Baker Hughes (BKR) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and annual results in revenue, free cash flow, adjusted EPS, and EBITDA for 2024, with adjusted EPS up 47% year-over-year and significant margin expansion from strategic execution.

• Booked $28.2 billion in orders for 2024, with IET orders at $13 billion, the second highest in company history.

• Strong order momentum in IET and key technology awards across LNG, compression, flexible pipe, and well construction.

• Announced a 10% increase in quarterly dividend to $0.23, reflecting confidence in earnings and free cash flow growth.

• Major contract wins in LNG and gas infrastructure, including projects with Venture Global, Bechtel, Petrobras, and Woodside.

Financial highlights

• FY 2024 revenue reached $27.8 billion, up 9% year-over-year; Q4 revenue was $7.4 billion.

• Adjusted EBITDA for 2024 was $4.6 billion (16.5% margin), up 22% year-over-year; Q4 adjusted EBITDA was $1.31 billion (17.8% margin), up 20% year-over-year.

• Adjusted diluted EPS increased 47% to $2.35 for the year; Q4 adjusted EPS was $0.70.

• Free cash flow reached $2.3 billion for the year, with a 49% conversion rate.

• Significant reduction in adjusted effective tax rate by ~5 points year-over-year.

Outlook and guidance

• 2025 revenue guidance is $26.9–$28.6 billion, with adjusted EBITDA of $4.7–$5.2 billion and free cash flow conversion targeted at 45%–50%.

• IET orders expected at $12.5–$14.5 billion for 2025, with LNG momentum returning and continued strength in gas infrastructure.

• OFSE 2025 revenue forecasted at $14.5–$15.5 billion, EBITDA at $2.85–$3.15 billion; IET 2025 revenue at $12.4–$13.1 billion, EBITDA at $2.2–$2.4 billion.

• Q1 2025 guidance: revenue of $6.2–$6.8 billion, total EBITDA of $960 million–$1.08 billion.

• Targeting 25%–30% adjusted effective tax rate and $1.4–$1.6 billion in new energy orders for 2025.