Baker Hughes Company · NASDAQ:BKR
Baker Hughes — Q2 2025 Earnings Presentation
26 slides from Baker Hughes's earnings presentation, Jul 23, 2025
Slide 1: 2Q 2025 Results
2Q 2025 Results July 23, 2025 1 Copyright 2025 Baker Hughes Company. All rights reserved. The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. It is used only for the benefit of Baker Hughes and may not be distributed, transm
Slide 2: Forward-looking statements and non-GAAP disclosure
This presentation (and oral statements made regarding the subjects of this presentation) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking st
Slide 3: Lorenzo Simonelli, Chairman & Chief Executive Officer
Lorenzo Simonelli Chairman & Chief Executive Officer Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 4: Highlights
2Q 2025 RESULTS 4 Highlights Strong quarterly results Now met or exceeded EBITDA guidance for the 10th consecutive quarter Margins continue to expand Adjusted EBITDA margins1 expand 170 basis points year-on-year to 17.5% IET orders led by data center strength $3.5 billion of IET orders, including mo
Slide 5: Portfolio optimization actions
CAPITAL ALLOCATION 5 Portfolio optimization actions Announced transactions will generate ~$1 billion in net deal proceeds Acquisition1 Consideration Divestments: Unlocking $1.5B of value Maintenance, Valves & Projects 19% Repair Overhaul PSI Gears $540 million (MRO) 61% Precision Sensors & All-cash
Slide 6: Sustained commercial momentum across new and existing end markets
KEY AWARDS & TECHNOLOGY DEVELOPMENTS 6 Sustained commercial momentum across new and existing end markets NovaLTTM LM9000 Gas Tech Services Mature Assets Solutions Industrial Power Generation Gas Infrastructure Gas Tech Services (GTS) OFSE Data Centers Pipeline Contractual Service Agreements Producti
Slide 7: Gas and LNG tailwinds prevail over growing macro uncertainty
MACRO & MARKET OUTLOOK 7 Gas and LNG tailwinds prevail over growing macro uncertainty MACRO OUTLOOK 2025 MARKET DYNAMICS LNG: ~60 MTPA1 of FIDs2 required over the next 18 months to reach our 3-year 100 MTPA target • Increasing long-term energy demand Gas infrastructure: booked orders of $2.9 billion
Slide 8: Rapidly growing distributed power market
DATA CENTER OPPORTUNITY 8 Rapidly growing distributed power market Provides compelling growth opportunity for Baker Hughes DISTRIBUTED POWER OPPORTUNITY BAKER HUGHES POWER SOLUTIONS Powered by natural gas, hydrogen, geothermal & nuclear • Data centers are a large driver of distributed power • 1 2 &
Slide 9: Ahmed Moghal, Executive Vice President & Chief Financial Officer
Ahmed Moghal Executive Vice President & Chief Financial Officer Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 10: 2Q 2025 Financial Results
FINANCIAL PERFORMANCE 10 2Q 2025 Financial Results FINANCIALS1 2Q'25 1Q'25 2Q'24 Solid Adj. EBITDA Strong orders growth despite ORDERS ($M) 7,032 9% (7)% momentum lower revenue REVENUE ($M) 6,910 8% (3)% Adj. EBITDA ($M) 1,212 17% 7% Adj. EBITDA Margin 17.5% 140 bps 170 bps Adj. Diluted EPS ($/share
Slide 11: Robust balance sheet and strong shareholder returns
CAPITAL ALLOCATION 11 Robust balance sheet and strong shareholder returns 60%-80% FCF 1 PRIORITY Balance Sheet Technology Dividends Buybacks Portfolio Investment Optimization • Maintain a strong • Focus growth capital on • Dividend growth • Repurchase shares to • Disciplined strategy for PHILOSOPHY
Slide 12: IET: Gas Tech drives another quarter of robust EBITDA growth
INDUSTRIAL & ENERGY TECHNOLOGY (IET) SEGMENT RESULTS 12 IET: Gas Tech drives another quarter of robust EBITDA growth FINANCIALS1 2Q'25 1Q'25 2Q'24 Strong order momentum continues ORDERS ($M) 3,530 11% 2% Record Climate Tech Solutions and Cordant Solutions orders; +28% YoY order growth for Gas Tech S
Slide 13: OFSE: Continued margin expansion despite softening market environment
