Financial Data and Key Metrics Changes - Adjusted EBITDA rose to $1,210 million, reflecting a 170 basis point year-over-year improvement in margins, driven by structural cost actions and stronger operational execution [7][36] - GAAP diluted earnings per share were $0.71, while adjusted earnings per share were $0.63, up 11% year-over-year [37] - Free cash flow generated was $239 million, with a total of $423 million returned to shareholders, including $196 million in share repurchases [10][38] Business Line Data and Key Metrics Changes - Oilfield Services and Equipment (OFSE) revenue was $3,600 million, up 3% sequentially, with EBITDA margins expanding 90 basis points to 18.7% [41] - Industrial and Energy Technology (IET) revenue increased by 5% year-over-year to $3,300 million, with a 190 basis point margin expansion to 17.8% [40] - IET orders totaled $3,500 million in the quarter, with a year-to-date total of $6,700 million, indicating strong momentum [39][72] Market Data and Key Metrics Changes - The company booked $1 billion in new energy orders during the quarter, bringing year-to-date bookings to $1.25 billion, matching the total for the previous year [22] - Gas infrastructure equipment orders totaled $2.9 billion over the past six quarters, reflecting strong demand for natural gas solutions [24][25] - LNG demand increased by 5% year-over-year, with significant contracting activity expected to continue [26] Company Strategy and Development Direction - The company announced three strategic transactions to enhance portfolio optimization, including a joint venture and acquisitions aimed at higher growth opportunities [11][44] - Focus remains on executing a disciplined capital allocation strategy to maximize long-term shareholder value while advancing in new energy and industrial markets [12][45] - The company is positioned to capitalize on emerging trends in distributed power solutions, particularly for data centers, with a target of $1.5 billion in data center-related awards [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year order guidance range of $12.5 billion to $14.5 billion for IET, supported by strong momentum in power solutions and new energy [10][72] - The macro environment remains uncertain, but long-term fundamentals for energy demand are strong, driven by population growth and urbanization [20][21] - The company anticipates continued growth in natural gas demand, with expectations for a 20% increase by 2040 [24] Other Important Information - The company ended the quarter with cash of $3.1 billion and a net debt to EBITDA ratio of 0.6 times, indicating a strong balance sheet [38] - The company is committed to returning 60% to 80% of free cash flow to shareholders, reinforcing its focus on shareholder returns [38] Q&A Session Summary Question: Can you unpack the drivers of the margin performance? - Management highlighted that OFSE EBITDA margins expanded by 90 basis points due to stronger revenue and cost efficiency initiatives, while IET margins increased by 190 basis points despite tariff-related headwinds [62][65] Question: Can you expand on the IET order performance this quarter? - Management noted that IET bookings reached $3.5 billion, driven by strength in non-LNG markets, gas infrastructure, and data centers, with expectations for continued strength in LNG orders in the second half [70][72] Question: What is the net impact from the three transactions announced? - The transactions are expected to have a modest benefit to segment margins, with a net EBITDA impact of just over $100 million anticipated for 2026 [80][82]

Core Insights - Baker Hughes Company (BKR) reported second-quarter 2025 adjusted earnings of 63 cents per share, exceeding the Zacks Consensus Estimate of 55 cents and improving from 57 cents year-over-year [1] - Total quarterly revenues reached $6,910 million, surpassing the Zacks Consensus Estimate of $6,633 million and increasing from $6,418 million in the same quarter last year [1] - The strong performance was attributed to cost improvements and operational efficiency [1] Segmental Performance - BKR reorganized its operations into two segments: Oilfield Services and Equipment (OFSE) and Industrial and Energy Technology (IET), effective October 1, 2022 [2] - Revenues from the OFSE unit were $3,617 million, a 10% decrease from $4,011 million year-over-year, but above the estimate of $3,569 million [2] - EBITDA from the OFSE segment totaled $677 million, down 5% from $716 million in Q2 2024, impacted by inflation and revenue mix, partially offset by productivity from cost-out initiatives [3] - Revenues from the IET unit amounted to $3,293 million, a 5% increase from $3,128 million year-over-year, exceeding the estimate of $3,038 million [3] - EBITDA from the IET segment was $585 million, an 18% increase from $497 million in the previous year, driven by productivity, positive pricing, and favorable foreign