Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates

Overview

• Energy technology firm's Q2 revenue fell 2% yr/yr, less than analyst expectations

• Adjusted EPS beat analyst expectations

• Company completed previously announced Chart Industries acquisition in all-cash transaction

Outlook

• Baker Hughes expects to achieve the midpoint of its full-year guidance despite Middle East uncertainty

• Company raises full-year IET order guidance and increases Horizon 2 IET orders outlook to over $45 bln

• Baker Hughes sees continued robust demand in power systems, LNG, and energy infrastructure markets

Result Drivers

• STRONG IET ORDERS - Co said record IET orders were driven by robust demand in power systems and LNG, with strong momentum in power generation

• COST AND PRODUCTIVITY INITIATIVES - Sequential and year-over-year increases in adjusted net income and EBITDA were primarily driven by higher volume, price, productivity, FX, and cost-out initiatives, partially offset by inflation and lower volume

• BUSINESS DISPOSITIONS - Year-over-year revenue decline mainly due to the impact of the Precision Sensors Instrumentation and Surface Pressure Control dispositions

Company press release: ID:nGNX6dp935

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)