Baker Hughes Announces Fourth-Quarter and Full-Year 2025 Results

Rhea-AI Summary

Baker Hughes (Nasdaq: BKR) reported fourth-quarter 2025 revenue of $7.4B and full-year revenue of $27.7B (flat YoY). Fourth-quarter orders were $7.9B and full-year orders were $29.6B, including a record $14.9B of Industrial & Energy Technology (IET) orders and year-end IET RPO of $32.4B. Fourth-quarter attributable net income was $876M (GAAP diluted EPS $0.88; adjusted diluted EPS $0.78). Full-year attributable net income was $2,588M (adjusted diluted EPS $2.60). Adjusted EBITDA for the year was $4,825M (up 5% YoY). Fourth-quarter cash flow from operations was $1,662M and free cash flow was $1,341M; full-year free cash flow was a record $2,732M. Management expects mid-single-digit organic Adjusted EBITDA growth in 2026 and sustained IET order levels.

Positive

• Record full-year IET orders of $14.9B
• Year-end IET RPO reached $32.4B
• Record full-year free cash flow of $2.7B
• Full-year Adjusted EBITDA of $4,825M (+5% YoY)

Negative

• Revenue flat YoY at $27.7B
• OFSE segment revenue down 8% YoY
• OFSE EBITDA down 14% YoY and margin -1.4 pts YoY
• GAAP diluted EPS in Q4 declined 25% YoY to $0.88

Key Figures

Q4 2025 Orders: $7.9 billion Q4 2025 Revenue: $7.4 billion Q4 GAAP EPS: $0.88 +5 more

8 metrics

Q4 2025 Orders $7.9 billion Fourth-quarter 2025 total orders, including $4.0B of IET orders

Q4 2025 Revenue $7.4 billion Fourth-quarter 2025 revenue, flat year-over-year

Q4 GAAP EPS $0.88 Fourth-quarter 2025 diluted earnings per share

Q4 Adjusted EPS $0.78 Fourth-quarter 2025 adjusted diluted EPS (non-GAAP)

Q4 Adjusted EBITDA $1,337 million Fourth-quarter 2025 adjusted EBITDA, up 2% year-over-year

Q4 Free Cash Flow $1,341 million Fourth-quarter 2025 free cash flow (non-GAAP)

FY 2025 Revenue $27.7 billion Full-year 2025 revenue, flat year-over-year

FY 2025 Free Cash Flow $2,732 million Full-year 2025 free cash flow, described as record

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Peers on Argus

BKR is down 0.99% alongside several key peers: SLB (-1.7%), HAL (-2.25%), TS (-1...

BKR is down 0.99% alongside several key peers: SLB (-1.7%), HAL (-2.25%), TS (-1.92%), and NOV (-2.28%). Only FTI is modestly positive at 0.52%, suggesting a largely sector-wide softness rather than a purely stock-specific move.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Business divestiture	Positive	+4.1%	Closed $1.15B sale of PSI product line to Crane for cash proceeds.
Jan 05	Acquisition close	Positive	+4.1%	Crane completed PSI acquisition and set Q4 2025 earnings release and call.
Jan 02	JV formation	Positive	+3.5%	Closed surface pressure control JV with Cactus, receiving $344.5M cash.
Dec 29	Earnings scheduling	Neutral	+0.3%	Announced dates for Q4 and full-year 2025 earnings release and webcast.
Dec 22	LNG contract award	Positive	+1.9%	Won liquefaction equipment contract for 9.5 MTPA Commonwealth LNG project.

Pattern Detected

Recent Baker Hughes news — including portfolio divestitures, LNG equipment awards, and JV formation — has generally been followed by positive next-day moves, indicating a pattern of constructive market reception to strategic and contract-related updates.

Recent Company History

Over the last month, Baker Hughes has emphasized portfolio reshaping and LNG-related growth. The sale of its Precision Sensors & Instrumentation line for $1.15 billion cash and a surface pressure control joint venture delivering $344.5 million proceeds both aimed to strengthen the balance sheet and refocus capital. LNG equipment awards, such as the Commonwealth LNG contract with 9.5 MTPA capacity, reinforced IET growth. Today’s Q4 and full-year 2025 earnings, highlighting record Adjusted EBITDA and free cash flow, extend this narrative of operational strength and capital reallocation.

