01—Abstract
Summary
Summary of the 10-K filed February 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Baker Hughes Company reported strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $27.8 billiona, a 9% increase from the previous year.
This growth was primarily driven by the Industrial & Energy Technology (IET) segment, which saw a significant 20%b 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 millionc 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.
02—Key points
Key Highlights
- Total revenue increased by 9% to $27.8 billion in 2024, driven primarily by the IET segment's 20% growth.
- Operating income saw a substantial increase of 33% to $3.1 billion, reflecting improved volumes, favorable pricing, and cost optimization initiatives.
- The company invested $643 million in Research and Development, highlighting a commitment to innovation and future growth, particularly in energy transition technologies.
- Remaining Performance Obligations (RPO) stood at a robust $33.1 billion as of December 31, 2024, indicating strong future revenue potential.
- Baker Hughes returned $1.3 billion to shareholders in 2024 via dividends and share repurchases, demonstrating a focus on shareholder returns.
- The company reported a significant reversal of a valuation allowance for deferred tax assets in 2024, leading to a $664 million tax benefit.
- The 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 4, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $27.83B$25.51B | +9.1% |
| R&D Expenses | $643.00M$651.00M | −1.2% |
| SG&A Expenses | $2.46B$2.61B | −5.9% |
| Operating Expenses | $24.75B$23.19B | +6.7% |
| Operating Income | $3.08B$2.32B | +33.0% |
| Net Income | $2.98B$1.94B | +53.3% |
| EPS (Basic) | $3.00$1.93 | +55.4% |
| EPS (Diluted) | $2.98$1.91 | +56.0% |
05—Questions
Frequently Asked Questions
What were Baker Hughes' key financial results for the fiscal year 2024?
Baker Hughes reported total revenues of $27.8 billion, a 9% increase from 2023, and operating income of $3.1 billion, a 33% increase. Net income attributable to Baker Hughes Company was $3.0 billion. The company also maintained strong remaining performance obligations of $33.1 billion at the end of the year.
Which segment performed best in 2024 and what drove this performance?
The Industrial & Energy Technology (IET) segment was the strongest performer, with revenue increasing by 20% to $12.2 billion. This growth was primarily driven by higher volumes in Gas Technology Equipment, along with favorable pricing and cost-out initiatives.
How is Baker Hughes addressing the energy transition?
Baker Hughes is strategically investing in energy transition solutions such as hydrogen, CCUS, geothermal, and clean power. This is supported by a $643 million investment in R&D, focused on developing new technologies and improving existing ones to meet evolving customer needs and support decarbonization efforts.
What is the company's outlook for 2025?
For 2025, Baker Hughes anticipates a muted outlook for upstream spending in North America due to oil price volatility. However, the company expects continued strength in its IET segment, particularly in LNG, floating production storage and offloading (FPSO), gas infrastructure, and new energy solutions, as well as increasing opportunities in industrial and distributed power markets.
06—Continue