Company: BKR
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001701605-25-000035
Chunk: 136

Company: Baker Hughes Co
Filing Date: 2025-02-04
Form: 10-K
Item: Item 7
Chunk 136
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 driven by higher volume, price and cost-out initiatives, partially offset by inflationary pressure and lower cost productivity.

Baker Hughes Company 2024 Form 10-K | 40

Industrial & Energy Technology

Year Ended December 31,$ Change20232022From 2022 to 2023RevenueGas Technology Equipment$4,232 $2,599 $1,633 Gas Technology Services2,600 2,440 160 Total Gas Technology6,832 5,039 1,793 Industrial Products1,962 1,697 265 Industrial Solutions983 884 99 Controls (1)41 208 (167)Total Industrial Technology2,987 2,789 198 Climate Technology Solutions326 98 228 Total10,145 7,926 2,219 Cost of goods and services sold7,220 5,342 1,878 Research and development373 307 66 Selling, general and administrative1,242 1,142 100 Operating income$1,310 $1,135 $175 Operating margin (2)12.9 %14.3 %-1.4pts

(1)The sale of our controls business was completed in April 2023.

(2)Operating margin is defined as operating income divided by revenue.

IET revenue of $10,145 million increased $2,219 million, or 28%, in 2023 compared to 2022. The increase was primarily due to higher volume in Gas Technology Equipment and, to a lesser extent, in CTS, Industrial Technology and Gas Technology Services.

IET segment operating income was $1,310 million in 2023 compared to $1,135 million in 2022. The improved performance in 2023 was driven by higher volume primarily from higher proportionate growth in GTE, price and cost-out initiatives, partially offset by unfavorable cost productivity, inflationary pressure, and higher research and development costs related to new energy investments.

COMPLIANCE

In the conduct of all of our activities, we are committed to maintaining the core values of our Company, as well as high safety, ethical, and quality standards as also reported in our Quality Management System. We believe such a commitment is integral to running a sound, successful, and sustainable business. We devote significant resources to maintain a comprehensive global ethics and compliance program ("Compliance Program") which is designed to prevent, detect, and appropriately