Baker Hughes reported a solid Q2 2025 with revenue of $6.91 billion, delivering margin expansion and robust free cash flow despite a year-over-year revenue decline. The company posted gross profit of $1.615 billion on a gross margin of 23.37% and operating income of $0.887 billion, resulting in an operating margin of 12.84%. Net income reached $0.701 billion, or $0.71 per share, with year-over-year net income rising ~21% and trailing-quarter momentum supported by sequential improvement in activity and favorable product mix. Free cash flow stood at $510 million for the quarter, paralleled by a strong balance sheet featuring $3.087 billion in cash and equivalents and a net debt position of approximately $2.95 billion. Management commentary, supported by these metrics, points to disciplined cost control, ongoing capital allocation efficiency, and steady demand from subsea, digital solutions, and turbomachinery segments contributing to profitability despite cyclicality in oilfield services.
Looking ahead, Baker Hughes benefits from a diversified mix across OFS, Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The Q2 results reflect resilience in pricing and operating leverage, with EBITDA of about $1.314 billion and an EBITDA margin near 19%. The company remains well-positioned to generate free cash flow, sustain a prudent payout, and invest selectively in high-return opportunities as upstream capex cycles evolve. Investors should monitor global oil demand trajectories, subsea project awards, digitalization adoption in asset management, and any shifts in capex itineraries that could influence order intake across segments.