Baker Hughes released its third-quarter 2024 results, showing strong financial indicators. The company’s revenue reached $6.9 billion, up 4% year-over-year. Net income attributable to Baker Hughes totaled $766 million, an increase of 48% compared to Q3 2023.
A key highlight of this quarter is the 23% rise in adjusted EBITDA, which reached $1.2 billion. This reflects ongoing margin improvement and the company’s ability to control costs, despite persistent inflationary pressures.
Remarkable performance across key segments
The Industrial & Energy Technology (IET) segment recorded solid orders, notably securing a major contract with Dubai Petroleum to supply 10 compressor units for the Margham Gas storage facility. This contract underscores Baker Hughes’ leadership in compression technologies and sustainable energy solutions.
The Oilfield Services & Equipment (OFSE) segment also demonstrated strong performance. It strengthened its relationship with Petrobras in Brazil by securing contracts for the supply of flexible pipe systems in the Santos Basin. These systems play a crucial role in expanding Petrobras’ operations, and most of the equipment will be manufactured locally, reinforcing Baker Hughes’ commitment to local economies.
Strong and sustainable financial results
Baker Hughes continues to generate significant cash flow, with free cash flow of $754 million for the quarter, up 27% year-over-year. This financial strength enables the company to continue its strategic investments while maintaining significant returns for shareholders, as evidenced by the $361 million returned to investors during the quarter, including $152 million in share buybacks.
The company also confirmed a total EBITDA margin of 17.5%, the highest since its inception, illustrating the success of its cost optimization and margin improvement strategies.
Promising outlook for the remainder of the year
Despite a 22% year-over-year decline in total orders, Baker Hughes remains optimistic for the rest of the year. Orders in the IET segment remain strong, with high demand for gas infrastructure and offshore projects. This momentum is bolstered by the company’s focus on energy transition and greenhouse gas emission reduction technologies.
CEO Lorenzo Simonelli expressed confidence in the company’s ability to meet its 2024 financial targets, emphasizing the growing importance of recurring revenues from IET services, as well as the improved cost structure, which makes Baker Hughes less susceptible to economic cycles.
