Baker Hughes CoBKR
Baker Hughes Co Segments Disclosure
SEGMENT INFORMATION
The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker ("CODM"), who is the Company's Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company reports its operating results through two operating segments, OFSE and IET. Each segment is organized and managed based upon the nature of the Company's markets and customers and consists of similar products and services. These products and services operate across upstream oil and gas and broader energy and industrial markets. The following is a description of each segment's business operations:
Oilfield Services & Equipment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction, which encompasses drilling
services, drill bits, and drilling & completions fluids; Completions, Intervention, and Measurements, which encompasses well completions, pressure pumping, and wireline services; Production Solutions, which spans artificial lift systems and oilfield & industrial chemicals; and Subsea & Surface Pressure Systems, which encompasses subsea projects and services, surface pressure control, and flexible pipe systems. Beyond its traditional oilfield concentration, OFSE is expanding its capabilities and technology portfolio to meet the challenges of a net-zero future. These efforts include expanding into new energy areas such as geothermal and carbon capture, utilization and storage, strengthening its digital architecture, and addressing key energy market themes.
Industrial & Energy Technology provides technology solutions and services for mechanical-drive, compression, and power-generation applications across the energy industry, including oil and gas, LNG operations, downstream refining, and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors. IET also provides equipment, software, and services that serve a wide range of industries including petrochemical and refining, nuclear, aviation, automotive, mining, cement, metals, pulp and paper, and food and beverage. IET is organized into five product lines - Gas Technology Equipment, Gas Technology Services, Industrial Products, Industrial Solutions, and Climate Technology Solutions.
In the first quarter of 2025, the Company changed the internal financial information regularly provided to the CODM to formalize the transition to evaluation of the performance of the Company's reportable segments utilizing segment Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") as the measure of profit. This accompanied a change to the captions and subtotals included on the Company's income statement. The CODM assesses the performance of each segment based on segment EBITDA, which is defined as income (loss) before income taxes and before the following: net interest expense, costs associated with significant restructuring programs, depreciation and amortization, and unallocated corporate costs and other income (expense). The CODM uses segment EBITDA as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. Accounting policies have been applied consistently by all segments within the Company for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance.
Summarized financial information for the Company's segments is shown in the following tables.
| 2025 | |||||||||||
OFSE | IET | Total | |||||||||
Revenue | $ | 14,324 | $ | 13,409 | $ | 27,733 | |||||
Cost of goods and services sold | (11,532) | (9,594) | (21,126) | ||||||||
Research and development costs | (241) | (359) | (600) | ||||||||
| Selling, general and administrative | (876) | (1,215) | (2,091) | ||||||||
Other income (expense) | 11 | 8 | 19 | ||||||||
Add: Depreciation and amortization | 932 | 233 | 1,165 | ||||||||
Segment EBITDA | $ | 2,618 | $ | 2,482 | $ | 5,100 | |||||
| 2024 | |||||||||||
OFSE | IET | Total | |||||||||
Revenue | $ | 15,628 | $ | 12,201 | $ | 27,829 | |||||
| Cost of goods and services sold | (12,448) | (8,738) | (21,186) | ||||||||
Research and development costs | (260) | (383) | (643) | ||||||||
| Selling, general and administrative | (932) | (1,250) | (2,182) | ||||||||
Add: Depreciation and amortization | 893 | 220 | 1,113 | ||||||||
Segment EBITDA | $ | 2,881 | $ | 2,050 | $ | 4,931 | |||||
| 2023 | |||||||||||
OFSE | IET | Total | |||||||||
Revenue | $ | 15,361 | $ | 10,145 | $ | 25,506 | |||||
Cost of goods and services sold | (12,282) | (7,220) | (19,502) | ||||||||
Research and development costs | (278) | (373) | (651) | ||||||||
| Selling, general and administrative | (1,055) | (1,242) | (2,297) | ||||||||
Add: Depreciation and amortization | 849 | 217 | 1,066 | ||||||||
Segment EBITDA | $ | 2,595 | $ | 1,527 | $ | 4,121 | |||||
Reconciliation of segment EBITDA to Net Income Attributable to Baker Hughes Company: | 2025 | 2024 | 2023 | ||||||||
OFSE | $ | 2,618 | $ | 2,881 | $ | 2,595 | |||||
IET | 2,482 | 2,050 | 1,527 | ||||||||
| Total segment | 5,100 | 4,931 | 4,121 | ||||||||
Corporate costs (1) | (318) | (340) | (359) | ||||||||
Inventory impairment (2) | (22) | (73) | (35) | ||||||||
Restructuring (3) | (215) | (260) | (313) | ||||||||
Other income (expense), net (4) | (262) | 341 | 544 | ||||||||
Depreciation and amortization (3) | (1,184) | (1,136) | (1,087) | ||||||||
| Interest expense, net | (222) | (198) | (216) | ||||||||
Income before income taxes | 2,877 | 3,265 | 2,655 | ||||||||
Provision for income taxes | (253) | (257) | (685) | ||||||||
Net Income | 2,624 | 3,008 | 1,970 | ||||||||
| Less: Net income attributable to noncontrolling interests | 36 | 29 | 27 | ||||||||
Net income attributable to Baker Hughes Company | $ | 2,588 | $ | 2,979 | $ | 1,943 | |||||
(1)Corporate costs are primarily reported in "Selling, general and administrative" in the consolidated statements of income and exclude $23 million, $23 million, and $21 million of depreciation and amortization for the years ended December 31, 2025, 2024, and 2023, respectively.
