Baker Hughes beats Q1 forecasts but warns on tariff impact

Baker Hughes beats Wall Street expectations in the first quarter of 2025, reporting adjusted earnings of 51 cents per share, ahead of analysts’ estimates of 48 cents, according to the company's latest financial statement. The strong performance was fueled by rising demand for natural gas technologies, particularly in the company’s Industrial and Energy Technology (IET) segment.

Revenue from IET climbed to $2.93 billion in the quarter, as gas technology orders surged 17%. The increase reflects growing global demand for liquefied natural gas (LNG), driven in part by AI-related energy needs from data centers. CEO Lorenzo Simonelli noted that the company’s backlog and momentum in gas tech positions it well for continued growth.

“Our performance this quarter reflects continued execution and strong demand for our gas technology solutions, especially as the energy transition accelerates,” Simonelli added. “We remain confident in our strategy and the role natural gas plays in a lower-carbon future.

However, Baker Hughes also warned that U.S. trade tariffs could weigh on full-year profits. The company estimates the impact could be a $100 million to $200 million hit to adjusted EBITDA. These figures reflect current tariff levels and don’t account for potential future increases, adding uncertainty to the outlook.

Despite the caution, analysts say Baker Hughes is relatively shielded from short-term commodity price swings thanks to its strong IET order book. The company supplies critical equipment like turbines and compressors to the global energy sector.

Shares of Baker Hughes dipped 2.1% in after-hours trading following the earnings release, as investors weighed the solid quarterly results against potential tariff headwinds. The company maintained its full-year guidance but said it would monitor the tariff situation closely.

Baker Hughes is expected to continue benefiting from the global shift toward cleaner energy sources, with natural gas playing a key transitional role.