exchange [4] Costs & Expenses - Total costs and expenses for Baker Hughes were $5,943 million in Q2, down from $6,315 million year-over-year, while the projection was $5,033 million [5] Orders - Total orders from all business segments were $7,032 million, a 7% decline from $7,526 million a year ago, with the decrease primarily attributed to lower order intake in the OFSE segment [6] Free Cash Flow - Baker Hughes generated free cash flow of $239 million, compared to $106 million in the same quarter last year [7] Capex & Balance Sheet - Net capital expenditure for BKR in Q2 was $271 million [8] - As of June 30, 2025, BKR had cash and cash equivalents of $3,087 million and long-term debt of $5,968 million, resulting in a debt-to-capitalization ratio of 25.8% [8]

Financial Highlights - Adjusted EBITDA margin expanded by 170 basis points year-on-year to 175%[7] - The company returned $423 million to shareholders, including $196 million in share repurchases[7] - IET orders reached $35 billion, including over $550 million from data center awards[7] - 2Q'25 Orders were $7032 million, a 9% increase sequentially and a 7% decrease year-over-year[33] - 2Q'25 Revenue was $6910 million, an 8% increase sequentially and a 3% decrease year-over-year[33] - 2Q'25 Adjusted EBITDA was $1212 million, a 17% increase sequentially and a 7% increase year-over-year[33] - 2Q'25 Adjusted Diluted EPS was $063 per share, a 23% increase sequentially and an 11% increase year-over-year[33] Portfolio Optimization - Announced transactions expected to generate approximately $1 billion in net deal proceeds[9] - The company sold 65% of SPC, with a 2-year put-call option for the remaining 35%, expected to close in 2H'25, with transaction consideration of $345 million[13] - The company is acquiring CDC for $540 million in an all-cash transaction expected to close end of '25 / early '26[13] - The company is selling PSI to Crane Technologies for $115 billion in an all-cash sale expected to close end of '25 / early '26[13] Market Dynamics - LNG projects require approximately 60 MTPA of FIDs over the next 18 months to reach the company's 3-year 100 MTPA target[24] - Gas infrastructure orders booked over the past six quarters totaled $29 billion[24] - The company expects global upstream spending to decline by high-single digits in 2025, with North America down low-double digits and international down high-single digits[24]

分组1 - Baker Hughes reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and showing an earnings surprise of +14.55% [1] - The company posted revenues of $6.91 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.17%, although this represents a decline from year-ago revenues of $7.14 billion [2] - Over the last four quarters, Baker Hughes has consistently surpassed consensus EPS estimates, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 2.9% since the beginning of the year compared to the S&P 500's gain of 7.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $6.81 billion, and for the current fiscal year, it is $2.37 on revenues of $26.95 billion [7] - The Zacks Industry Rank indicates that the Oil and Gas - Field Services sector is currently in the bottom 5% of over 250 Zacks industries, which may negatively impact stock performance [8]

Second-Quarter 2025 Results Overview [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Baker Hughes reported strong Q2 2025 results with increased adjusted EBITDA and margins, driven by cost improvements, alongside strategic portfolio optimization and key awards - The company achieved a **170 basis point** year-over-year increase in total adjusted EBITDA margins to **17.5%**, driven by structural cost improvements and higher productivity, despite a modest revenue decline[3](index=3&type=chunk) Q2 2025 Financial and Operational Highlights | Metric | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Orders | $7.0B | -7% | +9% | | Revenue | $6.9B | -3% | +8% | | Adjusted EBITDA* | $1,212M | +7% | +17% | | Adjusted Diluted EPS* | $0.63 | +11% | +23% | | Cash Flow from Operations | $510M | +47% | -28% | | Free Cash Flow* | $239M | +125% | -47% | - The company returned **$423 million** to shareholders, which included **$196 million** in share repurchases[5](index=5&type=chunk) - The Industrial & Energy Technology (IET) segment achieved a **record backlog of $31.3 billion**, with strong order momentum continuing despite the absence of large LNG awards[4](index=4&type=chunk)[29](index=29&type=chunk) [Strategic Developments & Key Awards](index=3&type=section&id=Strategic%20Developments%20%26%20Key%20Awards) In Q2, the company advanced its portfolio optimization through three strategic transactions and secured significant new energy and data center awards - Executed three strategic transactions to optimize the portfolio: formed a JV with Cactus, Inc. for the OFSE Surface Pressure Control product line for **~$345 million**; agreed to