# Baker Hughes Company (BKR) Q2 2025 Financial Results Summary
Baker Hughes Company announced its second-quarter results on July 22, 2025. Below is a summary of the key financial and operational highlights from the report.
### Key Highlights
– **Orders and Revenue**
– Total orders of **$7.0 billion**, including **$3.5 billion** from Industrial & Energy Technology (IET).
– Revenue of **$6.9 billion**, down **3%** year-over-year.
– **Remaining Performance Obligations (RPO)**
– RPO stands at **$34.0 billion**, with record IET RPO of **$31.3 billion**.
– **Net Income and Earnings Per Share**
– Attributable net income of **$701 million**; a **21%** increase year-over-year.
– GAAP diluted EPS of **$0.71**, up **22%** from the prior year.
– Adjusted diluted EPS of **$0.63**, up **11%** year-over-year.
– **Adjusted Metrics**
– Adjusted EBITDA of **$1,212 million**, showing a **7%** year-over-year increase.
– Cash flows from operating activities of **$510 million**.
– **Shareholder Returns**
– Total returns to shareholders of **$423 million**, including **$196 million** dedicated to share repurchases.
– Quarterly dividend declared at **$0.23**, a **10%** increase compared to the previous year.
### Financial Performance
– **Orders Breakdown**
– Oilfield Services & Equipment (OFSE) orders totaled **$3.5 billion**, representing a **7%** sequential increase but down **14%** year-over-year.
– IET orders are reported at **$3.5 billion**, which is **11%** higher sequentially and **2%** higher compared to the prior year.
– **Revenue Analysis**
– Revenue from OFSE was **$3.6 billion**, down **10%** year-over-year but up **3%** sequentially.
– IET revenue reached **$3.3 billion**, a **5%** year-over-year improvement and a **12%** increase sequentially.
– **Profitability Measures**
– Adjusted EBITDA margins increased to **17.5%**, up **170 basis points** year-over-year.
– One-time entries included **$78 million** in adjustments impacting adjusted net income.
### Strategic Actions
– **Portfolio Optimization**
– Announced three strategic transactions to improve core business focus:
1. Formed a joint venture with Cactus, Inc. for OFSE Surface Pressure Control.
2. Sold the Precision Sensors & Instrumentation line for **$1.15 billion**.
3. Acquired Continental Disc Corporation for **$540 million** to enhance the IET portfolio.
### Market Position and Growth
– Baker Hughes continues to see strong order momentum in the IET segment, underscoring a diversified portfolio’s resilience.
– Expansion in data center projects resulted in awards exceeding **$650 million** for the year-to-date.
### Summary of Financial Metrics
– **Revenue:** $6.9 billion (down **3%** YoY)
– **Net Income:** $701 million (up **21%** YoY)
– **GAAP Diluted EPS:** $0.71 (up **22%** YoY)
– **Adjusted EBITDA:** $1,212 million (up **7%** YoY)
– **Free Cash Flow:** $239 million
– **Share Repurchases:** $196 million returned to shareholders
### Additional Information
– The total book-to-bill ratio is reported at **1.0**, with a specific ratio for IET at **1.1**.
– Strong performance in pricing and productivity contributed positively, while inflation and cost pressures adversely impacted certain segments.
In conclusion, Baker Hughes Company reported a solid financial performance in Q2 2025, maintaining a steady operation amid varying market conditions while focusing on portfolio optimization initiatives to enhance long-term shareholder value.
### Condensed Consolidated Statements of Income (Loss)
*(In millions, except per share amounts)*
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenue | $6,910 | $7,139 | $13,337 | $13,557 |
| Costs and expenses: | ||||
| Cost of revenue | 5,295 | 5,493 | 10,247 | 10,469 |
| Selling, general and administrative | 567 | 643 | 1,144 | 1,261 |
| Research and development costs | 161 | 158 | 307 | 322 |
| Other (income) expense, net | -134 | -26 | 6 | -48 |
| Interest expense, net | 54 | 47 | 105 | 88 |
| Income before income taxes | 967 | 824 | 1,528 | 1,465 |
| Provision for income taxes | -256 | -243 | -408 | -421 |
| Net income | 711 | 581 | 1,120 | 1,044 |
| Less: Net income attributable to noncontrolling interests | 10 | 2 | 17 | 10 |
| Net income attributable to Baker Hughes Company | $701 | $579 | $1,103 | $1,034 |
| Per share amounts: | ||||
| Basic income per Class A common stock | $0.71 | $0.58 | $1.11 | $1.04 |
| Diluted income per Class A common stock | $0.71 | $0.58 | $1.11 | $1.03 |
| Weighted average shares: | ||||
| Class A basic | 988 | 996 | 990 | 997 |
| Class A diluted | 991 | 1,001 | 995 | 1,002 |
| Cash dividend per Class A common stock | $0.23 | $0.21 | $0.46 | $0.42 |
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### Condensed Consolidated Statements of Financial Position
*(In millions)*
| ASSETS | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Current Assets: | ||
| Cash and cash equivalents | $3,087 | $3,364 |
| Current receivables, net | 6,511 | 7,122 |
| Inventories, net | 5,105 | 4,954 |
| All other current assets | 2,915 | 1,771 |
| Total current assets | 17,618 | 17,211 |
| Property, plant and equipment, less accumulated depreciation | 5,176 | 5,127 |
| Goodwill | 5,801 | 6,078 |
| Other intangible assets, net | 3,919 | 3,951 |
| Contract and other deferred assets | 1,841 | 1,730 |
| All other assets | 4,385 | 4,266 |
| Total assets | $38,740 | $38,363 |
| LIABILITIES AND EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $4,340 | $4,542 |
| Short-term debt | 66 | 53 |
| Progress collections and deferred income | 5,680 | 5,672 |
| All other current liabilities | 2,429 | 2,724 |
| Total current liabilities | 12,515 | 12,991 |
| Long-term debt | 5,968 | 5,970 |
| Liabilities for pensions and other postretirement benefits | 997 | 988 |
| All other liabilities | 1,392 | 1,359 |
| Equity | 17,868 | 17,055 |
| Total liabilities and equity | $38,740 | $38,363 |
| Outstanding Baker Hughes Company shares: | ||
| Class A common stock | 985 | 990 |
