Baker Hughes Co - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.37%.
Did BKR Beat Earnings? Q4 2025 Results
Baker Hughes delivered a strong fourth-quarter beat to close out 2025, posting adjusted diluted EPS of $0.78 against a consensus estimate of $0.67, a 16.73% beat that marked the company's eighth consecutive quarter of exceeding Wall Street's earnings expectations. Revenue of $7.39 billion topped the $7.08 billion consensus by 4.30%, though it remained roughly flat year-over-year at plus 0.3%, underscoring a period of stable but unspectacular top-line growth. The standout driver was the Industrial and Energy Technology segment, where Q4 revenue climbed 9% year-over-year to $3.81 billion and EBITDA margins hit exactly 20%, reaching the company's long-stated target, while full-year IET orders reached a record $14.87 billion. Oilfield Services and Equipment faced the opposite trajectory, with revenue declining 8% year-over-year amid broad macro headwinds, a pattern mirrored across the oilfield services sector. Looking ahead, management projected mid-single-digit organic adjusted EBITDA growth in 2026, backed by sustained LNG, power systems, and FPSO demand, as Baker Hughes formally enters what it calls "Horizon Two," a multi-year push toward a more industrialized, less cyclical business model.
- IET revenue growth driven by Gas Technology Equipment up 11% and Gas Technology Services up 11% year-over-year
- IET EBITDA margin reached 20.0%, up 1.6 points year-over-year, driven by productivity, volume, price, and FX
- Record free cash flow of $2.7 billion for full year 2025, enhanced by working capital efficiency and customer down payments
- Overall productivity and cost out initiatives offsetting OFSE macro-driven softness
- Non-LNG equipment orders represented approximately 85% of total IET orders for the second consecutive year
“Baker Hughes delivered exceptional performance in 2025. We continued to execute at a high level, delivering another quarter of strong results contributing to a record full‑year Adjusted EBITDA. This achievement demonstrates sustained momentum from our Business System, active portfolio management, and positive performance in IET, which more than offset continued macro‑driven softness in OFSE, where margins remained resilient through disciplined cost actions.”
Baker Hughes CEO, on the earnings call
Forward Guidance & Outlook
Baker Hughes expects IET orders to remain at robust levels in 2026, supported by continued momentum in LNG, a stronger year of FPSO and gas infrastructure awards, and sustained strength for power systems. The company projects similar levels of organic IET orders in 2026. Overall organic Adjusted EBITDA growth is anticipated in the mid-single digits range, with IET expanding margins to the 20% target and OFSE remaining relatively flat. The company is entering 'Horizon Two' (2026-2028), positioning as a more industrialized energy solutions company with reduced cyclicality and enhanced cash flow durability.
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Figures from SEC filings and company reports. Not investment advice.