Executive Summary
Baker Hughes reported Q3 2024 revenue of $6.908 billion with a gross profit of $1.542 billion, delivering a gross margin of 22.32% and an EBITDA margin of 19.43%. The company generated operating income of $0.93 billion (operating margin 13.46%) and net income of $0.766 billion, or $0.77 per share, representing YoY improvements of 30%+ in operating income, 48%+ in net income, and about 51% in EPS. These results reflect favorable product mix, disciplined cost management, and ongoing efficiency gains that supported strong cash generation. Net cash provided by operating activities stood at $1.01 billion, with free cash flow of $0.71 billion after maintaining capex of $0.30 billion. The firm continued to allocate capital to shareholder returns (dividends of $0.209 billion and share repurchases of $0.152 billion) while sustaining a solid balance sheet (total debt $6.04B, net debt $3.37B; cash $2.66B). Liquidity remains robust with a current ratio of 1.30 and interest coverage of ~16.9x. The results underscore Baker Hughes’ differentiated, diversified portfolio across OFS, OFE, TPS and DS, providing resilience against commodity cycles and positioning the company to capture long-cycle subsea and digital solutions growth opportunities. While the outlook remains tied to oil capex cycles and broader macro dynamics, the company’s cash generation and capital allocation discipline support a constructive longer-term investment thesis.
Key Performance Indicators
Key Insights
Revenue: $6.908B (+4.02% YoY; -3.24% QoQ); Gross Profit: $1.542B (YoY +14.82%; QoQ +3.49%); Operating Income: $0.93B (YoY +30.25%; QoQ +9.80%); Net Income: $0.766B (YoY +47.88%; QoQ +32.30%); EPS: $0.77 (YoY +50.98%; QoQ +32.76%); EBITDA: $1.342B (margin ~19.43%); Net Margin: 11.09%; Gross Margin: 22.32%; Operating Margin: 13.46%; Cash from Ops: $1.01B; Free Cash Flow: $0.71B; Capex: $-0.30B; Net Debt: $-3.37B (net debt); Cash: $2.664B; Total Debt: $6.036B; Current Ratio: 1.30; Quick Ratio: 0.89...
Financial Highlights
Revenue: $6.908B (+4.02% YoY; -3.24% QoQ); Gross Profit: $1.542B (YoY +14.82%; QoQ +3.49%); Operating Income: $0.93B (YoY +30.25%; QoQ +9.80%); Net Income: $0.766B (YoY +47.88%; QoQ +32.30%); EPS: $0.77 (YoY +50.98%; QoQ +32.76%); EBITDA: $1.342B (margin ~19.43%); Net Margin: 11.09%; Gross Margin: 22.32%; Operating Margin: 13.46%; Cash from Ops: $1.01B; Free Cash Flow: $0.71B; Capex: $-0.30B; Net Debt: $-3.37B (net debt); Cash: $2.664B; Total Debt: $6.036B; Current Ratio: 1.30; Quick Ratio: 0.89; Interest Coverage: 16.9x; P/E: 11.73x; P/BV: 2.20x; EV/FCF: 50.62x; Dividend Yield: ~0.58%; Dividend Payout: 27.3%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.91B |
4.02% |
-3.24% |
| Gross Profit |
1.54B |
14.82% |
3.49% |
| Operating Income |
930.00M |
30.25% |
9.80% |
| Net Income |
766.00M |
47.88% |
32.30% |
| EPS |
0.77 |
50.98% |
32.76% |
Key Financial Ratios
operatingProfitMargin
13.5%
operatingCashFlowPerShare
$1.02
freeCashFlowPerShare
$0.72
dividendPayoutRatio
27.3%