Baker Hughes (BKR) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with 13% revenue growth to $7.1B, 46% EPS growth, and 25% adjusted EBITDA increase, driven by record IET orders and margin expansion across IET and OFSE.

• Booked record IET orders of $3.5B, with highest non-LNG equipment bookings and major awards from Petrobras and other global clients.

• Returned $375M to shareholders in Q2, including $209M in dividends (up 11% YoY) and $166M in share repurchases.

• Transformation and cost optimization initiatives are driving sustainable margin improvements.

• Progressed on ESG goals, reporting a 28.3% reduction in Scope 1 and 2 emissions since 2019.

Financial highlights

• Q2 2024 revenue was $7.1B, up 13% YoY; adjusted EBITDA $1.13B, up 25% YoY; net income $579M, up 41% YoY.

• Adjusted EPS was $0.57, up 46% YoY; GAAP EPS $0.58.

• Orders reached $7.5B, with IET contributing $3.5B; IET RPO at $30.2B, up 10% YoY.

• Free cash flow was $106M for Q2 and $608M for the first half; cash and cash equivalents at $2.3B.

• Capital expenditures were $242M for the quarter.

Outlook and guidance

• Raised full-year EBITDA guidance midpoint by 5% to $4.525B, driven by IET performance.

• Q3 2024 revenue expected between $6.97B–$7.46B; adjusted EBITDA $1.14B–$1.26B.

• IET orders guidance maintained at $11.5B–$13.5B; full-year IET EBITDA outlook increased by 12% to $1.965B.

• Expects continued growth in new energy solutions, including hydrogen, geothermal, and carbon capture.

• Capital expenditures for 2024 expected to be up to 5% of annual revenue.