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October 25, 2025 • 3 min read
Baker Hughes, a key player in the global energy technology landscape, recently released its financial results for the third quarter of 2025. By diving into its latest 10-Q filing, we can get a clear picture of the company's performance, highlighting its challenges and successes in a dynamic market.
For the quarter ending September 30, 2025, Baker Hughes reported total revenue of $7.0 billion, nearly flat compared to the same period last year. However, net income saw a decline, landing at $617 million, down from $774 million in Q3 2024.
This flow diagram provides a visual breakdown of how the company's revenue for the quarter was allocated across various costs and expenses to arrive at its net income.
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In the chart, the "Unallocated" cost of revenue, a minor item at $5 million, represents corporate-level costs that aren't assigned to a specific business division, helping to reconcile the segment data with the company's consolidated results.
The company's performance is a story of two distinct segments moving in different directions.
Industrial & Energy Technology (IET): This segment was the star of the quarter, posting revenue of $3.4 billion, a robust 15% increase year-over-year. The IET segment, which provides technology and services for gas, LNG, and industrial applications, generated $580 million in operating income, demonstrating significant strength and driving the company's growth.
Oilfield Services & Equipment (OFSE): In contrast, the OFSE division, which focuses on products and services for oil and gas exploration and production, faced headwinds. Its revenue fell by 8% to $3.6 billion. The company noted "soft operator activity" and constrained global upstream spending as contributing factors. Despite the revenue dip, this segment remained profitable with an operating income of $450 million.
While total revenue remained stable, the drop in net income is noteworthy. A significant factor was a swing in "Other (income) expense, net," which went from a $134 million income gain in Q3 2024 to a $71 million expense this quarter. This non-operating line item, which includes changes in the value of investments and transaction-related costs, accounted for a substantial portion of the year-over-year decline in profitability.
Geographically, the OFSE segment saw varied performance. The Middle East and Asia region remained a strong market with revenue of $1.45 billion. However, the Europe/CIS/Sub-Saharan Africa region experienced a notable decline. It's important to note that the filing does not provide a geographical breakdown for the high-performing IET segment.
Baker Hughes' third-quarter results paint a picture of a company successfully balancing weakness in one core area with significant strength in another. The robust growth in the Industrial & Energy Technology segment is offsetting the softness in the traditional oilfield services market. This strategic diversification appears to be a key asset, providing resilience in a fluctuating energy landscape. As the market continues to evolve, the performance of the IET segment will be a critical indicator of Baker Hughes' future growth trajectory.
Last updated: October 25, 2025