Baker Hughes CoBKR

Baker Hughes Co Revenue Disclosure

10-KFiled Feb 5, 20262 min read
PROGRESS COLLECTIONS AND DEFERRED INCOME
Contract liabilities include progress collections, which reflect billings in excess of revenue, and deferred income on long-term contracts to construct technically complex equipment and provide long-term product service agreements and extended maintenance arrangements. Contract liabilities consist of the following at December 31:
20252024
Equipment contracts and other service agreements$5,249 $5,047 
Long-term product service agreements507 503 
Progress collections5,756 5,550 
Deferred income148 122 
Progress collections and deferred income (contract liabilities)$5,904 $5,672 
Revenue recognized during the years ended December 31, 2025 and 2024 that was included in the contract liabilities at the beginning of the year was $4,315 million and $4,398 million, respectively.
REVENUE RELATED TO CONTRACTS WITH CUSTOMERS
DISAGGREGATED REVENUE
The Company disaggregates its revenue from contracts with customers by product line for both the OFSE and IET segments, as the Company believes this best depicts how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. In addition, management views revenue from contracts with customers for OFSE by geography based on the location to where the product is shipped or the services are performed.
The series of tables below present the Company's revenue disaggregated by these categories.
Total Revenue202520242023
Well Construction$3,646 $4,145 $4,387 
Completions, Intervention, and Measurements
3,750 4,154 4,170 
Production Solutions3,806 3,860 3,854 
Subsea & Surface Pressure Systems3,122 3,470 2,950 
Oilfield Services & Equipment14,324 15,628 15,361 
Gas Technology Equipment
6,619 5,693 4,232 
Gas Technology Services
3,028 2,797 2,600 
Total Gas Technology9,647 8,490 6,832 
Industrial Products
1,991 2,040 1,962 
Industrial Solutions
1,123 1,065 983 
Controls (1)
— — 41 
Total Industrial Technology3,114 3,105 2,987 
Climate Technology Solutions
647 605 326 
Industrial & Energy Technology13,409 12,201 10,145 
Total$27,733 $27,829 $25,506 
(1)The sale of the Company's controls business was completed in April 2023.
Oilfield Services & Equipment Geographic Revenue202520242023
North America$3,773 $3,955 $4,116 
Latin America2,423 2,609 2,761 
Europe/CIS/Sub-Saharan Africa2,455 3,250 2,655 
Middle East/Asia5,673 5,814 5,829 
Oilfield Services & Equipment$14,324 $15,628 $15,361 
REMAINING PERFORMANCE OBLIGATIONS
As of December 31, 2025, the aggregate amount of the transaction price allocated to the unsatisfied (or partially unsatisfied) performance obligations was $35.9 billion. As of December 31, 2025, the Company expects to recognize revenue of approximately 59%, 74%, and 89% of the total remaining performance obligations within 2, 5, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as the Company fulfills the related remaining performance obligations.

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 4, 2025
2023Feb 5, 2024
2022Feb 14, 2023
2021Feb 11, 2022
2020Feb 25, 2021
2019Feb 13, 2020
2018Feb 19, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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