Market Pulse Summary

This announcement details a robust year for Baker Hughes, with Q4 2025 orders of $7.9 billion, recor...

Analysis

This announcement details a robust year for Baker Hughes, with Q4 2025 orders of $7.9 billion, record RPO of $35.9 billion, and record full‑year free cash flow of $2.7 billion. Strength in Industrial & Energy Technology offset softness in Oilfield Services & Equipment, while large LNG and power awards reinforced long-cycle visibility. Recent divestitures and joint ventures also generated significant cash. Investors may focus on backlog quality, segment mix, execution on large contracts, and how mid‑single‑digit Adjusted EBITDA growth targets are tracked over time.

Key Terms

adjusted EBITDA, free cash flow, book-to-bill, remaining performance obligations, +2 more

6 terms

adjusted EBITDA financial

"Adjusted EBITDA* of $1,337 million, up 2% year-over-year."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Cash flows from operating activities of $1,662 million and free cash flow* of $1,341 million."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

book-to-bill financial

"IET achieved a record backlog of $32.4 billion at year‑end, and book-to-bill exceeded 1x."

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

remaining performance obligations financial

"Remaining Performance Obligations ("RPO") in the fourth quarter of 2025 ended at $35.9 billion,"

Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.

EBITDA margin financial

"EBITDA margin is defined as EBITDA divided by revenue."

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

small modular reactor technical

"Small Modular Reactor ("SMR") demonstration plant in North America — among the first SMR facilities"

A small modular reactor is a compact nuclear power plant designed to generate electricity in smaller amounts compared to traditional reactors. It can be built in factories, then transported and assembled on-site, making it quicker and often cheaper to deploy. For investors, these reactors represent a potential source of clean energy with lower upfront costs and flexible scaling, which could influence future energy markets and infrastructure investments.

AI-generated analysis. Not financial advice.

Fourth-quarter highlights

• Orders of $7.9 billion, including $4.0 billion of IET orders.
• Record RPO of $35.9 billion, including record IET RPO of $32.4 billion.
• Revenue of $7.4 billion, flat year-over-year.
• Attributable net income of $876 million.
• GAAP diluted EPS of $0.88 and adjusted diluted EPS* of $0.78.
• Adjusted EBITDA* of $1,337 million, up 2% year-over-year.
• Cash flows from operating activities of $1,662 million and free cash flow* of $1,341 million.
  

Full-year highlights

• Orders of $29.6 billion, including record $14.9 billion of IET orders.
• Revenue of $27.7 billion, flat year-over-year.
• Attributable net income of $2,588 million.
• GAAP diluted EPS of $2.60 and adjusted diluted EPS* of $2.60.
• Adjusted EBITDA* of $4,825 million, up 5% year-over-year.
• Cash flows from operating activities of $3,810 million and free cash flow* of $2,732 million.

HOUSTON and LONDON, Jan. 25, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the fourth-quarter and full-year 2025.

"Baker Hughes delivered exceptional performance in 2025. We continued to execute at a high level, delivering another quarter of strong results contributing to a record full‑year Adjusted EBITDA. This achievement demonstrates sustained momentum from our Business System, active portfolio management, and positive performance in IET, which more than offset continued macro‑driven softness in OFSE, where margins remained resilient through disciplined cost actions," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

"IET delivered strong fourth‑quarter bookings of $4 billion, contributing to a record full‑year total of $14.9 billion, exceeding the high end of our guidance range. IET achieved a record backlog of $32.4 billion at year‑end, and book-to-bill exceeded 1x. For the second consecutive year, non-LNG equipment orders represented approximately 85% of total IET orders, which highlights the end‑market diversity and versatility of our IET portfolio."

"Following our strong free cash flow performance in prior years, we generated record annual free cash flow of $2.7 billion in 2025, enhanced by working capital efficiency and customer down payments."

"Looking ahead, we expect IET orders to remain at robust levels, supported by continued momentum in LNG, a stronger year of FPSO and gas infrastructure awards, and sustained strength for power systems. Against this favorable backdrop, we project similar levels of organic IET orders in 2026. In addition, we anticipate overall organic Adjusted EBITDA growth in the mid-single digits range, with IET expanding margins to our 20% target and OFSE remaining relatively flat."

