Baker Hughes Q4 Earnings Beat Estimates on IET Segment Performance

Baker Hughes Company BKR reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.

The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.

Baker Hughes Company Price, Consensus and EPS Surprise

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

Segmental Performance

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 $3,572 million, down 8% from the year-ago figure of $3,871 million. The reported figure lagged the Zacks Consensus Estimate of $3,608 million.

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) from the segment totaled $647 million, down 14% from $755 million in the fourth quarter of 2024. The decrease was due to overall lower volume, partially mitigated by structural cost-out initiatives.

Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $3,814 million, up 9% from the year-ago quarter’s $3,492 million. The reported figure topped the Zacks Consensus Estimate of $3,468 million.

EBITDA from the segment totaled $761 million, up 19% from the year-ago quarter’s $639 million, driven by productivity, volume, favorable price and foreign exchange rate (FX) movements.

Costs and Expenses

Baker Hughes recorded total costs and expenses of $6,858 million in the fourth quarter, higher than the year-ago figure of $6,572 million.

Orders

Orders from all business segments amounted to $7.9 billion, up 5% from $7.5 billion recorded a year ago. The Zacks Consensus Estimate for the same was $6.9 billion. The increase was driven by increased order intake across both OFSE and IET business segments.

Free Cash Flow

Baker Hughes generated a free cash flow of $1.34 billion compared with $894 million a year ago.

Capex & Balance Sheet

BKR’s net capital expenditure in the fourth quarter was $321 million.

As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.

Outlook

Baker Hughes, carrying a Zacks Rank #3 (Hold), expects IET orders to be roughly in line with 2025 levels, supported by sustained growth in LNG, increased FPSO and gas infrastructure project awards, along with strong power systems demand.

Stocks to Consider

Oceaneering International OII delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth. OII currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

W&T Offshore WTI benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues. WTI currently carries a Zacks Rank #2 (Buy).

Cenovus Energy Inc.CVE is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada.  The strategic MEG Energy acquisition is expected to provide a boost to Cenovus Energy's production levels in 2026. CVE currently has a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research