Released on October 25, 2023, Baker Hughes Co (BKR, Financial)'s Q3 2023 earnings report shows a significant increase in orders and revenue compared to the same period last year. The company's orders for the quarter reached $8.5 billion, marking a 40% YoY increase. The revenue for the quarter stood at $6.6 billion, up 24% YoY. The net income attributable to Baker Hughes Co (BKR) was $518 million for the quarter, a significant increase from the previous year.
Financial Performance Highlights
According to the earnings report, Baker Hughes Co (BKR, Financial) saw a GAAP diluted earnings per share of $0.51 for the quarter. The adjusted diluted earnings per share (a non-GAAP measure) was $0.42 for the quarter. The company's adjusted EBITDA (a non-GAAP measure) for the quarter was $983 million, up 30% YoY. The cash flows generated from operating activities were $811 million for the quarter, and the free cash flow (a non-GAAP measure) for the quarter was $592 million.
Company's Commentary
We were pleased with our third quarter results and remain optimistic on the outlook. We maintained strong orders performance in both Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE), with large awards coming from Venture Global in Liquefied Natural Gas (LNG) and VÃ¥r Energi in subsea. We also delivered strong operating results at the upper end of our EBITDA* guidance range, booked almost $100 million of new energy orders and generated $592 million of free cash flow*. We continue to see positive momentum across our portfolio despite persisting global economic uncertainty," said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of the company's performance. The tables indicate that the company's orders increased by 14% sequentially and 40% YoY. The net income attributable to Baker Hughes Co (BKR, Financial) increased by 26% sequentially. The adjusted net income attributable to Baker Hughes Co (BKR) (a non-GAAP measure) increased by 8% sequentially and 62% YoY. The operating income increased by 39% sequentially.
Analysis of the Company's Performance
The company's performance in Q3 2023 shows a significant improvement compared to the same period last year. The increase in orders and revenue indicates a strong demand for the company's services. The increase in net income suggests that the company has been able to effectively manage its costs and improve its profitability. The approval of a quarterly cash dividend also demonstrates the company's commitment to returning value to its shareholders.
Explore the complete 8-K earnings release (here) from Baker Hughes Co for further details.