"As the Company moves into Horizon Two⁽¹⁾, our recent portfolio actions are positioning Baker Hughes to evolve into a stronger, more industrialized energy solutions company. This evolution is underpinned by an increasingly production-oriented business mix and a differentiated lifecycle portfolio, which is driving reduced cyclicality and enhanced cash flow durability."

"I’d like to thank the entire Baker Hughes team for consistently delivering outstanding results. As we look to the future, we are energized by the opportunities that lie ahead and remain committed to our customers and employees, with a disciplined focus on creating long-term, sustainable value for our shareholders," concluded Simonelli.

* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

⁽¹⁾ Horizon Two represents 2026-2028.

	Three Months Ended							Variance
(in millions except per share amounts)	December 31, 2025		September 30, 2025		December 31, 2024			Sequential		Year-over- year
Orders	$	7,886	$	8,207	$	7,496		(4	)%	5	%
Revenue		7,386		7,010		7,364		5	%	—	%
Net income attributable to Baker Hughes		876		609		1,179		44	%	(26	)%
Adjusted net income attributable to Baker Hughes*		772		678		694		14	%	11	%
Adjusted EBITDA*		1,337		1,238		1,310		8	%	2	%
Diluted earnings per share (EPS)		0.88		0.61		1.18		43	%	(25	)%
Adjusted diluted EPS*		0.78		0.68		0.70		14	%	12	%
Cash flow from operating activities		1,662		929		1,189		79	%	40	%
Free cash flow*		1,341		699		894		92	%	50	%

_{* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."}

_{Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.}

_{"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.}

Quarter Highlights

Key awards and technology achievements

Industrial & Energy Technology ("IET") secured several important awards to supply critical liquefaction equipment for LNG projects in the U.S., supporting the reliable delivery of natural gas and LNG required to meet global energy demand. Gas Technology Equipment ("GTE") received an award for gas turbine and refrigerant compressor technology for Train 5 of NextDecade's Rio Grande LNG facility. GTE will also deliver six high efficiency, aeroderivative LM9000 gas turbines to drive its centrifugal compressors for the liquefaction process at Commonwealth LNG's export facility. Additionally, Baker Hughes was selected by Glenfarne as its supplier for main refrigerant compressors for the LNG terminal and power generation equipment for Alaska LNG's North Slope gas treatment plant once FID is reached.

IET demonstrated continued strength within its power systems solutions, receiving several awards to support data center infrastructure and industrial manufacturing. Baker Hughes received an award to supply over 40 BRUSH™ generators for gas-fired utility-scale power plants, which will collectively deliver approximately 7 GW of reliable power and enhance grid resilience, highlighting the critical role our technologies play in strengthening U.S. energy infrastructure. IET was also awarded two significant contracts from Tecnimont (part of MAIRE group) to provide electric motor driven compression and power generation solutions for the Tengiz onshore Gas Separation Complex in Kazakhstan, one of the country's most critical energy infrastructure projects, owned and operated by KMG PetroChem, 100% subsidiary of the National Company KazMunayGas.

Aalo Atomics also selected Baker Hughes to supply a 10 MWe steam turbine generator set and ancillaries for the conventional island of its small‑scale Small Modular Reactor ("SMR") demonstration plant in North America — among the first SMR facilities expected to run in nuclear mode with a steam turbine generating power. This demo is a key milestone toward regulatory approval of 50 MWe "Aalo Pods," with power planned for an onsite data center.

Further demonstrating the durability of IET's lifecycle model, the Company was awarded several aftermarket services contracts. Cheniere extended its long-term service agreement to cover Trains 8 and 9 of its Corpus Christi liquefaction facility in Texas. This comprehensive multi-year agreement covers spare parts, repair services, and field service engineering support for critical turbomachinery. Also in the U.S., the Company secured an agreement with NextDecade for iCenter™ remote monitoring and diagnostics to support the performance of critical equipment for Trains 1, 2 and 3 of the Rio Grande LNG project.

