AI Takeaway
Baker Hughes (BKR) delivered a resilient FY2025 with roughly flat revenue of $27.7B and strong operating cash flow growth of 14.3% to $3.8B, though net income declined 13.1% to $2.6B amid higher investing activity and cost pressures.
Revenue
$27.73B
-0.34% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
BKR's FY2025 revenue of $27.7B was essentially flat year-over-year (down just 0.3% from $27.8B in FY2024), demonstrating resilience in its diversified oilfield services and industrial energy technology portfolio despite a challenging macro environment.
Source: Source: 10-K Income Statement
Net income fell 13.1% to $2.6B from $3.0B in FY2024, suggesting margin compression or elevated non-operating charges, even as the company managed to reduce SG&A by 2.9% to $2.4B and R&D spend by 6.7% to $600M.
Source: Source: 10-K Income Statement
Operating cash flow surged 14.3% to $3.8B in FY2025 (from $3.3B in FY2024), significantly outpacing net income and reflecting healthy working capital management and strong D&A add-backs of $1.2B.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockDespite stable revenues, BKR's net margin declined to 9.3% in FY2025 from approximately 10.7% in FY2024, a drop of ~140 basis points. This compression could reflect pricing pressure, unfavorable product/segment mix, or elevated below-the-line charges such as interest expense or impairments.
Source: Source: 10-K Income Statement & Key Ratios
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Upgrade to unlockReported EPS of $0.78 versus the $0.68 analyst consensus — a +15.1% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $27.73B | $27.83B | -0.34% |
Net Income | $2.59B | $2.98B | -13.13% |
R&D Expense | $600M | $643M | -6.69% |
SG&A Expense | $2.39B | $2.46B | -2.89% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $40.88B | $38.36B | +6.56% |
Current Assets | $18.83B | $17.21B | +9.40% |
Current Liabilities | $13.88B | $12.99B | +6.82% |
Stockholders' Equity | $18.83B | $16.89B | +11.48% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.81B | $3.33B | +14.35% |
Investing Cash Flow | $-2.04B | $-1.02B | -101.18% |
Financing Cash Flow | $-1.48B | $-1.53B | +2.95% |
Share Buybacks | $384M | $484M | -20.66% |
D&A | $1.19B | $1.14B | +4.58% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 9.3% | — | — |
ROE | 13.7% | — | — |
ROA | 6.3% | — | — |
Current Ratio | $1.357 | — | — |
Other companies in Oil & Gas Equipment & Services
Baker Hughes reported FY2025 revenue of $27.7B, essentially flat versus $27.8B in FY2024, while net income declined 13.1% to $2.6B. On the positive side, operating cash flow grew 14.3% to $3.8B, highlighting strong underlying cash generation even as reported earnings came under pressure.
BKR's net income dropped 13.1% to $2.6B in FY2025 despite relatively stable revenue of $27.7B, suggesting the decline was driven by factors below the operating line such as higher interest expense, tax charges, or non-recurring items rather than a deterioration in core business performance. The company did manage to reduce SG&A by 2.9% and R&D by 6.7%, indicating cost discipline at the operating level.
BKR generated $3.8B in operating cash flow in FY2025, up 14.3% from $3.3B in FY2024, which is a strong indicator of business health. However, investing outflows more than doubled to -$2.0B, likely reflecting increased capital expenditures or acquisitions, and the company returned $384M to shareholders through buybacks.
BKR's balance sheet strengthened in FY2025, with total assets growing 6.6% to $40.9B and stockholders' equity rising 11.5% to $18.8B. The current ratio of 1.36x indicates adequate short-term liquidity, and the company's 9.3% net margin and 13.7% ROE suggest a profitable, well-capitalized business, though margin compression warrants monitoring.
Based on the financial data, key risks for BKR include net income margin compression (net margin fell from ~10.7% to 9.3%), a significant increase in capital deployment (investing outflows doubled to -$2.0B), and cyclical exposure to oil and gas customer spending. The company's current ratio of 1.36x also leaves a relatively modest liquidity buffer given elevated investment activity.