Baker Hughes Company Revenue in 2024

Baker Hughes Company reported $27,800 in revenue for fiscal year 2024. This represents a growth of 9% compared to the 2023 figure of $25,510.

In fiscal year 2024, Baker Hughes Company generated $27.8 billion in revenue, a 9.1% increase from $25.5 billion in FY2023, while its adjusted EBITDA surged 22.0% to a record $4.6 billion, expanding the margin from 14.8% to 16.5%—the fourth consecutive year of margin improvement and the highest annual level since the company's 2017 creation through the GE Oil and Gas merger. This margin expansion was not accidental; it was the deliberate outcome of a multi-year transformation program that eliminated $650 million in annual structural costs, consolidated 47 manufacturing facilities into 31, reduced the management layer count by 22%, and shifted the revenue mix toward higher-margin IET equipment and long-term service agreements. The IET segment, which houses the gas technology equipment and services businesses inherited from GE, generated $12.2 billion in revenue (up 20.3% year-over-year) with a 15.0% operating margin (up 210 basis points from 12.9% in FY2023), while the OFSE segment generated $15.6 billion (up 1.7%) with a 12.7% operating margin (up 130 basis points from 11.4%). The financial architecture is unusual for an oilfield services company: Baker Hughes carries $33.1 billion in remaining performance obligations, of which $30.1 billion sits in IET—providing revenue visibility that SLB and Halliburton cannot match because their businesses are dominated by short-cycle, well-by-well service contracts. The IET RPO includes $15.0 billion in Gas Technology Services (long-term maintenance and upgrade contracts) and $11.8 billion in Gas Technology Equipment (compressors, turbines, and LNG systems), with contracts spanning 10-25 years. The Gas Technology Services business alone generates nearly 50% of IET's EBITDA despite representing only 23% of IET revenue, because service margins exceed 25% while equipment margins hover at 12-15%. Baker Hughes booked $28.2 billion in total orders during FY2024, including $13.0 billion in IET orders—the second-highest IET order year ever—driven by LNG infrastructure awards for Venture Global's Plaquemines project, Woodside's Louisiana LNG development, Saudi Aramco's Jafurah unconventional gas field Phase 3, and Cedar LNG in Canada. The company also secured $971 million in new energy orders (carbon capture, hydrogen, geothermal, and emissions abatement), on pace to exceed its $800 million to $1 billion guidance. The OFSE segment, while growing only 1.7% in revenue, improved margins through price realization and cost-out initiatives, with Subsea and Surface Pressure Systems orders reaching $802 million in Q4 2024 (up 23% year-over-year) as offshore project activity accelerated. North America OFSE revenue was $3.96 billion in FY2024, down 3.9% from $4.12 billion in FY2023, reflecting the U.S. Land rig count decline from 763 to 689 average rigs, while international OFSE revenue grew 3.8% to $11.67 billion, driven by Middle East/Asia and Europe/CIS/Sub-Saharan Africa. The company's free cash flow reached a record $2.3 billion in FY2024, representing 49% conversion from adjusted net income, and Baker Hughes returned $1.3 billion to shareholders through $836 million in dividends and $484 million in share repurchases. CEO Lorenzo Simonelli has committed to returning 60-80% of free cash flow to shareholders annually while maintaining a 10% annual dividend growth trajectory—the quarterly dividend was increased 10% to $0.23 in Q4 2024, marking the fourth consecutive year of dividend growth. The strategic challenge is achieving the 20% EBITDA margin target for OFSE in 2025 and IET in 2026, which would add approximately $1.9 billion in annual EBITDA at current revenue levels. This requires continued cost discipline, mix shift toward higher-margin services and equipment, and sustained LNG order momentum in a market where global LNG demand is projected to grow 75% by 2040. Baker Hughes Company is an energy technology company headquartered in Houston, Texas, that generated $27.8 billion in revenue for fiscal year 2024 with record adjusted EBITDA of $4.6 billion (16.5% margin) and attributable net income of $3.0 billion. The company operates through two segments: Oilfield Services and Equipment (OFSE, $15.6 billion, 56.2% of revenue) and Industrial and Energy Technology (IET, $12.2 