Financial Data and Key Metrics Changes - Adjusted EBITDA rose to $1,240 million, exceeding the midpoint of guidance, reflecting strong operational performance and a 20 basis points year-over-year increase in consolidated adjusted EBITDA margins to 17.7% [7][33] - Full year adjusted EBITDA is now expected to exceed $4,700 million, with a strong operational performance year to date [8][46] Business Line Data and Key Metrics Changes - IET orders totaled $4,100 million during the quarter, driven by LNG equipment and strong performance in gas infrastructure and power generation [8][39] - IET revenue increased by 15% year-over-year to $3,400 million, with segment EBITDA rising 20% year-over-year to $635 million [39] - OFSE revenue was $3,600 million, up 1% sequentially, with EBITDA of $671 million, slightly above guidance midpoint [40] Market Data and Key Metrics Changes - LNG demand grew by 6% this year, with record LNG contracting activity, surpassing last year's total of 81 MTPA [23] - Global LNG installed capacity is expected to increase to approximately 950 MTPA by 2035, requiring additional projects to reach FID [25][26] Company Strategy and Development Direction - The company is focused on achieving at least $40,000 million in IET orders over the next three years, supported by a robust technology portfolio [9][49] - The acquisition of Chart Industries is expected to enhance the company's technology offerings and drive long-term growth [30][38] Management's Comments on Operating Environment and Future Outlook - The macro environment remains resilient despite geopolitical challenges, with AI-driven investments contributing significantly to GDP growth [18][20] - The outlook for 2025 remains unchanged, with expectations for a high single-digit decline in global upstream spending [21][22] Other Important Information - The company secured significant awards in power generation, including a contract for mobile power generation for oil and gas operations in North America [11][12] - A long-term service contract was secured with BP for its Tangu LNG facility in Indonesia, reinforcing the convertibility of the installed base into aftermarket opportunities [13] Q&A Session Summary Question: Opportunities in Power Generation - Management highlighted strong demand growth across various power generation solutions, including distributed power and geothermal opportunities, with $800 million in power generation-related orders booked this quarter [58][60][64] Question: Financial Targets in Horizon Two - Management expressed confidence in achieving $40 billion in IET orders by 2028, supported by strong visibility in project activity and a versatile technology portfolio [69][70] Question: Evaluation of Capital Allocation - The company is conducting a comprehensive evaluation of capital allocation and business costs to enhance shareholder value, particularly in light of the pending acquisition of Chart [84][86] Question: Integration of Chart Acquisition - Management discussed the integration planning underway, focusing on realizing cost synergies and enhancing commercial opportunities through the combined portfolio [91][93]

Financial Data and Key Metrics Changes - Adjusted EBITDA rose to $1.24 billion, reflecting a 2% year-over-year increase, with consolidated adjusted EBITDA margins increasing by 20 basis points to 17.7% [4][23] - Revenue growth was 1%, with GAAP diluted earnings per share at $0.61 and adjusted earnings per share at $0.68 [23] - Free cash flow generated was $699 million, with an expected full-year free cash flow conversion of 45% to 50% [23][24] Business Line Data and Key Metrics Changes - Industrial & Energy Technology (IET) orders totaled $4.1 billion, with a record backlog of $32.1 billion, reflecting a 3% sequential growth [5][28] - IET revenue increased by 15% year-over-year to $3.4 billion, with segment EBITDA rising 20% to $635 million [28] - Oilfield Services and Equipment (OFSE) revenue was $3.6 billion, up 1% sequentially, with EBITDA of $671 million and margins declining by 30 basis points to 18.5% [29] Market Data and Key Metrics Changes - LNG demand increased by 6% this year, driven by strong storage injection in Europe, with record LNG contracting activity [15] - The macro environment remains resilient despite geopolitical challenges, with AI-driven investments contributing significantly to GDP growth [12][13] - Natural gas demand is expected to grow by over 20% by 2040, with global LNG increasing by at least 75% [14][17] Company Strategy and Development Direction - The company is focused on achieving a 20% adjusted EBITDA margin by 2028, with a target of at least $40 billion in IET orders over the next three years [35][36] - The acquisition of Chart Industries is seen as a significant milestone, expected to enhance technology offerings and create commercial synergies [21][27] - The company aims to leverage its technology portfolio to capitalize on growth in LNG, power generation, and new energy markets [20][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate market volatility and maintain strong operational performance [20][36] - The outlook for 2026 suggests subdued activity in upstream spending, but long-term growth is anticipated, especially in offshore and international markets [14][34] - The company expects continued growth in gas infrastructure and power generation, with strong visibility into future orders [5][6] Other Important Information - The company returned $227 million to shareholders through dividends during the quarter [24] - A comprehensive evaluation of capital allocation and operations is underway in connection with the Chart Industries acquisition [21][63] - The integration planning for Chart Industries is focused on harmonizing systems and processes to realize anticipated cost synergies [27][70] Q&A Session Summary Question: Opportunities in Power Generation - Management highlighted strong demand across various power generation solutions, including distributed power and geothermal opportunities, with significant orders booked [42][43][44] Question: Financial Targets in Horizon 2 - The company is confident in achieving $40 billion in IET orders by 2028, supported by strong project visibility and a versatile technology portfolio [49][50][51] Question: Evaluation of Capital Allocation - The ongoing evaluation aims to enhance shareholder value and explore additional value creation opportunities, reflecting a disciplined approach to capital allocation [61][63] Question: Integration of Chart Industries - Integration planning is underway, focusing on systems integration and capturing cost synergies, with a strong alignment in company cultures [67][69]

