Baker Hughes Co - Class A
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.12%.
Did BKR Beat Earnings? Q4 2024 Results
Baker Hughes closed out 2024 on a strong note, posting Q4 revenue of $7.36 billion, up 7.7% year-over-year and ahead of the $7.07 billion consensus estimate by 4.15%, while adjusted diluted EPS of $0.70 beat the $0.63 consensus by 11.86%. The primary engine behind the outperformance was the Industrial & Energy Technology segment, where revenue climbed 21% year-over-year to $3.49 billion, powered by a 28% surge in Gas Technology revenue as the company executed on a robust LNG project backlog, including major awards from Venture Global and Woodside Energy. IET's operating income jumped 42% to $584 million, with margins expanding 2.4 percentage points to 16.7%. The quarter also highlighted a broader LNG demand tailwind, with new export projects advancing globally. Looking ahead, CEO Lorenzo Simonelli signaled confidence in another year of EBITDA growth in 2025 led by IET, while the company reinforced that conviction with a 10% dividend increase to $0.23 per share quarterly.
- Strong LNG equipment orders and revenue growth driving IET segment up 21% YoY
- Higher pricing and structural cost-out initiatives improving margins in both segments
- Gas Technology Equipment revenue up 38% year-over-year
- OFSE EBITDA margin expansion to 19.5%, approaching 20% target
- Subsea & Surface Pressure Systems revenue up 23% year-over-year
“2024 proved to be a momentous year for Baker Hughes. We closed out the year with exceptional fourth-quarter results, setting new quarterly and annual records for revenue, free cash flow and our adjusted measures of EPS, EBITDA, and EBITDA margin. Our strategy to drive profitable growth and continuous margin improvement is working. Looking forward, we will continue our journey to transform the Company, and we expect 2025 to demonstrate another strong year of EBITDA growth, led by our IET segment.”
Baker Hughes CEO, on the earnings call
Forward Guidance & Outlook
Baker Hughes expects 2025 to demonstrate another strong year of EBITDA growth, led by the IET segment. The company remains confident in achieving 20% EBITDA margin targets for OFSE in 2025 and IET in 2026. Transformation actions will continue to be a major driver of margin improvements through 2025 and beyond. The company announced a 10% increase in its quarterly dividend to $0.23 per share, signaling confidence in the durability and growth of earnings and free cash flow.
BKR YoY Financials
BKR Revenue by Segment
BKR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.