Baker Hughes Company · NASDAQ:BKR
Baker Hughes — Q4 2024 Earnings Presentation
28 slides from Baker Hughes's earnings presentation, Jan 31, 2025
Slide 1: 4Q & FY 2024 Results
4Q & FY 2024 Results January 31, 2025 Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 2: Forward-looking statements and non-GAAP disclaimer
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 & CEO
Lorenzo Simonelli Chairman & Chief Executive Officer Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 4: Highlights
4Q & FY 2024 RESULTS 4 Highlights Record quarterly & annual revenue and adjusted measures of EPS, EBITDA and EBITDA margins Significant margin expansion driven by strategy execution Strong IET orders; new energy orders of $1.3B Record free cash flow in 2024 Copyright 2025 Baker Hughes Company. All r
Slide 5: Orders strength demonstrates diversity of end markets & technology
KEY AWARDS & TECHNOLOGY DEVELOPMENTS 5 Orders strength demonstrates diversity of end markets & technology Liquified Natural Gas (LNG) Onshore & Offshore Subsea & Surface Pressure Well Construction Production (OOP) Systems (SSPS) Power & Liquefaction Solutions Compression Solutions Flexible Pipe Syst
Slide 6: Strong IET market tailwinds prevail over maturing OFSE cycle
MACRO & MARKET OUTLOOK 6 Strong IET market tailwinds prevail over maturing OFSE cycle MACRO OUTLOOK 2025 MARKET DYNAMICS • LNG: strong FID rebound anticipated; expect ~100 MTPA of LNG Policy & geopolitical uncertainty FIDs from 2024-26 (17 MTPA of FIDs in 2024) Uneven global economic growth • Gas in
Slide 7: GTS revenue growth to outpace installed unit growth by 2030
GAS TECHNOLOGY SERVICES (GTS) REVENUES DRIVERS 7 GTS revenue growth to outpace installed unit growth by 2030 GROWTH ACCELERATORS Pricing Installed Base Upgrades Digital Mix Strong demand for rotating LNG installed units' growth set to Fleet has 15+ years remaining Significant opportunity to equipmen
Slide 8: Nancy Buese, EVP & Chief Financial Officer
Nancy Buese Executive Vice President & Chief Financial Officer Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 9: 4Q & FY 2024 Financial Results
FINANCIAL PERFORMANCE 9 4Q & FY 2024 Financial Results FINANCIALS1 4Q'24 FY’24 FY’24 Adj. Diluted FY’24 Adj. EBITDA EPS growth of 47% margin expansion ORDERS ($M) 7,496 28,240 YoY of 1.7 pts REVENUE ($M) 7,364 27,829 Adj. EBITDA ($M) 1,310 4,591 Adj. EBITDA % 17.8% 16.5% Adj. Diluted EPS ($/share) 0
Slide 10: Flexible capital allocation policy
CAPITAL ALLOCATION 10 Flexible capital allocation policy 60%-80% FCF 2 PRIORITY Balance Sheet Technology Dividends Buybacks Portfolio Investment Management • Maintain a strong • Focus growth capital on • Prioritize dividend growth • Repurchase shares to • Disciplined strategy for PHILOSOPHY balance
Slide 11: Greatly enhanced financial performance
FINANCIAL PERFORMANCE 11 Greatly enhanced financial performance ADJUSTED EARNINGS PER SHARE 1 (EPS) 0.80 +10% 0.60 +37% $ per share 0.40 Announced 0.20 Adj. EPS CAGR dividend increase over last 3 years for 1Q’25 - 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 DIVIDEND PER S
Slide 12: IET: Strong execution drives another quarter of record EBITDA
INDUSTRIAL & ENERGY TECHNOLOGY (IET) SEGMENT RESULTS 12 IET: Strong execution drives another quarter of record EBITDA FINANCIALS1 4Q'24 FY’24 • Strong order momentum continues Strong quarter of LNG and gas infrastructure orders ORDERS ($M) 3,756 13,000 • Continued robust revenue growth 6 of past 7 q
Slide 13: OFSE: Simplification initiatives drive another record quarter of EBITDA margins
OILFIELD SERVICES & EQUIPMENT (OFSE) SEGMENT RESULTS 13 OFSE: Simplification initiatives drive another record quarter of EBITDA margins • Solid Subsea & Surface Pressure Systems (SSPS) orders FINANCIALS1 4Q'24 FY’24 Led by continued strength in Flexible Pipe Systems • Resilient Revenue ORDERS ($M) 3
