Baker Hughes Q2 Earnings & Revenues Outpace Estimates

Baker Hughes Company BKR reported second-quarter 2025 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 55 cents. The bottom line also improved from the year-ago level of 57 cents.

Total quarterly revenues of $6,910 million beat the Zacks Consensus Estimate of $6,633 million. The top line increased from the year-ago quarter’s $6,418 million.

The strong quarterly results were primarily driven by cost improvements and operational efficiency.

Baker Hughes Company Price, Consensus and EPS Surprise

Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote

Segmental Performance

BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial and Energy Technology. The segments became operational on Oct. 1, 2022.

Revenues from the Oilfield Services and Equipment (“OFSE”) unit amounted to $3,617 million, down 10% from the year-ago figure of $4,011 million. The reported figure was above our estimate of $3,569 million.

Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) from the segment totaled $677 million, down 5% from $716 million in the second quarter of 2024. This was due to inflation and revenue mix, partially mitigated by productivity from structural cost-out initiatives.

Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $3,293 million, up 5% from the year-ago quarter’s $3,128 million. The reported figure beat our estimate of $3,038 million.

EBITDA from the segment totaled $585 million, up 18% from the year-ago quarter’s $497 million, driven by productivity, positive pricing and favorable FX, partially offset by cost inflation.

Costs & Expenses

Baker Hughes recorded total costs and expenses of $5,943 million in the second quarter, down from the year-ago figure of $6,315 million. Our projection for the same was $5,033 million.

Orders

Orders from all business segments amounted to $7,032 million, down 7% from $7,526 million recorded a year ago. We expected the figure to be $7,454.3 million. The decline was primarily due to lower order intake in the OFSE segment.

Free Cash Flow

Baker Hughes generated a free cash flow of $239 million compared with $106 million a year ago.

Capex & Balance Sheet

BKR’s net capital expenditure in the second quarter was $271 million.

As of June 30, 2025, it had cash and cash equivalents of $3,087 million. BKR had a long-term debt of $5,968 million at the end of the reported quarter, with a debt-to-capitalization of 25.8%.

Zacks Rank and Key Picks

Currently, BKR carries a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Midstream Corporation AM, Eni S.p.A. E and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Eni’s strategic growth in upstream production, focused portfolio optimization and expansion into renewables highlight its resilience amid changing macroeconomic conditions. Successful ramp-up of exploration projects and efficient asset management reinforce its long-term potential and enhance its position in the global energy market.

E’s earnings missed estimates in three of the trailing four quarters and beat once, delivering an average negative surprise of 11.43%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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This article originally published on Zacks Investment Research (zacks.com).

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