Company: BKR
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001701605-25-000075
Chunk: 103

Company: Baker Hughes Co
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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 we recorded $22 million of other income. Included in this amount was a net gain of $52 million from the change in fair value of equity securities.

Net interest expense incurred in the first quarter of 2025 was $51 million, which includes interest income of $20 million. Net interest expense increased $10 million compared to the first quarter of 2024, with lower interest income primarily driven by lower interest rates.

We recorded income taxes in the first quarter of 2025 and 2024 of $152 million and $178 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 March 31, 2024, this impact is partially offset by income subject to U.S. tax at an effective rate less than 21% due to valuation allowances.

Net income decreased $53 million, or 12%, to $402 million compared to the first quarter of 2024. 

Segment Revenues and Segment EBITDA

Oilfield Services & Equipment

Three Months Ended March 31,$ Change20252024RevenueWell Construction$892 $1,061$(170)Completions, Intervention, and Measurements925 1,006(80)Production Solutions899 945(46)Subsea & Surface Pressure Systems782 77111 Total$3,499 $3,783$(285)Cost of goods and services sold$2,819 $3,053$(234)Research and development61 68(7)Selling, general and administrative and other221 240(19)Less: Depreciation and amortization(226)(222)(4)Segment EBITDA$623 $644$(21)

OFSE revenue of $3,499 million decreased $285 million in the first quarter of 2025 compared to the first quarter of 2024, driven by lower international and domestic rig count. From a geographical perspective, international revenue was $2,577 million, a decrease of $216 million from the first quarter of 2024, driven by the Europe/CIS/Sub-Saharan Africa regions and Latin America partially offset by the Middle East/Asia region. North America revenue was $922 million in the first quarter of 2025, a decrease of $68 million from the first quarter of 2024.

OFSE segment E