On April 22, 2025, Baker Hughes Co (BKR, Financial) released its 8-K filing detailing its financial performance for the first quarter of 2025. The company reported a GAAP diluted earnings per share (EPS) of $0.40, which fell short of the estimated EPS of $0.48. However, the adjusted diluted EPS was $0.51, surpassing the analyst estimate. Revenue for the quarter was $6.4 billion, slightly below the estimated $6,492.13 million.
Company Overview
Baker Hughes Co (BKR, Financial) operates in two main segments: oilfield services and equipment (OFSE), and industrial and energy technology (IET). The OFSE segment is a major player in the oilfield services industry, supplying to hydrocarbon developers and producers globally. The IET segment focuses on manufacturing and selling turbines, compressors, and other industrial equipment, catering to various energy and industrial applications.
Performance and Challenges
The company's performance in the first quarter of 2025 was marked by a consistent revenue year-over-year but a 13% sequential decline. The decrease in revenue was primarily due to lower volumes in both segments, although the IET segment showed resilience with a 9% year-over-year increase in orders. The challenges faced by Baker Hughes Co (BKR, Financial) include macroeconomic uncertainties and trade policy fluctuations, which could impact future performance.
Financial Achievements
Baker Hughes Co (BKR, Financial) achieved several financial milestones in the first quarter. The company reported an adjusted EBITDA of $1,037 million, a 10% increase year-over-year, highlighting the effectiveness of its transformation initiatives and cost-out strategies. The company's free cash flow stood at $454 million, reflecting strong cash generation capabilities.
Key Financial Metrics
Below is a summary of key financial metrics for the first quarter of 2025:
| Metric | Q1 2025 | Q4 2024 | Q1 2024 | Year-over-Year Change |
|---|---|---|---|---|
| Orders | $6.5 billion | $7.5 billion | $6.5 billion | -1% |
| Revenue | $6.4 billion | $7.4 billion | $6.4 billion | 0% |
| Net Income | $402 million | $1,179 million | $455 million | -12% |
| Adjusted EBITDA | $1,037 million | $1,310 million | $943 million | 10% |
| Free Cash Flow | $454 million | $894 million | $502 million | -10% |
Analysis and Commentary
Baker Hughes Co (BKR, Financial) demonstrated resilience in its IET segment, which saw a significant increase in orders and revenue, driven by growth in Gas Technology Equipment and Climate Technology Solutions. The company's strategic focus on margin improvement and cost management has yielded positive results, as evidenced by the increase in adjusted EBITDA and adjusted net income.
Baker Hughes started the year strong, building on the positive momentum from 2024 and setting multiple first-quarter records. Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments," said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
Despite the challenges posed by macroeconomic uncertainties, Baker Hughes Co (BKR, Financial) remains well-positioned to navigate these headwinds and continue delivering value to shareholders. The company's strategic initiatives and focus on operational efficiency are expected to support sustainable growth in the future.
Explore the complete 8-K earnings release (here) from Baker Hughes Co for further details.