billion, 43.8% of revenue). Baker Hughes holds $33.1 billion in remaining performance obligations, with $30.1 billion in IET providing multi-year revenue visibility. The Oilfield Services and Equipment (OFSE) segment contributed $15.6 billion (56.2% of total revenue) in FY2024 through four product lines. Well Construction, which includes directional drilling services, logging-while-drilling, surface logging, drill bits (polycrystalline diamond, roller cone, hybrid, and in-bit sensing), and drilling and completion fluids, generates approximately $4.5 billion annually and competes directly with SLB's drilling division and Halliburton's drilling and evaluation segment. Completions, Intervention, and Measurements, encompassing wellbore construction, upper and lower completions, unconventional multistage completions, intelligent production systems, pressure pumping, coiled tubing, tubular running services, and wireline logging, generates approximately $5.2 billion and represents the largest OFSE product line by revenue. Production Solutions, spanning artificial lift systems (electrical submersible pumps, surface pumping systems, rigless deployment, sensors and gauges) and oilfield and industrial chemicals, generates approximately $3.8 billion. Subsea and Surface Pressure Systems, including subsea trees, controls, manifolds, wellheads, flexible pipe systems, and surface pressure control, generates approximately $2.1 billion and was the fastest-growing OFSE product line in FY2024 with 23% year-over-year order growth. The OFSE operating margin of 12.7% in FY2024 (up from 11.4% in FY2023) reflects pricing power in international markets and cost-out initiatives, but remains below the 20% EBITDA margin target because the segment carries high fixed costs in manufacturing, field service infrastructure, and R&D that are difficult to flex with activity levels. The Industrial and Energy Technology (IET) segment contributed $12.2 billion (43.8% of total revenue, up 20.3% year-over-year) in FY2024 through four product lines. Gas Technology Equipment (GTE), which includes centrifugal and axial compressors, gas and aeroderivative turbines (LM6000, LM9000, NovaLT), pumps, valves, and modularized LNG systems, generated $5.7 billion in revenue and $6.2 billion in orders. GTE equipment is sold on a project basis with 12-36 month delivery cycles, and margins range from 10-15% depending on project complexity and competitive intensity. Gas Technology Services (GTS), which provides long-term maintenance, upgrades, spare parts, and digital monitoring for installed turbomachinery, generated $2.8 billion in revenue but contributes nearly 50% of IET's EBITDA because service margins exceed 25% and contracts span 10-25 years with high renewal rates. GTS signed a 25-year services agreement with NextDecade for the Rio Grande LNG facility and a multi-decade agreement for an LNG facility in the Middle East in FY2024. Industrial Technology, comprising Industrial Products (pumps, valves, and process equipment for general industrial applications) and Industrial Solutions (automation, controls, and process improvement), generated $3.1 billion. Climate Technology Solutions (CTS), which includes carbon capture use and storage (CCUS) equipment, hydrogen production and compression technologies, geothermal systems, and emissions abatement solutions, generated $605 million in revenue and $425 million in orders, with total new energy orders (including CTS) reaching $1.0 billion in FY2024. The IET operating margin of 15.0% in FY2024 (up from 12.9% in FY2023) reflects the mix shift toward higher-margin GTS and the operating use of equipment volume. These digital offerings, while not separately reported, are embedded within both segments and contribute higher-margin recurring revenue. The company's R&D expenditure was $643 million in FY2024, directed toward digital, automation, electrification, advanced materials, CCUS, and geothermal technologies. The business model's vulnerability is its dependence on OFSE for 56% of revenue in a cyclical industry where the U.S. Land rig count declined 9.7% in FY2024, compressing North America OFSE revenue by 3.9%. However, the IET backlog of $30.1 billion provides a revenue floor that insulates the company from commodity cycles in ways that pure-play oilfield services competitors cannot replicate. Baker Hughes's most important data-backed fact is that it generated $27.8 billion in revenue