Baker Hughes Reports Mixed Q3 Results Driven by Rising LNG Demand

Baker Hughes reported mixed financial results for Q3 2025, with net income down 20% year-over-year due to acquisition-related costs and accounting adjustments, but adjusted net income and EPS modestly increased by 2-3%. Revenue rose slightly to $7.01 billion, driven by a 15% revenue growth in the Industrial & Energy Technology (IET) division, supported by strong demand for LNG and power generation, while the Oilfield Services & Equipment (OFSE) segment saw an 8% decline in sales and a 12% EBITDA drop amid a slowdown in Latin America and Europe. The company achieved a record order backlog of $32.1 billion, including a notable $4 billion backlog for the IET division, reflecting strong momentum especially in LNG infrastructure projects like Rio Grande LNG and Port Arthur Phase 2. Free cash flow was $699 million, down 7% annually but improved sequentially, and management raised full-year order volume guidance above previous expectations. Analysts are optimistic about Baker Hughes' outlook given its leadership in LNG technology and energy infrastructure, with the stock outperforming the market and benefiting from continued global energy demand shifts.