Baker Hughes Beats Q4 Earnings Estimates, Hikes Quarterly Dividend

Core Insights - Baker Hughes Company (BKR) reported fourth-quarter 2024 adjusted earnings of 70 cents per share, exceeding the Zacks Consensus Estimate of 63 cents and improving from 51 cents a year ago [1][2] - Total quarterly revenues reached $7,364 million, surpassing the Zacks Consensus Estimate of $7,094 million and increasing from $6,835 million in the previous year [2] Dividend Announcement - As of January 31, 2025, Baker Hughes declared a quarterly cash dividend of 23 cents per share, a 10% increase from the previous dividend of 21 cents per share, payable on February 21, 2025 [3] Segment Performance - The company reorganized into two operating segments: Oilfield Services and Equipment, and Industrial and Energy Technology, effective October 1, 2022 [4] - Revenues from the Oilfield Services and Equipment unit were $3,871 million, down 2% from $3,956 million a year ago, and below the estimate of $3,884 million [4] - Operating income from this segment increased to $526 million, up 7% from $492 million in the fourth quarter of 2023, driven by favorable pricing and efficiency gains [5] - Revenues from the Industrial & Energy Technology unit amounted to $3,492 million, up 21% from $2,879 million a year ago, exceeding the estimate of $3,223 million [5] - Operating income from this segment rose to $584 million, a 42% increase from $412 million in the previous year, attributed to higher volumes and improved productivity [6] Costs and Expenses - Total costs and expenses for the fourth quarter were $6,699 million, up from $6,183 million a year ago, and higher than the projected $6,134.4 million [7] Orders and Free Cash Flow - Total orders from all business segments reached $7,496 million, a 9% increase year over year from $6,904 million, although below the expected $9,753.7 million [8] - Free cash flow generated in the quarter was $894 million, compared to $633 million a year ago [9] Capital Expenditure and Balance Sheet - Net capital expenditure for the fourth quarter was $295 million, with cash and cash equivalents of $3,364 million as of December 31, 2024 [11] - Long-term debt stood at $5,970 million, resulting in a debt-to-capitalization ratio of 26.1% [11]