Our digital portfolio continued to scale, led by strong Cordant™ software awards. Following the successful deployment of Asset Management software and services, Yara will also leverage Cordant™ Asset Health as a service across seven new facilities in 2026. Baker Hughes will also support enterprise-level digital transformation for China National Petroleum Corporation Kunlun Digital, leveraging Cordant™ Asset Performance Management to enhance reliability and performance across several plants. Finally, Braskem will establish an Asset Strategy Center of Excellence in Brazil, utilizing Cordant™ Asset Strategy software alongside Baker Hughes' global network of reliability experts to optimize maintenance strategies and improve operational efficiency across its petrochemical plants.

Oilfield Services & Equipment ("OFSE") experienced a strong quarter for Production Solutions awards, securing nearly $1 billion in contracts in the Middle East. OFSE received a multi-year contract from Kuwait Oil Company to deploy advanced artificial lift systems and an award from Petroleum Development Oman to supply electrical submersible pumps with associated services across approximately 1,400 wells. Both awards incorporate the Leucipa™ automated field production solution to improve reliability and reduce nonproductive time. Also, the Company was awarded a contract from ADNOC to deliver AccessESP™ retrievable electrical submersible pumping systems in the offshore Umm Shaif Field.

OFSE saw significant uptake of its rotary steerable systems with Pluspetrol in Argentina, securing multiple Well Construction awards to help the country maximize its energy resources and develop the Vaca Muerta formation. Baker Hughes will provide Lucida™ and AutoTrak™ RSS technologies to enable deeper, longer wells drilled in a single run.

In addition, ExxonMobil Guyana awarded the Company a significant contract extension to supply advanced completions technologies supporting offshore oil and gas development.

In Sub-Saharan Africa, Eni awarded Baker Hughes a multi-year frame agreement for subsea production systems and associated services for its Coral North LNG project offshore Mozambique. The scope includes subsea trees, controls, manifolds, distribution and topsides, supporting the development of long-cycle offshore gas infrastructure.

Consolidated Financial Results

Revenue for the quarter was $7,386 million, an increase of $376 million, or 5% sequentially, and up $22 million year-over-year. IET delivered year-over-year growth, partially offset by lower revenue in OFSE.

The Company's total book-to-bill ratio in the fourth quarter of 2025 was 1.1; the IET book-to-bill ratio was 1.1.

Net income as determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") for the fourth quarter of 2025 was $876 million. Net income increased $266 million, or 44% sequentially, and decreased $303 million, or 26% year-over-year.

Adjusted net income (a non-GAAP financial measure) for the fourth quarter of 2025 was $772 million, which excludes adjustments totaling $104 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the fourth quarter of 2025 was up $95 million, or 14% sequentially, and up $79 million, or 11% year-over-year.

Depreciation and amortization for the fourth quarter of 2025 was $327 million.

Adjusted EBITDA (a non-GAAP financial measure) for the fourth quarter of 2025 was $1,337 million, which excludes adjustments totaling $425 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the fourth quarter was up $99 million, or 8% sequentially, and up $27 million, or 2% year-over-year.

The sequential increase in Adjusted EBITDA was primarily driven by volume, and overall productivity.

The year-over-year increase in Adjusted EBITDA was primarily driven by overall productivity, cost out initiatives, price, and FX, largely offset by change in mix, lower volume, and inflation.

Other Financial Items

Remaining Performance Obligations ("RPO") in the fourth quarter of 2025 ended at $35.9 billion, an increase of $0.6 billion from the third quarter of 2025. OFSE RPO was $3.5 billion, up $0.3 billion sequentially, and IET RPO was $32.4 billion, up $0.4 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $11.6 billion and $16.1 billion, respectively.

Income tax benefit in the fourth quarter of 2025 was $359 million.

Other (income) expense, net in the fourth quarter of 2025 was $166 million, primarily related to change in fair value of equity securities of $74 million, and transaction related costs of $49 million incurred in connection with business disposals and acquisitions.

GAAP diluted earnings per share was $0.88 for the fourth quarter of 2025. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.78. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

Cash flow from operating activities was $1,662 million for the fourth quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $1,341 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."

Capital expenditures, net of proceeds from disposal of assets, were $321 million for the fourth quarter of 2025, of which $206 million was for OFSE and $103 million was for IET.

