Executive Summary
Baker Hughes delivered a resilient QQ1 2025 with a revenue of USD 6.427 billion and a gross margin of 22.95%, supported by ongoing cost discipline and a diversified product mix across OFS, OFE, TPS, and DS. Operating income reached USD 0.752 billion and net income USD 0.402 billion, translating to an EPS of USD 0.41. Year-over-year (YoY) revenue was broadly flat (+0.14%), while operating earnings grew ~14% YoY, reflecting efficiency gains and favorable mix. However, net income declined about 11.7% year-over-year, and quarterly revenue declined 12.7% quarter-over-quarter (QoQ), underscoring the cyclicality of the oilfield services market and seasonality in quarterly activity. Free cash flow (FCF) remained robust at USD 409 million, with operating cash flow of USD 709 million and a capex outflow of USD 300 million, supporting continued capital allocation to dividends and share repurchases. The balance sheet remains strong with USD 3.28 billion in cash and equivalents and a net debt position of USD 2.75 billion, underpinning financial flexibility to weather macro volatility.
Key Performance Indicators
QoQ: -65.90% | YoY:-11.65%
QoQ: -65.55% | YoY:-10.87%
Key Insights
Revenue: USD 6.427B; Gross Profit: USD 1.475B; Gross Margin: 22.95%.
Operating Income: USD 0.752B; Operating Margin: 11.70%; EBITDA: USD 0.897B; EBITDA Margin: 13.96%.
Net Income: USD 0.402B; Net Margin: 6.25%; EPS: USD 0.41; Diluted EPS: USD 0.40.
Cash Flow: CFO USD 0.709B; Capex USD 0.300B; FCF USD 0.409B.
Liquidity & Balance Sheet: Cash USD 3.278B; Total Assets USD 38.11B; Total Liabilities USD 20.90B; Total Equity USD 17.04B; Cash & Short-Term Investments USD 3.278B.
Leverage & C...
Financial Highlights
Revenue: USD 6.427B; Gross Profit: USD 1.475B; Gross Margin: 22.95%.
Operating Income: USD 0.752B; Operating Margin: 11.70%; EBITDA: USD 0.897B; EBITDA Margin: 13.96%.
Net Income: USD 0.402B; Net Margin: 6.25%; EPS: USD 0.41; Diluted EPS: USD 0.40.
Cash Flow: CFO USD 0.709B; Capex USD 0.300B; FCF USD 0.409B.
Liquidity & Balance Sheet: Cash USD 3.278B; Total Assets USD 38.11B; Total Liabilities USD 20.90B; Total Equity USD 17.04B; Cash & Short-Term Investments USD 3.278B.
Leverage & Coverage: Net Debt USD 2.75B; Debt-to-Capitalization 26.1%; Interest Coverage 14.75x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.43B |
0.14% |
-12.72% |
| Gross Profit |
1.48B |
15.41% |
-3.59% |
| Operating Income |
752.00M |
13.94% |
13.08% |
| Net Income |
402.00M |
-11.65% |
-65.90% |
| EPS |
0.41 |
-10.87% |
-65.55% |
Key Financial Ratios
operatingProfitMargin
11.7%
operatingCashFlowPerShare
$0.72
freeCashFlowPerShare
$0.41
Management Commentary
No transcript highlights available in the provided data for QQ1 2025. Management quotes and call commentary were not supplied in the input.
Forward Guidance
No explicit forward guidance was provided in the supplied data for QQ1 2025. Based on macro energy demand fundamentals and industry capex cycles, the following qualitative outlooks apply:
- Expect a gradual recovery in upstream activity as oilfield services spending realigns with demand. DS (Digital Solutions) and TPS (Turbomachinery & Process Solutions) offer upside via efficiency and uptime improvements on asset bases.
- Free cash flow is a key strength; expect disciplined capital allocation with a continued balance between dividends and selective buybacks.
- Monitor commodity price trends, capex guidance from major E&Ps, and geopolitical developments that could influence activity cycling.
Assessment of achievability: Without a formal numeric guidance from management, the positive FCF trajectory and historical cash generation support a cautious but constructive outlook, assuming mid-single-digit revenue growth is achievable over the medium term as activity recovers and DS/MRO initiatives scale.