Baker Hughes Reports Q2 2025 Financial Results with $6.91 Billion Revenue

Baker Hughes Company reported its financial results for the second quarter of 2025, revealing total revenues of $6.91 billion, a decrease of 3.2% from $7.14 billion in the same quarter of 2024. The decline was primarily attributed to a $394 million drop in revenue from the Oilfield Services & Equipment (OFSE) segment, which fell to $3.62 billion, while the Industrial & Energy Technology (IET) segment saw a modest increase of $165 million, reaching $3.29 billion. Net income for the quarter was $711 million, up from $581 million a year earlier, reflecting a 21% increase driven by improved EBITDA margins and gains in the fair value of certain equity securities.

In terms of operational metrics, Baker Hughes reported a decrease in customer activity, particularly in the OFSE segment, which was impacted by lower international and North American rig counts. The company noted that international revenue decreased by $298 million, while North American revenue fell by $96 million. The overall rig count in North America dropped by 5% year-over-year, contributing to the reduced demand for services. Despite these challenges, the IET segment experienced growth, particularly in Gas Technology Equipment and Climate Technology Solutions, which helped offset some of the declines in OFSE.

Strategically, Baker Hughes announced significant developments, including the planned acquisition of Continental Disc Corporation for approximately $540 million, aimed at enhancing its IET segment. Additionally, the company is in the process of forming a joint venture with Cactus, Inc. involving its Surface Pressure Control business and is set to sell its Precision Sensors & Instrumentation business to Crane Company for $1.15 billion. These transactions are expected to close in late 2025 or early 2026, pending regulatory approvals.

Baker Hughes also reported a total employee headcount of approximately 57,000 as of June 30, 2025. The company has been focusing on cost optimization, which resulted in a 12% reduction in selling, general, and administrative expenses to $567 million compared to the previous year. The company returned $423 million to shareholders through dividends and share repurchases during the quarter, reflecting its commitment to a flexible capital allocation policy.

Looking ahead, Baker Hughes anticipates continued volatility in oil markets due to geopolitical tensions and economic uncertainties, projecting lower upstream spending in North America for 2025. However, the company remains optimistic about the natural gas market and plans to leverage its diverse portfolio to enhance its position in industrial and distributed power markets. The outlook for the IET segment remains positive, with expectations for growth in new energy solutions focused on reducing carbon emissions.