Executive Summary
Baker Hughes reported a solid QQ4 2024, with revenue of $7.364 billion and a gross margin of 20.8%. Operating income came in at $0.665 billion (operating margin ~9.03%), while EBITDA was $1.139 billion (EBITDA margin ~15.5%). Net income totaled $1.179 billion, translating to a diluted earnings per share of approximately $1.18–$1.19. The year-over-year improvement in net income was robust at ~168%, supported by a revenue rise of ~7.7% YoY and a QoQ uplift in earnings despite a notably weaker QoQ operating margin, which declined by about 28.5%. The quarter benefited from an unusual tax position with a negative income tax expense of $0.399 billion, contributing to the strong net income figure.
Cash flow was a bright spot: operating cash flow of $1.19 billion, capex of $0.353 billion, yielding free cash flow of $0.837 billion. The company ended the period with cash and cash equivalents of $3.364 billion and a net debt position of approximately -$2.659 billion, indicating a healthy net cash status and ample liquidity to support ongoing shareholder returns and strategic investments. The balance sheet remained robust: total assets of $38.36 billion against liabilities of $21.31 billion, leaving $16.90 billion of equity. Key liquidity ratios were solid (current ratio 1.33, quick ratio 0.94, cash ratio 0.26) and leverage remained moderate (debt/capitalization ~28%). The four-segment portfolio (OFS, OFE, TPS, DS) continues to enable diversified revenue streams and cross-selling opportunities, with DS expected to contribute higher-margin, recurring software-enabled solutions over time.
Overall, the QQ4 2024 results position Baker Hughes as a financially resilient, cash-generative energy equipment and services leader with a prudent capital allocation framework. Investors should monitor cyclical capex momentum in oil and gas, the pace of DS adoption, and any timing shifts in offshore/subsea project activity that could influence the cadence of revenue and margins.
Key Performance Indicators
QoQ: 53.92% | YoY:167.95%
QoQ: 54.55% | YoY:170.45%
Key Insights
Revenue: $7.364B (YoY +7.74%, QoQ +6.60%). Gross Profit: $1.530B; Gross Margin: 20.8% (YoY +5.74%, QoQ -0.78%). Operating Income: $0.665B; Operating Margin: 9.03% (YoY +2.15%, QoQ -28.49%). Net Income: $1.179B; Net Margin: 16.01% (YoY +167.95%, QoQ +53.92%). EPS (diluted): $1.18–$1.19; YoY EPS growth ~170.45%, QoQ ~54.55%. EBITDA: $1.139B; EBITDA Margin: 15.47%. CFO: $1.19B; Capex: $0.353B; Free Cash Flow: $0.837B.
Liquidity & Balance Sheet: Cash & equivelents $3.364B; Total assets $...
Financial Highlights
Revenue: $7.364B (YoY +7.74%, QoQ +6.60%). Gross Profit: $1.530B; Gross Margin: 20.8% (YoY +5.74%, QoQ -0.78%). Operating Income: $0.665B; Operating Margin: 9.03% (YoY +2.15%, QoQ -28.49%). Net Income: $1.179B; Net Margin: 16.01% (YoY +167.95%, QoQ +53.92%). EPS (diluted): $1.18–$1.19; YoY EPS growth ~170.45%, QoQ ~54.55%. EBITDA: $1.139B; EBITDA Margin: 15.47%. CFO: $1.19B; Capex: $0.353B; Free Cash Flow: $0.837B.
Liquidity & Balance Sheet: Cash & equivelents $3.364B; Total assets $38.363B; Total liabilities $21.308B; Equity $16.895B. Net debt: -$2.659B (net cash). Current ratio 1.325; Quick ratio 0.943; Cash ratio 0.259. Debt to capitalization 28.4%; Interest coverage 17.5x. Dividend payout ratio 17.6%; Dividend yield ~0.512%. Valuation context (per share/applicable ratios): P/E ~8.62x; P/B ~2.41x; P/S ~5.52x; P/FCF ~48.6x; EV/EBITDA ~38.68x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.36B |
7.74% |
6.60% |
| Gross Profit |
1.53B |
5.74% |
-0.78% |
| Operating Income |
665.00M |
2.15% |
-28.49% |
| Net Income |
1.18B |
167.95% |
53.92% |
| EPS |
1.19 |
170.45% |
54.55% |
Key Financial Ratios
operatingProfitMargin
12.8%
operatingCashFlowPerShare
$1.2
freeCashFlowPerShare
$0.85
dividendPayoutRatio
17.6%
Management Commentary
No earnings call transcript data was provided in the input. Consequently, there are no management quotes or theme summaries to extract. If you can provide the QQ4 2024 earnings call transcript, I will extract key insights, quotes, and thematic groupings (strategy, operations, market conditions) with context and significance.
Forward Guidance
There is no explicit forward guidance in the provided QQ4 2024 data. The assessment herein relies on qualitative industry dynamics and Baker Hughes’ cash-flow generation profile. Given the continued energy capex cycle recovery, especially in offshore and subsea projects, and the ramp of Digital Solutions (DS) across upstream, midstream, and downstream workflows, the medium-term outlook appears constructive for revenue stability and FCF generation. Risks include ongoing cyclical volatility in oil and gas investments, project delays, and competitive intensity. Investors should monitor: (1) pace and geographic mix of capex and project awards (especially offshore and subsea), (2) DS adoption and contribution to margins, (3) working capital dynamics and commodity price sensitivity, and (4) potential M&A activity that could alter growth trajectories.