sell the IET Precision Sensors & Instrumentation product line to Crane Company for **~$1.15 billion**; and agreed to acquire Continental Disc Corporation, a pressure management solutions provider, for **~$540 million**[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Secured significant awards for data center projects, with year-to-date awards **exceeding $650 million**, including the largest data center award to-date for **30 NovaLT™ turbines** to deliver up to **500 MW** of power[13](index=13&type=chunk) - New Energy bookings reached **$1.25 billion** year-to-date, highlighted by one of the largest CCS orders to-date in the Middle East[18](index=18&type=chunk) - OFSE secured multi-year production solutions contracts in Angola and Kazakhstan, and a contract with Equinor for offshore plug and abandonment (P&A) operations in Norway[19](index=19&type=chunk) Consolidated Financial Performance [Consolidated Financial Results](index=5&type=section&id=Consolidated%20Financial%20Results) Consolidated Q2 financial performance featured $6.91 billion revenue, $701 million GAAP net income, and $1.212 billion adjusted EBITDA, with increased RPO and positive cash flow Consolidated Financial Results Overview | Metric | Q2 2025 Value | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $6,910M | +8% | -3% | | GAAP Net Income | $701M | +$299M | +$122M | | Adjusted Net Income* | $623M | +22% | +10% | | Adjusted EBITDA* | $1,212M | +17% | +7% | - The year-over-year increase in adjusted net income and adjusted EBITDA was driven by productivity and structural cost-out initiatives, and favorable FX, partially offset by lower volume in OFSE and cost inflation[28](index=28&type=chunk) [Other Financial Items](index=5&type=section&id=Other%20Financial%20Items) Total Remaining Performance Obligations increased to $34.0 billion, with IET segment's RPO reaching a record $31.3 billion, alongside strong cash flow generation - Remaining Performance Obligations (RPO) ended the quarter at **$34.0 billion**, up **$0.8 billion** sequentially, with IET RPO at a **record $31.3 billion** and OFSE RPO at **$2.7 billion**[29](index=29&type=chunk) Key Financial Metrics | Metric | Q2 2025 Value | | :--- | :--- | | GAAP Diluted EPS | $0.71 | | Adjusted Diluted EPS* | $0.63 | | Cash Flow from Operations | $510M | | Free Cash Flow* | $239M | | Capital Expenditures, net | $271M | Segment Performance [Oilfield Services & Equipment (OFSE)](index=6&type=section&id=Oilfield%20Services%20%26%20Equipment%20(OFSE)) OFSE revenue was $3.62 billion, down 10% year-over-year but up 3% sequentially, with EBITDA margin improving to 18.7% due to productivity and cost-out initiatives OFSE Segment Performance | Metric | Q2 2025 Value | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Orders | $3,503M | +7% | -14% | | Revenue | $3,617M | +3% | -10% | | EBITDA | $677M | +9% | -5% | | EBITDA Margin | 18.7% | +0.9 pts | +0.9 pts | - International revenue of **$2,689 million** was down **10%** year-over-year, with the largest decline in the Europe/CIS/Sub-Saharan Africa region (**-21%**), while North America revenue was down **9%** year-over-year[33](index=33&type=chunk)[34](index=34&type=chunk) - The sequential increase in EBITDA was primarily driven by productivity, structural cost-out initiatives, and higher volume, partially offset by inflation and revenue mix[35](index=35&type=chunk) [Industrial & Energy Technology (IET)](index=7&type=section&id=Industrial%20%26%20Energy%20Technology%20(IET)) IET delivered strong growth with revenue up 5% year-over-year to $3.29 billion and EBITDA up 18% to $585 million, driven by Gas and Climate Technology Solutions IET Segment Performance | Metric | Q2 2025 Value | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | | Orders | $3,530M | +11% | +2% | | Revenue | $3,293M | +12% | +5% | | EBITDA | $585M | +17% | +18% | | EBITDA Margin | 17.8% | +0.7 pts | +1.9 pts | - Year-over-year revenue growth was driven by Gas Technology Equipment (**+6%**), Gas Technology Services (**+9%**), and Climate Technology Solutions (**+22%**)[38](index=38&type=chunk) - The **18%** year-over-year increase in segment EBITDA was driven by positive pricing, favorable FX, and productivity, partially offset by cost inflation[39](index=39&type=chunk) Financial Statements & Reconciliations [Reconciliation of GAAP to non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20non-GAAP%20Financial%20Measures) This section details reconciliations of GAAP to non-GAAP financial measures and presents the unaudited condensed consolidated GAAP financial statements - Management provides non-GAAP measures like adjusted EBITDA, adjusted net income, and free cash flow, believing they are widely used by investors to analyze operating performance, liquidity, and identify underlying business trends[41](index=41&type=chunk) - For Q2 2025, GAAP Net Income of **$701 million** was reconciled to Adjusted EBITDA