Baker Hughes Q4 Net Income Drops 26% on Oilfield Revenues

SECAUCUS, NJ (DTN) – Baker Hughes Co. reported that a record surge in industrial and energy technology orders failed to offset a year-on-year decline in oilfield services revenue.

Net income for the final quarter of 2025 dropped 26% to $876 million from $1.18 billion a year earlier, the company announced in financial results released Sunday (1/26).

The firm attributed the results to a production-oriented business shift as macro-driven softness continues to weigh on the North American oilfield services and equipment (OFSE) segment.

Revenue for the OFSE segment fell to $3.57 billion from $3.87 billion, reflecting a broader industry slowdown in domestic drilling and well completion activity through late 2025.

However, the company secured a record $32.4 billion backlog in its industrial and energy technology (IET) unit, driven by massive international demand for offshore and LNG infrastructure.

New IET orders hit $4 billion during the quarter, including major contracts for liquefaction equipment in the U.S. and gas separation projects in Kazakhstan, Baker Hughes said.

CEO Lorenzo Simonelli stated that the company’s evolution toward a lifecycle-oriented portfolio is reducing its reliance on the cyclical nature of traditional oil and gas drilling.

Baker Hughes expects this shift toward long-cycle gas projects and offshore production solutions to drive earnings growth through 2026 despite flat expectations for the domestic services market.