Nasdaq:BKR
Baker Hughes Co
A leading global provider of integrated digital and clean energy solutions for the oil, gas, and renewables industries.
Key Metrics
Investment Thesis
Bull Case
Investors may favor BKR due to its successful diversification into renewable energy technologies which provides a hedge against long-term decarbonization trends, coupled with strong free cash flow generation of $3.81B that supports consistent shareholder returns via dividends and buybacks.
Bear Case
Skeptics might point to the significant drop in net income from 2024 to 2025 as a warning sign of margin compression or declining demand in core upstream markets, alongside substantial accumulated other comprehensive losses of $2.65B that could impact future equity growth.
About Baker Hughes Co
Baker Hughes Co (BKR) is a global technology company providing energy solutions across oil, gas, renewable, and industrial markets. The company specializes in downstream services, upstream services, and renewable technologies, leveraging advanced engineering to optimize customer operations.
Analysis
Management Discussion
The company demonstrated resilient financial performance in 2025 with revenue stabilizing at $27.73B following a strong growth trajectory from 2022 to 2024, while net income remained robust at $2.62B despite slightly lower profitability compared to the previous year's peak of $3.01B.
Industry Overview
The energy technology industry is undergoing a rapid transition toward electrification and digitalization, requiring companies to balance high-margin traditional service contracts with capital-intensive renewable infrastructure projects.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $21.16B | $25.51B | $27.83B | $27.73B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $21.16B | $25.51B | $27.83B | $27.73B |
| Operating Expenses | $19.97B | $23.19B | $24.75B | $24.86B |
| Operating Income | $1.19B | $2.32B | $3.08B | $2.88B |
| R&D | $556.0M | $658.0M | $643.0M | $600.0M |
| G&A | $2.51B | $2.61B | $2.46B | $2.39B |
| Stock-Based Comp | $207.0M | $197.0M | $202.0M | $203.0M |
| D&A | $1.06B | $1.09B | $1.14B | $1.19B |
| Depreciation | $839.0M | $830.0M | $870.0M | $938.0M |
| Amortization | $222.0M | $257.0M | $266.0M | $250.0M |
| Other OpEx | $16.91B | $19.92B | $21.65B | $21.87B |
| Non-Operating Income | $-1.16B | $338.0M | $184.0M | $0 |
| Pre-Tax Income | $22.0M | $2.65B | $3.27B | $2.88B |
| Income Tax | $600.0M | $685.0M | $257.0M | $253.0M |
| Continuing Ops | $-578.0M | $1.97B | $3.01B | $2.62B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-578.0M | $1.97B | $3.01B | $2.62B |
| Minority Interest | $23.0M | $27.0M | $29.0M | $36.0M |
| Net to Common | $-601.0M | $1.94B | $2.98B | $2.59B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $14.59B | $16.30B | $17.21B | $18.83B |
| Inventory | $4.59B | $5.09B | $4.95B | $4.95B |
| Other Current Assets | $10.01B | $11.21B | $12.26B | $13.87B |
| Long-Term Assets | $19.59B | $20.64B | $21.15B | $22.05B |
| PP&E (Net) | $4.54B | $4.89B | $5.13B | $5.33B |
| Intangibles | $4.18B | $4.09B | $3.95B | $4.10B |
| Goodwill | $5.93B | $6.14B | $6.08B | $6.07B |
| Operating Leases | $757.0M | $769.0M | $678.0M | $622.0M |
| Other LT Assets | $4.18B | $3.77B | $4.24B | $4.82B |
| Total Assets | $34.18B | $36.95B | $38.36B | $40.88B |
| Current Liabilities | $11.07B | $12.99B | $12.99B | $13.88B |
| Accounts Payable | $4.30B | $4.47B | $4.54B | $4.58B |
| Current Leases | $189.0M | $220.0M | $198.0M | $173.0M |
| Deferred Revenue | $3.82B | $5.54B | $5.67B | $5.90B |
| Other Current Liab | $2.77B | $2.76B | $2.58B | $3.22B |
| Long-Term Liabilities | $8.58B | $8.44B | $8.32B | $7.99B |
| LT Operating Leases | $552.0M | $549.0M | $475.0M | $442.0M |
| Other LT Liab | $8.03B | $7.89B | $7.84B | $7.55B |
| Total Liabilities | $19.66B | $21.43B | $21.31B | $21.87B |
| Shareholders' Equity | $14.53B | $15.52B | $17.05B | $19.01B |
| Retained Earnings | $-10.76B | $-8.82B | $-5.84B | $-3.25B |
| AOCI | $-2.97B | $-2.80B | $-3.16B | $-2.65B |
| Total L&E | $34.18B | $36.95B | $38.36B | $40.88B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-578.0M | $1.97B | $3.01B | $2.62B |
| Non-Cash Adjustments | $-683.0M | $-1.88B | $-457.0M | $1.67B |
| Working Capital Changes | $3.15B | $2.97B | $781.0M | $-488.0M |
| Cash from Operations | $1.89B | $3.06B | $3.33B | $3.81B |
| Cash from Investing | $-1.56B | $-817.0M | $-1.02B | $-2.04B |
| Debt Issuances | $0 | $0 | — | — |
| Debt Repayments | $0 | $651.0M | $143.0M | $0 |
| Share Buybacks | $828.0M | $538.0M | $484.0M | $384.0M |
| Dividends Paid | $726.0M | $786.0M | $836.0M | $910.0M |
| Cash from Financing | $-1.59B | $-2.03B | $-1.53B | $-1.48B |
| FX Effect | $-97.0M | $-59.0M | $-71.0M | $67.0M |
| Net Change in Cash | $-1.36B | $158.0M | $718.0M | $351.0M |
| Beginning Cash | $3.85B | $2.49B | $2.65B | $3.36B |
| Ending Cash | $2.49B | $2.65B | $3.36B | $3.71B |
Frequently Asked Questions
How does Baker Hughes Co make money?
The company operates primarily through three segments: Upstream Services (drilling equipment, completion systems, and digitalization), Downstream Services (refinery optimization, gas processing, and carbon management), and Renewable Technologies (wind turbines, solar panels, and geothermal solutions).
What are the main risks for BKR?
Cyclical dependence on capital expenditure by major oil and gas companies which can fluctuate with commodity prices, exposure to geopolitical instability affecting upstream operations in key regions like the Middle East, and potential supply chain disruptions impacting manufacturing of critical components.
What is BKR's competitive advantage?
Baker Hughes maintains a robust ecosystem of proprietary digital technologies that enhance operational efficiency for customers, a diverse product portfolio spanning traditional energy to renewables, and a strong global service footprint with extensive local partnerships.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.