Baker Hughes Co (BKR)

Business Description

Baker Hughes Company is a global leader in providing integrated oilfield products, services, and digital solutions. The company operates through two main business segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET), offering a wide range of products and services for the energy industry . OFSE focuses on supporting oilfield operations throughout the lifecycle of a well, while IET provides technology solutions for mechanical-drive, compression, and power-generation applications . Baker Hughes is committed to advancing energy technology and delivering innovative solutions to meet the evolving needs of the industry .

Oilfield Services & Equipment (OFSE) - Provides comprehensive products and services for onshore and offshore oilfield operations, covering exploration, appraisal, development, production, rejuvenation, and decommissioning .
- Well Construction - Offers tools and services for drilling and constructing wells.
- Completions, Intervention & Measurements - Delivers solutions for well completion, intervention, and measurement activities.
- Production Solutions - Focuses on enhancing production efficiency and recovery.
- Subsea & Surface Pressure Systems - Provides equipment and services for managing pressure in subsea and surface environments.
Industrial & Energy Technology (IET) - Delivers technology solutions and services for mechanical-drive, compression, and power-generation applications across the energy industry, including oil and gas, LNG operations, and lower carbon solutions .
- Gas Technology Equipment - Supplies equipment for gas processing and handling.
- Gas Technology Services - Offers maintenance and support services for gas technology systems.
- Industrial Products - Provides a range of products for industrial applications.
- Industrial Solutions - Delivers integrated solutions for industrial processes.
- Climate Technology Solutions - Focuses on technologies aimed at reducing carbon emissions and enhancing sustainability.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Lorenzo Simonelli	Chairman, President and CEO	July 2017	Lorenzo Simonelli has been the Chairman of the Board of Directors of Baker Hughes since October 2017 and has served as the President and Chief Executive Officer since July 2017. Before joining Baker Hughes, he was the Senior Vice President at GE and President and Chief Executive Officer of GE Oil & Gas from October 2013 to July 2017 .
Nancy Buese	Chief Financial Officer	November 2022	Nancy Buese is the Chief Financial Officer of Baker Hughes Company. She joined the company in November 2022. Before joining Baker Hughes, she served as Executive Vice President and Chief Financial Officer of Newmont Corporation .
James E. Apostolides	Senior Vice President, Enterprise Operational Excellence	February 2020	James E. Apostolides is the Senior Vice President of Enterprise Operational Excellence at Baker Hughes. He began his career in 1999 with GE, where he held roles of increasing responsibility, including managerial positions in Shop Operations, Materials, Sourcing, and Fulfillment across multiple continents .
Maria Claudia Borras	Executive Vice President, Oilfield Services and Equipment	September 2022	Maria Claudia Borras is the Executive Vice President, Oilfield Services and Equipment at Baker Hughes. She has been in this role since September 2022. Prior to this, she served as Executive Vice President of Oilfield Services from July 2017 to September 2022 .
Ganesh Ramaswamy	Executive Vice President, Industrial & Energy Technology	January 2023	Ganesh Ramaswamy is the Executive Vice President of Industrial & Energy Technology at Baker Hughes. He joined the company in January 2023. Before joining Baker Hughes, he served as President of Global Services for Johnson Controls .
Georgia Magno	Chief Legal Officer	2010	Georgia Magno is the Chief Legal Officer of Baker Hughes Company. She joined the company in 2010, initially serving as General Counsel for the global supply chain. Over the years, she has held various legal roles across commercial, operational, and product line organizations .

Questions to Ask Management

Your margin targets for the Industrial and Energy Technology (IET) segment are ambitious; can you elaborate on the specific drivers that will sustain margin improvement beyond 2026, especially considering potential market headwinds?
The growth in Gas Technology Services (GTS) revenue has historically outpaced the installed base growth; what are the key risks that could prevent this trend from continuing, particularly in terms of pricing and upgrade opportunities?
With the expectation of flat global upstream spending next year and activity uncertainties in regions like Saudi Arabia and North America, how will this impact your mature asset solutions, and what strategies are in place to drive growth in this environment?
As you continue to secure large orders in Gas Technology Equipment and New Energy, how are you addressing potential supply chain constraints, such as those affecting aeroderivative technology, that could impact backlog conversion and revenue recognition?
Given your significant investments in digital solutions like Leucipa and CarbonEdge, how do you plan to effectively monetize these technologies, and what challenges do you foresee in scaling their adoption across your global customer base?

Program Details	Program 1
Approval Date	July 30, 2021
End Date/Duration	No specified expiration date
Total Additional Amount	$4 billion
Remaining Authorization	$1.7 billion
Details	The program may be suspended or discontinued at any time. It is funded from cash generated from operations.

Debt Maturity Schedule

Year	Amount Due (millions)	Debt Type	Interest Rate	% of Total Debt
2026	$598	2.061% Senior Notes	2.061%	9.9% = (598 / 6,036) * 100
2027	$1,309	3.337% Senior Notes	3.337%	21.7% = (1,309 / 6,036) * 100
2029	$263	6.875% Notes	6.875%	4.4% = (263 / 6,036) * 100
2029	$523	3.138% Senior Notes	3.138%	8.7% = (523 / 6,036) * 100
2030	$498	4.486% Senior Notes	4.486%	8.3% = (498 / 6,036) * 100
2040	$1,277	5.125% Senior Notes	5.125%	21.2% = (1,277 / 6,036) * 100
2047	$1,338	4.080% Senior Notes	4.080%	22.2% = (1,338 / 6,036) * 100

Competitors

Competitors mentioned in the company's latest 10K filing.

