After beating Wall Street's profit projections for Q3, Baker Hughes (BKR, Financial) projected greater pretax margins for Q4 and through 2025. The company's shares climbed 3.5% in response to the positive projection.
Along with better margins in its oilfield services and LNG equipment divisions, the oil giant credited its optimistic outlook to a healthy order backlog, highlighted by a more than doubling of orders in its non-LNG gas technology business. Baker Hughes also expressed hope in its rising new energy orders, pointing out that several American and foreign LNG projects are moving toward finality in 2025
"We feel good about 2025 with most sectors similar to 2024 showing growth," stated CEO Lorenzo Simonelli on the results call. The company's ongoing success depends on steady offshore business, which it expects.
Looking ahead, Baker Hughes projects Q4 total EBITDA of around $1.26 billion at the midpoint of its range and is still on track to meet its 20% margin objective by 2026.
