Baker Hughes Co - Ordinary Shares - Class A

Strong Q1 Results: Baker Hughes reported an impressive first quarter with adjusted EBITDA of $1.04 billion, a 10% increase year-over-year. This marks the ninth consecutive quarter of meeting or exceeding the midpoint of guidance, showcasing their operational efficiency. Key segments contributing to this growth include Industrial & Energy Technology (IET), which saw a 30% increase in EBITDA.

Navigating Macro Challenges: The company faces a cautious macro environment characterized by geopolitical tensions, trade policy uncertainties, and inflationary pressures. They foresee global upstream spending declining by high single digits in 2025, particularly impacted by oil price volatility and delayed discretionary spending in North America.

Tariff Exposure and Mitigation Strategies: Baker Hughes estimates a potential net EBITDA impact from tariffs of $100 million to $200 million. The company is actively implementing mitigation strategies, including increased domestic sourcing to offset tariff impacts on imports from China, Germany, and the U.K. Current tariff levels are expected to remain stable, but a worsening landscape could prompt reevaluation.