Baker Hughes Announces Fourth-Quarter and Full-Year 2025 Results
Fourth-quarter highlights
Orders of $7.9 billion, including $4.0 billion of IET orders.
Record RPO of $35.9 billion, including record IET RPO of $32.4 billion.
Revenue of $7.4 billion, flat year-over-year.
Attributable net income of $876 million.
GAAP diluted EPS of $0.88 and adjusted diluted EPS* of $0.78.
Adjusted EBITDA* of $1,337 million, up 2% year-over-year.
Cash flows from operating activities of $1,662 million and free cash flow* of $1,341 million.
Full-year highlights
Orders of $29.6 billion, including record $14.9 billion of IET orders.
Revenue of $27.7 billion, flat year-over-year.
Attributable net income of $2,588 million.
GAAP diluted EPS of $2.60 and adjusted diluted EPS* of $2.60.
Adjusted EBITDA* of $4,825 million, up 5% year-over-year.
Cash flows from operating activities of $3,810 million and free cash flow* of $2,732 million.
HOUSTON and LONDON, Jan. 25, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (NASDAQ:BKR) ("Baker Hughes" or the "Company") announced results today for the fourth-quarter and full-year 2025.
"Baker Hughes delivered exceptional performance in 2025. We continued to execute at a high level, delivering another quarter of strong results contributing to a record full‑year Adjusted EBITDA. This achievement demonstrates sustained momentum from our Business System, active portfolio management, and positive performance in IET, which more than offset continued macro‑driven softness in OFSE, where margins remained resilient through disciplined cost actions," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.
"IET delivered strong fourth‑quarter bookings of $4 billion, contributing to a record full‑year total of $14.9 billion, exceeding the high end of our guidance range. IET achieved a record backlog of $32.4 billion at year‑end, and book-to-bill exceeded 1x. For the second consecutive year, non-LNG equipment orders represented approximately 85% of total IET orders, which highlights the end‑market diversity and versatility of our IET portfolio."
"Following our strong free cash flow performance in prior years, we generated record annual free cash flow of $2.7 billion in 2025, enhanced by working capital efficiency and customer down payments."
"Looking ahead, we expect IET orders to remain at robust levels, supported by continued momentum in LNG, a stronger year of FPSO and gas infrastructure awards, and sustained strength for power systems. Against this favorable backdrop, we project similar levels of organic IET orders in 2026. In addition, we anticipate overall organic Adjusted EBITDA growth in the mid-single digits range, with IET expanding margins to our 20% target and OFSE remaining relatively flat."
"As the Company moves into Horizon Two(1), our recent portfolio actions are positioning Baker Hughes to evolve into a stronger, more industrialized energy solutions company. This evolution is underpinned by an increasingly production-oriented business mix and a differentiated lifecycle portfolio, which is driving reduced cyclicality and enhanced cash flow durability."
"I'd like to thank the entire Baker Hughes team for consistently delivering outstanding results. As we look to the future, we are energized by the opportunities that lie ahead and remain committed to our customers and employees, with a disciplined focus on creating long-term, sustainable value for our shareholders," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
(1) Horizon Two represents 2026-2028.
