Orders of $8.2 billion, including $4.1 billion of IET orders.
RPO of $35.3 billion, including record IET RPO of $32.1 billion.
Revenue of $7.0 billion, up 1% year-over-year.
Attributable net income of $609 million.
GAAP diluted EPS of $0.61 and adjusted diluted EPS* of $0.68.
Adjusted EBITDA* of $1,238 million, up 2% year-over-year.
Cash flows from operating activities of $929 million and free cash flow* of $699 million.
HOUSTON and LONDON, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Baker Hughes Company (NASDAQ:BKR) ("Baker Hughes" or the "Company") announced results today for the third quarter of 2025.
"Our strong third quarter performance represents clear evidence of the consistent execution and operational discipline embedded across the organization. This performance reflects continued momentum from our Business System deployment, positive trends in Gas Technology, and strong outperformance in U.S. land, where our leverage to production-related activity gives us a clear advantage," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.
"While OFSE margins softened, reflecting the broader macro backdrop, IET delivered another quarter of strong performance, driving consolidated Adjusted EBITDA margins higher year-over-year. This positive margin progression highlights the resilience of our portfolio and the foundation we've built through disciplined execution."
"We also continue to benefit from strong market tailwinds in LNG, power generation, and offshore, securing over $4 billion of IET orders for only the third time in our history, along with record SSPS orders in the quarter. IET backlog grew 3% sequentially, reaching a new record of $32.1 billion, further reinforcing the durability and visibility of our growth outlook in IET. After securing almost $11 billion in orders during the first three quarters, and with strong visibility on expected awards in the fourth quarter, we now expect full-year orders to exceed our prior midpoint."
"As we close Horizon One and turn to our new Horizon Two targets, we have fundamentally changed the way we operate, and today Baker Hughes is in the strongest position since the merger nearly a decade ago," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Three Months Ended
Variance
(in millions except per share amounts)
September 30, 2025
June 30, 2025
September 30, 2024
Sequential
Year-over-year
Orders
$
8,207
$
7,032
$
6,676
17
%
23
%
Revenue
7,010
6,910
6,908
1
%
1
%
Net income attributable to Baker Hughes
609
701
766
(13
%)
(20
%)
Adjusted net income attributable to Baker Hughes*
678
623
666
9
%
2
%
Adjusted EBITDA*
1,238
1,212
1,208
2
%
2
%
Diluted earnings per share (EPS)
0.61
0.71
0.77
(13
%)
(20
%)
Adjusted diluted EPS*
0.68
0.63
0.67
9
%
3
%
Cash flow from operating activities
929
510
1,010
82
%
(8
%)
Free cash flow*
699
239
754
F
(7
%)
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
Quarter Highlights
Executing our portfolio management strategyIn the third quarter, Baker Hughes continued to advance its portfolio management strategy with the announcement of its intent to acquire Chart Industries, Inc. ("Chart") for approximately $13.6 billion, which is a significant step to further enrich the Company's portfolio and enhance the value delivered to customers across critical, high-growth markets.
Baker Hughes also completed its acquisition of Continental Disc Corporation, adding a highly complementary, margin-accretive portfolio of products that is expected to expand the Company's position in the flow and pressure control markets while enhancing recurring, lifecycle-driven revenues.
Key awards and technology achievements
Industrial & Energy Technology ("IET") secured important awards to support additional global capacity and delivery of natural gas and LNG. In the U.S., Gas Technology Equipment ("GTE") received orders for gas turbine and refrigerant compressor technology for Train 4 of NextDecade's Rio Grande LNG Facility in the Port of Brownsville, Texas, and for Train 3 and 4 of Sempra Infrastructure's Port Arthur Phase 2 project in Jefferson County, Texas. Baker Hughes is also providing digital solutions for Trains 1-3 of the Rio Grande project by deploying Cordant™ Asset Health. This award expands Baker Hughes' coverage from critical LNG train equipment supported by iCenter and powered by Cordant™ to plant wide monitoring, providing real-time insights into critical rotating machinery and process equipment enhancing availability, throughput and reducing unplanned downtime.
For a gas processing facility in the Middle East, Baker Hughes will provide two electric motor driven centrifugal compressors for propane refrigerant service for the facility's natural gas liquids ("NGL") fractionation plant. Baker Hughes' advanced compressor technology will contribute to the customer's strategic goal to process incremental NGL, ensuring critical energy supply.
In the offshore segment, Baker Hughes secured important topside equipment contracts to provide its highly efficient, field proven power generation and compression solutions for a FPSO project in South America, supporting key infrastructure that will provide critical energy supply both locally and globally.
