Baker Hughes(US:BKR) MarketBeat·2025-10-24 21:17Core Viewpoint - Baker Hughes demonstrated strong performance in its third-quarter earnings report, exceeding revenue and earnings expectations, reflecting a successful strategic pivot towards becoming a diversified energy technology company [1][2]. Financial Performance - The company reported revenue of $7.01 billion, surpassing the expected $6.81 billion and showing a 1% year-over-year increase [1]. - Adjusted earnings per share (EPS) were 68 cents, beating estimates of 62 cents and slightly above the previous year's 67 cents [1]. - Adjusted EBITDA reached $1.24 billion, with a margin of 17.7%, up 20 basis points year-over-year [10]. - Free cash flow increased to $699 million, nearly tripling from the prior quarter [10]. Segment Performance - The Industrial & Energy Technology (IET) segment saw significant growth, with orders rising 44% year-over-year to $4.1 billion and revenue increasing by 15% to $3.37 billion [3]. - The Oilfield Services & Equipment (OFSE) segment experienced a 7% year-over-year increase in orders to $4.07 billion, despite revenue declining by 8% to $3.64 billion [6][8]. Strategic Initiatives - CEO Lorenzo Simonelli highlighted the company's focus on high-growth markets such as LNG, data centers, and power generation, with major contract wins contributing to performance [4]. - Baker Hughes is actively pursuing technology investments and acquisitions, including the recent $553 million acquisition of Continental Disc Corporation [11][12]. Market Outlook - The company projects full-year 2025 revenue between $27.0 billion and $27.8 billion, with adjusted EBITDA of $4.63 billion to $4.85 billion, indicating continued margin expansion [13]. - Baker Hughes anticipates global LNG capacity to reach 950 million tons per annum by 2035, driven by coal-to-gas substitution and emerging market demand [14]. - Analysts expect 15% earnings growth over the next 12 months, aligning with the company's forward price-to-earnings (P/E) ratio of around 18x [15].