, 2025. This represents a 10% increase from the previous quarterly dividend of 21 cents per share.
Segmental Performance
BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial and Energy Technology. The segments became operational on Oct. 1, 2022.
Revenues from the Oilfield Services and Equipment unit amounted to $3,871 million, down 2% from the year-ago figure of $3,956 million. The reported figure was below our estimate of $3,884 million.
Operating income from the segment totaled $526 million, up 7% from $492 million in the fourth quarter of 2023. This was driven by favorable pricing and efficiency gains from structural cost reduction initiatives.
Revenues from the Industrial & Energy Technology unit amounted to $3,492 million, up 21% from the year-ago quarter’s $2,879 million. The reported figure beat our estimate of $3,223 million.
Operating income from the segment totaled $584 million, up 42% from the year-ago quarter’s $412 million, driven by higher volumes mainly due to strong proportionate growth in GTE, favorable pricing and improved productivity, partially offset by cost inflation.
Costs & Expenses
Baker Hughes recorded total costs and expenses of $6,699 million in the fourth quarter, up from the year-ago figure of $6,183 million. Our projection for the same was $6,134.4 million.
Orders
Orders from all business segments amounted to $7,496 million, up 9% year over year from $6,904 million. We expected the figure to be $9,753.7 million.
The gain was primarily due to higher order intake in the Industrial & Energy Technology segment.
Free Cash Flow
Baker Hughes generated a free cash flow of $894 million in the reported quarter compared with $633 million a year ago.
Capex & Balance Sheet
BKR’s net capital expenditure in the fourth quarter was $295 million.
As of Dec. 31, 2024, it had cash and cash equivalents of $3,364 million. The Zacks Rank #3 (Hold) company had a long-term debt of $5,970 million at the end of the reported quarter, marking a debt-to-capitalization of 26.1%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Earnings Snapshot
Having already covered Baker Hughes’ fourth-quarter results in detail, let us now examine the earnings reports of two major players in this sector.
Oilfield services giant SLB SLB posted strong fourth-quarter 2024 results, with adjusted earnings per share of 92 cents, surpassing the Zacks Consensus Estimate of 90 cents and exceeding the prior year’s 86 cents. The solid performance was driven by widespread growth and margin improvements, particularly in the Middle East and Asia. Additionally, SLB continues to benefit from advancements in AI and autonomous operations, which have significantly contributed to its results.
Alongside its earnings report, SLB announced that its board of directors approved a 3.6% increase in its quarterly dividend. The company unveiled an accelerated share repurchase program worth $2.3 billion as part of its broader strategy to return at least $4 billion to shareholders in 2025 through dividends and buybacks.
Meanwhile, fellow oilfield services provider Halliburton Company HAL reported fourth-quarter 2024 adjusted earnings of 70 cents per share, aligning with the Zacks Consensus Estimate but falling short of the previous year’s 86 cents per share. The results reflect weaker activity in North America, though this was partially offset by stronger fluid services in the Gulf of Mexico.
Despite anticipating some challenges in the North America market in 2025, Halliburton’s leadership remains confident in the company’s long-term prospects. In 2024, HAL generated more than $2.6 billion in free cash flow and returned $1.6 billion to shareholders. Moving forward, the company plans to focus on expanding its technology portfolio and enhancing its capabilities in drilling, unconventional resources, well intervention, and artificial lift to drive sustainable value creation
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