Baker Hughes reported first-quarter earnings that exceeded analyst expectations, with overall company revenue increasing by 2% year-over-year to $6.59 billion, surpassing projections of approximately $6.4 billion. Adjusted net income rose by 12% to $573 million, while adjusted EBITDA grew at a similar rate to $1.16 billion, above analyst estimates of $1.05 billion.

Segment Performance

The revenue growth was primarily driven by the industrial and energy technology (IET) segment, which includes the liquefied natural gas business. This division posted a 14% surge in revenue to $3.35 billion. In contrast, the oilfield services and equipment (OFSE) segment experienced a 7% year-over-year decline in revenue to $3.24 billion. The OFSE segment was particularly impacted by disruptions from the ongoing Middle East war, with revenue from the Middle East and Asia dropping by 19% year-over-year to $1.15 billion. Baker Hughes did not provide a geographic breakdown for IET revenue.

Management Commentary and Outlook

CEO Lorenzo Simonelli stated that the company will continue to prioritize the safety and wellbeing of employees and their families in the Middle East. He noted that while the conflict presents near-term challenges, it reinforces energy security as a priority, which is expected to support structural growth in upstream and global energy infrastructure spending. Baker Hughes is scheduled to host its first-quarter earnings call on Friday.