Baker Hughes Co - Class A
Q2 2024 Earnings
Did BKR Beat Earnings? Q2 2024 Results
Baker Hughes posted a decisive beat in the second quarter of 2024, with earnings per share of $0.57 clearing the $0.49 consensus estimate by 16.33% and revenue of $7.14 billion topping expectations by 4.91% while rising 13.1% year-over-year. The standout driver was the Industrial & Energy Technology segment, where a 59% jump in Gas Technology Equipment revenue helped push total IET revenue to $3.13 billion, up 28% from a year ago, and lifted company-wide adjusted EBITDA margins to 15.8%. New energy orders reached $445.00 million in the quarter, with Climate Technology Solutions bookings climbing to $392.00 million from $152.00 million a year ago. The Oilfield Services & Equipment segment contributed steadily as well, with operating margins expanding 1.5 percentage points to 12.3%, supported by contract wins including multiple awards from Petrobras offshore Brazil, a region where broader oilfield services activity has been accelerating. Buoyed by first-half momentum, management raised the midpoint of full-year 2024 guidance by 5%, signaling confidence in structurally higher margins ahead.
- Higher volume and pricing across both IET and OFSE segments
- 59% year-over-year growth in Gas Technology Equipment revenue
- Structural cost-out initiatives
- Enhanced operational rigor driving 150 bps year-over-year EBITDA margin expansion
- Strong IET order momentum with $3.5 billion in quarterly orders
“Our strong second-quarter results further demonstrate that we are on the right path in executing our strategy. We continue to strengthen our operating performance, which is driving meaningful margin expansion across both segments. Following our first-half outperformance, we are raising the midpoint of our full-year guidance by 5% and are confident in our ability to drive margins structurally higher over the coming years.”
Baker Hughes CEO, on the earnings call
Forward Guidance & Outlook
Following first-half outperformance, Baker Hughes raised the midpoint of its full-year 2024 guidance by 5%. Management expressed confidence in the ability to drive margins structurally higher over the coming years, supported by operational rigor across both IET and OFSE segments. The company targets returning 60%-80% of free cash flow to shareholders.
BKR YoY Financials
BKR Revenue by Segment
BKR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.