The company noted strong order momentum in the IET segment, driven by significant growth in new energy and non-LNG equipment orders. This indicates a strategic focus on and success in diversifying into new energy markets.

Baker Hughes highlights its commitment to a flexible capital allocation policy, balancing returning cash to shareholders with investing in growth opportunities. The company increased its quarterly dividend and returned $1.3 billion to shareholders through dividends and share repurchases.

Baker Hughes anticipates a muted outlook for global upstream spending due to recent oil price volatility and a well-supplied oil market. This suggests a cautious approach to growth in the OFSE segment.

The company emphasizes progress in improving efficiencies and modernizing business operations through transformation efforts. These efforts have resulted in significant structural changes and improved margin performance.

The document mentions that availability of nickel-based superalloys is constrained, and the company anticipates pricing and fulfillment volatility for certain raw materials and logistics lanes to continue through 2025. This suggests ongoing management focus on mitigating these challenges.

The company recorded restructuring charges related to streamlining the OFSE operating model, which will reduce facility footprint and employee termination expenses. This indicates management is actively working to improve operational efficiency.

The company acknowledges the increased focus on climate change and the potential for reduced demand for its technologies and services as the world transitions to lower-carbon energy sources. This poses a significant risk to future revenue.

The company identifies potential disruptions in its supply chain, including shortages in labor supply, and the high cost or unavailability of raw materials, equipment, and supplies as risks that could adversely affect its ability to execute operations on a timely basis.

The company acknowledges that geopolitical and terrorism threats continue to grow in a number of key countries where it currently or may in the future do business. These threats could lead to a loss of investment, adverse impact to employees, and impairment of the company's or its customers' ability to conduct operations.

The company acknowledges it operates in a highly competitive environment for marketing its products and services and securing equipment across its portfolio. Its ability to continually provide competitive products and services can impact its ability to defend, maintain or increase prices for its products and services, maintain market share, and negotiate acceptable contract terms with its customers.

The company continues to invest in new technologies, equipment, and facilities and to expand its capabilities and technology portfolio to meet the challenges of a net-zero future. These efforts include expanding into new energy areas such as geothermal and carbon capture, utilization and storage, strengthening its digital architecture and addressing key energy market themes. There is a risk that these investments do not provide competitive returns.

The company currently has extensive commercial relationships with GE Vernova and GE Aerospace. If either GE Vernova or GE Aerospace were to discontinue or reduce their business with the Company, fail to perform their obligations under existing contracts, or experience disruptions, the company's business, financial condition, results of operations and cash flows may be adversely affected.

The company's operating income increased due in part to cost optimization efforts. This suggests improvements in operational efficiency are positively impacting the bottom line.

The company recorded restructuring charges related to streamlining the OFSE operating model, which will reduce facility footprint and employee termination expenses. This indicates a focus on improving operational efficiency.

The company anticipates some pricing and fulfillment volatility for certain raw materials, components, and certain logistics lanes to continue through 2025. This indicates that operational efficiency is still being impacted by external factors.

The company incurred $643 million of R&D expense in 2024, demonstrating a commitment to innovation and technological advancement. This investment is directed toward new products, services, and solutions, as well as technologies to reduce carbon footprint.

Specifically for OFSE, in its Well Construction product line, the company is improving reliability in high-temperature and high-shock and vibration environments (harsh-drilling conditions), through a combination of optimized design, automated operations, and integrated solutions that leverage our drilling tools, drill bits, and drilling fluids technologies.

In IET, the company continues to invest in and develop foundational technologies which will enable its journey for the energy transition. Such technologies include advanced materials, advanced manufacturing technologies, novel process technologies, and digital technologies such as advanced sensing & diagnostics, data sciences, and artificial intelligence.

Baker Hughes increased its quarterly dividend and returned $1.3 billion to shareholders through dividends and share repurchases, demonstrating a commitment to returning capital.

The company expects capital expenditures in 2025 to equal up to 5% of annual revenue, indicating a continued investment in the business.

The company anticipates making income tax payments in the range of $1.0 billion to $1.1 billion in 2025.

The company reaffirms its commitment to reduce Scope 1 and 2 carbon dioxide equivalent emissions by 50% by 2030 and achieve net-zero emissions by 2050, aligning with the Paris Agreement.

The company reported a 28.3% reduction in Scope 1 and 2 carbon dioxide equivalent emissions as compared to its 2019 base year, indicating progress towards its emissions reduction goals.

The company highlights its commitment to diversity, inclusion, and belonging, recognizing that diverse teams are essential for driving innovation and maintaining a competitive edge. The percentage of people who identify as women in the workforce, senior leadership positions, and on the Board was 20%, 19%, and 33%, respectively.

The company anticipates a muted outlook for global upstream spending due to recent oil price volatility and a well-supplied oil market. Continued discipline from the world's largest producers and the pace of oil demand growth will remain important factors to monitor. Geopolitics remain another element of uncertainty across the oil and gas markets affecting macroeconomic conditions and upstream spending.

The company is seeing customer spending trends shift more towards natural gas and low-carbon solutions, and it expects this trend to continue in 2025, which will continue to support strength across its IET portfolio.

The company remains optimistic on the LNG outlook, supporting the shift towards the development of natural gas and LNG. As a result, the global LNG project pipeline remains strong.