Baker Hughes vs Volkswagen: Revenue, Profit and Business Model
Baker Hughes reported $27.7B of revenue in FY2025 and $2.6B of net income. Volkswagen reported ~$363.8B of revenue in FY2025 and ~$7.5B of net income.
Latest financial snapshot
Baker Hughes
- Latest revenue
- $27.7B (FY2025)
- Net income
- $2.6B
- Net margin
- 9.3%
- Revenue growth
- +8.7% a year, FY2016–FY2025
Volkswagen
- Latest revenue
- ~$363.8B (FY2025)
- Net income
- ~$7.5B
- Net margin
- 2.1%
- Revenue growth
- +6.5% a year, FY2021–FY2025
Financial summary
Baker Hughes
FY2025 revenue was $27,733M, down 0.3% from $27,829M, with attributable net income of $2,588M against $2,979M a year earlier, a 13% decline driven largely by the prior-year release of tax valuation allowances and by $215M of restructuring. Profitability still improved on the measure management targets: adjusted EBITDA reached a record $4,825M, a 17.4% margin against 16.5% in FY2024. The mix did the work, with IET segment EBITDA up 21% to $2,482M while OFSE fell 9% to $2,618M. Cash conversion was the other bright spot, with $3,810M from operations and record free cash flow of $2,732M after $1,078M of net capital spending. The balance sheet ended the year with $3,715M of cash against $5,398M of long-term debt and $689M of current debt, and equity of $19,010M on total assets of $40,881M. Dividends of $910M and $384M of buybacks were paid out during the year, with the quarterly dividend at $0.23 per share. Research and development was $600M and selling, general and administrative expense $2,387M.
Volkswagen
Volkswagen Group reported ~$364 billion (EUR 321.9 billion) in 2025 sales revenue, slightly below ~$367 billion (EUR 324.7 billion) in 2024, and an operating result of ~$10.1 billion (EUR 8.9 billion), a 2.8% margin. Earnings were held down by U.S. tariffs, restructuring provisions, the cost of Porsche's product strategy change, and weaker results from the Chinese joint ventures. Deliveries were broadly stable at 8.984 million vehicles. The December 2024 agreement with IG Metall for the Volkswagen brand in Germany avoids compulsory redundancies but plans to cut more than 35,000 jobs by 2030 through attrition and early retirement, and to reduce German plant capacity. In the first half of 2026 sales revenue was about $179 billion (EUR 158.1 billion), roughly flat, while the operating result fell 11.6% to about $6.67 billion (EUR 5.9 billion) (3.8% margin). In September 2026 Volkswagen cut its full-year forecast to about $356 billion (EUR 315 billion) in sales revenue and an operating margin of up to 1%, citing China, a faster shift to EVs, a roughly $6.78 billion (EUR 6 billion) goodwill impairment on the Porsche segment, and extra restructuring and China impairments.
Revenue and profit by year
Baker Hughes
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $27.7B | $2.6B | 9.3% | -0.3% | Source |
| FY2024 | $27.8B | $3B | 10.7% | +9.1% | Source |
| FY2023 | $25.5B | $1.9B | 7.6% | +20.6% | Source |
| FY2022 | $21.2B | -$601M | -2.8% | +3.2% | Source |
| FY2021 | $20.5B | -$219M | -1.1% | -1.0% | Source |
| FY2020 | $20.7B | -$9.9B | -48.0% | -13.1% | Source |
| FY2019 | $23.8B | $128M | 0.5% | +4.2% | Source |
| FY2018 | $22.9B | $195M | 0.9% | +33.2% | Source |
| FY2017 | $17.2B | -$103M | -0.6% | +31.3% | Source |
| FY2016 | $13.1B | — | 0.0% | — | Source |
Volkswagen
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$363.8B | ~$7.5B | 2.1% | -0.8% | Source |
| FY2024 | ~$366.9B | ~$12.1B | 3.3% | +0.7% | Source |
| FY2023 | ~$364.2B | ~$18B | 4.9% | +15.5% | Source |
| FY2022 | ~$315.3B | ~$16.8B | 5.3% | +11.5% | Source |
| FY2021 | ~$282.7B | ~$16.8B | 5.9% | — | Source |
Where the revenue comes from
Baker Hughes
- Oilfield Services and Equipment (OFSE)51.7%
OFSE revenue was $14,324M in FY2025, down 8% from $15,628M in FY2024 as rig counts fell. The split by product line was Production Solutions $3,806M, Completions, Intervention and Measurements $3,750M, Well Construction $3,646M and Subsea and Surface Pressure Systems $3,122M. International revenue was $10,551M and North America $3,773M. Segment EBITDA was $2,618M, an 18.3% margin, on work generally contracted well by well or by project.