for FY2024 while expanding adjusted EBITDA margins for the fourth consecutive year to 16.5%, producing record free cash flow of $2.3 billion and returning $1.3 billion to shareholders through dividends and buybacks. The company holds $33.1 billion in remaining performance obligations, with $30.1 billion in IET providing multi-year revenue visibility through long-term service agreements that span 10-25 years—a backlog structure that no pure-play oilfield services competitor can replicate. The IET segment grew revenue 20.3% to $12.2 billion, driven by LNG equipment orders for Venture Global, Woodside, and Saudi Aramco, while OFSE revenue grew only 1.7% to $15.6 billion as North American rig count declines offset international growth. CEO Lorenzo Simonelli has committed to 20% EBITDA margins for OFSE in 2025 and IET in 2026, which would add approximately $1.9 billion in annual EBITDA. Baker Hughes operates in the global energy technology and oilfield services market, which generated approximately $280 billion in 2024 across upstream services, midstream equipment, and industrial technology. Within this market, Baker Hughes holds a 9.85% revenue share, ranking third behind SLB (12.65% share, $35.5 billion TTM revenue) and GE Vernova (14.84% share, $41.6 billion TTM revenue, though this includes power generation and grid infrastructure beyond oil and gas), and ahead of Halliburton (7.93% share, $22.2 billion TTM revenue). Baker Hughes's 31.35% OFSE share is concentrated in international markets (75% of OFSE revenue) and subsea/surface pressure systems, where it competes with TechnipFMC and NOV. The OFSE market is characterized by intense price competition, with operators demanding 10-15% year-over-year cost reductions and bundled service packages that compress margins. Baker Hughes's 40-year LNG track record and 440+ million tons of supported capacity provide a credibility advantage, but Siemens Energy's SGT-800 gas turbine and Mitsubishi's M701J series offer comparable performance at competitive prices. These markets are nascent, with total addressable markets of $10-15 billion annually, and Baker Hughes's $1.0 billion in new energy orders represents a 6-10% market share. The 16.5% company-wide adjusted EBITDA margin, while below SLB's ~24%, reflects the lower-margin OFSE mix, and the trajectory toward 20% segment margins would position Baker Hughes competitively against both pure-play OFSE companies and industrial equipment manufacturers. 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. The most immediate threat to Baker Hughes's margin trajectory is the cyclical weakness in North American onshore oilfield activity, where the U.S. Land rig count averaged 689 rigs in FY2024—down from 763 in FY2023, a 9.7% decline that reduced North America OFSE revenue by $161 million (3.9%) to $3.96 billion. The Jafurah Phase 3 award in Q4 2024, while significant, was won on a competitive bid basis that likely compressed margins by 200-300 basis points compared to proprietary technology contracts. The Woodside Louisiana LNG project, for which Baker Hughes booked an $800+ million equipment order in Q4 2024, has not yet reached FID and faces potential delays from environmental litigation and DOE export permit uncertainties. If 2-3 major LNG projects slip from 2025 to 2026-2027, Baker Hughes's IET revenue growth could decelerate from 20% to 8-10%, jeopardizing the 20% EBITDA margin target for 2026. New energy orders of $1.0 billion in FY2024 represent only 3.6% of total orders, and the company has not disclosed profitability for these product lines. CCUS projects require carbon prices above $75-100 per ton to be economically viable, and current EU ETS prices of $65-70 and voluntary carbon markets of $5-15 do not support widespread deployment at scale. Voluntary attrition of 6% in FY2024, while low by industry standards, masks a critical shortage of turbomachinery engineers and LNG project managers—the exact skills needed for IET growth. The seventh challenge is the data center power opportunity, which Baker Hughes secured $650 million in orders for in Q2 2025 (30 NovaLT turbines for U.S. Data centers). Baker Hughes's single unreplicable competitive advantage is the $30.1 billion IET remaining performance obligations backlog, which provides revenue visibility and cash flow stability that no competitor in the oilfield services industry can match. SLB, despite being the largest OFSE competitor