Baker Hughes Q1 2023 Earnings Report
Key Takeaways
Baker Hughes reported strong first quarter 2023 results, with orders up 12% year-over-year and revenue up 18% year-over-year. The company's performance was driven by strong order momentum in IET and SSPS and solid operating results in both business segments.
Orders increased by 12% year-over-year, reaching $7.6 billion.
Revenue increased by 18% year-over-year, reaching $5.7 billion.
GAAP operating income increased by $160 million year-over-year, reaching $438 million.
GAAP diluted earnings per share was $0.57, including $0.28 per share of adjusting items.
Baker Hughes
Baker Hughes
Baker Hughes Revenue by Segment
Baker Hughes Revenue by Geographic Location
Forward Guidance
Baker Hughes remains optimistic on the outlook for 2023, expecting the current environment to remain unique, with a spending cycle that is more durable and less sensitive to commodity price swings. The company is also focused on transforming operationally and positioning itself for growth in the energy and industrial markets.
Positive Outlook
- Strong order momentum in IET and SSPS.
- Solid operating results at the high end of guidance in both business segments.
- Booked almost $300 million of New Energy orders.
- Generated approximately $200 million of free cash flow.
- Spending cycle is more durable and less sensitive to commodity price swings.
Challenges Ahead
- Macro volatility.
- Cost inflation in both segments.
- Higher equipment mix in Industrial & Energy Technology.
- Higher R&D spend in Industrial & Energy Technology.
- Unfavorable mix as a result of higher Gas Technology - Equipment growth.