Core Insights - Baker Hughes Company (BKR) reported third-quarter 2025 adjusted earnings of 68 cents per share, exceeding the Zacks Consensus Estimate of 61 cents and improving from 67 cents in the previous year [1][10] - Total quarterly revenues reached $7,010 million, surpassing the Zacks Consensus Estimate of $6,832 million and increasing from $6,908 million year-over-year [1][10] Segment Performance - The strong quarterly results were primarily driven by the Industrial & Energy Technology business segment [2] - Revenues from the Oilfield Services and Equipment (OFSE) unit were $3,636 million, down 8% from $3,963 million a year ago, but above the estimate of $3,632 million [3] - EBITDA from the OFSE segment totaled $671 million, down 12% from $765 million in the third quarter of 2024, attributed to lower volume, inflation, and shifts in business mix, partially offset by cost-out initiatives and productivity improvements [4] - Revenues from the Industrial & Energy Technology (IET) unit amounted to $3,374 million, up 15% from $2,945 million year-over-year, exceeding the estimate of $3,182.6 million [5] - EBITDA from the IET segment was $635 million, up 20% from $528 million in the previous year, driven by volume, positive pricing, and favorable foreign exchange movements, partially offset by inflation and lower cost productivity [5] Financial Overview - Total costs and expenses for the third quarter were $6,189 million, higher than the year-ago figure of $5,899 million, and above the projection of $6,054.4 million [6] - Orders from all business segments amounted to $8,207 million, up 23% from $6,676 million a year ago, driven by strong order intake growth across both OFSE and IET segments [7][10] - Free cash flow generated was $699 million compared to $754 million a year ago [8] - Net capital expenditure in the second quarter was $230 million [9] - As of September 30, 2025, cash and cash equivalents stood at $2,693 million, with long-term debt of $5,988 million and a debt-to-capitalization ratio of 24.8% [11]

Financial Performance - Baker Hughes reported strong 3Q 2025 results, with revenues of $7010 million, a 1% increase compared to 2Q 2025 and 1% increase year-over-year[25] - Adjusted EBITDA for 3Q 2025 was $1238 million, up 2% from 2Q 2025 and up 2% year-over-year, with an adjusted EBITDA margin of 177%, a 10 bps increase sequentially and a 20 bps increase year-over-year[25] - Adjusted diluted EPS was $068 per share, a 9% increase compared to 2Q 2025 and a 3% increase year-over-year[25] - Free cash flow was $699 million, a 192% increase compared to 2Q 2025 and a (7)% decrease year-over-year[25] Orders and Growth - Total orders reached $8207 million, showing a 17% increase compared to 2Q 2025 and a 23% increase year-over-year[25] - Industrial & Energy Technology (IET) orders were $4139 million, up 17% sequentially and 44% year-over-year, driven by LNG equipment and power generation awards[6, 31] - Subsea and Surface Pressure Systems (SSPS) orders hit a record $12 billion, boosted by subsea tree awards in Brazil and Turkiye[6] - New energy orders year-to-date reached $16 billion, hitting the high end of the 2025 order guidance range[16] Segment Performance - IET revenue was $3374 million, up 2% sequentially and 15% year-over-year, with an EBITDA of $635 million, up 9% sequentially and 20% year-over-year, and an EBITDA margin of 188%[31] - Oilfield Services & Equipment (OFSE) revenue was $3636 million, up 1% sequentially and down (8)% year-over-year, with an EBITDA of $671 million, down (1)% sequentially and (12)% year-over-year, and an EBITDA margin of 185%[34] Guidance - The company provided 4Q 2025 revenue guidance of $6650 - $7450 million and adjusted EBITDA guidance of $1145 - $1365 million[37] - Full year 2025 revenue guidance is $27000 - $27800 million and adjusted EBITDA guidance is $4630 - $4850 million[37]

