NYSE$BKR

Baker Hughes Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Baker Hughes' Q2 2022 results were announced, revealing a mix of challenges and successes across its product companies, with overall revenue declining slightly year-over-year but showing sequential growth.

Baker Hughes reported mixed results for Q2 2022. Revenue reached $5.0 billion, up 4% sequentially but down 2% year-over-year. The company experienced a GAAP operating loss of $25 million, while adjusted operating income was $376 million. Adjusted EPS was $0.11. Cash flow from operating activities was $321 million, and free cash flow was $147 million.

  • Orders were $5.9 billion, down 14% sequentially but up 15% year-over-year.
  • Revenue was $5.0 billion, up 4% sequentially but down 2% year-over-year.
  • GAAP operating loss was $25 million, while adjusted operating income was $376 million.
  • Adjusted earnings per share was $0.11.

Headline financials

Total Revenue

$5.05B

Previous: $5.14B-1.8%
EPS (adj)

$0.11

Previous: $0.10+10.0%
Free Cash Flow

-$839M

Previous: -$68M-1133.8%
Net Income

-$839M

Previous: -$68M-1133.8%
Operating Income

-$25M

Previous: $194M-112.9%
Gross Profit

-$31M

Previous: $0.00
Cash & Equivalents

$2.93B

Previous: $3.91B-25.2%
Total Assets

$33.8B

Previous: $36.7B-8.0%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$5.05B

Q2 2022-1.8%vs Q2 2021
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Baker Hughes · $2.69B total across 1 segment · Q2 2022

  • Oilfield Services
    $2.69B+14.0%

Forward guidance

Baker Hughes is preparing for various scenarios in the oil markets, expecting continued volatility but anticipating strong activity levels driven by the LNG cycle and upstream spending.

Tailwinds

  • Portfolio is well positioned to benefit from a strong LNG cycle.
  • Multi-year upstream spending cycle expected to drive growth.
  • Continued investment in energy transition and industrial initiatives.
  • Commitment to return 60 to 80% of free cash flow to shareholders.
  • Baker Hughes is preparing for all of these scenarios and will continue to execute on our long-term strategy.

Headwinds

  • Demand outlook for the next 12 to 18 months is deteriorating due to inflation.
  • Central banks are aggressively raising interest rates to combat inflation.
  • Potential need to replace Russian barrels creates uncertainty.
  • Broader supply constraints can realistically keep commodity prices at elevated levels.
  • Outlook for oil prices remains volatile.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.5%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

58%

31 / 53 earnings

Positive

+8.1%

Q3 2013

Best reaction

-11.7%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+6.7%+2.4%
Q4 2025+4.3%+3.9%+20.2%
Q3 2025-3.2%-1.2%-0.0%
Q2 2025-1.0%-0.9%+7.5%
Q1 2025-6.4%-5.6%-4.2%
Q4 2024+3.5%+9.5%-0.0%
Q3 2024+1.5%+2.9%+23.1%
Q2 2024+7.9%+9.6%+0.9%
Q1 2024+0.6%+1.2%-2.0%
Q4 2023-3.0%-1.6%-5.7%
Q3 2023+1.6%+1.4%-1.7%
Q2 2023-1.1%+2.3%+0.6%
Q1 2023+2.0%+2.3%-4.5%
Q4 2022-3.0%+0.7%-3.3%
Q3 2022+7.3%+8.1%+20.5%
Q2 2022-11.7%-13.5%-10.8%
Q1 2022-10.4%-16.3%-6.0%
Q4 2021+3.6%+6.2%+10.7%
Q3 2021-9.7%-6.4%-16.1%
Q2 2021-0.8%+4.2%+1.9%
Q1 2021+1.6%+3.2%+30.9%
Q4 2020-3.1%-10.0%+2.2%
Q3 2020+6.1%+2.0%+33.6%
Q2 2020+2.3%+0.1%-5.3%
Q1 2020+6.4%+6.7%+18.6%
Q4 2019+1.0%-3.0%-9.7%
Q3 2019-2.3%+2.1%+2.4%
Q2 2019+3.1%-2.9%-11.5%
Q1 2019-9.3%-7.1%-18.5%
Q4 2018+1.7%+4.6%+13.2%
Q3 2018+0.4%-2.0%-13.1%
Q2 2018+2.3%+4.7%-2.4%
Q1 2018+3.7%+4.2%+6.4%
Q4 2017-9.8%-12.3%-21.7%
Q3 2017-5.1%-9.3%-6.8%
Q2 2017+2.0%-2.2%-8.0%
Q1 2017+1.4%+1.2%-6.5%
Q4 2016-0.8%-0.8%-6.0%
Q3 2016+5.0%+13.4%+18.9%
Q2 2016+7.4%+4.8%+14.2%
Q1 2016+4.5%
Q4 2015+6.6%
Q3 2015+4.5%
Q2 2015-2.0%
Q1 2015-1.9%
Q4 2014+3.1%
Q3 2014-0.9%
Q2 2014-1.5%
Q1 2014+5.9%
Q4 2013+4.9%
Q3 2013+8.1%
Q2 2013-0.6%
Q1 2013-2.6%

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