BKR Baker Hughes Co

Overview and Growth

Baker Hughes Co generated $27.73B of revenue in fiscal 2025, with net income of $2.59B and an operating cash inflow of $3.81B. At $27.73B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line contracted 0.3% from $27.83B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. At period end, total assets were $40.88B, framing the scale of the company’s operating and financing commitments. Asset turnover was 0.68x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Net income came to $2.59B, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 9.3% margin after operating costs and the remaining recognized items. Pretax income was $2.88B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 10.4%, relating income before taxes directly to revenue. The company recognized $253.00M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 8.8%, without assuming a statutory-rate comparison. Return on period-end equity was 13.6%, relating annual net income to the equity capital on the balance sheet. Net income represented 6.3% of period-end assets, placing the company’s bottom-line result against the total resource base employed. The company moved from fiscal 2024 net income of $2.98B to $2.59B, with the current outcome ending below that comparison.

Liquidity and Capital Structure

At period end, the $40.88B asset base was financed through $21.87B of liabilities and $19.01B of equity. The near-term balance sheet paired $18.83B of current assets with $13.88B of current liabilities at the reporting date. At 1.36x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $3.71B in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 26.8% of current liabilities, showing how much near-term coverage came from cash alone. The equity-to-assets relationship was 46.5%, placing book capital against the total resource base. Relative to total assets, liabilities measured 53.5%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 9.1%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 6.6% from $38.36B in fiscal 2024, leaving current total assets higher year over year. Against $17.05B of equity in fiscal 2024, the current book-equity balance moved 11.5% and ended higher. The reported cash balance changed 10.4% from $3.36B in fiscal 2024, ending higher year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $3.81B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.47x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $1.27B of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 33.4% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $2.54B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 9.1%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 6.2%, comparing post-investment cash with the balance-sheet asset base. Compared with $3.33B in fiscal 2024, current operating cash flow of $3.81B was above the prior result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.