Baker Hughes’ topline and adjusted EBITDA witnessed a slowdown in Q1 as both its operating segments faced challenges. Also, its cash flows fell sharply. However, it has won multiple multi-year equipment and services awards, LNG contracts, and awards for providing power to data centers. Share repurchases continued in Q1.
Q1 Order Booking Summary: BKR’s orders decreased by 14% to $6.5 billion in Q1 compared to Q4 2024, while its total book-to-bill ratio was unchanged at 1.0x in Q1. During Q1, it received a liquefaction train award in North America. In the Middle East, its Gas Technology operation received multiple equipment and services awards. It will provide specialty chemicals and related services in offshore greenfield developments for ExxonMobil Guyana in a multi-year project. It also received a multi-year, fully integrated completions systems contract from Petrobras. Other key projects include integrated coiled-tubing drilling services and the deployment of Leucipa’s automated field production solution.
Among the key agreements with LNG operators, it will provide gas turbines and refrigerant compressor technology in the Rio Grande LNG Facility. Plus, it will provide liquefaction and power solutions in a proposed 24 MTPA LNG export facility in Louisiana. In other projects, it received an award for 350 MW of turbines to power data centers, and another project for carbon capture and storage, and power solutions for data centers.
Revenue Decreased In Q1: In the IET segment, revenues decreased by 16% quarter-over-quarter, driven primarily by lower revenues from Gas Technology Services. EBITDA went down by 22% in Q1. Revenues in the Oilfield Services & Equipment segment declined less steeply in Q1 (10% down).
The company’s management expects to face “broader macro and trade policy uncertainty.” Despite that, it looks to bank on a robust backlog that includes data center awards and LNG, FPSO, and gas infrastructure projects.
Cash Flows Weakened; Leverage Unchanged: BKR’s cash flow from operations decreased by 10% in Q1 2025 compared to a year ago. Its FCF also decreased by 10% during this period. Debt-to-equity (0.35x) remained unchanged compared to December 31, 2024. During Q1, it repurchased shares worth $188 million. You may read more about the company in our previous article here.
Thanks for reading the BKR Take Three, designed to give you three critical takeaways from BKR’s earnings report. Soon, we will present a second update on BKR earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.
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