Baker Hughes (BKR) Financials

Over the past four years, Baker Hughes (NASDAQ: BKR) has demonstrated consistent growth and improving financial health across its income statement, balance sheet, and cash flow metrics.

Income Statement Trends:

• Total revenue steadily increased from $5.72 billion in Q1 2023 to $6.91 billion in Q2 2025, indicating robust top-line growth.
• Net income attributable to common shareholders rose from $455 million in Q1 2023 to $701 million in Q2 2025, reflecting improving profitability.
• Basic EPS increased from $0.46 in Q1 2023 to $0.71 in Q2 2025, benefiting shareholders.
• Operating expenses have been relatively stable, fluctuating between $700 million and $860 million quarterly, suggesting consistent cost management.
• Impairment charges appeared sporadically, such as $280 million in Q4 2024, which weighed on operating income in those periods.
• Interest expense remains consistent around $50-60 million quarterly, indicating stable debt costs.

Balance Sheet Highlights:

• Total assets grew from approximately $35 billion in Q1 2023 to $38.7 billion by Q2 2025, supporting business expansion.
• Cash and equivalents increased from about $2.42 billion in Q1 2023 to $3.09 billion in Q2 2025, improving liquidity.
• Total current liabilities remained roughly steady near $12.5 billion, indicating stable short-term obligations.
• Long-term debt stayed around $5.85 to $6 billion, showing consistent leverage levels without significant increase.
• Retained earnings remain negative through the period, although the negative balance is decreasing from about -$10.2 billion in Q1 2023 to -$4.7 billion in Q2 2025, implying accumulated losses still on the books.

Cash Flow Statement Observations:

• Net cash from operating activities improved from $461 million in Q1 2023 to $510 million in Q2 2025, supporting operational strength.
• Significant cash outflows in financing activities, mainly due to repurchase of common equity (about $196 million in Q2 2025) and dividends paid (~$227 million in Q2 2025), which could pressure cash reserves.
• Investing activities show consistent cash outflows for property, plant and equipment purchases (around $300 million quarterly), indicating ongoing capital expenditures which could stress cash flow.
• Cash interest paid is stable around $48-98 million quarterly, reflecting consistent financing costs.

Summary:

Baker Hughes has shown a positive trend of revenue growth and improving net income over the last four years with increased cash reserves and asset base supporting its operations. The company maintains stable debt levels and operating expenses. However, the presence of impairment charges in some quarters and continued negative retained earnings highlight some underlying challenges. Furthermore, sizable cash outflows for dividends and equity repurchases affect liquidity, which investors should monitor. Overall, Baker Hughes appears on a growth trajectory with cautious capital return policies.