Results by Reporting Segment

The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

Oilfield Services & Equipment

(in millions)	Three Months Ended										Variance
Segment results	December 31, 2025			September 30, 2025			December 31, 2024				Sequential	Year-over- year
Orders	$	3,862		$	4,068		$	3,740			(5)%	3%
Revenue	$	3,572		$	3,636		$	3,871			(2)%	(8)%
EBITDA	$	647		$	671		$	755			(4)%	(14)%
EBITDA margin		18.1	%		18.5	%		19.5	%		-0.4pts	-1.4pts

(in millions)	Three Months Ended							Variance
Revenue by Product Line	December 31, 2025		September 30, 2025		December 31, 2024			Sequential		Year-over- year
Well Construction	$	880	$	954	$	943		(8)%		(7)%
Completions, Intervention, and Measurements		944		945		1,022		—%		(8)%
Production Solutions		973		966		974		1%		—%
Subsea & Surface Pressure Systems		775		771		932		1%		(17)%
Total Revenue	$	3,572	$	3,636	$	3,871		(2)%		(8)%

(in millions)	Three Months Ended							Variance
Revenue by Geographic Region	December 31, 2025		September 30, 2025		December 31, 2024			Sequential		Year-over- year
North America	$	943	$	980	$	971		(4)%		(3)%
Latin America		613		603		661		2%		(7)%
Europe/CIS/Sub-Saharan Africa		624		599		740		4%		(16)%
Middle East/Asia		1,392		1,454		1,499		(4)%		(7)%
Total Revenue	$	3,572	$	3,636	$	3,871		(2)%		(8)%
North America	$	943	$	980	$	971		(4)%		(3)%
International	$	2,629	$	2,656	$	2,900		(1)%		(9)%

_{EBITDA excludes depreciation and amortization of $252 million, $221 million, and $229 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.}

OFSE orders of $3,862 million for the fourth quarter of 2025 decreased by $206 million, or 5% sequentially. Subsea and Surface Pressure Systems orders were $1,067 million, down $123 million, or 10% sequentially, and up $265 million, or 33% year-over-year.

OFSE revenue of $3,572 million for the fourth quarter of 2025 was down $63 million, or 2% sequentially, and down $298 million, or 8% year-over-year.

North America revenue was $943 million, down $37 million, or 4% sequentially. International revenue was $2,629 million, down $26 million, or 1% sequentially, with a decrease in Middle East/Asia, partially offset by an increase in Europe/CIS/Sub-Saharan Africa, and Latin America.

Segment EBITDA for the fourth quarter of 2025 was $647 million, a decrease of $25 million, or 4% sequentially. The sequential decrease in EBITDA was a result of overall lower volume, partially offset by cost out initiatives.

Industrial & Energy Technology

(in millions)	Three Months Ended										Variance
Segment results	December 31, 2025			September 30, 2025			December 31, 2024				Sequential		Year-over- year
Orders	$	4,024		$	4,139		$	3,756			(3)%		7%
Revenue	$	3,814		$	3,374		$	3,492			13%		9%
EBITDA	$	761		$	635		$	639			20%		19%
EBITDA margin		20.0	%		18.8	%		18.3	%		1.1pts		1.6pts

(in millions)	Three Months Ended							Variance
Orders by Product Line	December 31, 2025		September 30, 2025		December 31, 2024			Sequential		Year-over- year
Gas Technology Equipment	$	1,785	$	2,174	$	1,865		(18)%		(4)%
Gas Technology Services		974		896		902		9%		8%
Total Gas Technology		2,759		3,070		2,767		(10)%		—%
Industrial Products		603		481		515		26%		17%
Industrial Solutions		352		336		320		4%		10%
Total Industrial Technology		955		817		835		17%		14%
Climate Technology Solutions		310		253		154		23%		F
Total Orders	$	4,024	$	4,139	$	3,756		(3)%		7%

