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Baker Hughes Company BKR reported third-quarter 2025 adjusted earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line also improved from the year-ago level of 67 cents.
Total quarterly revenues of $7,010 million beat the Zacks Consensus Estimate of $6,832 million. The top line also increased from the year-ago quarter’s $6,908 million.
The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Baker Hughes 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 $3,636 million, down 8% from the year-ago figure of $3,963 million. The reported figure was above our estimate of $3,632 million.
Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) from the segment totaled $671 million, down 12% from $765 million in the third quarter of 2024. This was due to overall lower volume, inflation and shifts in the business mix. This was partially mitigated by structural cost-out initiatives and overall productivity improvements.
Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $3,374 million, up 15% from the year-ago quarter’s $2,945 million. The reported figure beat our estimate of $3,182.6 million.
EBITDA from the segment totaled $635 million, up 20% from the year-ago quarter’s $528 million, driven by volume, positive pricing and favorable foreign exchange rate (FX) movements, partially offset by inflation and lower cost productivity.
Baker Hughes recorded total costs and expenses of $6,189 million in the third quarter, higher than the year-ago figure of $5,899 million. Our projection for the same was $6,054.4 million.
Orders from all business segments amounted to $8,207 million, up 23% from $6,676 million recorded a year ago. We expected the figure to be $6,619.2 million. The increase was driven by strong order intake growth across both OFSE and IET business segments.
Baker Hughes generated a free cash flow of $699 million compared with $754 million a year ago.
BKR’s net capital expenditure in the second quarter was $230 million.
As of Sept. 30, 2025, it had cash and cash equivalents of $2,693 million. BKR had a long-term debt of $5,988 million at the end of the reported quarter, with a debt-to-capitalization of 24.8%.
BKR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Cheniere Energy Inc. LNG, Bloom Energy Corporation BE and Archrock Inc. AROC. Cheniere Energy and Bloom Energy sport a Zacks Rank #1 (Strong Buy) each at present, while Archrock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to strengthen Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG both in the United States and internationally.
Bloom Energy manufactures one of the most advanced and versatile fuel cell energy platforms. The company has two key offerings, the Bloom Energy Server for electricity generation and the Bloom Electrolyzer for hydrogen production. The Energy Server system provides sustainable and reliable power solutions for both commercial and utility customers. Bloom Energy is anticipated to benefit from rising demand for reliable and clean power, fueled by the growth of data centers, crypto-mining facilities and the re-shoring of manufacturing in key sectors in the United States, such as semiconductors.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
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This article originally published on Zacks Investment Research (zacks.com).
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