Baker Hughes Company Revenue & Financials

Baker Hughes reported consolidated revenue of $27.8 billion for fiscal year 2024, a 9.1% increase from $25.5 billion in FY2023, with operating income of $3.1 billion (up 33.0% from $2.3 billion) and attributable net income of $3.0 billion (up 53.3% from $1.9 billion). The adjusted EBITDA of $4.6 billion represented a 22.0% increase from $3.8 billion in FY2023, with the adjusted EBITDA margin expanding 170 basis points from 14.8% to 16.5%—the fourth consecutive year of margin expansion and the highest annual level since the company's 2017 creation. The GAAP diluted earnings per share was $2.98, while adjusted diluted EPS was $2.35 (up 47% from $1.60 in FY2023). The revenue growth was driven principally by IET, which increased $2.1 billion (20.3%) primarily from Gas Technology Equipment volume, while OFSE revenue increased $268 million (1.7%) driven by international growth partially offset by North America weakness. From a segment profitability perspective, OFSE operating income was $2.0 billion (12.7% margin, up from $1.7 billion and 11.4% in FY2023), driven by higher price, cost-out initiatives, and volume growth in Subsea and Surface Pressure Systems, partially offset by inflationary pressure. IET operating income was $1.8 billion (15.0% margin, up from $1.3 billion and 12.9% in FY2023), driven by higher volume in Gas Technology Equipment, price realization, and structural cost-out initiatives. The corporate and other costs were $737 million, down from $739 million in FY2023, reflecting the benefits of facility consolidation and headcount reduction. The cash flow from operating activities was $3.3 billion, up from $3.1 billion in FY2023, and free cash flow reached a record $2.3 billion with a 49% conversion rate from adjusted net income—near the high end of the 45-50% target range. Capital expenditures were $1.1 billion, directed primarily toward manufacturing capacity expansion for LNG equipment, digital infrastructure, and new energy technology development. The balance sheet carried $3.4 billion in cash, $7.1 billion in total debt, and $16.9 billion in shareholders' equity, for a net debt-to-EBITDA ratio of approximately 0.8x. The company returned $1.3 billion to shareholders in FY2024, including $836 million in dividends ($0.84 per share, up from $0.80 in FY2023) and $484 million in share repurchases, representing approximately 60% of free cash flow and within the 60-80% target range. The Q4 2024 results were particularly strong: revenue of $7.4 billion (up 8% year-over-year), adjusted EBITDA of $1.31 billion (up 20% year-over-year), and adjusted EBITDA margin of 17.8% (up 180 basis points year-over-year), marking the highest quarterly margin since 2017. The Q4 tax benefit of $398 million reflected the release of a U.S. valuation allowance as the company moved into a cumulative three-year profit position. The FY2025 outlook, articulated by CEO Lorenzo Simonelli in the Q4 earnings call, anticipates another strong year of EBITDA growth led by IET, with OFSE targeting 20% EBITDA margins in 2025 and IET targeting 20% EBITDA margins in 2026. The break-even analysis suggests that OFSE requires approximately $13.5 billion in annual revenue to cover fixed costs at current margin structure, meaning the $15.6 billion FY2024 revenue provides a $2.1 billion buffer that is vulnerable to further North American rig count declines.