3Q 2025 Results October 24, 2025 Chairman & Chief Executive Officer Copyright 2024 Baker Hughes Company. All rights reserved. The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. It is to be used only for the benefit of Baker Hughes and may not be distributed, transmitted, reproduced, altered, or used for any purpose without the express written consent of Baker Hughes. Copyright 2025 Baker Hughes Company. All rights reserved. The inf ...

Third-quarter highlights Orders of $8.2 billion, including $4.1 billion of IET orders.RPO of $35.3 billion, including record IET RPO of $32.1 billion.Revenue of $7.0 billion, up 1% year-over-year.Attributable net income of $609 million.GAAP diluted EPS of $0.61 and adjusted diluted EPS* of $0.68.Adjusted EBITDA* of $1,238 million, up 2% year-over-year.Cash flows from operating activities of $929 million and free cash flow* of $699 million. HOUSTON and LONDON, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Baker Hughes C ...

Core Insights - Baker Hughes has received a significant contract from Turkish Petroleum (TPAO) and Turkish Petroleum Offshore Technology Center (TP-OTC) to supply subsea production and intelligent completion systems for the Sakarya Gas Field Phase 3 [1][2] Group 1: Project Details - The agreement includes the provision of deepwater horizontal tree systems and associated subsea structures and control systems for production at depths ranging from 6,500 to 7,200 feet [2][4] - Baker Hughes will integrate advanced completions technologies such as InForce HCMTM-A interval control valves and SureTREAT chemical injection valves to enhance operational efficiencies [4] Group 2: Strategic Importance - The development of the Sakarya gas fields is pivotal for transforming Turkey's energy sector, contributing to a more prosperous and secure future for the country [3] - Baker Hughes has been collaborating with TPAO and TP-OTC since the project's inception in 2022, focusing on reservoir and technology evaluations for the unique subsurface geology of the field [3] Group 3: Timeline and Execution - Deliveries and execution for the Sakarya Gas Field Phase 3 are set to commence in late 2025 [4]

Core Insights - Aspen Aerogels is uniquely positioned in the energy services sector, successfully transitioning from traditional energy markets to emerging markets in new energy, particularly as a supplier to EV batteries [1]. Company Overview - Aspen Aerogels has established a product line in traditional energy that is now experiencing significant revenue growth due to its involvement in the electric vehicle battery supply chain [1]. Leadership - Ricardo Rodriguez joined Aspen Aerogels as CFO and Treasurer in November 2021, indicating a strategic move to strengthen the company's financial leadership [2].

Core Insights - Baker Hughes has undergone a significant transformation since the merger with GE Oil & Gas in 2017, focusing on reshaping its portfolio towards gas infrastructure and moving away from upstream activities [1] - The company aims to create a new culture centered around execution, consistency, and accountability, which is considered a challenging endeavor in the industry [1] Company Overview - The transformation of Baker Hughes is described as unprecedented in the sector, highlighting the company's strategic shift and operational changes [1] - Lorenzo Simonelli, the key figure behind this transformation, is set to present further insights into the company's direction and strategies [2]