Siemens Energy - Competitor for Gas Technology Equipment product line .
Solar (a Caterpillar company) - Competitor for Gas Technology Equipment product line .
MAN Energy Solutions - Competitor for Gas Technology Equipment product line .
Masaood John Brown - Competitor for Gas Technology Services product line .
EthosEnergy - Competitor for Gas Technology Services product line .
Sulzer - Competitor for Gas Technology Services product line .
Emerson - Competitor for Industrial Products and Industrial Solutions product lines .
Flowserve - Competitor for Industrial Products product line .
Metso Outotec - Competitor for Industrial Products product line .
Honeywell Process Solutions - Competitor for Industrial Solutions product line .
ABB - Competitor for Industrial Solutions product line .
Aker Carbon Capture - Competitor for CCUS applications in Climate Technology Solutions .
Svante - Competitor for CCUS applications in Climate Technology Solutions .
SLB - Competitor for CCUS applications in Climate Technology Solutions and for Well Construction; Completions, Intervention, & Measurements; Production Solutions; Subsea & Surface Pressure Systems in OFSE .
Howden (a Chart Industries company) - Competitor for hydrogen applications in Climate Technology Solutions .
Burckhardt - Competitor for hydrogen applications in Climate Technology Solutions .
Halliburton - Competitor for Well Construction; Completions, Intervention, & Measurements; Production Solutions; Subsea & Surface Pressure Systems in OFSE .
ChampionX - Competitor for Production Solutions in OFSE .
TechnipFMC - Competitor for Subsea & Surface Pressure Systems in OFSE .
Aker Solutions - Competitor for Subsea & Surface Pressure Systems in OFSE .
NOV - Competitor for Subsea & Surface Pressure Systems in OFSE .

Auditor

Name	Start Date	End Date	Reason for Change
KPMG LLP	July 3, 2017	Present	Current auditor.
Deloitte & Touche LLP	N/A	June 30, 2017	Dismissed due to non-audit services, financial interests, and relationships with GE prohibited under SEC rules.

Latest news

Recent developments and announcements about BKR.

Financial Reporting

Earnings Report

6 days ago

Baker Hughes Company (BKR) has released its fourth-quarter and full-year 2024 earnings results as of January 30, 2025. Below are the key highlights and trends:

Fourth-Quarter 2024 Highlights:

Revenue: $7.4 billion, an 8% increase year-over-year and a 7% increase sequentially ,.
Net Income: $1.18 billion, up 168% year-over-year ,.
GAAP Diluted EPS: $1.18, while Adjusted Diluted EPS was $0.70 ,.
Adjusted EBITDA: $1.31 billion, up 20% year-over-year ,.
Free Cash Flow: $894 million, a 41% increase year-over-year ,.

Full-Year 2024 Highlights:

Revenue: $27.8 billion, up 9% year-over-year ,.
Net Income: $2.98 billion, with a GAAP Diluted EPS of $2.98 and Adjusted Diluted EPS of $2.35 ,.
Adjusted EBITDA: $4.59 billion, up 22% year-over-year.
Free Cash Flow: $2.26 billion, up 10% year-over-year.
Orders: $28.2 billion, including $13 billion from the Industrial & Energy Technology (IET) segment.

Segment Performance:

Industrial & Energy Technology (IET):

Revenue: $3.49 billion in Q4, up 21% year-over-year.
Orders: $3.76 billion in Q4, up 24% year-over-year, driven by strong Gas Technology Equipment (GTE) orders.
Operating Income: $584 million in Q4, up 42% year-over-year.

Oilfield Services & Equipment (OFSE):

Revenue: $3.87 billion in Q4, down 2% year-over-year.
Operating Income: $526 million in Q4, up 7% year-over-year.

Key Trends and Strategic Highlights:

Strong LNG and Gas Infrastructure Orders:
- IET secured major contracts, including a modularized LNG system for Venture Global and gas compression equipment for Saudi Arabia's Jafurah gas field.
- OFSE received significant awards for flexible pipe systems in Brazil and digitalization initiatives in the Middle East.
Margin Improvements:
- Adjusted operating income and EBITDA margins improved due to higher pricing, productivity gains, and structural cost-out initiatives ,.
Shareholder Returns:
- $1.32 billion returned to shareholders in 2024, including $484 million in share repurchases.
- Quarterly dividend increased by 10% to $0.23 per share.
Outlook for 2025:
- Baker Hughes expects continued EBITDA growth, led by the IET segment, and aims to achieve a 20% EBITDA margin for OFSE in 2025 and for IET by 2026.

Upcoming Events:

Earnings Call: Scheduled for January 31, 2025, at 9:30 a.m. Eastern Time. The webcast will be available on the company's website ,.

For further details, visit Baker Hughes' investor relations page.

Sources: , , , , , , ,.

Auditor Changes

Jul 3, 2017, 12:00 AM

Baker Hughes, a GE Company (BHGE) Auditor Change

On July 3, 2017, Baker Hughes, a GE company (BHGE) announced changes to its auditing arrangements:

Dismissal of Deloitte & Touche LLP: The Audit Committee decided to dismiss Deloitte as the independent registered public accounting firm for BHGE after the filing of the Quarterly Report for the quarter ended June 30, 2017. Deloitte's report for the fiscal year ended December 31, 2016, did not contain any adverse opinions or disagreements with BHGE .
Dismissal of KPMG S.p.A.: KPMG S.p.A. was dismissed as the independent registered public accounting firm for GE Oil & Gas (GE O&G) after the same quarterly report filing. There were no disagreements or adverse opinions in KPMG's reports for the fiscal years 2015 and 2016 .
Engagement of KPMG LLP: BHGE engaged KPMG LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2017, effective after the quarterly report filing .