Baker Hughes reported a solid QQ4 2024, with revenue of $7.364 billion and a gross margin of 20.8%. Operating income came in at $0.665 billion (operating margin ~9.03%), while EBITDA was $1.139 billion (EBITDA margin ~15.5%). Net income totaled $1.179 billion, translating to a diluted earnings per share of approximately $1.18â$1.19. The year-over-year improvement in net income was robust at ~168%, supported by a revenue rise of ~7.7% YoY and a QoQ uplift in earnings despite a notably weaker QoQ operating margin, which declined by about 28.5%. The quarter benefited from an unusual tax position with a negative income tax expense of $0.399 billion, contributing to the strong net income figure.
Cash flow was a bright spot: operating cash flow of $1.19 billion, capex of $0.353 billion, yielding free cash flow of $0.837 billion. The company ended the period with cash and cash equivalents of $3.364 billion and a net debt position of approximately -$2.659 billion, indicating a healthy net cash status and ample liquidity to support ongoing shareholder returns and strategic investments. The balance sheet remained robust: total assets of $38.36 billion against liabilities of $21.31 billion, leaving $16.90 billion of equity. Key liquidity ratios were solid (current ratio 1.33, quick ratio 0.94, cash ratio 0.26) and leverage remained moderate (debt/capitalization ~28%). The four-segment portfolio (OFS, OFE, TPS, DS) continues to enable diversified revenue streams and cross-selling opportunities, with DS expected to contribute higher-margin, recurring software-enabled solutions over time.
Overall, the QQ4 2024 results position Baker Hughes as a financially resilient, cash-generative energy equipment and services leader with a prudent capital allocation framework. Investors should monitor cyclical capex momentum in oil and gas, the pace of DS adoption, and any timing shifts in offshore/subsea project activity that could influence the cadence of revenue and margins.