The following is a summary of the Baker Hughes Company (BKR) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Baker Hughes reported strengthened Q1 results with EBITDA margins seeing an increase of 100 basis points year-on-year.

• The company registered a 50% growth in EPS year-on-year.

• It booked $239 million of new energy orders and produced over $500 million of free cash flow.

• The IET segment witnessed a 30% increase in EBITDA compared to Q1 2023, marking the highest quarterly year-on-year growth rate in three years.

• Improved EBITDA margins in the OFSE segment by 80 basis points compared to last year.

• The company increased its quarterly dividend by $0.01 to $0.21, marking an 11% increase year-on-year.

• Baker Hughes reported Q1 adjusted EBITDA of $943 million, a 21% increase year-on-year.

• The company returned $368 million to shareholders in Q1 through dividends and share repurchases.

• The net debt to trailing 12-month adjusted EBITDA ratio stood at 0.8x.

Business Progress:

• Baker Hughes is progressing in its transition towards an energy technology company.

• The company launched mature asset solutions, a business that optimizes production from existing assets.

• The company booked over $2.9 billion of orders in Q1 in IET, including large contracts from Aramco and Black & Veatch for Cedar LNG.

• Long term, Baker Hughes expects continuous growth in upstream spending, led by offshore markets in Latin America and West Africa as well as the Middle East.

• The company has future confidence in achieving new energy orders worth between $800 million and $1 billion for the year.

• Baker Hughes is on track to reach its 20% margin targets for both OFSE and IET segments.

• The company sees potential in increasing margins, EBITDA, and returns in the coming years, leading to stronger free cash flow conversion of at least 50%.

• Baker Hughes remains committed to returning 60% to 80% of free cash flow to shareholders.

More details: Baker Hughes IR

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