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Baker Hughes Company (BKR)
NASDAQ:BKR
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Baker Hughes Company
(NASDAQ:BKR)
Rating:70Outperform
Price Target:
$42.00
â–²(5.95%Upside)
Positive Factors
Energy Transition and New Energy Portfolio
Analyst sees enhanced value in Baker Hughes' diverse and defensive characteristics, including its rapidly growing new energy portfolio.
Gas/LNG Growth Opportunities
Baker Hughes' outsized gas/LNG exposure is seen as a major growth opportunity, supporting the analyst's rating of the stock as a top play.
International Markets
International markets showed better-than-expected results in regions like the North Sea, Sub-Saharan Africa, and Asia-Pacific.
Negative Factors
North American OFSE Segment
North American activity in the OFSE segment is declining more than expected, with rig drops exceeding initial forecasts.
Stock Performance
The stock underperformed the OIH by approximately 450 basis points.
Tariff Impacts
BKR sees a net EBITDA impact in the range of $100-$200MM due to tariff impacts, with >50% of the impacts related to the IET segment.
Baker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.27B
Dividend Yield2.32%
Average Volume (3M)7.20M
Price to Earnings (P/E)13.5
Beta (1Y)0.69
Revenue Growth6.22%
EPS Growth62.58%
CountryUS
Employees57,000
SectorEnergy
Sector Strength54
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.51
Shares Outstanding990,750,000
10 Day Avg. Volume8,576,225
30 Day Avg. Volume7,200,198
Financial Highlights & Ratios
PEG Ratio-7.93
Price to Book (P/B)2.27
Price to Sales (P/S)0.00
P/FCF Ratio19.20
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit6.77
Enterprise Value/Ebitda2.32
Forecast
1Y Price Target
$48.81Price Target Upside23.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
Baker Hughes Company Business Overview & Revenue Model
Company DescriptionBaker Hughes Company (BKR) is a leading global energy technology company that provides integrated oilfield products, services, and digital solutions. With a strong presence in over 120 countries, the company operates across four key segments: Oilfield Services, Oilfield Equipment, Turbomachinery & Process Solutions, and Digital Solutions. Baker Hughes is committed to driving innovation and efficiency in the energy sector by delivering cutting-edge technologies and solutions that enhance performance and sustainability.
How the Company Makes MoneyBaker Hughes makes money primarily through the sale of oilfield products, services, and digital solutions to the energy sector. The company's revenue streams are diversified across its four business segments. Oilfield Services generate income by providing drilling, evaluation, completion, and production services to oil and gas operators. Oilfield Equipment earns revenue through the sale and maintenance of critical equipment used in the exploration and extraction of oil and gas. Turbomachinery & Process Solutions segment generates income by supplying and servicing turbomachinery used in the energy and industrial markets. Lastly, the Digital Solutions segment provides software, sensors, and analytics to optimize performance and efficiency across various industries. Significant partnerships with major energy companies, along with a focus on innovation and sustainability, contribute to the company's earnings.
Baker Hughes Company Key Performance Indicators (KPIs)
Any
Orders by Segment
Data provided by:
Main Street Data
Main Street DataBaker Hughes Company Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 3.99%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
The call highlighted strong first quarter performance and significant achievements in Industrial & Energy Technology, LNG, and data centers. However, challenges in oil markets, tariff uncertainties, and reduced upstream spending offset these positives, leading to a cautious outlook.Q1-2025 Updates
Positive Updates
Strong First Quarter Results
Baker Hughes delivered strong results, meeting or exceeding the midpoint of their EBITDA guidance for the ninth consecutive quarter. They set new first quarter records for revenue and adjusted measures of EPS, EBITDA, and EBITDA margin.
Industrial & Energy Technology (IET) Performance
IET experienced a solid start to the year, booking $3.2 billion of orders with segment backlog reaching a record level of $30.4 billion. Adjusted EBITDA increased by 10% year-over-year, with a significant 30% increase in IET EBITDA.