with $35.5 billion in trailing twelve-month revenue, has minimal long-term equipment backlog because its business model is dominated by short-cycle drilling, evaluation, and completion services that are booked and executed within 90-180 days. Halliburton, with $22.2 billion in TTM revenue, has similarly limited backlog visibility. Replacing these with competitor equipment would require 18-24 months of engineering, $50-100 million in capital expenditure, and plant shutdowns that cost $5-10 million per day in lost production. The 25-year service agreement with NextDecade for Rio Grande LNG and the multi-decade Middle East LNG facility agreement signed in Q4 2024 are not merely maintenance contracts; they are exclusive partnerships that lock out competitors for decades. Second, Baker Hughes's LNG technology leadership is protected by 40 years of operational experience and 440+ million tons of supported LNG capacity. The company's LM6000 and LM9000 aeroderivative gas turbines, which power the refrigeration compressors in LNG liquefaction trains, have accumulated 50+ million operating hours with 99.2% mechanical availability—reliability statistics that new entrants cannot replicate without a decade of field data. The competitive advantage is quantifiable: Baker Hughes's IET EBITDA margin of 16.8% in FY2024 exceeded SLB's overall EBITDA margin of approximately 24% on a much smaller revenue base, but the IET segment's margin trajectory—expanding 210 basis points in one year while growing revenue 20.3%—demonstrates operating use that SLB's mature OFSE business cannot replicate. The $30.1 billion IET RPO represents 2.5x annual IET revenue, providing a revenue floor that reduces earnings volatility and supports a dividend yield of approximately 2.2% that attracts income-focused investors. First, the IET margin expansion program targets 20% EBITDA margins by 2026, up from 16.8% in FY2024, through three levers: increasing the GTS revenue share from 23% to 28% of IET revenue (GTS generates 25%+ margins versus 12-15% for equipment), improving GTE equipment margins by 200 basis points through modularization and design-to-cost initiatives, and scaling Climate Technology Solutions from $605 million to $1.5 billion in revenue by 2027. Second, the LNG equipment capture strategy aims to maintain 35-40% market share in global LNG liquefaction equipment orders, which are projected at $12-15 billion annually through 2027. Baker Hughes has already secured master supply agreements with Venture Global (100+ MTPA), Bechtel (multiple projects), and Tecnicas Reunidas (Jafurah), and is targeting additional awards from QatarEnergy North Field South, ADNOC Ruwais, and Mozambique LNG. Third, the new energy commercialization program targets $3.0+ billion in annual orders by 2027 across CCUS, hydrogen, geothermal, and emissions abatement. Fourth, the OFSE international expansion targets $13.0+ billion in international OFSE revenue by 2027, up from $11.7 billion in FY2024, driven by Middle East production expansion (Saudi Aramco's 13 MMbpd target, ADNOC's 5 MMbpd target), offshore Brazil pre-salt development, and subsea tiebacks in Norway and West Africa. North America OFSE is targeted for stabilization at $3.5-4.0 billion annually through digital service adoption and artificial lift market share gains. Fifth, the digital and automation strategy targets $500+ million in annual digital solutions revenue by 2027 through the Cordant platform, Bently Nevada condition monitoring, flare.IQ emissions management, and AI-driven drilling improvement. The growth strategy is capital-intensive: the $1.0-1.2 billion annual capex plan includes $400 million for LNG manufacturing capacity expansion, $250 million for digital infrastructure, $200 million for new energy technology development, and $150 million for OFSE equipment modernization. The company plans to fund this through free cash flow ($2.3 billion base, growing to $2.8-3.0 billion by 2027) and maintain the 60-80% shareholder return commitment. The dividend growth target of 10% annually would increase the quarterly dividend from $0.23 to approximately $0.30 by 2027, requiring $1.2 billion in annual dividend payments. Baker Hughes's next three years are defined by a single strategic bet: that the company can achieve 20% EBITDA margins in both segments by shifting the revenue mix toward higher-margin IET equipment and services, while maintaining OFSE profitability