Financial Data and Key Metrics Changes - The company reported total revenue of $628 million for the second quarter, up 5% from the previous quarter and twice the midpoint of the sequential guidance provided in May [11][25] - EBITDA for the quarter was $51 million, marking an 11% sequential increase and representing the best second quarter EBITDA results in the company's public history [10][25] - Gross margins remained resilient at 22.9%, consistent with expectations and better than the full year 2024 average [11][27] - Free cash flow for the quarter was $41 million, with a cash balance of $232 million and no debt [13][14][30] Business Line Data and Key Metrics Changes - U.S. revenue totaled $528 million, an increase of $54 million or 11% sequentially, driven by midstream strength [17][26] - The midstream business grew to approximately 27% of total revenue, more than doubling its contribution over the past six quarters [12] - Canadian revenue was $48 million, down $14 million primarily due to seasonal impacts [20][26] - International revenue was $52 million, down 17% sequentially, in line with guidance due to non-repeating project activity [21][27] Market Data and Key Metrics Changes - U.S. midstream project investments drove strong sequential revenue gains, while upstream production remained disciplined with limited project backlogs [12][18] - The company noted a projected 2% increase in produced water volumes and a 13% increase in produced water recycling volumes for 2025, indicating growth opportunities in water management solutions [20] - The acquisition of Natron International expanded the company's electrical products opportunities in Singapore and the Asia Pacific region [21] Company Strategy and Development Direction - The company is focused on integrating with MRC Global to enhance service offerings and capture growth opportunities in alternative energy, AI infrastructure, and other industrial markets [14][15] - The strategic combination aims to realize $70 million in annual cost synergies within three years post-closing [15] - The company plans to balance organic and inorganic growth while pursuing potential bolt-on acquisitions [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds but emphasized solid execution and customer focus as key to success [8][10] - The outlook for the third quarter anticipates relatively flat revenue compared to the second quarter, with expectations of low single-digit percentage growth for the full year [34][36] - Management reaffirmed a target of $150 million in free cash flow for 2025 [36] Other Important Information - The company has a strong balance sheet with zero debt and total liquidity of $582 million [30] - The effective tax rate for the quarter was 21.9%, favorably impacted by tax benefits associated with stock awards [29] Q&A Session Summary Question: What are the most difficult parts of the integration likely to be? - Management emphasized focusing on customer needs and aligning teams early in the integration process to ensure a smooth transition [44] Question: Is it safe to assume the year is heading towards the top half of the current guidance? - Management indicated a bias towards the top end of the guidance but acknowledged potential budget exhaustion in the fourth quarter [46][48] Question: Are there opportunities to drive synergies with vendors and customers? - Management stated that while estimating synergies is ongoing, the focus remains on growth rather than immediate cost reductions [52] Question: Do you expect increased visibility in future earnings power with less exposure to upstream? - Management confirmed that diversification is a key opportunity, allowing for growth in both upstream and other markets [54] Question: How do you think about the impact from tariffs in the back half of the year? - Management noted that while tariffs have increased product costs, most sales growth has come from volume rather than price increases [67] Question: Were there specific factors that drove the outperformance in EBITDA? - Management attributed the improved EBITDA performance primarily to growth in the midstream sector [79]

Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2,500,000,000 with an Adjusted EBITDA of $509,000,000, reflecting a margin of 20.1% when excluding foreign exchange impacts [7][22] - Free cash flow generated was $261,000,000, with total shareholder distributions amounting to $271,000,000 through dividends and share buybacks [7][25] - The total company backlog increased by 5% sequentially to €16,600,000,000 [22] Business Line Data and Key Metrics Changes - In the Subsea segment, revenue was DKK2.2 billion, a 14% increase compared to the first quarter, driven by increased iEPCI project activity in the North Sea and higher installation activity in Brazil [22][23] - Surface Technologies revenue was €318,000,000, a 7% increase from the first quarter, primarily due to higher project and services activity in the Middle East [23][24] - Adjusted EBITDA for Subsea was €483,000,000, up 44% sequentially, with an EBITDA margin of 21.8% [23] Market Data and Key Metrics Changes - In North America, the company has reduced its footprint by 50% over the last three years while improving operating margins and increasing cash flow [10] - International markets now represent nearly two-thirds of Surface Technologies revenue, focusing on core markets with long-term production growth ambitions [10] - Subsea orders achieved $2,600,000,000 in the quarter, with a strong performance in Subsea Services, particularly in greenfield developments [11][12] Company Strategy and Development Direction - The company is focused on transforming its Subsea operations through new commercial models and configurable product offerings, enhancing customer relationships and technology leadership [8][20] - The strategy includes exiting unprofitable markets and consolidating facilities in North America while emphasizing operational efficiency [10] - The company aims to reach a three-year goal of $30,000,000,000 in Subsea inbound by the end of the year, supported by a robust order book [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market challenges and highlighted the importance of strong customer relationships and technology innovation [20] - The outlook for offshore activity remains robust, with significant project sanctioning expected in regions like Guyana and Mozambique [17][19] - The company anticipates continued strength in Subsea revenue growth and an adjusted EBITDA margin similar to the current quarter [25][27] Other Important Information - The company has increased its full-year guidance for total company adjusted EBITDA to approximately $1,800,000,000, a 30% increase compared to the prior year [28] - The company has committed to distributing at least 70% of free cash flow to shareholders, with a current distribution rate of 85% [28] Q&A Session Summary Question: Breakdown of Subsea order book composition - Management confirmed that the strong performance in Subsea Services is a result of successful market strategies and direct awards, indicating a positive trend for the business [31][32] Question: Expectations for awards in the second half - Management indicated that both the Subsea opportunities list and direct awards are expected to contribute to future awards, with confidence in maintaining a robust level of direct awards [34][36] Question: Growth trajectory for services revenue - Management confirmed that services revenue is expected to grow in line with Subsea revenue, with a strong installed base contributing to long-term sustainability [42][44] Question: Insights on brownfield and greenfield project appetite - Management noted a strong commitment to advancing both greenfield and brownfield projects, with significant capital flowing into offshore markets [51][53] Question: Emerging areas for activity outside the Golden Triangle - Management highlighted the importance of regions like East Africa and the Eastern Mediterranean, along with ongoing projects in Brazil and Guyana [61][63] Question: Competitive dynamics in the Middle East - Management emphasized the unique challenges of the Middle East market and the company's focus on technology and high-end services to maintain a competitive edge [70][72] Question: Pricing dynamics in the market - Management clarified that over 80% of their business is direct awarded, which mitigates competitive pricing pressures, focusing instead on project returns and cycle time [88][91] Question: Potential of hybrid flexible pipe technology - Management expressed optimism about the hybrid flexible pipe's applicability across various markets, emphasizing its advantages in weight and installation costs [96][98]

