Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates
BKR•Key figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $6.74 billion | $6.52 billion (17 analysts) |
| Q2 Adjusted EPS | Beat | $0.64 | $0.50 (22 analysts) |
| Q2 EPS | $0.68 | ||
| Q2 Free Cash Flow | $1.11 billion | ||
| Q2 Orders | $10.50 billion |
Outlook and guidance
Baker Hughes said it expects to achieve the midpoint of its full-year guidance despite Middle East uncertainty.
- The company raised full-year IET order guidance and increased its Horizon 2 IET orders outlook to over $45 billion.
- Baker Hughes sees continued robust demand in power systems, LNG, and energy infrastructure markets.
What drove the results
Baker Hughes said record IET orders were driven by robust demand in power systems and LNG, with strong momentum in power generation.
Sequential and year-over-year increases in adjusted net income and EBITDA were primarily driven by higher volume, price, productivity, FX, and cost-out initiatives, partially offset by inflation and lower volume.
The year-over-year revenue decline was mainly due to the impact of the Precision Sensors & Instrumentation and Surface Pressure Control dispositions.