- Industrial and Energy Technology (IET)48.3%
IET revenue was $13,409M in FY2025, up 10% from $12,201M, made up of Gas Technology Equipment $6,619M, Gas Technology Services $3,028M, Industrial Products $1,991M, Industrial Solutions $1,123M and Climate Technology Solutions $647M. Segment EBITDA was $2,482M, up 21%, a 18.5% margin. IET held $32.4B of the $35.9B remaining performance obligation at year end, split $11.6B equipment and $16.1B services, so a large share of future revenue is already contracted.
Volkswagen
- Passenger vehicle sales
- Premium and luxury vehicle sales
- Commercial vehicles
- Parts and aftersales
- Financial services
- Leasing and fleet services
- Software and mobility services
Business model and strategy
Baker Hughes
How it makes money
Baker Hughes sells engineered equipment and the services that keep it running. In Oilfield Services and Equipment it is paid for jobs and projects: directional drilling, drill bits, completions, pressure pumping, artificial lift, oilfield chemicals and subsea production systems, billed well by well or under multi-year frame agreements with national oil companies and majors.
Growth strategy
The strategy is to shift weight from short-cycle oilfield work toward equipment and lifecycle services with longer contracts. Management describes the 2026 to 2028 period as Horizon Two and frames the aim as a more industrialised energy solutions company with a production-oriented mix and more durable cash flow.
Competitive advantage
The defensible part of Baker Hughes is the installed base of turbomachinery and the service contracts attached to it. Once its gas turbines and refrigerant compressors are inside a liquefaction train or a gas processing plant, the operator buys spare parts, overhauls and remote monitoring from Baker Hughes for the life of the asset, which is why Gas Technology Services alone held $16.1B of remaining performance oblig…
Volkswagen
How it makes money
Volkswagen earns most of its revenue by selling new cars, vans, trucks and buses through brand groups: Core (Volkswagen, Skoda, SEAT/CUPRA, Volkswagen Commercial Vehicles), Progressive (Audi, Bentley, Lamborghini, Ducati), Sport Luxury (Porsche) and TRATON (Scania, MAN, International, Volkswagen Truck & Bus).
Growth strategy
Volkswagen's growth strategy centers on cost reduction, platform simplification, brand accountability, premium profitability, China-specific EV development, battery and software investment, hybrid and combustion optimization where demand remains strong, and selective partnerships such as Rivian and XPeng.
Competitive advantage
Volkswagen's advantage is industrial scale plus brand breadth. Few competitors can cover entry-level European cars, global volume SUVs, Audi premium vehicles, Porsche sports cars, Lamborghini supercars, Bentley luxury cars, Ducati motorcycles, Scania and MAN trucks, and a major financial services arm. The purchasing leverage and installed dealer base are hard to replicate.
Questions about Baker Hughes vs Volkswagen
Which company has higher revenue — Baker Hughes Company or Volkswagen Aktiengesellschaft?
Baker Hughes Company reported $27.7B (FY2025), while Volkswagen Aktiengesellschaft reported ~$363.8B (FY2025). By last reported revenue, Volkswagen Aktiengesellschaft is the larger business, with Baker Hughes Company reporting a smaller revenue base.
What is the market cap of Baker Hughes Company vs Volkswagen Aktiengesellschaft?
Baker Hughes Company's market capitalisation stands at $56.9B, while Volkswagen Aktiengesellschaft's is $35.5B. Baker Hughes Company carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Volkswagen Aktiengesellschaft.
Which is more financially efficient — Baker Hughes Company or Volkswagen Aktiengesellschaft?
Baker Hughes Company generates $495k / employee in revenue per employee, while Volkswagen Aktiengesellschaft generates $549k / employee. Volkswagen Aktiengesellschaft shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Baker Hughes Company and Volkswagen Aktiengesellschaft make money?
Baker Hughes Company and Volkswagen Aktiengesellschaft generate revenue in fundamentally different ways. Baker Hughes Company: Baker Hughes sells engineered equipment and the services that keep it running. Volkswagen Aktiengesellschaft: Volkswagen earns most of its revenue by selling new cars, vans, trucks and buses through brand groups: Core (Volkswagen, Skoda, SEAT/CUPRA, Volkswagen Commercial Vehicles), Progressive (Audi, Bentley, Lamborghini, Ducati), Sport Luxury (Porsche) and TRATON (Scania, MAN, International, Volkswagen Truck & Bus).
Which company is valued higher relative to revenue — Baker Hughes Company or Volkswagen Aktiengesellschaft?
On a price-to-sales (P/S) basis, Baker Hughes Company trades at 2.1x P/S and Volkswagen Aktiengesellschaft at 0.1x P/S. Baker Hughes Company commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Volkswagen Aktiengesellschaft. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Baker Hughes Company bigger than Volkswagen Aktiengesellschaft?
By last reported revenue, Volkswagen Aktiengesellschaft (~$363.8B (FY2025)) is the larger company compared to Baker Hughes Company ($27.7B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Baker Hughes vs Volkswagen overview