Baker Hughes Records $4.83B EBITDA, $2.7B Free Cash Flow in 2025
Baker Hughes delivered record 2025 adjusted EBITDA of $4.83B and free cash flow of $2.7B, with Q4 adjusted EBITDA of $1.34B surpassing guidance. Strong demand fueled a $32.4B backlog and book-to-bill above 1, prompting Barclays to maintain its Overweight rating and raise its price target from $55 to $57.
1. Record Annual Adjusted EBITDA Underscores Operational Strength
Baker Hughes reported a full-year adjusted EBITDA of $4.83 billion, marking the highest level in the company’s history. Fourth-quarter adjusted EBITDA came in at $1.34 billion, comfortably above the midpoint of management guidance. This performance reflects disciplined cost management across its oilfield services business and reinforces the company’s competitive position against peers such as Schlumberger and Halliburton.
2. Robust Free Cash Flow and Backlog Build Investor Confidence
The company generated $2.7 billion of free cash flow for the year, including $1.3 billion in the fourth quarter alone. Free cash flow margins expanded, driven by working capital efficiencies and lower capital expenditures. At year-end, the services backlog stood at $32.4 billion, with a book-to-bill ratio above 1.0, signaling sustained demand for Baker Hughes’ technologies and long-cycle service contracts.
3. Segment Momentum and Positive Analyst Actions Highlight Growth Prospects
Baker Hughes’ Power Systems segment secured $2.5 billion of orders in 2025, fueled by a $1 billion data center power deal, while the Industrial & Energy Technology unit recorded $14.9 billion in orders for the year. Following these results, a leading global bank maintained its overweight recommendation and raised its target metrics, citing the company’s diversified portfolio and growing LNG and data center end-market exposure as key drivers for continued earnings expansion.