10-QPeriod: Q1 FY2025

Baker Hughes Co Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 23, 2025For Securities:BKR

Summary

Baker Hughes Company reported total revenue of $6.43 billion for the first quarter of 2025, a slight increase of $9 million compared to the same period last year. Net income, however, saw a decline of $53 million to $402 million, largely due to a $140 million loss from the change in fair value of equity securities in Q1 2025 compared to a gain in Q1 2024. The Oilfield Services & Equipment (OFSE) segment experienced a revenue decrease of $285 million, primarily driven by lower international and domestic rig counts. Conversely, the Industrial & Energy Technology (IET) segment showed robust growth, with revenue increasing by $294 million, boosted by strong performance in Gas Technology Equipment and Climate Technology Solutions. Despite the year-over-year dip in net income, the company's financial health remains solid. Baker Hughes maintained a strong liquidity position with $3.3 billion in cash and cash equivalents and an undrawn $3.0 billion revolving credit facility. The company also demonstrated commitment to shareholder returns by increasing its quarterly dividend to $0.23 per share and returning a total of $417 million to shareholders through dividends and share repurchases in the quarter. Management expressed optimism about the long-term natural gas outlook while anticipating a softening in the global oil market for the remainder of 2025, with expectations for lower upstream spending globally.

Financial Highlights

41 data points
Beta

Revenue

$6.43B

Net Income

$402.00M

6.3% Net Margin

Total Assets

$38.11B

Cash & Equivalents

$3.28B

Free Cash Flow

$709.00M

Financial Statements
Beta
Revenue$6.43B
R&D Expenses$146.00M
SG&A Expenses$577.00M
Net Income$402.00M

Key Highlights

  • 1Total revenue for Q1 2025 was $6.43 billion, nearly flat year-over-year.
  • 2Net income decreased by 12% to $402 million, primarily impacted by mark-to-market losses on equity securities.
  • 3OFSE segment revenue declined 7.5% to $3.50 billion due to lower activity in international and North American markets.
  • 4IET segment revenue increased 11% to $2.93 billion, driven by growth in Gas Technology Equipment and Climate Technology Solutions.
  • 5The company maintained a strong liquidity position with $3.3 billion in cash and cash equivalents and an undrawn credit facility.
  • 6Shareholder returns included a dividend increase to $0.23 per share and $417 million returned via dividends and share repurchases.
  • 7Baker Hughes anticipates a softening global oil market and lower upstream spending in 2025, while remaining optimistic about the natural gas outlook.

Frequently Asked Questions

The primary driver for the year-over-year decrease in net income was a significant swing in the 'Other (income) expense, net' line item. In Q1 2025, this line reported a loss of $140 million due to changes in the fair value of equity securities, whereas in Q1 2024, it reported a gain of $52 million from the same source. This accounted for the majority of the $53 million decrease in net income.

The Oilfield Services & Equipment (OFSE) segment saw a revenue decline of $285 million (7.5%) to $3.50 billion, attributed to reduced international and domestic rig counts. In contrast, the Industrial & Energy Technology (IET) segment experienced substantial growth, with revenue up $294 million (11%) to $2.93 billion, primarily driven by strong performance in Gas Technology Equipment and Climate Technology Solutions.

Baker Hughes anticipates a softening global oil outlook for the rest of 2025, citing factors like increased OPEC+ production plans and trade policy uncertainties affecting global GDP and oil demand. Consequently, they expect global upstream spending to be lower than in 2024. However, the company remains optimistic about the natural gas outlook, supported by continued demand growth and the push towards decarbonization.

The company is committed to returning capital to shareholders through dividends and share repurchases. In the first quarter of 2025, Baker Hughes increased its quarterly dividend by $0.02 to $0.23 per share. In total, they returned $417 million to shareholders in Q1 2025 through a combination of dividend payments ($229 million) and share repurchases ($188 million).