(in millions)	Three Months Ended							Variance
Revenue by Product Line	December 31, 2025		September 30, 2025		December 31, 2024			Sequential		Year-over- year
Gas Technology Equipment	$	1,852	$	1,687	$	1,663		10%		11%
Gas Technology Services		881		803		796		10%		11%
Total Gas Technology		2,733		2,490		2,459		10%		11%
Industrial Products		547		511		548		7%		—%
Industrial Solutions		304		288		282		5%		8%
Total Industrial Technology		851		799		830		6%		3%
Climate Technology Solutions		229		84		204		F		12%
Total Revenue	$	3,814	$	3,374	$	3,492		13%		9%

_{EBITDA excludes depreciation and amortization of $69 million, $55 million, and $56 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.}

_{"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.}

IET orders of $4,024 million for the fourth quarter of 2025 increased by $269 million, or 7% year-over-year. The increase was driven by continued strength in Climate Technology Solutions, Industrial Technology, and Gas Technology Services.

IET revenue of $3,814 million for the fourth quarter of 2025 increased $321 million, or 9% year-over-year. The increase was driven by Gas Technology Equipment, up $189 million, or 11% year-over-year, Gas Technology Services, up $86 million, or 11% year-over-year.

Segment EBITDA for the quarter was $761 million, an increase of $121 million, or 19% year-over-year. The year-over-year increase in EBITDA was driven by productivity, volume, price, and FX, partially offset by inflation.

2025 Total Year Results
(in millions)	Twelve Months Ended					Variance
	December 31, 2025		December 31, 2024			Year-over- year
Oilfield Services & Equipment	$	14,714	$	15,240		(3)%
Industrial & Energy Technology		14,871		13,000		14%
Orders	$	29,585	$	28,240		5%
Oilfield Services & Equipment	$	14,324	$	15,628		(8)%
Industrial & Energy Technology		13,409		12,201		10%
Segment Revenue	$	27,733	$	27,829		—%
Oilfield Services & Equipment	$	2,618	$	2,881		(9)%
Industrial & Energy Technology		2,482		2,050		21%
Segment EBITDA	$	5,100	$	4,931		3%

Reconciliation of GAAP to non-GAAP Financial Measures

Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted EBITDA margin, defined as adjusted EBITDA divided by revenue; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

	Three Months Ended										Twelve Months Ended
	December 31,			September 30,			December 31,				December 31,
(in millions)		2025			2025			2024				2025			2024
Net income attributable to Baker Hughes (GAAP)	$	876		$	609		$	1,179			$	2,588		$	2,979
Net income attributable to noncontrolling interests		11			8			11				36			29
Provision (benefit) for income taxes		(359	)		204			(398	)			253			257
Interest expense, net		61			56			54				222			198
Depreciation & amortization(1)		323			282			291				1,184			1,136
Restructuring(1)		215			—			258				215			260
Inventory impairment		22			—			73				22			73
Change in fair value of equity securities(2)		74			8			(196	)			103			(367	)
Transaction related costs(2)		49			47			—				107			—
Other charges and credits(2)		65			24			38				95			26
Adjusted EBITDA (non-GAAP)		1,337			1,238			1,310				4,825			4,591
Corporate costs		79			76			84				318			340
Other (income) / expense not allocated to segments		(8	)		(8	)		—				(43	)		—
Total Segment EBITDA (non-GAAP)	$	1,408		$	1,306		$	1,394			$	5,100		$	4,931
OFSE		647			671			755				2,618			2,881
IET		761			635			639				2,482			2,050

_{⁽¹⁾   For the quarter and year ended December 31, 2025, $4 million of accelerated depreciation expense related to certain PP&E was recorded in "Restructuring" in the consolidated statements of income.}

_{⁽²⁾   Change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the consolidated statements of income.}

Table 1a reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

	Three Months Ended										Twelve Months Ended
	December 31,			September 30,			December 31,				December 31,
(in millions, except per share amounts)		2025			2025			2024				2025			2024
Net income attributable to Baker Hughes (GAAP)	$	876		$	609		$	1,179			$	2,588		$	2,979
Restructuring		215			—			258				215			260
Inventory impairment		22			—			73				22			73
Change in fair value of equity securities		74			8			(196	)			103			(367	)
Transaction related costs(1)		63			54			—				128			—
Other adjustments		63			24			30				93			73
Tax adjustments(2)		(541	)		(17	)		(650	)			(566	)		(663	)
Total adjustments, net of income tax		(104	)		69			(485	)			(5	)		(623	)
Less: adjustments attributable to noncontrolling interests		—			—			—				—			—
Adjustments attributable to Baker Hughes		(104	)		69			(485	)			(5	)		(623	)
Adjusted net income attributable to Baker Hughes (non-GAAP)	$	772		$	678		$	694			$	2,583		$	2,356
Denominator:
Weighted-average shares of Class A common stock outstanding diluted		994			992			999				994			1,001
Adjusted earnings per share - diluted (non-GAAP)	$	0.78		$	0.68		$	0.70			$	2.60		$	2.35

