Company: BKR
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001701605-25-000107
Chunk: 90

Company: Baker Hughes Co
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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5 Compared to the First Six Months of 2024

Revenue decreased $0.2 billion to $13.3 billion. OFSE decreased $0.7 billion and IET increased $0.5 billion.

Selling, general and administrative cost decreased $117 million, or 9%, to $1,144 million driven primarily by a continued focus on cost optimization, partially offset by inflationary pressure.

Research and development cost decreased $15 million, or 5%, to $307 million, mainly related to timing of project spend within the year.

We recorded other expense of $6 million in the first six months of 2025, which included a net loss of $21 million from the change in fair value of equity securities. In the first six months of 2024, we recorded $48 million of other income. Included in this amount was a net gain of $71 million from the change in fair value of equity securities.

Net interest expense in the first six months of 2025 was $105 million, which includes interest income of $39 million. Net interest expense increased $17 million compared to the first six months of 2024, with lower interest income primarily driven by lower interest rates.

In the first six months of 2025 and 2024, the provision for income taxes was $408 million and $421 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 

Baker Hughes Company 2025 Second Quarter Form 10-Q | 30

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 7%, to $1.1 billion compared to the first six months of 2024.

Segment Revenues and Segment EBITDA

Oilfield Services & Equipment

Six Months Ended June 30,$ Change20252024RevenueWell Construction$1,812 $2,151$(339)Completions, Intervention, and Measurements1,861 2,123(263)Production Solutions1,867 1,903(36)Subsea & Surface Pressure Systems1,576 1,617(41)