Baker Hughes delivered strong Q2 2025 results with adjusted EBITDA rising to $1.21 billion, a 7% year-over-year increase, and margins improving by 170 basis points year-over-year.
Free cash flow generated was $239 million, with $423 million returned to shareholders including $196 million in share repurchases.
GAAP diluted EPS was $0.71, and adjusted EPS was $0.63, up 11% year-over-year.
IET orders totaled $3.5 billion in the quarter, with backlog reaching a record $31.3 billion, up 3% sequentially.
IET revenue increased 5% year-over-year to $3.3 billion, with EBITDA growth outpacing revenue at 18% year-over-year.
Industrial & Energy Technology (IET) segment margins expanded by 190 basis points year-over-year to 17.8%, driven by strong order momentum and operational execution.
OFSE revenue increased 3% sequentially to $3.6 billion, with EBITDA margins expanding 90 basis points sequentially to 18.7%.
Oilfield Services & Equipment (OFSE) segment saw a 90 basis points sequential margin improvement with revenue growth in International and Subsea & Surface Pressure Systems.
Adjusted earnings per share (EPS) for Q2 2025 increased 21% year-over-year to $1.04, marking the fourth consecutive quarterly increase following the Florida City Gas acquisition.
Adjusted gross margin rose 13% to approximately $143 million, driven by investments in transmission and distribution infrastructure, organic growth, and regulatory initiatives.
Adjusted net income increased 26% to approximately $24 million compared to Q2 2024.
Depreciation and amortization expenses increased by $0.14 per share, reflecting the absence of RSAM-related depreciation expense reduction this quarter compared to last year.
Regulated segment adjusted gross margin grew 14% to about $118 million, with operating income up 28% to approximately $52 million.
Unregulated Energy segment's adjusted gross margin increased 7% to approximately $25 million, supported by Marlin Virtual Pipeline services and Full Circle Dairy RNG production.
Kinetik reported adjusted EBITDA of $243 million in Q2 2025, with distributable cash flow of $153 million and free cash flow of $8 million.
Leverage ratio stood at 3.6x at the end of Q2, following a refinancing of bank debt and $173 million in share repurchases.
Midstream Logistics segment EBITDA increased 3% year-over-year to $151 million, driven by higher processed gas volumes from Northern Delaware assets.
Pipeline Transportation segment EBITDA rose 3% year-over-year to $97 million, benefiting from increased ownership in EPIC and outperformance at PHP, partially offset by the sale of Gulf Coast Express stake.
Total capital expenditures for Q2 were $126 million, with full-year 2025 CapEx guidance tightened to $460 million to $530 million.
Capital expenditures were $10 million, elevated due to construction of a new manufacturing facility in Batam, Indonesia.
Cash flow from operations grew 61% sequentially to $15 million; free cash flow was $8 million.
Completion and Production Services segment revenues were $29 million with adjusted EBITDA of $8 million and a 28% margin, benefiting from facility and equipment sale gains.
Downhole Technologies segment revenues were $29 million with $1 million adjusted EBITDA, impacted by noncash lease and impairment charges.
Net income was $3 million or $0.05 per share, including $3 million of charges and credits; adjusted net income was $5 million or $0.09 per share.
No borrowings were outstanding on the revolving credit facility as of June 30, 2025.
Offshore/Manufactured Products segment revenues were $107 million with adjusted EBITDA of $21 million and a 20% margin, up from 19% in Q1.
Oil States generated revenues of $165 million and adjusted consolidated EBITDA of $21 million in Q2 2025.
The company repurchased $7 million of common stock and $15 million of convertible senior notes during the quarter.
Dafinchi