Baker Hughes Co (NASDAQ:BKR) stock fell 1.82% (As on October 24, 11:22:54 AM UTC-4, Source: Google Finance) though the company reported third-quarter earnings that exceeded analyst expectations. This performance reflects continued momentum from the Business System deployment, positive trends in Gas Technology, and strong outperformance in U.S. land, where the leverage to production-related activity gives the company a clear advantage. The company reported adjusted EBITDA of $1.24 billion, up 2% YoY, while operating cash flow reached $929 million. Baker Hughes achieved a book-to-bill ratio of 1.2 for the quarter, indicating strong future revenue potential from current orders. The company’s remaining performance obligations (RPO) reached $35.3 billion, including a record $32.1 billion in IET RPO. Within IET RPO, Gas Technology Equipment and Gas Technology Services was $11.8 billion and $15.7 billion, respectively. During the quarter, Baker Hughes announced its intent to acquire Chart Industries for approximately $13.6 billion, a significant portfolio expansion move. The company also secured major contracts, including equipment orders for NextDecade’s Rio Grande LNG Facility and Sempra Infrastructure’s Port Arthur project.

Further, the company continues to benefit from strong market tailwinds in LNG, power generation, and offshore, securing over $4 billion of IET orders for only the third time in the history, along with record SSPS orders in the quarter. IET backlog grew 3% sequentially, reaching a new record of $32.1 billion – further reinforcing the durability and visibility of the growth outlook in IET. BKR secured almost $11 billion in orders during the first three quarters.

BKR in the third quarter of FY25 has reported the adjusted earnings per share of 68 cents, beating the analysts’ estimates for the adjusted earnings per share of 62 cents. The company had reported the adjusted revenue growth of 1 percent to $7 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $6.82 billion. The increase in revenue year-over-year was driven by an increase in IET, partially offset by a decrease in OFSE. Net income decreased $91 million, or 13% sequentially, and decreased $157 million, or 20% year-over-year. Cash flow from operating activities was $929 million for the third quarter of 2025. Free cash flow for the quarter was $699 million. Capital expenditures, net of proceeds from disposal of assets, were $230 million for the third quarter of 2025, of which $148 million was for OFSE and $67 million was for IET.