Baker Hughes 2025 Q2 Earnings Beats Expectations as Net Income Rises 22.4%

Baker Hughes reported its fiscal 2025 Q2 earnings on Jul 22nd, 2025. Baker Hughes surpassed Wall Street expectations, with net income rising 22.4% year-over-year to $711 million. The company raised its full-year revenue and EBITDA guidance for its Industrial & Energy Technology division, reflecting strong order momentum and strategic diversification. Despite a modest decline in revenue, Baker Hughes delivered robust second-quarter results, supported by structural cost improvements and the deployment of its business system. The company's adjusted EBITDA margins increased 170 basis points year-over-year to 17.5%, demonstrating solid operating leverage and productivity enhancements.

Revenue
The total revenue of Baker Hughes decreased by 3.2% to $6.91 billion in 2025 Q2, down from $7.14 billion in 2024 Q2.

Earnings/Net Income
Baker Hughes's EPS rose 22.4% to $0.71 in 2025 Q2 from $0.58 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $711 million in 2025 Q2, marking 22.4% growth from $581 million in 2024 Q2. The EPS results indicate a strong performance.

Post-Earnings Price Action Review
The strategy of buying Baker Hughes shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days has consistently delivered strong returns over the past three years. This approach achieved a remarkable 40.91% return, exceeding the benchmark return of 29.64% by an impressive 11.28%. With a compound annual growth rate (CAGR) of 10.01% and a maximum drawdown of 0.00%, the strategy has demonstrated solid risk-adjusted performance. This success is further supported by a Sharpe ratio of 0.30 and a volatility of 33.92%, highlighting its ability to manage risk effectively while achieving substantial gains. The strategy's consistent performance underscores its reliability and potential for investors seeking to capitalize on Baker Hughes' earnings momentum.

CEO Commentary
"We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5% despite a modest decline in revenue. This performance reflects structural cost improvements and the deployment of our business system, driving higher productivity and stronger operating leverage. IET orders totaled $3.5 billion, resulting in a record backlog. Order momentum remains strong, supported by over $550 million of data center-related orders. We are raising our full-year revenue and EBITDA guidance for IET, reinforcing the strength of our portfolio and the benefits of strategic diversification," said Lorenzo Simonelli, Chairman and Chief Executive Officer.

Guidance
"We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in market-sensitive areas of OFSE. Accordingly, we are raising our full-year revenue and EBITDA guidance for IET and reestablishing full-year guidance for OFSE. Following a strong first half and a positive outlook for second half awards, we are confident of achieving the full-year order guidance range for IET."

Additional News
Baker Hughes has been actively optimizing its portfolio, announcing several strategic transactions. The company agreed to form a joint venture with Cactus, Inc., focusing on Surface Pressure Control services, while retaining a minority stake. Additionally, Baker Hughes sold its Precision Sensors & Instrumentation product line to Crane Company for approximately $1.15 billion, boosting its ability to reinvest in higher-growth areas. The acquisition of Continental Disc Corporation for $540 million further strengthens its position in the pressure management solutions market. The company declared a quarterly cash dividend of $0.23 per share, payable on August 15, 2025, emphasizing its commitment to returning value to shareholders.