It has been about a month since the last earnings report for Baker Hughes (BKR Quick QuoteBKR - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Baker Hughes due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Baker Hughes Company before we dive into how investors and analysts have reacted as of late.

Baker Hughes Q2 Earnings & Revenues Beat Estimates

Baker Hughes reported second-quarter 2025 adjusted earnings of 63 cents per share, which beat the Zacks Consensus Estimate of 55 cents. The bottom line also improved from the year-ago level of 57 cents.

Total quarterly revenues of $6,910 million beat the Zacks Consensus Estimate of $6,633 million. The top line increased from the year-ago quarter’s $6,418 million.

The strong quarterly results were primarily driven by cost improvements and operational efficiency.

Segmental Performance

BKR was reorganized from four to two operating segments — Oilfield Services and Equipment, and Industrial and Energy Technology. The segments became operational on Oct. 1, 2022.

Revenues from the Oilfield Services and Equipment (“OFSE”) unit amounted to $3,617 million, down 10% from the year-ago figure of $4,011 million. The reported figure was above our estimate of $3,569 million.

Earnings Before Interest, Taxes, Depreciation & Amortization (“EBITDA”) from the segment totaled $677 million, down 5% from $716 million in the second quarter of 2024. This was due to inflation and revenue mix, partially mitigated by productivity from structural cost-out initiatives.

Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $3,293 million, up 5% from the year-ago quarter’s $3,128 million. The reported figure beat our estimate of $3,038 million.

EBITDA from the segment totaled $585 million, up 18% from the year-ago quarter’s $497 million, driven by productivity, positive pricing and favorable FX, partially offset by cost inflation.

Costs and Expenses

Baker Hughes recorded total costs and expenses of $5,943 million in the second quarter, down from the year-ago figure of $6,315 million. Our projection for the same was $5,033 million.

Orders

Orders from all business segments amounted to $7,032 million, down 7% from $7,526 million recorded a year ago. We expected the figure to be $7,454.3 million. The decline was primarily due to lower order intake in the OFSE segment.

Free Cash Flow

Baker Hughes generated a free cash flow of $239 million compared with $106 million a year ago.

Capex & Balance Sheet

BKR’s net capital expenditure in the second quarter was $271 million.

As of June 30, 2025, it had cash and cash equivalents of $3,087 million. BKR had a long-term debt of $5,968 million at the end of the reported quarter, with a debt-to-capitalization of 25.8%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Baker Hughes has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Baker Hughes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.