Baker Hughes Earnings: Industrial Energy Technologies Offsets Tepid Oilfield Services Performance

Baker Hughes concluded 2023 with very strong fourth-quarter performance thanks to persistently elevated LNG contracting activity. The firm’s industrial energies technologies segment drove total sequential top-line growth of 3%, offsetting flat sales from its oilfield services business. Firmwide adjusted EBITDA reached the top end of quarterly guidance at nearly $1.1 billion, exiting the year with a 16% margin. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look we maintain our no-moat rating and $35 fair value estimate. Shares are slightly undervalued at the time of writing.