Three Months Ended
Variance
(in millions except per share amounts)
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
Orders
$
7,886
$
8,207
$
7,496
(4
)%
5
%
Revenue
7,386
7,010
7,364
5
%
—
%
Net income attributable to Baker Hughes
876
609
1,179
44
%
(26
)%
Adjusted net income attributable to Baker Hughes*
772
678
694
14
%
11
%
Adjusted EBITDA*
1,337
1,238
1,310
8
%
2
%
Diluted earnings per share (EPS)
0.88
0.61
1.18
43
%
(25
)%
Adjusted diluted EPS*
0.78
0.68
0.70
14
%
12
%
Cash flow from operating activities
1,662
929
1,189
79
%
40
%
Free cash flow*
1,341
699
894
92
%
50
%
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
Quarter Highlights
Key awards and technology achievements
Industrial & Energy Technology ("IET") secured several important awards to supply critical liquefaction equipment for LNG projects in the U.S., supporting the reliable delivery of natural gas and LNG required to meet global energy demand. Gas Technology Equipment ("GTE") received an award for gas turbine and refrigerant compressor technology for Train 5 of NextDecade's Rio Grande LNG facility. GTE will also deliver six high efficiency, aeroderivative LM9000 gas turbines to drive its centrifugal compressors for the liquefaction process at Commonwealth LNG's export facility. Additionally, Baker Hughes was selected by Glenfarne as its supplier for main refrigerant compressors for the LNG terminal and power generation equipment for Alaska LNG's North Slope gas treatment plant once FID is reached.
IET demonstrated continued strength within its power systems solutions, receiving several awards to support data center infrastructure and industrial manufacturing. Baker Hughes received an award to supply over 40 BRUSH™ generators for gas-fired utility-scale power plants, which will collectively deliver approximately 7 GW of reliable power and enhance grid resilience, highlighting the critical role our technologies play in strengthening U.S. energy infrastructure. IET was also awarded two significant contracts from Tecnimont (part of MAIRE group) to provide electric motor driven compression and power generation solutions for the Tengiz onshore Gas Separation Complex in Kazakhstan, one of the country's most critical energy infrastructure projects, owned and operated by KMG PetroChem, 100% subsidiary of the National Company KazMunayGas.
Aalo Atomics also selected Baker Hughes to supply a 10 MWe steam turbine generator set and ancillaries for the conventional island of its small‑scale Small Modular Reactor ("SMR") demonstration plant in North America, among the first SMR facilities expected to run in nuclear mode with a steam turbine generating power. This demo is a key milestone toward regulatory approval of 50 MWe "Aalo Pods," with power planned for an onsite data center.
Further demonstrating the durability of IET's lifecycle model, the Company was awarded several aftermarket services contracts. Cheniere extended its long-term service agreement to cover Trains 8 and 9 of its Corpus Christi liquefaction facility in Texas. This comprehensive multi-year agreement covers spare parts, repair services, and field service engineering support for critical turbomachinery. Also in the U.S., the Company secured an agreement with NextDecade for iCenter™ remote monitoring and diagnostics to support the performance of critical equipment for Trains 1, 2 and 3 of the Rio Grande LNG project.
Our digital portfolio continued to scale, led by strong Cordant™ software awards. Following the successful deployment of Asset Management software and services, Yara will also leverage Cordant™ Asset Health as a service across seven new facilities in 2026. Baker Hughes will also support enterprise-level digital transformation for China National Petroleum Corporation Kunlun Digital, leveraging Cordant™ Asset Performance Management to enhance reliability and performance across several plants. Finally, Braskem will establish an Asset Strategy Center of Excellence in Brazil, utilizing Cordant™ Asset Strategy software alongside Baker Hughes' global network of reliability experts to optimize maintenance strategies and improve operational efficiency across its petrochemical plants.
Oilfield Services & Equipment ("OFSE") experienced a strong quarter for Production Solutions awards, securing nearly $1 billion in contracts in the Middle East. OFSE received a multi-year contract from Kuwait Oil Company to deploy advanced artificial lift systems and an award from Petroleum Development Oman to supply electrical submersible pumps with associated services across approximately 1,400 wells. Both awards incorporate the Leucipa™ automated field production solution to improve reliability and reduce nonproductive time. Also, the Company was awarded a contract from ADNOC to deliver AccessESP™ retrievable electrical submersible pumping systems in the offshore Umm Shaif Field.
OFSE saw significant uptake of its rotary steerable systems with Pluspetrol in Argentina, securing multiple Well Construction awards to help the country maximize its energy resources and develop the Vaca Muerta formation. Baker Hughes will provide Lucida™ and AutoTrak™ RSS technologies to enable deeper, longer wells drilled in a single run.