Core Insights - Baker Hughes has received a multi-year agreement from Aramco to expand its integrated underbalanced coiled tubing drilling (UBCTD) operations in Saudi Arabia's natural gas fields, increasing its fleet from four to ten units [1][2][4] Group 1: Agreement Details - The agreement includes the provision of integrated solutions for coiled tubing drilling units, underbalanced drilling services, operational management, well construction, and geosciences [2][6] - Work under the expanded agreement is set to commence in 2026, reinforcing Baker Hughes' established presence in the region since entering the UBCTD market in 2008 [4][6] Group 2: Technological Advancements - Baker Hughes will utilize its industry-leading CoilTrak™ bottomhole assembly system and enhanced reservoir analysis from GaffneyCline™ energy advisory to improve drilling efficiency [3] - The integrated approach aims to enhance production efficiency, speed, and safety while reducing reservoir damage compared to traditional methods [3] Group 3: Historical Context and Collaboration - The project is a culmination of nearly two decades of collaboration between Baker Hughes and Aramco, setting a standard for UBCTD operations [3] - Baker Hughes maintains a strong health, safety, and environment (HSE) record while delivering operational excellence through its existing UBCTD units in Saudi Arabia [4]

Core Insights - Strong demand for LNG-related services significantly boosted Baker Hughes' third-quarter financial performance, leading to a 23% annual increase in orders despite a 20% decline in net profits [1] Financial Performance - Free cash flow increased from $239 million at the end of June to $699 million at the end of September, while cash flow from operating activities rose from $510 million to $929 million during the same period, although both figures were lower compared to the previous year [2] - The total size of Baker Hughes' order backlog reached an all-time high of $32.1 billion by the end of September, with the Industrial & Energy Technology division's backlog specifically at $4 billion, marking only the third occurrence in the company's history [4] Business Segments - Natural gas has been a key driver for Baker Hughes, with the company increasing its focus on this segment due to strong demand projections and growth momentum from the new U.S. administration [3] - The company reported a continued slowdown in oilfield activity, where orders increased but revenues and earnings before interest, tax, depreciation, and amortization (EBITDA) fell on an annual basis [5] Operational Highlights - Despite a softening in oilfield services and equipment (OFSE) margins, the Industrial & Energy Technology division delivered strong performance, contributing to higher consolidated Adjusted EBITDA margins year-over-year [6]

