Baker Hughes Q1 Earnings Outpace Estimates, Revenues Miss

Baker Hughes Company BKR reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total quarterly revenues of $6,427 million missed the Zacks Consensus Estimate of $6,512 million. The top line increased from the year-ago quarter’s $6,418 million.The strong quarterly earnings were primarily driven by higher demand for natural gas technologyand an improving EBITDA margin.Baker Hughes Company Price, Consensus and EPS Surprise Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company QuoteSegmental PerformanceBKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial and Energy Technology. The segments became operational on Oct. 1, 2022.Revenues from the Oilfield Services and Equipment (“OFSE”) unit amounted to $3,499 million, down 8% from the year-ago figure of $3,783 million. The reported figure was below our estimate of $3,598 million.Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) from the segment totaled $623 million, down 3% from $644 million in the first quarter of 2024. This was due to lower volume, partially mitigated by productivity from structural cost-out initiatives.Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $2,928 million, up 11% from the year-ago quarter’s $2,634 million. The reported figure beat our estimate of $2,896 million.EBITDA from the segment totaled $501 million, up 30% from the year-ago quarter’s $386 million, driven by productivity, positive pricing and increased volume, including higher proportionate growth in GTE, partially offset by cost inflation.Costs & ExpensesBaker Hughes recorded total costs and expenses of $5,866 million in the first quarter, up from the year-ago figure of $5,777 million. Our projection for the same was $5,874.7 million.OrdersOrders from all business segments amounted to $6,459 million, down 1% from $6,542 million recorded a year ago. We expected the figure to be $6,491.6 million. This was primarily due to lower order intake in the OFSE segment.Free Cash FlowBaker Hughes generated a free cash flow of $454 million compared with $502 million a year ago.Capex & Balance SheetBKR’s net capital expenditure in the first quarter was $255 million.As of March 31, 2025, it had cash and cash equivalents of $3,277 million. BKR had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.Zacks Rank and Key PicksCurrently, BKR carries a Zacks Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and Enterprise Products Partners L.P. EPD. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030. Kinder Morgan’s earnings missed estimates in three of the trailing four quarters and met once, delivering an average negative surprise of 3.33%.Enterprise generates stable fee-based revenues from its vast network of oil and gas pipelines spanning 50,000 miles, connecting prolific U.S. shale plays. Notably, the acquisition of Pinon Midstream, which aims to provide services in the prolific Permian Basin, is expected to drive the partnership’s cash flows. This move enhances its NGL value chain and addresses regional infrastructure constraints, with strong customer demand expected to boost revenues.EPD’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 1.83%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks