Baker Hughes Reports Strong Adjusted Q4 & FY25 Results, Record Orders & Free Cash Flow, Despite GAAP Net Income Dip
BKR sits 65% above its 52-week low of $33.6 on elevated volume (1.9× avg).
Summary
Baker Hughes announced its fourth-quarter and full-year 2025 financial results, reporting record orders, remaining performance obligations, and free cash flow, alongside growth in adjusted earnings and EBITDA, despite a decline in GAAP net income.
Key Events · Earnings and Guidance · BKR
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Record Operational Performance
The company reported record full-year orders of $29.6 billion, including a record $14.9 billion in IET orders, and a record remaining performance obligations (RPO) of $35.9 billion. Annual free cash flow reached a record $2.7 billion, up 21% year-over-year.
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Mixed Profitability Metrics
Fourth-quarter GAAP diluted EPS decreased 25% year-over-year to $0.88, and full-year GAAP diluted EPS fell 13% to $2.60. However, adjusted diluted EPS increased 12% in Q4 to $0.78 and 11% for the full year to $2.60. Adjusted EBITDA also grew 2% in Q4 and 5% for the full year.
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Positive 2026 Outlook
Baker Hughes anticipates robust IET orders and projects overall organic Adjusted EBITDA growth in the mid-single digits range for 2026, with IET margins expanding to a 20% target.
Analysis · BKR · Energy & Transportation
Baker Hughes delivered a mixed but operationally strong fourth quarter and full-year 2025. While GAAP net income and diluted EPS saw year-over-year declines, the company achieved record orders, remaining performance obligations (RPO), and annual free cash flow. Adjusted earnings and EBITDA showed positive growth, indicating underlying operational strength despite non-GAAP adjustments related to restructuring and fair value changes. The positive outlook for mid-single digit organic Adjusted EBITDA growth in 2026, driven by robust Industrial & Energy Technology (IET) orders, provides a forward-looking positive signal. Investors will likely focus on the strong operational metrics and cash generation, which are crucial for a company trading near its 52-week high, potentially offsetting concerns about the GAAP profitability decline.
At the time of this filing, BKR was trading at $55.59 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $53.2B. The 52-week trading range was $33.60 to $55.31. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.