NYSE$BKR

Baker Hughes Company · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 results with increased orders and revenue.

Baker Hughes reported strong second-quarter results with a 25% increase in revenue year-over-year, driven by higher volume in both Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments. The company maintained strong order momentum in IET and OFSE, particularly within Subsea & Surface Pressure Systems (SSPS), and generated $623 million in free cash flow.

  • Orders increased by 28% year-over-year, reaching $7.5 billion.
  • Revenue rose by 25% year-over-year to $6.3 billion.
  • Net income attributable to Baker Hughes Company was $410 million, a significant increase year-over-year.
  • Free cash flow for the quarter was $623 million.

Headline financials

Total Revenue

$6.32B

Previous: $5.05B+25.1%
EPS (adj)

$0.39

Previous: $0.11+254.5%
Free Cash Flow

$410M

Previous: -$839M+148.9%
Net Income

$410M

Previous: -$839M+148.9%
Operating Income

$514M

Previous: -$25M+2156.0%
Gross Profit

-$15M

Previous: -$31M+51.6%
Cash & Equivalents

$2.81B

Previous: $2.93B-4.2%
Total Assets

$36.1B

Previous: $33.8B+6.9%

Revenue & EPS history

Baker Hughes · Revenue · Quarterly

$6.32B

Q2 2023+25.1%vs Q2 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Baker Hughes · $3.88B total across 1 segment · Q2 2023

  • Oilfield Services
    $3.88B+44.2%

Forward guidance

Baker Hughes maintains a constructive outlook for global upstream spending in 2023, expecting market softness in North America to be offset by strength in international and offshore markets. The company is confident in the LNG outlook, anticipating solid demand growth led by Europe and Asia, and expects the LNG market to exceed 65 million tons per annum (MTPA) of FIDs this year with a similar level of activity in 2024.

Tailwinds

  • Constructive outlook for global upstream spending in 2023.
  • Strength in international and offshore markets offsetting North America softness.
  • Confident in the LNG outlook with solid demand growth from Europe and Asia.
  • LNG market expected to exceed 65 million tons per annum (MTPA) of FIDs this year.
  • Potential for the LNG cycle to extend for several years with new international opportunities.

Headwinds

  • Growing economic uncertainty continues to drive commodity price volatility globally.
  • Lower oil prices over the first half of the year.
  • Market softness expected in North America.
  • Cost inflation in both segments.
  • Higher equipment mix and higher R&D spend.

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 2023

Historical avgQ2 2023

+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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