Q4 2025 Baker Hughes Co Earnings Call Transcript
Key Points
- Baker Hughes Co (BKR) reported a record full year adjusted EBITDA of $4.83 billion, demonstrating sustained momentum in their business systems.
- The company achieved a record backlog of $32.4 billion at year-end, with a book-to-bill ratio exceeding 1 times.
- Baker Hughes Co (BKR) generated robust free cash flow of $1.3 billion in the fourth quarter, contributing to a record annual free cash flow of $2.7 billion.
- The Power Systems segment saw significant growth, with orders increasing to $2.5 billion in 2025, including $1 billion tied to data center applications.
- The company maintained strong order momentum in Industrial & Energy Technology (IET), with a record $14.9 billion in orders for the full year.
- Oilfield Services and Equipment (OFSE) margins declined due to prevailing market conditions, with revenue falling by 8% for the full year.
- The company faced macro-driven softness in oilfield services and equipment, impacting overall performance.
- Baker Hughes Co (BKR) anticipates low single-digit declines in global upstream spending in 2026, with North America expected to decline at a mid-single-digit rate.
- The company is facing increased tariff-related costs, impacting margins in the OFSE segment.
- There is ongoing geopolitical and trade-related uncertainty, which could pose risks to future performance.
Good day, ladies and gentlemen, and welcome to the Baker Hughes Company fourth-quarter and full year 2025 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to introduce your host for today's conference, Mr. Chase Mulvehill, Vice President of Investor Relations. Sir, you may begin.
Thank you. Good morning, everyone, and welcome to Baker Hughes fourth-quarter and full year earnings conference call. Here with me are our Chairman and CEO, Lorenzo Simonelli; and our CFO, Ahmed Moghal. The earnings release we issued yesterday evening can be found on our website at bakerhughes.com. We will also be using a presentation with our prepared remarks during this webcast, which can be found on our investor website.
As a reminder, we will provide forward-looking statements during this conference call. These statements are not guarantees of future performance and involve a number of risks and assumptions. Please review our SEC
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