Baker Hughes' Stellar Q3 2024 Performance: A Deep Dive

Baker Hughes Company (Nasdaq: BKR) delivered an impressive set of results for the third quarter of 2024, marking another quarter of record EBITDA and improved margins. The company's strong operational performance across both segments, coupled with a robust order book and strategic focus on gas infrastructure and FPSOs, contributed to this remarkable achievement.

The company's total orders reached $6.7 billion, including $2.9 billion in Industrial & Energy Technology (IET) orders, marking the eighth consecutive quarter at or above this level. Revenue grew by 4% year-over-year to $6.9 billion, while attributable net income and adjusted EBITDA increased by 32% and 23%, respectively. Baker Hughes' cash flow from operating activities and free cash flow also experienced significant growth, up 25% and 27% year-over-year, respectively.

Baker Hughes' Industrial & Energy Technology segment played a pivotal role in the company's record-breaking quarter. The segment experienced a strong quarter for its Integrated Compressor Line (ICL) technology, securing its largest ICL award to date from Dubai Petroleum Establishment for the Margham Gas storage facility. Additionally, IET's Gas Technology Equipment (GTE) and Gas Technology Services (GTS) secured significant contracts, further bolstering the segment's performance.

The company's strategic focus on gas infrastructure and FPSOs also contributed to its impressive financial performance. Baker Hughes' IET segment continued to demonstrate strong order momentum in these areas, booking two FPSO awards with separate offshore operators and securing a multi-decade agreement for an LNG facility in the Middle East.

Baker Hughes' operational discipline and rigor, coupled with the life-cycle attributes of its service offerings and the breadth of its portfolio, have enabled the company to become less cyclical and capable of generating more durable earnings and free cash flow across cycles. The company's successful execution of its strategy is a testament to the strength of its people and the culture it is building.

In conclusion, Baker Hughes' stellar Q3 2024 performance, characterized by record EBITDA and improved margins, is a result of its strong operational performance, robust order book, strategic focus on gas infrastructure and FPSOs, and operational improvements. The company's positive outlook and continued investment in innovation and technology position it well for future growth and success.