Slide 14: Driving structural margin improvement to 20% and beyond
TRANSFORMATION ACTIVITIES 14 Driving structural margin improvement to 20% and beyond OFSE - EBITDA MARGIN PROGRESSION 1 IET - EBITDA MARGIN PROGRESSION 1 +1.6 pts 20% +1.2 pts 18% +1.8 pts 16.8% +1.5 pts 18.4% 16.9% 15% 2023 2024 2025 2023 2024 2025 OFSE 20% EBITDA margin by 2025: Focused on improvi
Slide 15: 1Q'25 & FY 2025 outlook
GUIDANCE 15 1Q’25 & FY 2025 outlook BKR1 1Q’25 BKR1 2025 REVENUE ($M) 6,200 - 6,800 REVENUE ($M) 26,900 - 28,600 Adj. EBITDA ($M) 960 - 1,080 Adj. EBITDA ($M) 4,700 - 5,200 OFSE OFSE REVENUE ($M) 3,450 - 3,650 REVENUE ($M) 14,500 - 15,500 EBITDA ($M) 615 - 675 EBITDA ($M) 2,850 - 3,150 IET IET REVEN
Slide 16: Lorenzo Simonelli, Chairman & CEO
Lorenzo Simonelli Chairman & Chief Executive Officer Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 17: Our strategy is delivering success
OUR STRATEGY 17 Our strategy is delivering success Margins on track to increase by more than six percentage Compelling Investment Thesis points since 2020 BKR Adj. EBITDA & Adj. EBITDA MARGIN PROGRESSION 1 • Differentiated growth opportunity 6 .0 Adj. EBITDA ($) 20.0% 17.8%2 Adj. EBITDA Margin (%) 1
Slide 18: Appendix
Appendix Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 19: Results by Reporting Segment: Oilfield Services & Equipment
APPENDIX 19 Results by Reporting Segment Oilfield Services & Equipment (in millions) Three Months Ended Variance December 31, September 30, December 31, Year-over- Segment results 2024 2024 2023 Sequential year Orders $ 3,740 $ 3,807 $ 3,874 (2%) (3%) Revenue $ 3,871 $ 3,963 $ 3,956 (2%) (2%) Operat
Slide 20: Results by Reporting Segment: Industrial & Energy Technology
APPENDIX 20 Results by Reporting Segment Industrial & Energy Technology (in millions) Three Months Ended Variance December 31, September 30, December 31, Segment results 2024 2024 2023 Sequential Year-over-year Orders $ 3,756 $ 2,868 $ 3,030 31% 24% Revenue $ 3,492 $ 2,945 $ 2,879 19% 21% Operating
Slide 21: GAAP to non-GAAP reconciliations
APPENDIX 21 GAAP to non-GAAP reconciliations Reconciliation of Net Cash Flow From Operating Activities to Free Cash Flow ($ in millions) FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Net cash flows from operating activ
Slide 22: Additional reconciliations
APPENDIX 22 Additional reconciliations Orders by Reporting Segment ($ in millions) Oilfield Services & Equipment FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Total Oilfield Services & Equipment $ 11,798 $ 3,270 $ 3,39
Slide 23: Additional reconciliations
APPENDIX 23 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) Copyright 2025 Baker Hughes Company. All rights reserved. Note: certain columns and rows may not add u
Slide 24: OFSE & IET reconciliations
APPENDIX 24 OFSE & IET reconciliations Consolidated Revenue by Reporting Segment and Product Line ($ in millions) Oilfield Services & Equipment FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Well Construction $ 3,301 $
Slide 25: OFSE & IET GAAP to Non-GAAP reconciliations
APPENDIX 25 OFSE & IET GAAP to Non-GAAP reconciliations Reconciliation of Operating Income (Loss) by Segment (GAAP) to EBITDA (non-GAAP) ($ in millions) Operating Income (loss) by Segment (GAAP) FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3
Slide 26: OFSE & IET GAAP to Non-GAAP reconciliations: Outlook Framework
APPENDIX 26 OFSE & IET GAAP to Non-GAAP reconciliations Reconciliation of Operating Income (Loss) by Segment (GAAP) to EBITDA (non-GAAP) Outlook Framework ($ in millions) Oilfield Services & Equipment 1Q 2025 Outlook 2025 FY Outlook 1Q 2025 FY 2025 Operating Income (loss) by Segment (GAAP) 385 – 445
Slide 27: Follow our journey
bakerhughes.com Follow our @bakerhughesco journey Baker Hughes bakerhughesco @bakerhughesco Confidential. Copyright 2025 Baker Hughes Company. All rights reserved.
Slide 28: Baker Hughes
Baker Hughes =