LNG and Data Center Momentum
Baker Hughes secured $1.7 billion of LNG orders over the past two quarters. They also entered the data center market, booking orders for over 350 megawatts of power.
Resilient Balance Sheet
The company ended the first quarter with cash of $3.3 billion, a net debt-to-EBITDA ratio of 0.6x, and liquidity of $6.3 billion.
Continued Margin Improvement
OFSE EBITDA margin rate improved to 17.8%, showing an 80 basis point improvement year-over-year despite revenue declining by 8%.
Negative Updates
Challenges in Oil Markets
Downward pressure observed due to OPEC+ returning 2.2 million barrels per day to the market, causing increased volatility and affecting global GDP and oil demand.
Tariff and Trade Policy Uncertainty
Potential tariff impacts estimated to have a net EBITDA impact in the range of $100 million to $200 million, with ongoing uncertainty in trade negotiations.
Weakness in OFSE Revenue
OFSE revenue declined by 10% sequentially due to enhanced seasonal weakness and delayed discretionary spending, particularly in international markets.
Reduced Upstream Spending
Global upstream spending is expected to decline by high-single digits in 2025, with a mid- to high-single-digit decline internationally and a low-double-digit decrease in North America.
Company Guidance
During the first quarter of 2025 earnings call, Baker Hughes provided guidance influenced by a complex macroeconomic landscape, including geopolitical tensions, trade policy uncertainties, and oil price volatility. The company projected a high-single digit decline in global upstream spending for 2025, with international markets expecting a mid- to high-single digit decline and North America facing a low-double digit reduction. Despite these challenges, Baker Hughes maintained confidence in its Industrial & Energy Technology (IET) segment, reaffirming its full-year EBITDA guidance range of $2.2 billion to $2.4 billion, supported by a robust equipment backlog and recurring revenues. The Oilfield Services & Equipment (OFSE) segment faced more variability due to reduced upstream spending and tariff-related cost inflation. Overall, the company estimated a net EBITDA impact from tariffs between $100 million and $200 million, contingent upon current tariff levels remaining through the year. Baker Hughes emphasized its focus on driving productivity, executing with discipline, and achieving structural margin improvements, targeting a 16.1% adjusted EBITDA margin, up 140 basis points from the previous year.Baker Hughes Company Financial Statement Overview
Summary
Baker Hughes demonstrates strong financial health with robust profitability and efficient operations. The income statement reveals solid revenue and profit growth, while the balance sheet reflects a stable financial structure with moderate leverage. However, recent declines in free cash flow growth suggest potential areas for improvement.Income Statement
Baker Hughes has demonstrated robust growth and profitability. The TTM gross profit margin stands at 21.94%, and the net profit margin is an impressive 10.51%, indicating efficient cost management. Revenue growth has been strong, with a 9.14% increase from 2023 to 2024. The EBIT margin is 11.47%, and EBITDA margin is 16.42%, reflecting solid operational efficiency.88
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.31, showing moderate leverage. The return on equity is 14.97%, indicating good profitability relative to equity. The equity ratio stands at 51.29%, suggesting a strong equity base compared to assets.80
Positive
Cash Flow
Cash flow performance is solid, with a free cash flow to net income ratio of 0.79, indicating good cash generation relative to profit. Operating cash flow to net income ratio is 1.11, reflecting effective cash conversion. However, free cash flow growth has been negative recently, impacting the overall cash flow score.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.84B | 27.83B | 25.51B | 21.16B | 20.54B | 20.70B |
