Q3 24 EPS

$0.67

BEAT +9.84%

Est. $0.61

Q3 24 Revenue

$6.91B

MISS 4.27%

Est. $7.22B

vs S&P Since Q3 24

+49.4%

BEATING MARKET

BKR +80.0% vs S&P +30.6%

Market Reaction

Did BKR Beat Earnings? Q3 2024 Results

Baker Hughes delivered a profit beat in the third quarter of 2024, posting adjusted diluted earnings of $0.67 per share against a consensus estimate of $0.61, a 9.84% beat, though revenue of $6.91 billion fell short of the $7.22 billion analysts had … Read more Baker Hughes delivered a profit beat in the third quarter of 2024, posting adjusted diluted earnings of $0.67 per share against a consensus estimate of $0.61, a 9.84% beat, though revenue of $6.91 billion fell short of the $7.22 billion analysts had expected despite growing 4.0% year-over-year. The standout driver was a remarkable expansion in margins, with total company EBITDA reaching $1.21 billion, up 23% from a year ago, and EBITDA margins hitting 17.5%, the highest since the company's formation. The Industrial & Energy Technology segment led the way, with revenue climbing 9% year-over-year to $2.94 billion and record remaining performance obligations of $30.20 billion, underscoring durable demand for gas technology and compression equipment even as broader oilfield services spending growth has moderated industrywide amid cautious customer sentiment. Free cash flow surged to $754.00 million from just $106.00 million the prior quarter, and management signaled confidence in hitting full-year EBITDA guidance at the midpoint, with both segments tracking toward 20% EBITDA margins.

Key Takeaways

  • Higher pricing in both segments
  • Structural cost-out initiatives
  • Higher volume in IET segment
  • Positive price and productivity in OFSE
  • EBITDA margins reaching 17.5%, the highest since company formation
  • Strong IET order momentum for gas infrastructure and FPSOs
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BKR YoY Financials

Q3 2024 vs Q3 2023, source: SEC Filings

24/7 Wall St

BKR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q4 26
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BKR Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 24 Q4 26

“We delivered another quarter of record EBITDA, highlighted by exceptional operational performance across both segments. Our margins continue to improve at an accelerated pace, with total company EBITDA margins increasing to 17.5%. This marks the highest margin quarter since the company was formed. On the back of our solid third-quarter results and stable outlook, we remain confident in achieving our full-year EBITDA guidance midpoint.”

— Lorenzo Simonelli, Q3 2024 Earnings Press Release