Core Insights - Baker Hughes (BKR) reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and showing a slight increase from $0.67 per share a year ago, resulting in an earnings surprise of +11.48% [1] - The company achieved revenues of $7.01 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.61% and reflecting a year-over-year increase from $6.91 billion [2] - Baker Hughes has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66, with projected revenues of $7.02 billion, while the estimate for the current fiscal year is $2.40 on revenues of $27.2 billion [7] - The company's stock has gained approximately 15.3% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] Industry Context - The Oil and Gas - Field Services industry, to which Baker Hughes belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Baker Hughes' stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Total orders for the third quarter of 2025 reached $8.2 billion, a 17% sequential increase and a 23% year-over-year increase, including $4.1 billion in IET orders[5] - Revenue for the quarter was $7.0 billion, reflecting a 1% increase both sequentially and year-over-year[20] - Attributable net income was $609 million, down 13% sequentially and 20% year-over-year[21] - Adjusted EBITDA for the quarter was $1,238 million, up 2% sequentially and year-over-year[23] - Remaining Performance Obligations (RPO) totaled $35.3 billion, an increase of $1.3 billion from the previous quarter, with IET RPO at a record $32.1 billion[25] - OFSE orders for Q3 2025 reached $4,068 million, an increase of $565 million, or 16% sequentially[30] - OFSE revenue for Q3 2025 was $3,636 million, up $18 million, or 1% sequentially, but down $327 million, or 8% year-over-year[30] - IET orders for Q3 2025 totaled $4,139 million, an increase of $1,271 million, or 44% year-over-year[34] - IET revenue for Q3 2025 was $3,374 million, an increase of $429 million, or 15% year-over-year[35] - Adjusted net income attributable to Baker Hughes for Q3 2025 was $678 million, with adjusted earnings per share of $0.68[41] - Revenue for Q3 2025 was $7,010 million, a slight increase of 1.5% compared to $6,908 million in Q3 2024[10] - Net income attributable to Baker Hughes Company for Q3 2025 was $609 million, down 20.5% from $766 million in Q3 2024[10] - Basic income per Class A common stock decreased to $0.62 in Q3 2025 from $0.77 in Q3 2024, representing a decline of 19.5%[10] Cash Flow and Assets - Cash flow from operating activities was $929 million, with free cash flow at $699 million for the quarter[26] - Free cash flow for Q3 2025 was $239 million, down from $699 million in Q2 2025[42] - Total current assets increased to $17,529 million as of September 30, 2025, compared to $17,211 million at the end of 2024, reflecting a growth of 1.8%[46] - Cash and cash equivalents decreased to $2,693 million at the end of Q3 2025 from $3,364 million at the end of 2024, a decline of 19.9%[46] - Net cash flows provided by operating activities for the nine months ended September 30, 2025, were $2,148 million, slightly up from $2,142 million in the same period of 2024[48] - The company reported net cash used in investing activities of $1,651 million for the nine months ended September 30, 2025, compared to $799 million in the same period of 2024[48] - Dividends paid in Q3 2025 amounted to $227 million, an increase from $628 million in Q3 2024[48] Acquisitions and Strategic Initiatives - The company announced its intent to acquire Chart Industries, Inc. for approximately $13.6 billion, enhancing its portfolio in high-growth markets[8] - Baker Hughes completed the acquisition of Continental Disc Corporation, expected to expand its position in flow and pressure control markets[9] - The company expects full-year orders to exceed prior midpoint estimates, driven by strong visibility on expected awards in the fourth quarter[4] Market Performance - North America revenue for OFSE was $980 million, up $52 million, or 6% sequentially[31] - International revenue for OFSE was $2,656 million, down $34 million, or 1% sequentially[31] Future Outlook - The company has scheduled an investor conference call for October 24, 2025, to discuss management's outlook and results[50] - Baker Hughes continues to focus on innovative technologies and services to enhance energy efficiency and sustainability[54]

Core Insights - Baker Hughes, an oilfield services provider, exceeded Wall Street expectations for third-quarter profit, driven by robust performance in its industrial and energy technology unit [1] Company Summary - The company reported stronger-than-expected profits for the third quarter, indicating positive momentum in its operations [1] - The industrial and energy technology segment played a significant role in supporting the company's financial performance during this period [1]

Core Insights - Baker Hughes reported strong third-quarter performance for 2025, driven by operational discipline and positive trends in Gas Technology, particularly in the U.S. land market [3][4] - The company secured over $4 billion in Industrial & Energy Technology (IET) orders, marking a record backlog of $32.1 billion, indicating robust growth prospects [4][7] - The company announced its intent to acquire Chart Industries for approximately $13.6 billion, enhancing its portfolio in high-growth markets [9] Financial Performance - Total orders reached $8.2 billion, a 17% increase sequentially and a 23% increase year-over-year [5] - Revenue for the quarter was $7.0 billion, reflecting a 1% increase both sequentially and year-over-year [5][24] - Net income attributable to Baker Hughes was $609 million, down 13% sequentially and 20% year-over-year [5][25] - Adjusted net income was $678 million, up 9% sequentially and 2% year-over-year [5][26] - Adjusted EBITDA was $1,238 million, a 2% increase year-over-year [5][27] Segment Performance Oilfield Services & Equipment (OFSE) - OFSE orders totaled $4.1 billion, a 16% sequential increase and a 7% year-over-year increase [36] - Revenue for OFSE was $3.6 billion, up 1% sequentially but down 8% year-over-year [36][38] - Segment EBITDA was $671 million, a decrease of 1% sequentially and 12% year-over-year [38] Industrial & Energy Technology (IET) - IET orders were $4.1 billion, a 44% increase year-over-year [41] - Revenue for IET was $3.4 billion, a 15% increase year-over-year [42] - Segment EBITDA was $635 million, a 20% increase year-over-year [43] Key Awards and Contracts - Significant contracts were secured in the LNG sector, including orders for gas turbine technology for major LNG facilities in Texas [11][12] - Baker Hughes received a multi-year contract from bp for service support at the Tangguh LNG plant in Indonesia [15] - The company was awarded a contract from Aramco to expand drilling operations in Saudi Arabia [21] Market Outlook - The company anticipates full-year orders to exceed prior expectations, supported by strong visibility on expected awards in the fourth quarter [4] - Baker Hughes continues to experience strong demand for its New Energy solutions, particularly in geothermal power generation [16]