Company: BKR
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001701605-25-000107
Chunk: 44

Company: Baker Hughes Co
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
 million from the change in fair value of equity securities. In the second quarter of 2024, we recorded $26 million of other income. Included in this amount was a net gain of $19 million from the change in fair value of equity securities.

Net interest expense incurred in the second quarter of 2025 was $54 million, which includes interest income of $19 million. Net interest expense increased $7 million compared to the second quarter of 2024, with lower interest income primarily driven by lower interest rates.

We recorded income taxes in the second quarter of 2025 and 2024 of $256 million and $243 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate in both periods is primarily related to income generated in jurisdictions with tax rates higher than in the U.S. and losses with no tax benefit due to valuation allowances. Further, for the period ending June 30, 2024, this impact is partially offset by income subject to U.S. tax at an effective rate less than 21% due to valuation allowances, which were subsequently released later in 2024.

Net income increased $0.1 billion, or 21%, to $0.7 billion compared to the second quarter of 2024.

Segment Revenues and Segment EBITDA

Oilfield Services & Equipment

Three Months Ended June 30,$ Change20252024RevenueWell Construction$921 $1,090$(169)Completions, Intervention, and Measurements935 1,118(182)Production Solutions968 95810 Subsea & Surface Pressure Systems793 845(52)Total$3,617 $4,011$(394)Cost of goods and services sold$2,891 $3,200$(309)Research and development costs65 632 Selling, general and administrative219 255(36)Other (income) expense(1)—(1)Less: Depreciation and amortization(233)(223)(10)Segment EBITDA$677 $716$(39)

OFSE revenue of $3,617 million decreased $394 million in the second quarter of 2025 compared to the second quarter of 2024, driven by lower international and domestic rig count. From a geographical perspective, international revenue was $2,689 million, a decrease of $298 million from the second quarter of 2024, driven by all international regions. North America revenue was $928 million in the second quarter