Baker Hughes Company (0RR8.L) Q3 2025 Earnings Report

Baker Hughes delivered a solid Q3 2025 performance, extending topline growth in a prolonged energy cycle while expanding margins and generating robust cash flow. Revenue reached $7.01 billion, up ~1.5% sequentially and year-over-year, supported by a favorable mix and ongoing cost discipline. Gross margin stood at 24.3% with gross profit of $1.701 billion, and operating income of $0.948 billion yielded an operating margin of 13.5%. EBITDA was $1.159 billion (EBITDA margin ~16.5%), underscoring meaningful operating leverage in the quarter.

Net income declined modestly year-over-year to $0.609 billion and came in flat to down quarter-over-quarter on a net margin of 8.69% and earnings per share (GAAP) of $0.62. The year-on-year decrease in net income and EPS largely reflects a variability in tax expense and other non-operating items rather than a broad deterioration in operating performance, as evidenced by a strong EBIT/EBITDA trajectory and healthy cash generation.

Financial health remains solid: operating cash flow per share was $0.942 and free cash flow per share was $0.643, supporting a current ratio of 1.41 and a debt-to-capitalization ratio of 0.248. The company exhibits ample interest coverage (~16.9x) and a cash conversion cycle of roughly 98 days, reflecting a typical capital-intensive services giant with a sizable receivables base. The stock trades at ~19.7x trailing/forward earnings with a modest dividend yield (~0.47%), suggesting a balance between growth optionality in digital solutions and the cyclicality inherent to oilfield services.