_{⁽¹⁾   For the periods ending December 31, 2025 and September 30, 2025, transaction related costs include $14 million and $7 million, respectively, of fees related to the Bridge Facility.}

_{⁽²⁾   All periods reflect the tax associated with the other (income) loss adjustments. 4Q'25 and fiscal year 2025 include $309 million related to the net release of valuation allowances for certain deferred tax assets, and $148 million and $145 million, respectively, for tax benefits related to our planned dispositions. 4Q'24 and fiscal year 2024 include $664 million related to the release of valuation allowances for certain deferred tax assets}.

Table 1b reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

	Three Months Ended										Twelve Months Ended
	December 31,			September 30,			December 31,				December 31,
(in millions)		2025			2025			2024				2025			2024
Net cash flows from operating activities (GAAP)	$	1,662		$	929		$	1,189			$	3,810		$	3,332
Add: cash used for capital expenditures, net of proceeds from disposal of assets		(321	)		(230	)		(295	)			(1,078	)		(1,075	)
Free cash flow (non-GAAP)	$	1,341		$	699		$	894			$	2,732		$	2,257

Table 1c reconciles net cash flows from operating activities, which is the most directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.

Financial Tables (GAAP)

Condensed Consolidated Statements of Income (Unaudited)
	Three Months Ended
(In millions, except per share amounts)	December 31, 2025		September 30, 2025			December 31, 2024
Revenue	$	7,386	$	7,010		$	7,364
Costs and expenses:
Cost of revenue		5,633		5,309			5,670
Selling, general and administrative		636		607			585
Research and development costs		147		146			163
Restructuring		215		—			258
Other (income) expense, net		166		71			(158	)
Interest expense, net		61		56			54
Income before income taxes		528		821			792
Benefit (provision) for income taxes		359		(204	)		398
Net income		887		617			1,190
Less: Net income attributable to noncontrolling interests		11		8			11
Net income attributable to Baker Hughes Company	$	876	$	609		$	1,179
Per share amounts:
Basic income per Class A common share	$	0.89	$	0.62		$	1.19
Diluted income per Class A common share	$	0.88	$	0.61		$	1.18
Weighted average shares:
Class A basic		987		986			990
Class A diluted		994		992			999
Cash dividend per Class A common share	$	0.23	$	0.23		$	0.21

Condensed Consolidated Statements of Income (Unaudited)
	Year Ended December 31,
(In millions, except per share amounts)		2025			2024			2023
Revenue	$	27,733		$	27,829		$	25,506
Costs and expenses:
Cost of revenue		21,189			21,346			19,604
Selling, general and administrative		2,387			2,458			2,611
Research and development costs		600			643			651
Restructuring		215			260			313
Other (income) expense, net		243			(341	)		(544	)
Interest expense, net		222			198			216
Income before income taxes		2,877			3,265			2,655
Provision for income taxes		(253	)		(257	)		(685	)
Net income		2,624			3,008			1,970
Less: Net income attributable to noncontrolling interests		36			29			27
Net income attributable to Baker Hughes Company	$	2,588		$	2,979		$	1,943
Per share amounts:
Basic income per Class A common share	$	2.62		$	3.00		$	1.93
Diluted income per Class A common share	$	2.60		$	2.98		$	1.91
Weighted average shares:
Class A basic		988			994			1,008
Class A diluted		994			1,001			1,015
Cash dividend per Class A common share	$	0.92		$	0.84		$	0.78

