Key Takeaways:
Baker Hughes Co. posted adjusted earnings of 64 cents per share for the second quarter, surpassing the 50-cent consensus estimate by 28%, as growth in its industrial and energy technology business offset lower drilling activity tied to Middle East disruptions.
"The IET segment continues to deliver strong order momentum, with record backlogs supporting our outlook," Chief Executive Officer Lorenzo Simonelli said in a statement Sunday.
The oilfield services provider's results compared with the average analyst estimate compiled by LSEG. The company did not disclose quarterly revenue in its preliminary earnings release. The Zacks Consensus Estimate had projected revenue of $6.49 billion, which would represent a 6.1% decline from the year-ago period.
Baker Hughes shares have gained 24% year to date, giving the Houston-based company a market capitalization of about $55.6 billion. The stock has benefited from rising oil prices, with West Texas Intermediate crude averaging $84.38 a barrel in the week before the report, up 6.5% from the prior week.
The IET segment, which supplies gas turbines and power equipment for data centers, booked $4.89 billion in orders during the first quarter and carried a $33.1 billion backlog. The division's power systems unit has secured orders for 60 NovaLT turbines tied to data center power demand, a pipeline totaling 1 gigawatt.
The earnings beat signals that Baker Hughes is capturing demand from the AI infrastructure buildout even as geopolitical risks weigh on traditional drilling activity in the Middle East. Investors will watch the company's full quarterly filing for segment-level margins and updated guidance on IET order momentum.
This article is for informational purposes only and does not constitute investment advice.
