Baker Hughes Company (NASDAQ:BKR) is on track to deliver its financial results for the fourth quarter and full year ending in 2024 on January 25, 2025. Market participants are particularly focused on the ways the company’s Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments perform amid a dynamic energy landscape.
Arun Jayaram, an analyst with JP Morgan, continues to back Baker Hughes stock with an Overweight rating and has set a price target at $53. Jayaram's outlook emphasizes robust underlying performance in the IET segment and continued resilience in the OFSE business.
His analysis highlights key contract wins in the Middle East during the final quarter of 2024, which bolster the outlook for oilfield services in particular. These contracts reflect ongoing demand in a geopolitically significant and resource-rich region, potentially underpinning steady revenue streams in the OFSE segment.
In the Industrial & Energy Technology segment, Jayaram forecasts sustained momentum through the remainder of 2025. This is driven partly by improvements in supply chain efficiency for aero-derivative turbines, a core product category. These changes are expected to enhance higher-margin revenue opportunities, specifically in Gas Technology Services, which is critical for Baker Hughes’ profitability expansion.
Regarding operational performance, the analyst projects inbound orders for the IET segment to reach approximately $3.6 billion in the fourth quarter, which would culminate in full-year orders totaling $14.5 billion. This figure aligns with the upper boundary of the company’s guidance range of $13.5 billion to $14.5 billion. Jayaram anticipates that the upcoming earnings call will underscore the division’s broad engagement with increasing power generation demands extending beyond their NovaLT turbine applications. These turbines are notably utilized in data center power generation, a sector seeing escalating needs.
Revenue projections for IET stand at $3.47 billion in the quarter, marginally above the company’s guidance estimate of $3.45 billion. EBITDA margins are also expected to slightly exceed forecasts, with the analyst estimating a margin of 19.9% compared to a guidance figure of 19.7%. This translates to an EBITDA of approximately $692 million for the quarter, roughly 1.8% higher than the midpoint guidance of $680 million.
On the Oilfield Services & Equipment side, EBITDA is projected at $649 million, very close to the guidance of $650 million. Combining both segments, total fourth-quarter EBITDA is forecasted at $1.266 billion, just ahead of the consensus Street estimate of $1.259 billion. Free cash flow for the quarter is also anticipated to be strong, coming in around $756 million.
Looking beyond the immediate quarter, Baker Hughes’ 2026 guidance factors in recent mergers and acquisitions activity but notably excludes the expected impact of the GuideTech Solutions (GTLS) merger. Jayaram’s estimates for 2026 project IET revenues of $13.25 billion with EBITDA of $2.67 billion, representing a 20.2% margin. In contrast, he foresees a 6.9% year-over-year revenue decline in the OFSE segment, with EBITDA margin holding steady at around 18%. This leads to a total combined EBITDA figure of $4.82 billion, slightly below the consensus Street estimate of $4.88 billion.
Despite the solid fundamentals, Baker Hughes’ share price reflected a slight retreat on Wednesday, declining by 0.63% to close at $49.07 according to market data. This movement hints at a cautious investor stance ahead of the detailed earnings disclosures.
Market observers will closely monitor the company’s forthcoming earnings call, particularly for commentary on how Baker Hughes plans to navigate margin pressures internationally, including foreign exchange headwinds impacting the Oilfield Services & Equipment segment.
Overall, Baker Hughes’ performance in the fourth quarter and outlook for 2025 signal steady operational strength backed by significant contract activity and optimized product mix, with relatively cautious expectations for oilfield services amid mixed global macro factors.