In addition, ExxonMobil Guyana awarded the Company a significant contract extension to supply advanced completions technologies supporting offshore oil and gas development.
In Sub-Saharan Africa, Eni awarded Baker Hughes a multi-year frame agreement for subsea production systems and associated services for its Coral North LNG project offshore Mozambique. The scope includes subsea trees, controls, manifolds, distribution and topsides, supporting the development of long-cycle offshore gas infrastructure.
Consolidated Financial Results
Revenue for the quarter was $7,386 million, an increase of $376 million, or 5% sequentially, and up $22 million year-over-year. IET delivered year-over-year growth, partially offset by lower revenue in OFSE.
The Company's total book-to-bill ratio in the fourth quarter of 2025 was 1.1; the IET book-to-bill ratio was 1.1.
Net income as determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") for the fourth quarter of 2025 was $876 million. Net income increased $266 million, or 44% sequentially, and decreased $303 million, or 26% year-over-year.
Adjusted net income (a non-GAAP financial measure) for the fourth quarter of 2025 was $772 million, which excludes adjustments totaling $104 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the fourth quarter of 2025 was up $95 million, or 14% sequentially, and up $79 million, or 11% year-over-year.
Depreciation and amortization for the fourth quarter of 2025 was $327 million.
Adjusted EBITDA (a non-GAAP financial measure) for the fourth quarter of 2025 was $1,337 million, which excludes adjustments totaling $425 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the fourth quarter was up $99 million, or 8% sequentially, and up $27 million, or 2% year-over-year.
The sequential increase in Adjusted EBITDA was primarily driven by volume, and overall productivity.
The year-over-year increase in Adjusted EBITDA was primarily driven by overall productivity, cost out initiatives, price, and FX, largely offset by change in mix, lower volume, and inflation.
Other Financial Items
Remaining Performance Obligations ("RPO") in the fourth quarter of 2025 ended at $35.9 billion, an increase of $0.6 billion from the third quarter of 2025. OFSE RPO was $3.5 billion, up $0.3 billion sequentially, and IET RPO was $32.4 billion, up $0.4 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $11.6 billion and $16.1 billion, respectively.
Income tax benefit in the fourth quarter of 2025 was $359 million.
Other (income) expense, net in the fourth quarter of 2025 was $166 million, primarily related to change in fair value of equity securities of $74 million, and transaction related costs of $49 million incurred in connection with business disposals and acquisitions.
GAAP diluted earnings per share was $0.88 for the fourth quarter of 2025. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.78. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Cash flow from operating activities was $1,662 million for the fourth quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $1,341 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Capital expenditures, net of proceeds from disposal of assets, were $321 million for the fourth quarter of 2025, of which $206 million was for OFSE and $103 million was for IET.
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
Oilfield Services & Equipment
(in millions)
Three Months Ended
Variance
Segment results
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
Orders
$
3,862
$
4,068
$
3,740
(5)%
3%
Revenue
$
3,572
$
3,636
$
3,871
(2)%
(8)%
EBITDA
$
647
$
671
$
755
(4)%
(14)%
EBITDA margin
18.1
%
18.5
%
19.5
%
-0.4pts
-1.4pts
(in millions)
Three Months Ended
Variance
Revenue by Product Line
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
Well Construction
$
880
$
954
$
943
(8)%
(7)%
Completions, Intervention, and Measurements
944
945
1,022
—%
(8)%
Production Solutions
973
966
974
1%
—%
Subsea & Surface Pressure Systems
775
771
932
1%
(17)%
Total Revenue
$
3,572
$
3,636
$
3,871
(2)%
(8)%
(in millions)
Three Months Ended
Variance
Revenue by Geographic Region
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
North America
$
943
$
980
$
971
(4)%
(3)%
Latin America
613
603
661
2%
(7)%
Europe/CIS/Sub-Saharan Africa
624
599
740
4%
(16)%
Middle East/Asia
1,392
1,454
1,499
(4)%
(7)%
Total Revenue
$
3,572
$
3,636
$
3,871
(2)%
(8)%
North America
$
943
$
980
$
971
(4)%
(3)%
International
$
2,629
$
2,656
$
2,900
(1)%
(9)%
EBITDA excludes depreciation and amortization of $252 million, $221 million, and $229 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.
