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Sep 30, 2021
Baker Hughes Q3 2021 Earnings Report
Baker Hughes' performance reflected a strong orders quarter and growth in adjusted EBITDA and adjusted Operating Income margin rate, with mixed results across segments.
Key Takeaways
Baker Hughes announced mixed results for Q3 2021. The company reported revenue of $5.1 billion, up 1% year-over-year, and GAAP operating income of $378 million, up 95% sequentially. Adjusted EPS was $0.16. The company generated $416 million in cash flow from operating activities and $305 million in free cash flow.
Orders were up 6% sequentially and up 5% year-over-year.
Revenue was down 1% sequentially and up 1% year-over-year.
GAAP operating income was up 95% sequentially and favorable year-over-year.
Adjusted EBITDA was up 9% sequentially and up 21% year-over-year.
Revenue by Segment
Forward Guidance
Baker Hughes sees continued signs of global economic recovery that should drive further demand growth for oil and natural gas in 2021 and into 2022. However, the pace of growth is being hampered by the COVID-19 Delta variant, global chip shortages, supply chain issues, and energy supply constraints.
Positive Outlook
- Continued signs of global economic recovery
- Further demand growth for oil and natural gas
- Favorable outlook for the oil market, aided by continued spending discipline by the world’s largest producers
- Natural gas and LNG fundamentals remain strong
- Positive case for structural demand growth in natural gas as part of the broader energy transition is becoming increasingly evident
Challenges Ahead
- Pace of growth is being hampered by the COVID-19 Delta variant
- Global chip shortages
- Supply chain issues
Historical Earnings Impact
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Avg. Return Before/After Earnings
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