Financial Data and Key Metrics Changes - The second quarter results were in line with expectations despite significant market headwinds, with adjusted EBITDA margins at 21.1%, slightly declining from Q1 [7][11] - Adjusted free cash flow was $79 million, with a free cash flow conversion rate of 31.1%, up from 26.1% in Q1 [21][24] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $186 million worth of shares over the past four quarters [11][24] Business Line Data and Key Metrics Changes - North America and Latin America revenues were down sequentially, with North America affected by seasonal spring breakup in Canada and Latin America impacted by Argentina divestitures [9][10] - The ESSR region saw growth due to project startups in Europe, while the Middle East and North Africa region showed noteworthy performance despite a softening market in Saudi Arabia [10][12] - The company expects a decline in revenues for 2025, with North America projected to decline by high single digits and international revenues expected to decline low double to mid double digits [19][28] Market Data and Key Metrics Changes - The overall international market has softened, with increased caution and a slowdown in customer spending due to stable commodity prices and trade discussions causing uncertainty [14][15] - The rig count in Saudi Arabia has declined, affecting the market dynamics, but the company believes it remains underpenetrated in several businesses [36][37] - The U.S. Land market has been challenging, with pricing pressure noted, particularly in the service-related segments [82] Company Strategy and Development Direction - The company is focused on defending margins and maximizing cash generation while adapting to evolving market conditions [29][31] - A multiyear cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [31] - The company is exploring M&A opportunities, particularly in well construction and production segments, with a focus on value creation through cash flow accretion [73][75] Management's Comments on Operating Environment and Future Outlook - Management anticipates market headwinds will persist for at least another twelve months, with a potential recovery not expected until the second half of 2026 [16][39] - The company has reduced headcount by over 1,500 and lowered annualized personnel expenses by more than $125 million since 2024 [17][18] - Despite challenges, management remains optimistic about the company's future, emphasizing a strong balance sheet and commitment to shareholder returns [30][31] Other Important Information - The company has approximately $1 billion in cash and restricted cash, with total liquidity at $1.3 billion, the highest level since emergence [25][92] - Capital expenditures were $54 million in Q2, down from $77 million in Q1, with expectations for further declines [24][28] - The company is committed to maintaining net working capital efficiency levels at 25% or better [21] Q&A Session Summary Question: Insights on Saudi Arabia's market transition - Management acknowledged the softness in the Saudi market but highlighted the company's underpenetration in several businesses and strong execution [36][37] Question: Clarification on Q4 guidance - Management indicated that the Q4 guidance includes expected seasonal sales and project startups, despite uncertainties due to tariffs [44][46] Question: U.S. Land market challenges - Management noted a steady decline in U.S. Land, with a focus on production products and the impact of tariffs on future performance [51][55] Question: Stability in Mexico's market - Management expressed cautious optimism about stability in Mexico, with expectations for a ramp in activity levels in the second half of the year [60][66] Question: M&A opportunities and balance sheet strategy - Management confirmed a robust pipeline for M&A opportunities, focusing on strategic fits that create value, while maintaining a strong balance sheet [73][75] Question: Pricing pressure in various regions - Management identified North America as experiencing significant pricing pressure, particularly in service businesses, while remaining focused on maintaining margins [82]

2Q 2025 Results July 23, 2025 Copyright 2025 Baker Hughes Company. All rights reserved. The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. It is used only for the benefit of Baker Hughes and may not be distributed, transmitted, reproduced, altered, or used for any purpose without the express written consent of Baker Hughes. Copyright 2025 Baker Hughes Company. All rights reserved. 1 This presentation (and oral statements made regar ...

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]