OFSE orders of $3,862 million for the fourth quarter of 2025 decreased by $206 million, or 5% sequentially. Subsea and Surface Pressure Systems orders were $1,067 million, down $123 million, or 10% sequentially, and up $265 million, or 33% year-over-year.
OFSE revenue of $3,572 million for the fourth quarter of 2025 was down $63 million, or 2% sequentially, and down $298 million, or 8% year-over-year.
North America revenue was $943 million, down $37 million, or 4% sequentially. International revenue was $2,629 million, down $26 million, or 1% sequentially, with a decrease in Middle East/Asia, partially offset by an increase in Europe/CIS/Sub-Saharan Africa, and Latin America.
Segment EBITDA for the fourth quarter of 2025 was $647 million, a decrease of $25 million, or 4% sequentially. The sequential decrease in EBITDA was a result of overall lower volume, partially offset by cost out initiatives.
Industrial & Energy Technology
(in millions)
Three Months Ended
Variance
Segment results
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
Orders
$
4,024
$
4,139
$
3,756
(3)%
7%
Revenue
$
3,814
$
3,374
$
3,492
13%
9%
EBITDA
$
761
$
635
$
639
20%
19%
EBITDA margin
20.0
%
18.8
%
18.3
%
1.1pts
1.6pts
(in millions)
Three Months Ended
Variance
Orders by Product Line
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
Gas Technology Equipment
$
1,785
$
2,174
$
1,865
(18)%
(4)%
Gas Technology Services
974
896
902
9%
8%
Total Gas Technology
2,759
3,070
2,767
(10)%
—%
Industrial Products
603
481
515
26%
17%
Industrial Solutions
352
336
320
4%
10%
Total Industrial Technology
955
817
835
17%
14%
Climate Technology Solutions
310
253
154
23%
F
Total Orders
$
4,024
$
4,139
$
3,756
(3)%
7%
(in millions)
Three Months Ended
Variance
Revenue by Product Line
December 31, 2025
September 30, 2025
December 31, 2024
Sequential
Year-over-year
Gas Technology Equipment
$
1,852
$
1,687
$
1,663
10%
11%
Gas Technology Services
881
803
796
10%
11%
Total Gas Technology
2,733
2,490
2,459
10%
11%
Industrial Products
547
511
548
7%
—%
Industrial Solutions
304
288
282
5%
8%
Total Industrial Technology
851
799
830
6%
3%
Climate Technology Solutions
229
84
204
F
12%
Total Revenue
$
3,814
$
3,374
$
3,492
13%
9%
EBITDA excludes depreciation and amortization of $69 million, $55 million, and $56 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.
"F" is used in most instances when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
IET orders of $4,024 million for the fourth quarter of 2025 increased by $269 million, or 7% year-over-year. The increase was driven by continued strength in Climate Technology Solutions, Industrial Technology, and Gas Technology Services.
IET revenue of $3,814 million for the fourth quarter of 2025 increased $321 million, or 9% year-over-year. The increase was driven by Gas Technology Equipment, up $189 million, or 11% year-over-year, Gas Technology Services, up $86 million, or 11% year-over-year.
Segment EBITDA for the quarter was $761 million, an increase of $121 million, or 19% year-over-year. The year-over-year increase in EBITDA was driven by productivity, volume, price, and FX, partially offset by inflation.
2025 Total Year Results
(in millions)
Twelve Months Ended
