Baker Hughes delivered a solid QQ2 2025 performance with continued profitability and meaningful cash generation, underscoring the company's resilient position in a cyclical Energy Services market. Revenue of USD 6.91 billion rose 7.5% QoQ, while YoY revenue declined 3.2%, reflecting the typical seasonality and broader cycle within oilfield services. The quarter featured a robust gross margin of 23.37% (USD 1.615 billion gross profit) and an operating margin of 12.84% (USD 0.887 billion operating income), supported by disciplined cost containment and a favorable mix across segments. Net income reached USD 0.701 billion, delivering EPS of USD 0.71, representing YoY growth of ~22% and QoQ growth of ~73% as cost controls and operating leverage materialized.
Key Performance Indicators
Revenue
Decreasing
6.91B
QoQ: 7.52% | YoY: -3.21%
Gross Profit
Increasing
1.62B
23.37% margin
QoQ: 9.49% | YoY: 8.39%
Operating Income
Increasing
887.00M
QoQ: 17.95% | YoY: 4.72%
Net Income
Increasing
701.00M
QoQ: 74.38% | YoY: 21.07%
EPS
Increasing
0.71
QoQ: 73.17% | YoY: 22.41%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: USD 6.91B (YoY -3.21%, QoQ +7.52%); Gross Profit: USD 1.615B (YoY +8.39%, QoQ +9.49%), Gross Margin ~23.37%
Operating Income: USD 0.887B (YoY +4.72%, QoQ +17.95%), Operating Margin ~12.84%
Net Income: USD 0.701B (YoY +21.07%, QoQ +74.38%), Net Margin ~10.14%
EPS: USD 0.71 (YoY +22.41%, QoQ +73.17%)
Cash Flow: Operating Cash Flow USD 0.51B; Free Cash Flow USD 0.51B; Cash at End USD 3.087B; Net Debt USD -2.947B after considering debt balance of USD 6.034B and cash balance of USD 3.087B
Capital Allocation: Dividends USD 0.227B; Share Repurchases USD 0.196B; Net Cash Used in Financing USD -0.443B; FX impact USD +0.029B
Liquidity & Leverage: Total Debt USD 6.034B; Net Debt USD 2.947B; Cash Ratio ~0.25x; Debt to Capitalization ~0.254x; Interest Coverage ~16.4x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.91B
-3.21%
7.52%
Gross Profit
1.62B
8.39%
9.49%
Operating Income
887.00M
4.72%
17.95%
Net Income
701.00M
21.07%
74.38%
EPS
0.71
22.41%
73.17%
Key Financial Ratios
Gross Profit Margin
Fair
23.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
12.80%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Good
10.10%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.81%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.96%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.41
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.34
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
13.51x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
2.14x
Price-to-book ratio reasonable for profitable companies
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