of **$1,212 million**, with key adjustments including adding back depreciation & amortization (**$293M**) and taxes (**$256M**), and subtracting a **$119M** gain from the change in fair value of equity securities[42](index=42&type=chunk) - Q2 2025 GAAP Net Income of **$701 million** was reconciled to Adjusted Net Income of **$623 million** after a net adjustment of **$(78) million**, primarily related to the change in fair value of equity securities[43](index=43&type=chunk) - Net cash from operating activities of **$510 million** was reconciled to Free Cash Flow of **$239 million** by subtracting net capital expenditures of **$271 million**[44](index=44&type=chunk) [GAAP Financial Statements](index=10&type=section&id=GAAP%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the period, including the Statements of Income, Financial Position, and Cash Flows, prepared in accordance with U.S. GAAP [Condensed Consolidated Statements of Income (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) For Q2 2025, the company reported revenue of $6.91 billion and net income attributable to Baker Hughes of $701 million, or $0.71 per diluted share Condensed Consolidated Statements of Income (Loss) | (In millions, except per share) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $6,910 | $7,139 | | Cost of revenue | $5,295 | $5,493 | | Income before income taxes | $967 | $824 | | Net income attributable to Baker Hughes | $701 | $579 | | Diluted income per Class A common stock | $0.71 | $0.58 | [Condensed Consolidated Statements of Financial Position](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) As of June 30, 2025, total assets were $38.74 billion, total equity was $17.87 billion, and cash was $3.09 billion Condensed Consolidated Statements of Financial Position | (In millions) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $17,618 | $17,211 | | Total assets | $38,740 | $38,363 | | Total current liabilities | $12,515 | $12,991 | | Total liabilities | $20,872 | $21,308 | | Total equity | $17,868 | $17,055 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q2 2025, net cash from operating activities was $510 million, with net cash decrease of $190 million after investing and financing activities Condensed Consolidated Statements of Cash Flows | (In millions) | Three Months Ended June 30, 2025 | | :--- | :--- | | Net cash flows provided by operating activities | $510 | | Net cash flows used in investing activities | $(286) | | Net cash flows used in financing activities | $(443) | | Decrease in cash and cash equivalents | $(190) | | Cash and cash equivalents, end of period | $3,087 | Other Information [Supplemental Information & Conference Call](index=13&type=section&id=Supplemental%20Information%20%26%20Conference%20Call) This section directs investors to supplemental financial information and announces the investor conference call details - Supplemental financial information is available on the Company's investor relations website[51](index=51&type=chunk) - An investor conference call to discuss the results is scheduled for **9:30 a.m. Eastern time** on **Wednesday, July 23, 2025**[52](index=52&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, cautioning that the release includes forward-looking statements subject to numerous risks and uncertainties - The news release contains forward-looking statements that are subject to risks and uncertainties, and actual results could differ materially[53](index=53&type=chunk) - Key risk factors include economic and political conditions, oil and gas market volatility, ability to convert orders and RPO to revenue, and geopolitical risks such as war, terrorist activities, and cybersecurity attacks[54](index=54&type=chunk)[55](index=55&type=chunk)

Core Insights - Baker Hughes reported strong second-quarter results for 2025, with adjusted EBITDA margins increasing by 170 basis points year-over-year to 17.5%, despite a modest decline in revenue [3][4] - The company achieved IET orders totaling $3.5 billion, contributing to a record backlog, and maintained confidence in meeting full-year order guidance [4][6] - Strategic transactions were announced to optimize the portfolio, including a joint venture, a sale of a product line, and an acquisition, aimed at enhancing earnings durability and shareholder value [4][10][11] Financial Performance - Total revenue for the quarter was $6.91 billion, down 3% year-over-year, with net income attributable to Baker Hughes at $701 million, reflecting a 21% increase year-over-year [6][25] - Adjusted net income was $623 million, up 10% year-over-year, and adjusted EBITDA was $1.21 billion, up 7% year-over-year [26][27] - Cash flow from operating activities was $510 million, with free cash flow of $239 million, indicating a 47% decrease from the previous quarter [30][49] Orders and Backlog - Total orders for the quarter reached $7.03 billion, with a book-to-bill ratio of 