Key Takeaways
- Baker Hughes (BKR) reported Q2 2025 revenue of $6.91 billion, exceeding analyst estimates of $6.64 billion, indicating robust performance in the energy technology sector.
- The company's adjusted EPS reached $0.63, significantly surpassing the consensus estimate of $0.56, driven by operational efficiencies and strategic portfolio optimization.
- Orders surged to $7.03 billion, including a record backlog for its Industrial & Energy Technology (IET) segment, signaling strong future growth prospects.
- GAAP EPS stood at $0.71, demonstrating a substantial increase from the prior year.
- Free Cash Flow was $239 million, underscoring the company's solid cash generation capabilities.
Baker Hughes (BKR) announced strong second-quarter 2025 results, outperforming Wall Street expectations for both revenue and adjusted earnings per share. The energy technology company posted revenue of $6.91 billion, comfortably beating the consensus estimate of $6.64 billion. This performance highlights the company's resilience and strategic focus amidst evolving market conditions.
The company's adjusted earnings per share (EPS) came in at $0.63, exceeding analysts' forecasts of $0.56. This beat was attributed to improved operational efficiency and a successful pivot towards higher-margin businesses, as noted by the company's leadership.
A significant highlight of the quarter was the impressive $7.03 billion in orders, which included a substantial $3.5 billion from its Industrial & Energy Technology (IET) segment. This strong order intake has led to a record remaining performance obligation (RPO) of $34.0 billion, with IET RPO alone reaching $31.3 billion. The robust order momentum, particularly from data center-related projects, positions Baker Hughes for sustained growth despite some softness in the Oilfield Services & Equipment (OFSE) segment.
Baker Hughes also reported a GAAP EPS of $0.71, an increase from $0.58 per share in the same period last year, and generated $239 million in free cash flow. These figures underscore the company's financial health and its ability to generate significant cash, supporting its strategic investments and shareholder returns, which included $423 million in the quarter. The company's strategic portfolio optimization, including recent transactions, aims to enhance long-term value and earnings durability.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.