Condensed Consolidated Statements of Financial Position (Unaudited)
	December 31,
(In millions)		2025		2024
ASSETS
Current Assets:
Cash and cash equivalents	$	3,715	$	3,364
Current receivables, net		6,641		7,122
Inventories, net		4,954		4,954
All other current assets		3,518		1,771
Total current assets		18,828		17,211
Property, plant and equipment, less accumulated depreciation		5,326		5,127
Goodwill		6,068		6,078
Other intangible assets, net		4,097		3,951
Contract and other deferred assets		1,620		1,730
All other assets		4,942		4,266
Total assets	$	40,881	$	38,363
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	4,579	$	4,542
Short-term and current portion of long-term debt		689		53
Progress collections and deferred income		5,904		5,672
All other current liabilities		2,705		2,724
Total current liabilities		13,877		12,991
Long-term debt		5,398		5,970
Liabilities for pensions and other postretirement benefits		1,066		988
All other liabilities		1,530		1,359
Equity		19,010		17,055
Total liabilities and equity	$	40,881	$	38,363
Outstanding Baker Hughes Company shares:
Class A common stock		987		990

Condensed Consolidated Statements of Cash Flows (Unaudited)
	Three Months Ended December 31,			Twelve Months Ended December 31,
(In millions)		2025			2025			2024
Cash flows from operating activities:
Net income	$	887		$	2,624		$	3,008
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		327			1,188			1,136
Benefit for deferred income taxes		(658	)		(702	)		(671	)
Change in fair value of equity securities		74			103			(367	)
Stock-based compensation cost		50			203			202
Working capital		747			713			7
Other operating items, net		235			(319	)		17
Net cash flows provided by operating activities		1,662			3,810			3,332
Cash flows from investing activities:
Expenditures for capital assets		(377	)		(1,273	)		(1,278	)
Proceeds from disposal of assets		56			195			203
Proceeds from sale of equity securities		—			1			92
Net cash paid for acquisitions		(30	)		(830	)		—
Other investing items, net		(42	)		(137	)		(33	)
Net cash flows used in investing activities		(393	)		(2,044	)		(1,016	)
Cash flows from financing activities:
Repayment of long-term debt		—			—			(143	)
Dividends paid		(227	)		(910	)		(836	)
Repurchase of Class A common stock		—			(384	)		(484	)
Other financing items, net		(31	)		(188	)		(64	)
Net cash flows used in financing activities		(258	)		(1,482	)		(1,527	)
Effect of currency exchange rate changes on cash and cash equivalents		11			67			(71	)
Increase in cash and cash equivalents		1,022			351			718
Cash and cash equivalents, beginning of period		2,693			3,364			2,646
Cash and cash equivalents, end of period	$	3,715		$	3,715		$	3,364
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	$	402		$	1,156		$	1,040
Interest paid	$	97		$	294		$	298

Supplemental Financial Information

Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

Conference Call and Webcast

The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Monday, January 26, 2026, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company's website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this release) 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 statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: www.investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

• Economic and political conditions - the impact of worldwide economic conditions; the impact of inflation and interest rates; the impact of tariffs, including the potential for significant increases in tariffs and changes in trade policy that could affect our supply chain costs, pricing, and customer demand; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
• Orders and RPO - our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
• Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas.
• Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation; expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

About Baker Hughes:

Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward - making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Investor Relations

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

Media Relations

Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com

FAQ

What were Baker Hughes (BKR) fourth-quarter 2025 revenue and EPS?

Revenue was $7.4B for Q4 2025 and GAAP diluted EPS was $0.88 (adjusted diluted EPS $0.78).

How large were Baker Hughes' full-year 2025 IET orders and RPO?

Full-year IET orders were a record $14.9B and year-end IET RPO was $32.4B.

What cash flow did Baker Hughes generate in 2025 and why does it matter for shareholders?

Baker Hughes generated record full-year free cash flow of $2.7B, enhancing balance-sheet flexibility and capacity for capital allocation.

What guidance did Baker Hughes give for 2026 performance?

Management expects similar organic IET order levels in 2026 and mid-single-digit organic Adjusted EBITDA growth, with IET margins expanding toward a 20% target.

How did Baker Hughes' OFSE segment perform in Q4 2025?

OFSE revenue was $3.57B in Q4, down 8% YoY, with EBITDA down 14% YoY and margin decline of 1.4 percentage points.