1.0, while IET's book-to-bill ratio was 1.1 [24][39] - Remaining Performance Obligations (RPO) stood at $34 billion, with IET RPO at $31.3 billion, reflecting a 3% sequential increase [29] Segment Performance - Oilfield Services & Equipment (OFSE) reported orders of $3.5 billion, with revenue of $3.62 billion, down 10% year-over-year [35][36] - Industrial & Energy Technology (IET) saw orders of $3.53 billion and revenue of $3.29 billion, marking a 5% year-over-year increase [37][40] - IET's segment EBITDA increased by 18% year-over-year to $585 million, driven by positive pricing and productivity [41] Strategic Transactions - The company entered a joint venture with Cactus, Inc. for the OFSE Surface Pressure Control product line, valued at approximately $345 million [9] - Baker Hughes sold the Precision Sensors & Instrumentation product line for approximately $1.15 billion, enhancing reinvestment capabilities [10] - The acquisition of Continental Disc Corporation for approximately $540 million aims to strengthen the IET Industrial Products portfolio [11] Technology and Market Developments - Baker Hughes secured significant awards in data center projects, including a contract for 30 NovaLT™ turbines, which will provide up to 500 MW of power [12][15] - The company is expanding its presence in the New Energy sector, with year-to-date bookings totaling $1.25 billion, including a major CCS order [17][40]

金十数据7月19日讯，继美国政府6月底解除对叙利亚制裁后，美国能源企业正寻求进入叙利亚能源市场 的机会。美国阿金特液化天然气公司首席执行官乔纳森·巴斯18日说，企业将与美国贝克休斯公司和亨 特能源公司联手为叙利亚石油、天然气和电力部门制定"总体规划"，旨在重建叙能源基础设施。巴斯18 日在电话采访中告诉路透社记者："基于对短期内提升发电能力和改善服务机会的初步评估，我们正在 启动发展叙利亚能源与电力行业的全面总体规划。"他说，这一规划将涵盖从能源勘探、生产到发电的 整个产业链潜在活动。"我们的工作重点是与各利益相关方协调配合，推动叙利亚能源产业的重振。" （新华社） 美国能源企业欲趁制裁解除抢占叙利亚市场 ...

Group 1 - The CEO of Akinte LNG announced a collaboration with Baker Hughes and Hunter Energy to develop a comprehensive energy plan for Syria [1] - The plan includes potential oil and gas exploration and extraction, as well as power generation [1]

Core Viewpoint - Baker Hughes (BKR) is expected to report second-quarter 2025 results on July 22, with indications of a decline in both earnings and revenues compared to the previous year [1][7]. Group 1: Earnings Performance - In the last reported quarter, BKR's adjusted earnings were 51 cents per share, exceeding the Zacks Consensus Estimate of 47 cents, driven by higher demand for natural gas technology and improved EBITDA margins [2]. - The Zacks Consensus Estimate for second-quarter earnings per share is 55 cents, reflecting a 3.5% decline from the prior year's reported figure [2]. - The estimated revenue for the second quarter is $6.6 billion, indicating a 7.1% decline from the year-ago figure [2]. Group 2: Market Conditions - The average WTI spot prices for April, May, and June were $63.54, $62.17, and $68.17 per barrel, respectively, suggesting a favorable pricing environment for exploration and production companies [3]. - The advantageous crude pricing is expected to boost demand for oilfield services, aiding exploration and production players in efficiently managing oil and gas wells [3]. Group 3: Order and Revenue Estimates - The Zacks Consensus Estimate for BKR's total orders is $6.8 billion, down from $7.5 billion reported in the same quarter last year [4]. - Orders from the Oilfield Services & Equipment business are estimated at $3.5 billion, lower than the $4.1 billion reported in the previous year [4]. - Revenue from the Oilfield Services & Equipment segment is projected to decline by 10% year-over-year, which may negatively impact overall results for the upcoming quarter [5][7]. Group 4: Earnings Expectations - The current Earnings ESP for BKR is +3.03%, but the model does not indicate a definitive earnings beat this time [6][8]. - BKR holds a Zacks Rank of 4 (Sell), which suggests a less favorable outlook compared to other stocks in the sector [8].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Baker Hughes due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Baker Hughes is expected to report quarterly earnings of $0.55 per share, reflecting a -3.5% change year-over-year, with revenues projected at $6.63 billion, down 7.1% from the previous year [3]. - The consensus EPS estimate has been revised 0.41% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Baker Hughes is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.03% [12]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. Historical Performance - In the last reported quarter, Baker Hughes exceeded the expected earnings of $0.47 per share, achieving $0.51, which was a surprise of +8.51% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Investment Considerations - Despite a positive Earnings ESP, Baker Hughes currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. - The potential for stock movement is influenced by various factors beyond earnings results, including market conditions and investor sentiment [15].