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% [5][26] - Total company bookings reached $8.2 billion, with free cash flow generated amounting to $699 million [26][27] - Full-year adjusted EBITDA is now expected to exceed $4.7 billion, with a free cash flow conversion target of 45%-50% [5][27][36] Business Line Data and Key Metrics Changes - Industrial & Energy Technology (IET) orders totaled $4.1 billion, with revenue increasing by 15% year-over-year to $3.4 billion [6][31] - Oilfield Services and Equipment (OFSE) revenue was $3.6 billion, up 1% sequentially, with EBITDA of $671 million [32] - IET achieved a record backlog of $32.1 billion, while OFSE's EBITDA margins declined by 30 basis points to 18.5% [31][32] Market Data and Key Metrics Changes - LNG demand grew by 6% this year, driven by strong storage injection in Europe, with record LNG contracting activity reported [18] - The macro environment remains resilient despite geopolitical risks, with AI-driven investments projected to account for 30%-40% of U.S. GDP growth [15][16] - Global upstream spending is expected to decline in 2026, influenced by softening oil fundamentals [17][37] Company Strategy and Development Direction - The company is focused on achieving a 20% adjusted EBITDA margin by 2028, with a target of securing at least $40 billion in IET orders over the next three years [38][39] - The acquisition of Chart Industries is seen as a significant milestone, expected to enhance technology offerings and create commercial synergies [24][30] - The company aims to leverage its technology portfolio to capitalize on growth in LNG, power generation, and new energy markets [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum across key end markets, particularly in natural gas and AI-driven power [19][20] - The outlook for LNG capacity expansion has been revised, with expectations for global LNG installed capacity to reach approximately 950 MTPA by 2035 [19] - The company anticipates continued growth in OPEX-driven upstream investment as operators focus on enhancing recovery rates [17] Other Important Information - The company secured significant contracts in various sectors, including a long-term service contract with BP for its Tangguh LNG facility and a major order for geothermal power solutions [11][14] - The integration planning for the Chart Industries acquisition is underway, with a focus on harmonizing systems and processes [30][87] Q&A Session Summary Question: Opportunities in Power Generation - Management highlighted strong demand growth across power generation solutions, including distributed power and geothermal opportunities, with $800 million in power generation-related orders booked this quarter [47][48][50] Question: Financial Targets in Horizon 2 - Management discussed the confidence in achieving $40 billion in IET orders and the importance of LNG and gas infrastructure in driving future growth [58][60] Question: Evaluation of Capital Allocation - Management emphasized the ongoing evaluation of capital allocation and business costs to enhance shareholder value, particularly in light of the Chart Industries acquisition [74][76] Question: Integration of Chart Industries - Management provided insights into the integration planning for Chart Industries, focusing on aligning cultures and driving commercial synergies [83][85]

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]

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 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]

Core Insights - Baker Hughes reported strong second-quarter results for 2025, with adjusted EBITDA margins increasing by 170 basis points year-over-year to 17.5%, despite a modest decline in revenue [3][4] - The company achieved IET orders totaling $3.5 billion, contributing to a record backlog, and maintained confidence in meeting full-year order guidance [4][6] - Strategic transactions were announced to optimize the portfolio, including a joint venture, a sale of a product line, and an acquisition, aimed at enhancing earnings durability and shareholder value [4][10][11] Financial Performance - Total revenue for the quarter was $6.91 billion, down 3% year-over-year, with net income attributable to Baker Hughes at $701 million, reflecting a 21% increase year-over-year [6][25] - Adjusted net income was $623 million, up 10% year-over-year, and adjusted EBITDA was $1.21 billion, up 7% year-over-year [26][27] - Cash flow from operating activities was $510 million, with free cash flow of $239 million, indicating a 47% decrease from the previous quarter [30][49] Orders and Backlog - Total orders for the quarter reached $7.03 billion, with a book-to-bill ratio of 1.0, while IET's book-to-bill ratio was 1.1 [24][39] - Remaining Performance Obligations (RPO) stood at $34 billion, with IET RPO at $31.3 billion, reflecting a 3% sequential increase [29] Segment Performance - Oilfield Services & Equipment (OFSE) reported orders of $3.5 billion, with revenue of $3.62 billion, down 10% year-over-year [35][36] - Industrial & Energy Technology (IET) saw orders of $3.53 billion and revenue of $3.29 billion, marking a 5% year-over-year increase [37][40] - IET's segment EBITDA increased by 18% year-over-year to $585 million, driven by positive pricing and productivity [41] Strategic Transactions - The company entered a joint venture with Cactus, Inc. for the OFSE Surface Pressure Control product line, valued at approximately $345 million [9] - Baker Hughes sold the Precision Sensors & Instrumentation product line for approximately $1.15 billion, enhancing reinvestment capabilities [10] - The acquisition of Continental Disc Corporation for approximately $540 million aims to strengthen the IET Industrial Products portfolio [11] Technology and Market Developments - Baker Hughes secured significant awards in data center projects, including a contract for 30 NovaLT™ turbines, which will provide up to 500 MW of power [12][15] - The company is expanding its presence in the New Energy sector, with year-to-date bookings totaling $1.25 billion, including a major CCS order [17][40]

Core Insights - Baker Hughes reported strong first-quarter results for 2025, achieving multiple records and demonstrating resilience despite macroeconomic challenges [2][3] - The company is focused on operational transformation and margin improvement across its segments, positioning itself for sustainable growth [3][4] Financial Performance - Total orders for the quarter were $6.5 billion, with $3.2 billion coming from the Industrial & Energy Technology (IET) segment [6] - Revenue for the quarter was $6.4 billion, consistent year-over-year, while net income attributable to Baker Hughes was $402 million, a decrease of 66% sequentially [5][6] - Adjusted net income was $509 million, down 27% sequentially but up 19% year-over-year, with adjusted EBITDA at $1,037 million, reflecting a 10% increase year-over-year [5][6][22] Segment Performance - In the IET segment, orders totaled $3.2 billion, including significant contracts in LNG and data center power solutions, while revenue was $2.9 billion, up 11% year-over-year [4][33] - The Oilfield Services & Equipment (OFSE) segment saw orders of $3.3 billion, down 12% sequentially, with revenue of $3.5 billion, a decrease of 10% sequentially [30][31] Strategic Developments - Baker Hughes expanded its leadership in LNG with a liquefaction train award from Bechtel and secured key agreements for gas turbine technology with LNG operators [8][9] - The company is advancing its commitment to sustainable power solutions, particularly for data centers, through partnerships aimed at carbon capture and storage [11][12] Market Outlook - Despite broader macroeconomic uncertainties, Baker Hughes remains confident in its strategy and the resilience of its portfolio, aiming for sustainable growth in shareholder value [4][3] - The company’s remaining performance obligations (RPO) stood at $33.2 billion, with a record IET RPO of $30.4 billion, indicating a strong order backlog [24][6]