| Gross Profit | 6.11B | 5.91B | 5.25B | 4.40B | 4.05B | 3.20B |
| EBITDA | 4.72B | 4.60B | 3.96B | 1.33B | 1.83B | -13.62B |
| Net Income | 2.93B | 2.98B | 1.94B | -578.00M | -330.00M | -15.76B |
Balance Sheet | ||||||
| Total Assets | 38.11B | 38.36B | 36.95B | 34.18B | 35.35B | 38.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.28B | 3.36B | 2.65B | 2.49B | 3.85B | 4.13B |
| Total Debt | 6.02B | 6.02B | 6.02B | 6.66B | 6.73B | 7.63B |
| Total Liabilities | 20.90B | 21.31B | 21.43B | 19.66B | 18.60B | 19.79B |
| Stockholders Equity | 17.04B | 16.89B | 15.37B | 14.53B | 16.75B | 18.24B |
Cash Flow | ||||||
| Free Cash Flow | 2.01B | 2.05B | 1.84B | 1.12B | 1.83B | 517.00M |
| Operating Cash Flow | 3.26B | 3.33B | 3.06B | 1.89B | 2.37B | 1.30B |
| Investing Cash Flow | -1.06B | -1.02B | -817.00M | -1.56B | -463.00M | -618.00M |
| Financing Cash Flow | -1.60B | -1.53B | -2.03B | -1.59B | -2.14B | 225.00M |
Baker Hughes Company Technical Analysis
Positive
39.64
Price Trends
37.53
Positive
39.91
Negative
40.20
Negative
Market Momentum
0.34
Negative
60.62
Neutral
79.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Positive. The current price of 39.64 is above the 20-day moving average (MA) of 38.60, above the 50-day MA of 37.53, and below the 200-day MA of 40.20, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 79.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKR.
Baker Hughes Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $14.63B | 18.42 | 27.24% | 0.57% | 14.26% | 294.37% | |
81 Outperform | $20.61B | 11.72 | 10.45% | 5.73% | -15.28% | -45.42% | |
77 Outperform | $48.49B | 12.09 | 20.82% | 3.20% | 5.83% | -2.03% | |
75 Outperform | $18.50B | 9.02 | 20.99% | 3.16% | -2.54% | -17.53% | |
74 Outperform | $4.91B | 8.72 | 9.29% | 2.29% | 0.54% | -39.88% | |
70 Outperform | $39.27B | 13.54 | 18.04% | 2.32% | 6.22% | 62.58% | |
64 Neutral | 6.20B | 16.10 | 2.07% | 7.11% | 33.60% | 18.24% |
* Energy Sector Average
Performance Comparison
BKR
Baker Hughes Company
39.64
6.24
18.68%
FTI
TechnipFMC
34.90
8.91
34.28%
HAL
Halliburton
21.52
-10.82
-33.46%
NOV
NOV
13.08
-4.26
-24.57%
SLB
Schlumberger
35.65
-9.31
-20.71%
TS
Tenaris SA
38.39
9.20
31.52%
Baker Hughes Company Corporate Events
Executive/Board ChangesShareholder Meetings
Baker Hughes Approves Board and Executive Compensation
Neutral
May 22, 2025
On May 20, 2025, Baker Hughes Company held its Annual Meeting of Stockholders to elect nine members to its Board of Directors, approve the executive compensation program, and ratify KPMG LLP as its independent registered public accounting firm for fiscal year 2025. All nominated directors were elected, the executive compensation program was approved, and KPMG LLP was ratified, with a significant majority of the votes cast in favor of each proposal.
The most recent analyst rating on (BKR) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Baker Hughes Reports Strong Q1 2025 Financial Results
Positive
Apr 22, 2025
On April 22, 2025, Baker Hughes reported its first-quarter 2025 results, highlighting orders of $6.5 billion and revenue of $6.4 billion. The company achieved a net income of $402 million and adjusted EBITDA of $1,037 million, marking a 10% increase year-over-year. Baker Hughes expanded its leadership in LNG with new awards and strategic agreements, and made significant progress in power solutions for data centers. Despite macroeconomic uncertainties, the company remains confident in its strategy, focusing on structural margin improvement and sustainable growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.