Baker Hughes’ Fourth Quarter Results Indicate Continued Strength Through 2023

No-moat Baker Hughes concluded 2022 on a high note, posting $5.9 billion of revenue in the fourth quarter, a level not seen since 2019. The firm also demonstrated exceptional profitability with an adjusted EBITDA margin of 16% for the fourth quarter, about 300 basis points higher than the quarterly average, going back to 2018. We’ll incorporate the firm’s full financial and operational results shortly, but after this first look our $34 fair value estimate is unchanged.