Baker Hughes exceeded Wall Street expectations in the second quarter, driven by sustained demand for liquefied natural gas (LNG) equipment, gas infrastructure and power generation technologies as global electricity needs continue to grow.
The U.S. oilfield services and energy technology company reported earnings of 64 cents per share, beating analysts’ estimate of 50 cents, while adjusted EBITDA rose 2% year-on-year to $1.23 billion, above the upper end of its guidance range.
Despite a 2% decline in quarterly revenue to $6.74 billion, higher pricing, productivity improvements and cost-control measures helped lift adjusted net income by 3% to $640 million and supported margins.
Baker Hughes also recorded a surge in new business, with total orders jumping 49% to a record $10.5 billion. Orders for its industrial and energy technology division reached an all-time high of $7.1 billion, pushing the company’s order backlog up 19%.
The strong order momentum increased remaining performance obligations to $40.1 billion, reflecting a growing pipeline of contracted work yet to be delivered, including a record $37.1 billion for its industrial and energy technology segment.
Chief Executive Lorenzo Simonelli said demand remained robust across data centres, gas infrastructure and upstream energy markets, helping the company navigate operational challenges linked to uncertainty in the Middle East.
Reflecting confidence in continued demand, Baker Hughes raised its full-year outlook for industrial and energy technology orders and now expects total orders under its Horizon 2 growth plan to exceed $45 billion.
The company also reaffirmed confidence in achieving the midpoint of its full-year guidance, citing favourable market fundamentals despite geopolitical risks.
Cash generation improved significantly during the quarter, with operating cash flow more than doubling to $1.35 billion, while free cash flow climbed to $1.11 billion from $239 million a year earlier.
The results underscore how rising investment in LNG, power infrastructure and energy security projects is helping offset softer revenue growth in traditional oilfield services while strengthening Baker Hughes’ long-term earnings outlook.