Summary
Baker Hughes Company reported solid financial results for the third quarter and the first nine months of 2024, demonstrating revenue growth and improved operating income. Total revenue for the third quarter increased by 4% year-over-year to $6.9 billion, driven by strong performance in the Industrial & Energy Technology (IET) segment, which saw a 9% revenue increase. The Oilfield Services & Equipment (OFSE) segment experienced a slight revenue increase of 0.3%. Overall operating income saw a significant jump of 30% in the third quarter to $930 million, reflecting higher volumes, favorable pricing, and successful cost optimization initiatives across both segments, partially offset by cost inflation and unfavorable business mix. For the first nine months of the year, total revenue grew by 10% to $20.5 billion, with IET revenue up 20% and OFSE revenue up 3%. Operating income for the nine-month period increased by 45% to $2.4 billion. The company returned $361 million to shareholders in the third quarter through dividends and share repurchases, underscoring its commitment to a flexible capital allocation strategy. Baker Hughes maintains a positive outlook for the global gas market while acknowledging uncertainty in the oil outlook, expecting upstream spending to remain stable in 2025 compared to 2024.
Financial Highlights
44 data points| Revenue | $6.91B |
| R&D Expenses | $158.00M |
| SG&A Expenses | $612.00M |
| Operating Expenses | $5.98B |
| Operating Income | $930.00M |
| Net Income | $766.00M |
Key Highlights
- 1Total revenue for Q3 2024 rose to $6.9 billion, a 4% increase year-over-year, driven by the IET segment.
- 2Operating income for Q3 2024 surged 30% to $930 million, indicating improved profitability due to higher volumes, pricing, and cost controls.
- 3Year-to-date revenue for the first nine months of 2024 reached $20.5 billion, up 10% from the prior year.
- 4Year-to-date operating income saw a substantial increase of 45% to $2.4 billion.
- 5The company returned $361 million to shareholders in Q3 2024 via dividends and share repurchases.
- 6Baker Hughes projects stable global upstream spending in 2025 compared to 2024, with continued strength expected in the natural gas market.
- 7Significant growth was observed in the IET segment, particularly in Gas Technology and Climate Technology Solutions, while OFSE showed resilience with growth driven by Subsea & Surface Pressure Systems.