through international growth and cost discipline. The OFSE 20% EBITDA margin target for 2025 would add approximately $1.2 billion in annual EBITDA at current revenue levels, requiring 300 basis points of margin expansion through price realization, mix shift toward subsea and digital services, and the full benefit of the $650 million annual cost-out program. The IET 20% EBITDA margin target for 2026 would add approximately $600 million in annual EBITDA, requiring 320 basis points of expansion through GTS volume growth, LNG equipment margin improvement, and new energy scale-up. If these projects reach FID on schedule, Baker Hughes could book $4-5 billion in annual LNG equipment orders through 2027, sustaining IET revenue growth at 15-20%. The new energy business, while small at $1.0 billion in orders, is accelerating. The company targets $2.0 billion in new energy orders for 2025 and $3.0+ billion by 2027, focused on CCUS (carbon capture, use, and storage), hydrogen production and compression, geothermal power, and emissions abatement. The 2025 acquisition of Chart Industries for $13.6 billion (announced July 2025) significantly expands hydrogen and cryogenic capabilities, though this is post-FY2024 and not reflected in current financials. The data center power opportunity, while nascent, could add $500 million to $1 billion in annual orders by 2027 as AI-driven electricity demand drives gas turbine and combined-cycle plant investments. If 2-3 major projects slip by 12-18 months, IET revenue growth could decelerate to 8-10%, and the 20% margin target would require deeper cost cuts that could impair service quality. Baker Hughes's $33.1 billion RPO provides a revenue floor, but $3.0 billion of OFSE RPO is short-cycle and could unwind quickly in a downturn. The problem is, the capital allocation strategy remains consistent: return 60-80% of free cash flow to shareholders through dividends and buybacks, maintain investment-grade credit metrics, and deploy $1.0-1.2 billion annually in capital expenditures. The dividend growth target of 10% annually is supported by the $2.3 billion free cash flow base and the IET backlog visibility. His first job was driving a horse team hauling oil in the Los Angeles City Oil Field for $2.00 per twelve-hour day. The company generated $600 to $1,500 per month in royalties during its first five years. Baker Casing Shoe became Baker Oil Tools in 1928, Baker International in 1976, and by 1987 employed 14,000 people with $2.4 billion in revenue. Hughes Tool Company went public in 1972 and by 1987 had $1.1 billion in revenue. The merger created the world's third-largest oilfield services company with $3.5 billion in combined revenue. The merged company immediately began acquiring complementary businesses: Eastman Christensen (directional drilling, 1990), EXLOG (mud logging, 1992), Petrolite (specialty chemicals, 1997), and the far-reaching $5.5 billion acquisition of Western Atlas in 1998, which added seismic data acquisition, wireline logging, and reservoir characterization. By 2000, Baker Hughes had $7.5 billion in revenue and 35,000 employees. The Western Atlas acquisition also created WesternGeco, a seismic joint venture with Schlumberger that Baker Hughes exited in 2006 for $2.4 billion. The company's next defining moment came in 2014, when Halliburton announced a $35 billion acquisition of Baker Hughes. The deal, which would have created an OFSE giant rivaling SLB, was blocked by the U.S. Department of Justice in April 2016 on antitrust grounds, forcing Baker Hughes to pay Halliburton a $3.5 billion breakup fee and operate as a standalone company in a weakened competitive position. General Electric, which had built a $15 billion oil and gas equipment business through acquisitions of VetcoGray, Nuovo Pignone, and Druck, sought a partner with field service capabilities. The $7.4 billion merger, completed on July 3, 2017, created Baker Hughes, a GE company (BHGE), with GE holding 62.5% of shares. GE began divesting its stake in 2019, selling $2.7 billion in shares, and completed full divestiture in 2021 by selling its remaining 37% stake for approximately $5.5 billion. The 2024 annual results—$27.8 billion in revenue, $4.6 billion in adjusted EBITDA, and $2.3 billion in free cash flow—represent the culmination of a seven-year transformation from a GE-controlled conglomerate to an independent energy technology company with a unique hybrid business model.