Baker Hughes received an award from Dynamis Power Solutions to supply 25 aeroderivative gas turbines for mobile power generation for oil & gas applications in North America, demonstrating broadening demand for power generation solutions. The turbines will provide customers with reliable, lower-emissions power across a wide range of oil and gas applications, including upstream, refining and petrochemical.
Further demonstrating the durability of IET's lifecycle model, the segment was awarded several aftermarket services contracts. bp selected the Company for a long-term service agreement for its Tangguh LNG plant in Papua Barat, Indonesia. This comprehensive multi-year agreement covers spare parts, repair services, and field service engineering support for critical turbomachinery at the facility. In North America, the Company extended and strengthened its long-term partnership with Pembina Pipeline to support the rejuvenation and enhancement of the Alliance transmission pipeline system, inclusive of additional engines to drive asset lifecycle extension within this critical gas infrastructure.
Baker Hughes continues to experience strong demand for its New Energy solutions, leveraging the Company's technology portfolio across both segments. IET will design and deliver equipment for five Organic Rankine Cycle ("ORC") power plants at Fervo Energy Company's Cape Station geothermal power generation project near Milford, Utah. This award follows previous awards from Fervo for OFSE subsurface drilling and production technologies. Once operational, the five Cape Phase II ORC plants will generate approximately 300 megawatts of clean, reliable, and affordable power to the grid, enough power to supply approximately 180,000 homes.
Also in the quarter, the Company secured an award from Technip Energies to supply critical turbomachinery equipment for the Blue Point Number One Ammonia Project in Modeste, Louisiana. The facility will be the world's largest low-carbon ammonia plant, with annual nameplate capacity of approximately 1.4 million metric tons. Baker Hughes will provide a steam turbine, BRUSH™ Power Generation generator, and a suite of compressors, including ammonia, syngas and recycle compressors, along with a CO2 compressor to transport the captured CO2 to geological storage via pipelines.
Oilfield Services & Equipment ("OFSE") secured a significant third-quarter award from Turkish Petroleum and Turkish Petroleum Offshore Technology Center to supply integrated subsea production and intelligent completion systems for Sakarya Gas Field Phase 3, supporting Turkiye's gas development and energy security. As part of the award, Baker Hughes will provide deepwater horizontal tree systems to support production at depths from 6,500 to 7,200 feet.
OFSE also deepened the Company's long-standing relationship with Petrobras, receiving several significant awards during the quarter, following open tenders. Baker Hughes will provide up to 50 subsea trees and associated services to support offshore oil and gas production across several fields. OFSE will also deliver 66 km of flexible pipe systems, inclusive of risers and flowlines for hydrocarbon production, CO2 injection and gas lift, across the Marlim Sul, Roncador, Iracema, Atapu, Mero and Buzios fields. Additionally, the Company will provide all-electric integrated completions systems for the Buzios field, enabling more precise subsurface control, increased operational efficiency and enhanced reliability. The simplified installation process and reduced maintenance will also reduce the operational carbon footprint when compared to traditional hydraulic solutions.
Baker Hughes received a significant, multi-year award from Aramco to expand integrated underbalanced coiled tubing drilling operations in Saudi Arabia. The contract includes six new units and extensions of four existing units to support re-entry and greenfield drilling projects across the country.
Within OFSE's Production Solutions offering, Baker Hughes executed a significant five-year contract extension to provide hydrocarbon and water treatment products and services across Valero's North America and UK refineries. The agreement underscores Baker Hughes' ability to reduce customers' operating costs, enhance asset reliability, and demonstrate leading expertise in production and refining services.
In South America, Ecopetrol awarded Baker Hughes a multi-year contract to provide ESP and electro-driven PCP systems to support Colombia's strategy to enhance oil production while reducing lifting costs per barrel.
Consolidated Financial Results
Revenue for the quarter was $7,010 million, an increase of $100 million, or 1% sequentially, and up $102 million, or 1% year-over-year. The increase in revenue year-over-year was driven by an increase in IET, partially offset by a decrease in OFSE.
The Company's total book-to-bill ratio in the third quarter of 2025 was 1.2; the IET book-to-bill ratio was 1.2.
Net income as determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") for the third quarter of 2025 was $609 million. Net income decreased $91 million, or 13% sequentially, and decreased $157 million, or 20% year-over-year.
Adjusted net income (a non-GAAP financial measure) for the third quarter of 2025 was $678 million, which excludes adjustments totaling $69 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the third quarter of 2025 was up $55 million, or 9% sequentially, and up $12 million, or 2% year-over-year.
Depreciation and amortization for the third quarter of 2025 was $282 million.
Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2025 was $1,238 million, which excludes adjustments totaling $79 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the third quarter was up $26 million, or 2% sequentially, and up $30 million, or 2% year-over-year.
