In This Article:
Baker Hughes Company BKR reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues of $6,427 million missed the Zacks Consensus Estimate of $6,512 million. The top line increased from the year-ago quarter’s $6,418 million.
The strong quarterly earnings were primarily driven by higher demand for natural gas technologyand an improving EBITDA margin.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
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 (“OFSE”) unit amounted to $3,499 million, down 8% from the year-ago figure of $3,783 million. The reported figure was below our estimate of $3,598 million.
Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) from the segment totaled $623 million, down 3% from $644 million in the first quarter of 2024. This was due to lower volume, partially mitigated by productivity from structural cost-out initiatives.
Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $2,928 million, up 11% from the year-ago quarter’s $2,634 million. The reported figure beat our estimate of $2,896 million.
EBITDA from the segment totaled $501 million, up 30% from the year-ago quarter’s $386 million, driven by productivity, positive pricing and increased volume, including higher proportionate growth in GTE, partially offset by cost inflation.
Costs & Expenses
Baker Hughes recorded total costs and expenses of $5,866 million in the first quarter, up from the year-ago figure of $5,777 million. Our projection for the same was $5,874.7 million.
Orders
Orders from all business segments amounted to $6,459 million, down 1% from $6,542 million recorded a year ago. We expected the figure to be $6,491.6 million. This was primarily due to lower order intake in the OFSE segment.
Free Cash Flow
Baker Hughes generated a free cash flow of $454 million compared with $502 million a year ago.
Capex & Balance Sheet
BKR’s net capital expenditure in the first quarter was $255 million.
As of March 31, 2025, it had cash and cash equivalents of $3,277 million. BKR had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.