Baker Hughes Company, headquartered in Houston, Texas, is a leading energy technology company with origins dating back to 1908 when Howard R. Hughes Sr. founded the Hughes Tool Company. The company operates through two primary segments: Oilfield Services and Equipment (OFSE) and Industrial and Energy Technology (IET). The OFSE segment ...Baker Hughes Company, headquartered in Houston, Texas, is a leading energy technology company with origins dating back to 1908 when Howard R. Hughes Sr. founded the Hughes Tool Company. The company operates through two primary segments: Oilfield Services and Equipment (OFSE) and Industrial and Energy Technology (IET). The OFSE segment designs and manufactures products and provides services for onshore and offshore oilfield operations, while the IET segment focuses on industrial and energy customers, offering turbomachinery, pipeline solutions, and digital technologies. Baker Hughes aims to make energy safer, cleaner, and more efficient for people and the planet, leveraging advanced technologies across the energy value chain. The company serves a diverse range of sectors including oil and gas, LNG, refining, petrochemical, and industrial segments such as nuclear, aviation, and food and beverage. With approximately 56,000 employees worldwide, Baker Hughes reported a market capitalization of around $61 billion as of the latest data, with a trailing twelve-month revenue of approximately $27 billion and a net income margin of 11.2%. The company has a strong focus on innovation, investing in research and development, and has made significant strides in digital solutions and energy transition initiatives. Led by Chairman, President, and CEO Lorenzo Simonelli, Baker Hughes continues to evolve into a leading industrialized energy solutions provider, committed to sustainability and operational excellence.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$27.7B
-0.3%
+2.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$2.6B
-13.1%
-26.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+23.6%
+1.3%
+2.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+12.8%
+5.5%
+3.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+9.3%
-12.8%
-28.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.5B
+23.5%
+537.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.1%
+23.9%
+522.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
37.9%
+6.4%
-2.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.36x
+2.4%
-1.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, ladies and gentlemen, and welcome to the Baker Hughes Company Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Chase Mulvehill, Vice President of Investor Relations. Sir, you may begin.
Chase Mulvehill: Thank you. Good morning, everyone, and welcome to Baker Hughes Second Quarter Earnings Conference Call. Here with me are our Chairman and CEO, Lorenzo Simonelli and our CFO, Ahmed Moghal. The earnings release we issued yesterday evening can be found on our website at bakerhughes.com. We will also be using a presentation with our prepared remarks during this webcast which can be found on our investor website. As a reminder, we will provide forward looking statements during this conference call. These statements are not guarantees of future performance and involve a number of risks and assumptions. Please review our SEC filings and website for the factors that could cause results to differ materially. Reconciliation of adjusted EBITDA in certain GAAP to non GAAP measures can be found in our earnings release and presentation available on our investor website. With that, I will turn the call over to Lorenzo.
Lorenzo Simonelli: Thank you, Chase. Good morning, everyone, and thank you for joining us. First, I would like to provide a quick outline for today's call. I will start with a summary of our second quarter results, then highlight key awards and address the evolving macro environment. I will also discuss the recent closing of the Chart acquisition and the compelling opportunities it brings to Baker Hughes. I will then turn it over to Ahmed who will review our financial performance, provide guidance for the third quarter and review our outlook for the full year. To close, I will highlight how we are connecting our capabilities across energy upstream energy infrastructure, and industrial markets to create greater value for our customers and shareholders. Let's turn to Slide 4. We delivered another strong quarter as disciplined execution and the strength of our diversified portfolio more than offset anticipated headwinds in The Middle East. While conditions in the region remain fluid, our teams have responded exceptionally well. Maintaining a clear focus on safety, execution, and meeting our customer needs. For the second quarter, adjusted EBITDA $1.23 billion exceeding the high end of our guidance range. The outperformance was driven primarily by strong OFSE execution supported by greater resilience in The Middle East, and a solid seasonal recovery across broader markets outside the region. Adjusted earnings per share were $0.64 up modestly year over year as strong operational performance more than offset the effects of the PSI divestiture and the formation of the SPC joint …