The sequential increase in adjusted net income and Adjusted EBITDA was primarily driven by favorable mix, favorable foreign exchange rates ("FX"), and structural cost-out initiatives, partially offset by lower cost productivity. The year-over-year increase in adjusted net income and Adjusted EBITDA was driven by structural cost-out initiatives, and favorable FX, partially offset by lower volume and cost inflation.
Other Financial Items
Remaining Performance Obligations ("RPO") in the third quarter of 2025 ended at $35.3 billion, an increase of $1.3 billion from the second quarter of 2025. OFSE RPO was $3.2 billion, up $0.5 billion sequentially, while IET RPO was $32.1 billion, up $0.8 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services was $11.8 billion and $15.7 billion, respectively.
Income tax expense in the third quarter of 2025 was $204 million.
Other (income) expense, net in the third quarter of 2025 was $71 million, primarily related to transaction related costs of $47 million incurred in connection with business disposals and acquisitions.
GAAP diluted earnings per share was $0.61. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.68. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Cash flow from operating activities was $929 million for the third quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $699 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Capital expenditures, net of proceeds from disposal of assets, were $230 million for the third quarter of 2025, of which $148 million was for OFSE and $67 million was for IET.
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
Oilfield Services & Equipment
(in millions)
Three Months Ended
Variance
Segment results
September 30, 2025
June 30, 2025
September 30, 2024
Sequential
Year-over-year
Orders
$
4,068
$
3,503
$
3,807
16
%
7
%
Revenue
$
3,636
$
3,617
$
3,963
1
%
(8
%)
EBITDA
$
671
$
677
$
765
(1
%)
(12
%)
EBITDA margin
18.5
%
18.7
%
19.3
%
-0.3pts
-0.8pts
(in millions)
Three Months Ended
Variance
Revenue by Product Line
September 30, 2025
June 30, 2025
September 30, 2024
Sequential
Year-over-year
Well Construction
$
954
$
921
$
1,050
4
%
(9
%)
Completions, Intervention, and Measurements
945
935
1,009
1
%
(6
%)
Production Solutions
966
968
983
—
%
(2
%)
Subsea & Surface Pressure Systems
771
793
921
(3
%)
(16
%)
Total Revenue
$
3,636
$
3,617
$
3,963
1
%
(8
%)
(in millions)
Three Months Ended
Variance
Revenue by Geographic Region
September 30, 2025
June 30, 2025
September 30, 2024
Sequential
Year-over-year
North America
$
980
$
928
$
971
6
%
1
%
Latin America
603
639
648
(6
%)
(7
%)
Europe/CIS/Sub-Saharan Africa
599
653
933
(8
%)
(36
%)
Middle East/Asia
1,454
1,398
1,411
4
%
3
%
Total Revenue
$
3,636
$
3,617
$
3,963
1
%
(8
%)
North America
$
980
$
928
$
971
6
%
1
%
International
$
2,656
$
2,689
$
2,992
(1
%)
(11
%)
EBITDA excludes depreciation and amortization of $221 million, $233 million, and $218 million for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.
OFSE orders of $4,068 million for the third quarter of 2025 increased by $565 million, or 16% sequentially. Subsea and Surface Pressure Systems orders were $1,190 million, up $492 million, or 70% sequentially, and up $414 million, or 53% year-over-year.
OFSE revenue of $3,636 million for the third quarter of 2025 was up $18 million, or 1% sequentially, and down $327 million, or 8% year-over-year.
North America revenue was $980 million, up $52 million, or 6% sequentially. International revenue was $2,656 million, down $34 million, or 1% sequentially, with a decrease in Latin America and Europe/Sub-Saharan Africa, partially offset by an increase in Middle East/Asia.
Segment EBITDA for the third quarter of 2025 was $671 million, a decrease of $6 million, or 1% sequentially. The sequential decrease in EBITDA was a result of overall lower volume, inflation, and changes in business mix, partially offset by cost out initiatives, price and overall productivity improvements.
Industrial & Energy Technology
(in millions)
Three Months Ended
Variance
Segment results
September 30, 2025
June 30, 2025
September 30, 2024
Sequential
Year-over-year
Orders
$
4,139
$
3,530
$
2,868
17
%
44
%
Revenue
$
3,374
$
3,293
$
2,945
2
%
15
%
EBITDA
$
635
$
585
$
528
9
%
20
%
EBITDA margin
18.8
%
17.8
%
17.9
%
1pts
0.9pts
(in millions)
Three Months Ended
Variance
Orders by Product Line
September 30, 2025
June 30, 2025
September 30, 2024
Sequential
Year-over-year
Gas Technology Equipment
$
2,174
$
781
$
1,088
F
100
%
Gas Technology Services
896
986
778
(9
%)
15
%
Total Gas Technology
3,070
