Executive Summary
Baker Hughes delivered a solid QQ2 2025 performance with continued profitability and meaningful cash generation, underscoring the company's resilient position in a cyclical Energy Services market. Revenue of USD 6.91 billion rose 7.5% QoQ, while YoY revenue declined 3.2%, reflecting the typical seasonality and broader cycle within oilfield services. The quarter featured a robust gross margin of 23.37% (USD 1.615 billion gross profit) and an operating margin of 12.84% (USD 0.887 billion operating income), supported by disciplined cost containment and a favorable mix across segments. Net income reached USD 0.701 billion, delivering EPS of USD 0.71, representing YoY growth of ~22% and QoQ growth of ~73% as cost controls and operating leverage materialized.
Key Performance Indicators
Key Insights
Revenue: USD 6.91B (YoY -3.21%, QoQ +7.52%); Gross Profit: USD 1.615B (YoY +8.39%, QoQ +9.49%), Gross Margin ~23.37%
Operating Income: USD 0.887B (YoY +4.72%, QoQ +17.95%), Operating Margin ~12.84%
Net Income: USD 0.701B (YoY +21.07%, QoQ +74.38%), Net Margin ~10.14%
EPS: USD 0.71 (YoY +22.41%, QoQ +73.17%)
Cash Flow: Operating Cash Flow USD 0.51B; Free Cash Flow USD 0.51B; Cash at End USD 3.087B; Net Debt USD -2.947B after considering debt balance of USD 6.034B and cash balance of USD 3.087B
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Financial Highlights
Revenue: USD 6.91B (YoY -3.21%, QoQ +7.52%); Gross Profit: USD 1.615B (YoY +8.39%, QoQ +9.49%), Gross Margin ~23.37%
Operating Income: USD 0.887B (YoY +4.72%, QoQ +17.95%), Operating Margin ~12.84%
Net Income: USD 0.701B (YoY +21.07%, QoQ +74.38%), Net Margin ~10.14%
EPS: USD 0.71 (YoY +22.41%, QoQ +73.17%)
Cash Flow: Operating Cash Flow USD 0.51B; Free Cash Flow USD 0.51B; Cash at End USD 3.087B; Net Debt USD -2.947B after considering debt balance of USD 6.034B and cash balance of USD 3.087B
Capital Allocation: Dividends USD 0.227B; Share Repurchases USD 0.196B; Net Cash Used in Financing USD -0.443B; FX impact USD +0.029B
Liquidity & Leverage: Total Debt USD 6.034B; Net Debt USD 2.947B; Cash Ratio ~0.25x; Debt to Capitalization ~0.254x; Interest Coverage ~16.4x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.91B |
-3.21% |
7.52% |
| Gross Profit |
1.62B |
8.39% |
9.49% |
| Operating Income |
887.00M |
4.72% |
17.95% |
| Net Income |
701.00M |
21.07% |
74.38% |
| EPS |
0.71 |
22.41% |
73.17% |
Key Financial Ratios
operatingProfitMargin
12.8%
operatingCashFlowPerShare
$0.52
freeCashFlowPerShare
$0.52
dividendPayoutRatio
32.4%
Management Commentary
No earnings call transcript data provided for QQ2 2025. Management commentary and quotes are not available in the provided materials, so thematic analysis of strategy, operations, and market conditions from the call cannot be rendered. If transcript access is provided, we will update with theme-by-theme highlights and quotes.
Forward Guidance
No explicit forward-looking guidance is contained in the supplied data. Given Baker Hughes’ resilient EBITDA and cash generation in QQ2 2025, the company appears capable of sustaining shareholder returns and selectively investing in backlog opportunities and digital solutions. However, the lack of published forward targets necessitates reliance on macro oil demand dynamics, activity spend in Upstream capital expenditure, and the company’s own backlog progression and pricing recovery. Investors should monitor: (1) trajectory of upstream capex and activity levels, (2) digital solutions revenue growth and margin progression within DS, (3) working capital dynamics and free cash flow conversion, and (4) capital allocation policy including any changes to dividend policy or buyback authorization.