US offshore engineering giant, Baker Hughes has announced its first quarter 2025 results.
"Baker Hughes started the year strong, building on the positive momentum from 2024 and setting multiple first-quarter records. Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments.
“The operational transformation and streamlining efforts have created a solid foundation to optimise margins and enhance returns, even in a challenging environment," said Lorenzo Simonelli, Baker Hughes Chairman and CEO.
"In our IET segment, we booked $3.2 bill of orders, including our first data centre awards, totaling more than 350 MW of power solutions for this rapidly evolving market.
“In addition to expanding opportunities for data centres, we have a strong pipeline of LNG, FPSO and gas infrastructure projects that support our order outlook for this year.
"In OFSE, EBITDA remained resilient as our margins saw noticeable improvement, compared to last year even while segment revenue fell. This is a testament to the team's hard work in changing the way the business operates."
"Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio. We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value,“ he said.
In the LNG sector, Baker Hughes was awarded a liquefaction train contract from Bechtel for a North American project.
During the quarter, Industrial & Energy Technology (IET) signed key framework agreements with LNG operators.
For example, the company agreed to provide gas turbines and refrigerant compressor technology, along with maintenance services, for Trains 4 to 8 of NextDecade's Rio Grande LNG facility.
Baker Hughes also reached an agreement with Argent LNG to provide liquefaction and power solutions and related aftermarket services for its proposed Port Fouchon export facility in Louisiana.
In continued demonstration of Gas Technology's lifecycle offerings in IET, the company also received several aftermarket service awards during the quarter.
Revenue for the quarter was $6,427 mill, a decrease of 13% sequentially and up $9 mill year-on-year. The year-on-year increase was driven by an rise in IET and partially offset by a decrease in OFSE.
GAAP net income for 1Q25 was $402 mill. Net income decreased $777 mill sequentially and decreased $53 mill year-on-year.
Adjusted net income was $509 mill, which excludes adjustments totaling $108 mill.
Adjusted EBITDA was $1,037 mill, which excludes adjustments totaling $140 mill. This was down 21% sequentially and up 10% year-on-year.
The sequential decrease in adjusted net income and adjusted EBITDA was primarily driven by lower volume in both segments, partially offset by productivity and structural cost-out initiatives.
The year-on-year increase in adjusted net income and adjusted EBITDA was driven by increased volume in IET, including higher proportionate growth in Gas Technology Equipment (GTE) and productivity, structural cost-out initiatives and higher pricing in both segments, partially offset by decreased volume and business mix in OFSE and cost inflation in both segments, the company said.
