Summary
Baker Hughes Company reported strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $27.8 billion, a 9% increase from the previous year. This growth was primarily driven by the Industrial & Energy Technology (IET) segment, which saw a significant 20% revenue increase, largely due to strong performance in Gas Technology Equipment. The Oilfield Services & Equipment (OFSE) segment also contributed with a modest 2% revenue increase, mainly from Subsea & Surface Pressure Systems. The company's strategic focus on transforming its core business, driving profitable growth, and delivering results in new energy solutions appears to be yielding positive outcomes. Baker Hughes is actively investing in technologies for the energy transition, including CCUS, hydrogen, and geothermal, evidenced by its $643 million investment in R&D. Looking ahead to 2025, the company anticipates a muted outlook for upstream spending in North America due to oil price volatility but remains optimistic about continued strength in IET, particularly in LNG, gas infrastructure, and new energy solutions. The company also returned $1.3 billion to shareholders through dividends and share repurchases, underscoring its commitment to capital allocation.
Financial Highlights
46 data pointsKey Highlights
- 1Total revenue increased by 9% to $27.8 billion in 2024, driven primarily by the IET segment's 20% growth.
- 2Operating income saw a substantial increase of 33% to $3.1 billion, reflecting improved volumes, favorable pricing, and cost optimization initiatives.
- 3The company invested $643 million in Research and Development, highlighting a commitment to innovation and future growth, particularly in energy transition technologies.
- 4Remaining Performance Obligations (RPO) stood at a robust $33.1 billion as of December 31, 2024, indicating strong future revenue potential.
- 5Baker Hughes returned $1.3 billion to shareholders in 2024 via dividends and share repurchases, demonstrating a focus on shareholder returns.
- 6The company reported a significant reversal of a valuation allowance for deferred tax assets in 2024, leading to a $664 million tax benefit.
- 7The outlook for 2025 anticipates continued strength in the IET segment, particularly in LNG and new energy solutions, while acknowledging a muted outlook for OFSE in North America.