Baker Hughes Co reported an adjusted net income of $678 million for the third quarter of 2025, marking a 9% increase from the previous quarter and a 2% rise from the same period last year, driven by gains in its Industrial and Energy Technology (IET) division. Adjusted diluted earnings per share (EPS) stood at $0.68, surpassing the Zacks Consensus Estimate of $0.61. The company’s quarterly dividend was maintained at $0.23 per share.
On a reported basis, net profit came in at $609 million, representing a 13% decline sequentially and a 20% drop year-on-year, according to the firm’s quarterly update. Baker Hughes’ total revenue reached $7.01 billion, up 1% both quarter-over-quarter and year-on-year. Growth was primarily led by the Industrial and Energy Technology (IET) segment, which recorded $3.37 billion in revenue, reflecting a 2% sequential increase and a 15% annual rise. The Oilfield Services and Equipment (OFSE) division posted $3.64 billion in revenue, up 1% from the previous quarter, but 8% lower than a year earlier.
By region, OFSE revenue improved in Asia and North America, reaching $1.45 billion and $980 million, respectively. However, results weakened in Latin America ($603 million) and Europe, Sub-Saharan Africa, and CIS ($599 million), with both regions seeing declines compared to the prior quarter and year.
OFSE orders totaled $4.07 billion, increasing 16% sequentially and 7% year-on-year. IET orders climbed 17% quarter-on-quarter and 44% annually to $4.14 billion, marking a significant acceleration in demand. Operating activities generated $929 million in cash flow, while free cash flow amounted to $699 million.
Adjusted EBITDA was reported at $1.24 billion, up 2% sequentially and 2% year-on-year.
The company attributed the sequential improvement in earnings and EBITDA to a favorable business mix, beneficial currency movements, and cost-reduction efforts, partially offset by lower productivity. Year-over-year performance was supported by cost-saving initiatives and FX gains, though tempered by reduced volumes and inflationary pressures.
Chairman and CEO Lorenzo Simonelli said, “This quarter’s results reflect the continued success of our Business System deployment and strong execution across key markets. Gas Technology and U.S. land operations performed particularly well, underscoring our competitive position in production-related activity.”
Mr Simonelli added that while OFSE margins were affected by macroeconomic conditions, the IET business delivered strong results, driving an improvement in overall EBITDA margins year-over-year. “Our performance highlights the strength of our diversified portfolio and disciplined execution. We also continue to benefit from favorable market trends in LNG, power generation, and offshore projects,” he said.
Baker Hughes secured over $4 billion in IET orders for only the third time in its history, achieving record Subsea Production Systems (SSPS) orders during the quarter. The IET backlog rose 3% sequentially to reach a new record high of $32.1 billion, reinforcing long-term visibility for the business.
At the end of the third quarter, Baker Hughes reported current assets of $17.53 billion, including $2.69 billion in cash and cash equivalents. Current liabilities totaled $12.44 billion, with short-term debt of $68 million.
