(Reuters) – Baker Hughes on Wednesday forecast continued pretax margin gains in the fourth quarter and next year, after beating Wall Street estimates for its third-quarter profit.
The company's shares rose 3.5%.
The company's upbeat outlook came after orders for non-LNG gas technology equipment doubled and increased margins in oilfield services and LNG equipment.
The company said several LNG projects were moving toward final investment decision in the United States and internationally in 2025, building confidence that its new energy orders will continue to grow.
The company also expects offshore activity to remain at stable levels.
“We feel good about 2025, as most segments similar to 2024 will show growth,” CEO Lorenzo Simonelli said on the earnings call.
Given these tailwinds and operational improvements, Baker Hughes expects total EBITDA for the fourth quarter to be around $1.26 billion at the midpoint of its forecast range.
The company said it remained on track to meet its 20% margin target by 2026.
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