OILFIELD SERVICES & EQUIPMENT (OFSE) SEGMENT RESULTS 13 OFSE: Continued margin expansion despite softening market environment FINANCIALS1 2Q'25 1Q'25 2Q'24 Resilient NAM performance ORDERS ($M) 3,503 7% (14)% Production-weighted NAM mix drives less cyclicality REVENUE ($M) 3,617 3% (10)% Solid inter
Slide 14: Portfolio Optimization Strategy
CAPITAL ALLOCATION 14 Portfolio Optimization Strategy Unlocking value through sale of non-core assets STRATEGIC CRITERIA FOR INVESTMENT • Targeting businesses with: • Limited synergies with the rest of the portfolio or not core to long- Critical Applications Aftermarket / Lifecycle term growth strat
Slide 15: Tariff Impact, FY'25 Framework & 3Q'25 Guidance
GUIDANCE FRAMEWORK 15 Tariff Impact, FY’25 Framework & 3Q’25 Guidance Tariff Impact 3Q’25 Guidance 2025 Guidance BKR BKR2 BKR2 • Maintain estimate of $100M - $200M potential REVENUE ($M) 6,450 - 7,150 REVENUE ($M) 26,500 - 27,700 net impact to consolidated 2025 EBITDA1 Adj. EBITDA ($M)3 1,095 - 1,27
Slide 16: Lorenzo Simonelli, Chairman & Chief Executive Officer
Lorenzo Simonelli Chairman & Chief Executive Officer Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 17: Our strategy is delivering
INVESTMENT THESIS 17 Our strategy is delivering Accelerating our progress as we enter Horizon Two BKR Adj. EBITDA & Adj. EBITDA MARGIN PROGRESSION 1 FOCUSING ON WHAT WE CAN CONTROL 6 .0 20.0% We have changed the way we operate Adj. EBITDA ($) • Implementation of business system has driven significan
Slide 18: Appendix
Appendix Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 19: Results by Reporting Segment
APPENDIX 19 Results by Reporting Segment Oilfield Services & Equipment (in millions) Three Months Ended Variance June 30, March 31, June 30, Year-over- Segment results 2025 2025 2024 Sequential year Orders $ 3,503 $ 3,281 $ 4,068 7% (14%) Revenue $ 3,617 $ 3,499 $ 4,011 3% (10%) EBITDA $ 677 $ 623 $
Slide 20: Results by Reporting Segment
APPENDIX 20 Results by Reporting Segment Industrial & Energy Technology (in millions) Three Months Ended Variance June 30, March 31, June 30, Year-over- Segment results 2025 2025 2024 Sequential year Orders $ 3,530 $ 3,178 $ 3,458 11% 2% Revenue $ 3,293 $ 2,928 $ 3,128 12% 5% EBITDA $ 585 $ 501 $ 49
Slide 21: Orders by Reporting Segment
APPENDIX 21 Orders by Reporting Segment Orders by Reporting Segment ($ in millions) Total Oilfield Services & Equipment FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 1Q 2025 2Q 2025 Oilfield Services & Equipment $ 14,089 $ 4,100 $ 4,192 $ 4,178 $ 3,874 $ 16,
Slide 22: OFSE & IET Reporting Segment Revenues
APPENDIX 22 OFSE & IET Reporting Segment Revenues Consolidated Revenue by Reporting Segment and Product Line ($ in millions) Oilfield Services & Equipment FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 1Q 2025 2Q 2025 Well Construction $ 3,854 $ 1,061 $ 1,076
Slide 23: GAAP to Non-GAAP reconciliations
APPENDIX 23 GAAP to Non-GAAP reconciliations Reconciliation of Net Cash Flow From Operating Activities to Free Cash Flow ($ in millions) FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 1Q 2025 2Q 2025 Net cash flow from operating activities (GAAP) $ 1,888 $ 46
Slide 24: Additional reconciliations
APPENDIX 24 Additional reconciliations Reconciliation of Income Tax (GAAP) to Adjusted Income Tax (non-GAAP) and Effective Tax Rate (GAAP) to Adjusted Effective Tax Rate (non- GAAP) ($ in millions) Effective tax rate reconciliation 2Q 2025 1Q 2025 2Q 2024 Income before income taxes (GAAP) $ 967 $ 56
Slide 25: Follow our journey
bakerhughes.com Follow our @bakerhughesco journey Baker Hughes bakerhughesco @bakerhughesco Confidential. Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 26: Baker Hughes
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