10-QPeriod: Q2 FY2025

Baker Hughes Co Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 23, 2025For Securities:BKR

Summary

Baker Hughes Company reported its second quarter 2025 results, showing a slight year-over-year revenue decrease to $6.9 billion, primarily due to softer activity in the Oilfield Services & Equipment (OFSE) segment, which saw a $0.4 billion decline. This was partially offset by a $0.2 billion revenue increase in the Industrial & Energy Technology (IET) segment, driven by growth in Gas Technology and Climate Technology solutions. Despite the revenue dip, net income attributable to Baker Hughes Company saw a healthy increase of 21% to $701 million ($0.71 per diluted share), compared to $579 million ($0.58 per diluted share) in the prior year's second quarter. This improved profitability was attributed to higher EBITDA margins across both segments, gains from the fair value of equity securities, and favorable foreign exchange, despite lower volumes in OFSE. The company also continues to return capital to shareholders, with a total of $423 million distributed through dividends and share repurchases in the quarter.

Financial Highlights

41 data points
Beta

Revenue

$6.91B

Net Income

$701.00M

10.1% Net Margin

Total Assets

$38.74B

Cash & Equivalents

$3.09B

Free Cash Flow

$510.00M

Financial Statements
Beta
Revenue$6.91B
R&D Expenses$161.00M
SG&A Expenses$567.00M
Net Income$701.00M

Key Highlights

  • 1Total revenue for Q2 2025 was $6.9 billion, a slight decrease from $7.1 billion in Q2 2024, impacted by reduced OFSE activity.
  • 2Net income attributable to Baker Hughes Company rose 21% to $701 million ($0.71 per diluted share) in Q2 2025, up from $579 million ($0.58 per diluted share) in Q2 2024.
  • 3The Oilfield Services & Equipment (OFSE) segment experienced a revenue decline of $394 million year-over-year, largely due to lower international and domestic rig counts.
  • 4The Industrial & Energy Technology (IET) segment showed revenue growth of $165 million year-over-year, primarily driven by Gas Technology Equipment, Gas Technology Services, and Climate Technology Solutions.
  • 5Segment EBITDA for OFSE was $677 million, down from $716 million in Q2 2024, while IET's Segment EBITDA increased to $585 million from $497 million in Q2 2024.
  • 6The company returned $423 million to shareholders in Q2 2025 through dividends and share repurchases.
  • 7Baker Hughes announced an agreement to acquire Continental Disc Corporation for approximately $540 million, expected to close in Q3 2025.

Frequently Asked Questions

Baker Hughes' total revenue for the second quarter of 2025 was $6.9 billion, a decrease of $0.2 billion compared to $7.1 billion in the second quarter of 2024. This was primarily driven by a $0.4 billion decrease in the Oilfield Services & Equipment (OFSE) segment, which was partially offset by a $0.2 billion increase in the Industrial & Energy Technology (IET) segment.

Net income attributable to Baker Hughes Company increased by 21% to $701 million in the second quarter of 2025, up from $579 million in the prior year's second quarter. Diluted earnings per share were $0.71, an increase from $0.58 in Q2 2024. This improvement was supported by higher EBITDA margins, gains in the fair value of equity securities, and favorable foreign exchange, despite lower volumes in OFSE.

The OFSE segment revenue decreased by $394 million year-over-year in the second quarter of 2025. This decline was primarily attributed to lower international and domestic rig counts, reflecting a broader slowdown in oil and gas exploration and production (E&P) spending in North America and subdued international activity.

The IET segment showed revenue growth in Q2 2025, and the company expects continued strength in LNG and gas infrastructure. They also see increasing opportunities in industrial and distributed power markets, with a growing emphasis on data centers and new energy solutions focused on reducing carbon emissions, such as hydrogen, geothermal, and carbon capture.

Yes, Baker Hughes announced an agreement to acquire Continental Disc Corporation for approximately $540 million, expected to close in the third quarter of 2025. Additionally, the company is in the process of forming a joint venture for its Surface Pressure Control business and has an agreement to sell its Precision Sensors & Instrumentation business, both expected to close by the end of 2025 or early 2026.