v3.25.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company's segments are determined as those operations whose results are reviewed regularly by the CODM, who is the Company's Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company reports its operating results through two operating segments, OFSE and IET. Each segment is organized and managed based upon the nature of the Company's markets and customers and consists of similar products and services. These products and services operate across upstream oil and gas and broader energy and industrial markets.
OILFIELD SERVICES & EQUIPMENT
OFSE provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction, which encompasses drilling services, drill bits, and drilling & completions fluids; Completions, Intervention, and Measurements, which encompasses well completions, pressure pumping, and wireline services; Production Solutions, which spans artificial lift systems and oilfield & industrial chemicals; and Subsea & Surface Pressure Systems, which encompasses subsea projects and services, surface pressure control, and flexible pipe systems. Beyond its traditional oilfield concentration, OFSE is expanding its capabilities and technology portfolio to meet the challenges of a net-zero future. These efforts include expanding into new energy areas such as geothermal and carbon capture, utilization and storage, strengthening its digital architecture and addressing key energy market themes.
INDUSTRIAL & ENERGY TECHNOLOGY
IET provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas ("LNG") operations, downstream refining, and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors. IET also provides equipment, software, and services that serve a wide range of industries including petrochemical and refining, nuclear, aviation, automotive, mining, cement, metals, pulp and paper, and food and beverage. IET is organized into five product lines - Gas Technology Equipment, Gas Technology Services, Industrial Products, Industrial Solutions, and Climate Technology Solutions.
In the first quarter of 2025, the Company changed the internal financial information regularly provided to the CODM to formalize the transition to evaluation of the performance of the Company's reportable segments utilizing segment Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") as the measure of profit. This accompanied a change to the captions and subtotals included on the Company's income statement. The CODM assesses the performance of each segment based on segment EBITDA, which is defined as income (loss) before income taxes and before the following: net interest expense, costs associated with significant restructuring programs, depreciation and amortization, and unallocated corporate costs and other income (expense). The CODM uses segment EBITDA as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. Accounting policies have been applied consistently by all segments within the Company for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance.
Summarized financial information for the Company's segments is shown in the following tables.
Three Months Ended June 30,Six Months Ended June 30,
20252025
OFSE
IET
Total
OFSE
IET
Total
Revenue
$3,617 $3,293 $6,910 $7,116 $6,221 $13,337 
Cost of goods and services sold
(2,891)(2,389)(5,280)(5,710)(4,501)(10,211)
Research and development costs
(65)(96)(161)(126)(181)(307)
Selling, general and administrative
(219)(283)(502)(440)(567)(1,007)
Other income (expense)
1 4 5 1 5 6 
Add: Depreciation and amortization
233 56 289 459 109 568 
Segment EBITDA$677 $585 $1,262 $1,300 $1,086 $2,386 
Three Months Ended June 30,Six Months Ended June 30,
20242024
OFSE
IET
Total
OFSE
IET
Total
Revenue
$4,011 $3,128 $7,139 $7,794 $5,763 $13,557 
Cost of goods and services sold
(3,200)(2,268)(5,468)(6,253)(4,172)(10,425)
Research and development costs
(63)(95)(158)(131)(191)(322)
Selling, general and administrative
(255)(323)(578)(495)(628)(1,123)
Add: Depreciation and amortization
223 55 278 445 111 556 
Segment EBITDA
$716 $497 $1,213 $1,360 $883 $2,243 
Reconciliation of segment EBITDA to Net Income Attributable to Baker Hughes Company:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
OFSE$677 $716 $1,300 $1,360 
IET
585 497 1,086 883 
Total segment
1,262 1,213 2,386 2,243 
Corporate costs (1)
(78)(83)(163)(170)
Restructuring
— (2)— (2)
Other income (expense), net (2)
130 26 (11)48 
Depreciation and amortization
(293)(283)(579)(566)
Interest expense, net(54)(47)(105)(88)
Income before income taxes
967 824 1,528 1,465 
Provision for income taxes(256)(243)(408)(421)
Net income
711 581 1,120 1,044 
Less: Net income attributable to noncontrolling interests10 2 17 10 
Net income attributable to Baker Hughes Company
$701 $579 $1,103 $1,034 
(1)Corporate costs are primarily reported in "Selling, general and administrative" in the condensed consolidated statements of income (loss) and exclude $5 million and $6 million of depreciation and amortization for the three months ended June 30, 2025 and 2024, respectively, and $11 million and $10 million for the six months ended June 30, 2025 and 2024, respectively.
(2)Other income (expense), net excludes immaterial amounts recorded within Segment EBITDA and corporate costs for the three and six months ended June 30, 2025. See "Note 17. Other (Income) Expense, Net" for further information.
The following table presents total assets:
Assets
June 30, 2025December 31, 2024
OFSE
$18,440 $18,781 
IET
13,891 13,838 
Total segment
32,331 32,619 
Corporate and eliminations (1)
6,409 5,744 
Total$38,740 $38,363 
(1)The assets reported in Corporate and eliminations consist primarily of the Baker Hughes trade name, cash, and tax assets. It also includes adjustments to eliminate intercompany investments and receivables reflected within the total assets of each of the reportable segments.
The following table presents depreciation and amortization:
Three Months Ended June 30,Six Months Ended June 30,
Depreciation and amortization2025202420252024
OFSE
$233 $223 $459 $445 
IET
56 55 109 111 
Total segment289 278 568 556 
Corporate5 6 11 10 
Total$293 $283 $579 $566 
The following table presents capital expenditures:
Three Months Ended June 30,Six Months Ended June 30,
Capital expenditures
2025202420252024
OFSE
$213 $217 $414 $476 
IET
69 65 154 135 
Total segment282 282 568 611 
Corporate19 10 33 14 
Total$301 $292 $601 $625