Baker Hughes: Shaping the Energy Landscape for the Future
A giant of the energy technology space, Baker Hughes exerts dominance and influence across the industry.
By leveraging its expertise, Baker Hughes is driving innovation in clean energy technologies — benefitting its clients while simultaneously working to reduce its own carbon footprint.
In its Q4 and full-year 2024 report, the company disclosed its successes, showcasing its leadership position in a variety of energy markets including gas infrastructure, LNG technology, turbomachinery services, climate technology solutions and oilfield services.
2024 a ‘momentous’ year for Baker Hughes
“For more than a century, our inventions have revolutionised energy,” Baker Hughes says.
“We harness the power of engineering, data and science to redefine what's possible.”
This sentiment rings true when it comes to Baker Hughes’ fourth quarter and full-year 2024 results.
Addressing the company’s growth in 2024, Lorenzo Simonelli, Baker Hughes’ Chairman and CEO, says: “2024 proved to be a momentous year for Baker Hughes
“Looking forward, we will continue our journey to transform the company, and we expect 2025 to demonstrate another strong year of EBITDA (earnings before interest, taxes, depreciation and amortisation) growth, led by our IET segment.
“IET booked US$3.8bn of orders in the fourth quarter, supported by strong LNG orders and another gas infrastructure award. Including this strong end to the year, 2024 orders totalled US$13bn, the second highest order year ever.
“This order performance highlights the end-market diversity and versatility of our portfolio.”
The main takeaways
The report’s key findings include:
- Q4 revenue increased 8% year-on-year to US$7.4bn
- Adjusted EBITDA increased 20% year-on-year to US$1.3bn in Q4, with full-year adjusted EBITDA increasing 22% year-on-year to US$4.6bn
- Industrial and Energy Technology (IET) segment revenue grew 21% year-on-year, driven by strong gas infrastructure and LNG orders
- Oilfield Services & Equipment (OFSE) segment maintained stable performance with 19.5% EBITDA margins
- Full-year revenue rose 9% year-on-year to US$27.8bn
"As reflected in our strong 2024 results and our exceptional margin improvement, Baker Hughes has evolved into a more profitable energy and industrial technology company,” Lorenzo adds.
“Company results are benefiting from strong execution, sharpened commercial focus and improved productivity gains.”
What does this mean for the energy industry?
As a leading energy technology company, Baker Hughes’ results also provide valuable insights into the current state of the energy sector and sustainability efforts, as well as a peek into its own performance.
Its achievements reflect significant trends in the industry, including a shift towards cleaner energy sources, increased focus on emissions reduction and the growing importance of digital technologies.
For example, its Industrial & Energy Technology (IET) segment’s robust performance — particularly in gas infrastructure and LNG projects — underscores the ongoing transition towards cleaner energy sources, with natural gas playing a crucial role as a bridge fuel in the shift away from more carbon-intensive energy sources.
Baker Hughes and sustainability
Allyson Anderson Book is Baker Hughes’ Chief Sustainability Officer (CSO).
In post since 2022, Allyson is a key driver of the company’s sustainability strategy, setting and driving the company’s performance in meeting sustainable business outcomes that support and drive Baker Hughes commercial strategy.
She joined Sustainability Magazine at Sustainability LIVE: Climate Week in New York City to highlight the company's commitment to sustainable energy and its strategies to support the global transition to net zero.
“We're the company that has the solutions versus a company with the challenges,” Allyson says.
“An energy transition isn't meant to be abrupt. It's not an on-and-off switch
“So we’ve got to be very reasonable on how we think about transitioning.”
Allyson is no stranger to Baker Hughes’ role as a technology solutions provider in the energy sector, emphasising how its ambitious carbon reduction targets and sustainable approach to its operations is a motivator for its own business as well as its clients and the wider industry.
Among Baker Hughes’ services are critical technologies for hydrogen, geothermal and carbon capture applications — all tools that play a pivotal role in the clean energy transition.
“Baker Hughes invented the very first compressor to compress hydrogen over 100 years ago,” Allyson says.
This expertise and longstanding history positions Baker Hughes as a key player in developing scalable solutions for carbon-intensive industries.
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