Baker Hughes Company (68V.DE) Q3 2024 Earnings Report

Revenue and profitability:
- Revenue: $6,908,000,000; YoY +4.02%; QoQ -3.24%.
- Gross profit: $1,542,000,000; gross margin ~22.32% (~+14.82% YoY, +3.49% QoQ).
- EBITDA: $1,342,000,000; EBITDA margin ~19.43%.
- Operating income: $930,000,000; operating margin ~13.46%.
- Net income: $766,000,000; net margin ~11.09%. YoY +47.88%; QoQ +32.30%.
- Earnings per share (diluted): $0.77; YoY +50.98%; QoQ +32.76%.

Cash flow and capital allocation:
- Net cash provided by operating activities: $1,010,000,000.
- Capital expenditures: $300,000,000.
- Free cash flow: $710,000,000.
- Net change in cash: $380,000,000; ending cash: $2,664,000,000; beginning cash: $2,284,000,000.
- Dividends paid: $209,000,000; share repurchases: $152,000,000; other financing activity: $6,000,000.

Balance sheet and leverage:
- Total assets: $37,530,000,000; total liabilities: $21,187,000,000; total equity: $16,189,000,000.
- Total debt: $6,036,000,000; net debt: $3,372,000,000.
- Current assets: $16,568,000,000; current liabilities: $12,790,000,000; working capital position is solid but exhibits cyclical working capital patterns.
- Liquidity ratios: current ratio 1.295; quick ratio 0.885; cash ratio 0.208.
- Coverage: interest coverage 16.91x; ROE 4.73%; ROA 2.04%; ROCE 3.76%.
- Leverage indicators: debt to capitalization 27.2%; debt to equity 0.373; gross leverage remains manageable in a cyclical environment.

Efficiency and capital efficiency:
- Asset turnover 0.184; fixed asset turnover 1.341; operating cash flow per share $1.017; free cash flow per share $0.715.
- Working capital efficiency indicators: DSO 90.16 days; DIO 88.12 days; DPO 74.32 days; CCC 178.28 days; cash conversion cycle ~103.96 days.

Valuation and market indicators:
- Price/Earnings: 11.72x; Price/Book: 2.22x; Price/Sales: 5.20x; EV/EBITDA: 29.28x.
- Price/Free Cash Flow: 50.60x; Price/CFO: 35.57x; EV/FCF metrics reflect growth and cash generation assumptions.
- Dividend yield: 0.58%; Dividend payout ratio: 27.3%; Book-to-market and growth expectations imply a balanced equity risk premium for cyclicality.

Earnings transcript data were not provided in the supplied dataset. Consequently, there are no management quotes or theme-based insights to extract from the call within this report. If transcript text becomes available, a thematically organized synthesis (strategy, operations, market conditions) with verbatim quotes can be added.

Baker Hughes delivered solid QQ3 2024 results characterized by revenue growth versus prior year, margin resilience, and strong free cash flow generation. The company’s diversified mix across services, equipment, turbomachinery, and digital solutions provides a balanced exposure to different end-markets and cycles. The reported figures show a healthy EBITDA margin (~19.4%) and a net margin (~11.1%), underpinned by a cash-generative core and disciplined capital allocation (dividends and modest buybacks). The balance sheet remains sound with net debt of $3.37B and ample liquidity; leverage remains manageable at roughly 2.5x net debt to EBITDA, suggesting room to reinvest or return capital as activity recovers. Valuation appears reasonable given the sector’s cyclicality: P/E ~11.7x and P/B ~2.22x reflect a favorable risk-reward balance given mid-cycle earnings power and robust cash flow. However, investors should remain mindful of cyclical risk and the absence of formal forward guidance in this dataset. Key monitorables include the trajectory of upstream capex, the adoption and monetization of DS offerings, and the company’s ability to convert volume into earnings leverage during the remainder of 2024 and into 2025. Overall, the investment thesis supports a constructive stance for Baker Hughes as a diversified, cash-generative name with modest leverage and active capital return policy, contingent on a stable to improving oilfield services demand environment.