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Sep 30, 2023

Baker Hughes Q3 2023 Earnings Report

Baker Hughes reported strong Q3 2023 results with increased orders, revenue, and net income compared to the previous year.

Key Takeaways

Baker Hughes announced positive third-quarter results, marked by a 40% increase in orders year-over-year, a 24% increase in revenue, and a significant rise in net income. The company saw strong performance in both Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE), driven by key contracts and overall market improvements.

Orders increased by 40% year-over-year, reaching $8.5 billion.

Revenue increased by 24% year-over-year to $6.6 billion.

Net income attributable to Baker Hughes Company was $518 million, a significant increase year-over-year.

Free cash flow for the quarter was $592 million.

Total Revenue
$6.64B
Previous year: $5.37B
+23.7%
EPS
$0.42
Previous year: $0.26
+61.5%
Cash and Equivalents
$3.2B
Previous year: $2.85B
+12.3%
Free Cash Flow
$592M
Previous year: $417M
+42.0%

Baker Hughes

Baker Hughes

Baker Hughes Revenue by Segment

Baker Hughes Revenue by Geographic Location

Forward Guidance

Baker Hughes remains optimistic about the outlook, anticipating continued growth across both segments, irrespective of the pace of energy transition. The company is focused on enhancing its position as a leading energy technology company and laying the foundation for durable earnings and free cash flow growth.

Positive Outlook

  • Positive momentum across the portfolio.
  • Oil prices have rebounded.
  • Global LNG market remains fundamentally tight.
  • Strong LNG project pipeline.
  • Unique portfolio is set to benefit irrespective of the pace of development.

Challenges Ahead

  • Persisting global economic uncertainty.
  • Economic softness.
  • LNG price spikes.
  • Middle East conflict.
  • Strikes by LNG workers in Australia.