Baker Hughes(US:BKR)2026-01-26 11:09Financial Performance - Baker Hughes reported fourth-quarter revenue of $7,386 million, a 5% sequential increase and flat year-over-year[20]. - The company achieved a record full-year Adjusted EBITDA of $4,825 million, up 5% year-over-year[6]. - Fourth-quarter attributable net income was $876 million, a 44% sequential increase but a 26% decrease year-over-year[21]. - Adjusted diluted EPS for the fourth quarter was $0.78, reflecting a 14% sequential increase and a 12% year-over-year increase[27]. - Baker Hughes reported a net income attributable to the company of $876 million for Q4 2025, compared to $609 million in Q3 2025 and $1,179 million in Q4 2024, reflecting a decrease of 27% year-over-year[47]. - Revenue for Q4 2025 was $7,386 million, slightly up from $7,364 million in Q4 2024 and an increase from $7,010 million in Q3 2025[47]. - The company achieved free cash flow of $1,341 million in Q4 2025, compared to $699 million in Q3 2025 and $894 million in Q4 2024[44]. - Total revenue for the year ended December 31, 2025, was $27,733 million, a slight decrease from $27,829 million in 2024[49]. - Baker Hughes' adjusted net income attributable to the company for Q4 2025 was $772 million, compared to $678 million in Q3 2025 and $694 million in Q4 2024[43]. - The company incurred restructuring costs of $215 million in Q4 2025, down from $258 million in Q4 2024[47]. - Cash and cash equivalents at the end of Q4 2025 were $3,715 million, an increase from $3,364 million at the end of Q4 2024[51]. - The company paid dividends of $0.23 per Class A common share in Q4 2025, consistent with Q3 2025 and an increase from $0.21 in Q4 2024[47]. Orders and Bookings - IET (Industrial & Energy Technology) secured fourth-quarter bookings of $4 billion, contributing to a record full-year total of $14.9 billion[5]. - Remaining Performance Obligations (RPO) reached $35.9 billion in the fourth quarter, with IET RPO at $32.4 billion[25]. - OFSE orders for Q4 2025 were $3,862 million, a decrease of $206 million, or 5% sequentially, but an increase of $265 million, or 33% year-over-year[31]. - IET orders for Q4 2025 were $4,024 million, an increase of $269 million, or 7% year-over-year, driven by strength in Climate Technology Solutions and Industrial Technology[35]. - Total year 2025 orders were $29,585 million, a 5% increase from 2024[39]. Revenue and Segment Performance - OFSE revenue for Q4 2025 was $3,572 million, down $63 million, or 2% sequentially, and down $298 million, or 8% year-over-year[31]. - IET revenue for Q4 2025 was $3,814 million, an increase of $321 million, or 9% year-over-year, primarily from Gas Technology Equipment and Services[36]. - Total year 2025 segment revenue was $27,733 million, remaining relatively stable compared to 2024[39]. EBITDA and Margins - Segment EBITDA for Q4 2025 was $647 million, a decrease of $25 million, or 4% sequentially, attributed to lower volume[33]. - Segment EBITDA for IET in Q4 2025 was $761 million, an increase of $121 million, or 19% year-over-year, driven by productivity and volume[37]. - The EBITDA margin for OFSE in Q4 2025 was 18.1%, down 0.4 percentage points sequentially and down 1.4 percentage points year-over-year[30]. - Total year 2025 segment EBITDA was $5,100 million, a 3% increase from 2024[39]. Future Outlook - Baker Hughes anticipates organic Adjusted EBITDA growth in the mid-single digits range for 2026, with IET margins targeting 20%[8]. - The company plans to discuss its future outlook and results in an investor conference call scheduled for January 26, 2026[56]. Operational Context - Baker Hughes operates in over 120 countries, providing energy technology solutions to industrial customers worldwide[60]. - The company emphasizes the impact of geopolitical risks, including conflicts in petroleum-producing regions like Russia and Ukraine, on its operations[59]. - Economic conditions, such as inflation and interest rates, significantly affect Baker Hughes' supply chain costs and customer demand[58]. - The company faces risks related to the volatility in crude oil and natural gas prices, which can impact exploration and production expenditures[58]. - Baker Hughes is focused on executing orders and revenue performance obligations (RPO) in accordance with agreed specifications[58]. - The company highlights the importance of OPEC policies and adherence to production quotas on market conditions[58]. - Baker Hughes is committed to making energy safer, cleaner, and more efficient through innovative technologies developed over a century[60]. - The company is exposed to cybersecurity risks and potential attacks that could disrupt operations[59]. - Baker Hughes acknowledges the potential impact of severe weather conditions on energy demand and exploration activities[58]. - The company is actively monitoring the effects of government disruptions and sanctions on its business operations[58].