Baker Hughes(US:BKR)2025-10-24 20:11Financial Performance - In Q3 2025, the company generated revenues of $7.0 billion, an increase of $0.1 billion, or 1%, compared to Q3 2024[125] - Net income for Q3 2025 was $0.6 billion, a decrease of $0.2 billion, or 20%, compared to Q3 2024[125] - Total orders for Q3 2025 were $8.2 billion, an increase of $1.5 billion, or 23%, compared to Q3 2024[148] - Net income decreased by $0.1 billion, or 5%, to $1.7 billion compared to the first nine months of 2024[164] - OFSE revenue decreased by $1.0 billion, or 9%, to $10.752 billion in the first nine months of 2025, driven by lower rig count[165] - IET revenue increased by $888 million, or 10%, to $9.595 billion in the first nine months of 2025, primarily in Gas Technology Equipment[168] Segment Performance - IET revenue increased by $0.4 billion, or 15%, driven by strong growth in Gas Technology Equipment and Services, while OFSE revenue decreased by $0.3 billion, or 8%[125] - Segment EBITDA for OFSE decreased by $154 million, or 7%, to $1.971 billion in the first nine months of 2025[166] - Segment EBITDA for IET increased by $310 million, or 22%, to $1.721 billion in the first nine months of 2025[169] Cash Flow and Capital Management - Operating activities generated cash flows of $2.148 billion in the nine months ended September 30, 2025, compared to $2.142 billion in 2024[177] - Operating cash flows for the nine months ended September 30, 2025, were $2,148 million, slightly up from $2,142 million in 2024[178] - Cash and cash equivalents decreased to $2.7 billion as of September 30, 2025, from $3.4 billion at December 31, 2024[170] - Net working capital cash usage was $34 million for the nine months ended September 30, 2025, compared to $57 million in 2024, indicating improved cash management[181] - Cash flows used in investing activities increased significantly to $1,651 million in 2025 from $799 million in 2024[183] - Capital expenditures for the nine months ended September 30, 2025, were $896 million, down from $925 million in 2024, with proceeds from asset disposals at $139 million[184] - Cash flows used in financing activities were $1,224 million in 2025, a decrease from $1,293 million in 2024, with dividends paid increasing to $683 million from $628 million[187] Shareholder Returns - The company returned $227 million to shareholders through dividends in Q3 2025[127] - The company repurchased 9.8 million shares of Class A common stock for $384 million in 2025, compared to 15.0 million shares for $476 million in 2024[188] Market Conditions - The average Brent oil price in Q3 2025 was $69.03 per barrel, down from $80.01 in Q3 2024, while WTI oil prices averaged $65.78 per barrel, down from $76.43[137] - Rig counts in North America decreased by 10% year-over-year to 718, while international rig counts decreased by 6% to 1,080[140] - The company anticipates ongoing volatility in oil markets and expects global upstream spending in 2025 to be lower than in 2024[122] Acquisitions - The acquisition of Chart Industries is expected to close in mid-2026, following regulatory approvals, while the acquisition of Continental Disc Corporation was completed on August 7, 2025[126] - The company entered into a definitive agreement to acquire Chart's common stock for $210 per share, totaling an enterprise value of $13.6 billion[175] - The company completed the acquisition of CDC for approximately $542 million during the nine months ended September 30, 2025[185] Debt and Liquidity - The company guarantees debt securities with an aggregate principal amount of $5.8 billion as of September 30, 2025, with maturities ranging from 2026 to 2047[196] - As of September 30, 2025, 77% of the company's cash was held outside the U.S., which may affect liquidity due to exchange controls[195] Research and Development - Research and development costs decreased by $26 million, or 5%, to $453 million in the first nine months of 2025[160] Interest Expense - Net interest expense increased by $18 million to $161 million in the first nine months of 2025, primarily due to lower interest income[162]