(2)Charges for inventory impairments are reported in "Cost of goods sold" in the consolidated statements of income.
(3)For the year ended December 31, 2025, $4 million of accelerated depreciation expense related to certain PP&E was recorded in "Restructuring" in the consolidated statements of income. See "Note 20. Restructuring" for further information.
(4)Other income (expense), net excludes immaterial amounts recorded within Segment EBITDA and corporate costs for the years ended December 31, 2025. See "Note 21. Other (Income) Expense, Net" for further information.
The following table presents total assets at December 31:
Assets | 2025 | 2024 | ||||||
OFSE | $ | 18,744 | $ | 18,781 | ||||
IET | 14,934 | 13,838 | ||||||
| Total segment | 33,678 | 32,619 | ||||||
Corporate and eliminations (1) | 7,203 | 5,744 | ||||||
| Total | $ | 40,881 | $ | 38,363 | ||||
(1)The assets reported in Corporate and eliminations consist primarily of the Baker Hughes trade name, cash, and tax assets. It also includes adjustments to eliminate intercompany investments and receivables reflected within the total assets of each of the reportable segments.
The following table presents depreciation and amortization for the year ended December 31:
Depreciation and amortization | 2025 | 2024 | 2023 | ||||||||
OFSE | $ | 932 | $ | 893 | $ | 849 | |||||
IET | 233 | 220 | 217 | ||||||||
Total segment | 1,165 | 1,113 | 1,066 | ||||||||
| Corporate | 23 | 23 | 21 | ||||||||
Total (1) | $ | 1,188 | $ | 1,136 | $ | 1,087 | |||||
(1)For the year ended December 31, 2025, total depreciation and amortization includes $4 million of accelerated depreciation expense, recorded in "Restructuring" in the consolidated statements of income, related to the OFSE segment.
The following table presents capital expenditures for the year ended December 31:
Capital expenditures | 2025 | 2024 | 2023 | ||||||||
OFSE | $ | 887 | $ | 954 | $ | 960 | |||||
IET | 325 | 284 | 229 | ||||||||
Total segment | 1,212 | 1,238 | 1,189 | ||||||||
| Corporate | 61 | 40 | 35 | ||||||||
| Total | $ | 1,273 | $ | 1,278 | $ | 1,224 | |||||
The following table presents consolidated revenue based on the location to which the product is shipped or the services are performed. Other than the U.S., no other country accounted for more than 10% of the Company's consolidated revenue during the periods presented.
| Revenue | 2025 | 2024 | 2023 | ||||||||
| U.S. | $ | 7,700 | $ | 7,383 | $ | 6,557 | |||||
| Non-U.S. | 20,033 | 20,446 | 18,949 | ||||||||
| Total | $ | 27,733 | $ | 27,829 | $ | 25,506 | |||||
The following table presents net property, plant and equipment by its geographic location at December 31:
| Property, plant and equipment - net | 2025 | 2024 | ||||||
| U.S. | $ | 1,647 | $ | 1,794 | ||||
| Non-U.S. | 3,679 | 3,333 | ||||||
| Total | $ | 5,326 | $ | 5,127 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 4, 2025 | |
| 2023 | Feb 5, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 23, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.