How LNG, offshore, and automation are driving performance across energy companies
Leading energy service and technology companies delivered resilient second quarter results, despite disruption from the US-Iran conflict and broader geopolitical uncertainty across the Middle East.
Baker Hughes, Halliburton, and SLB offset regional weakness through strong demand for LNG infrastructure, offshore developments, and digital solutions, while Honeywell Technologies benefitted from growing investment in automation and gas processing projects. Weatherford stood out for its cash-generation performance despite softer earnings.
The quarter showed a broader industry trend: companies with exposure to energy infrastructure, power systems, automation, and digital technologies are better positioned to navigate market volatility.
Baker Hughes: LNG and gas equipment drive growth
Baker Hughes delivered strong sequential growth during the second quarter despite ongoing disruption across the Middle East. The earnings show that profitability remained resilient, with adjusted net income rising 3% to $640 million. Revenue rose to $6.7 billion from $6.6 billion in the first quarter, while orders surged from $8.2 billion to a record $10.5 billion this quarter.
“IET delivered another exceptional quarter of orders, with record bookings doubling year-over-year to $7.1 billion and backlog increasing 19% to a new all-time high. The strength was driven by robust demand across Power Systems and LNG, with particularly strong momentum in power generation.”
- Lorenzo Simonelli, Chairman, President, and CEO of Baker Hughes
Baker Hughes' strongest performance came from the Industrial & Energy Technology (IET) division, which generated a record $7.1 billion in orders, as compared to $4.9 billion in the last quarter.
“IET delivered another exceptional quarter of orders,” said Lorenzo Simonelli, Chairman, President, and CEO of Baker Hughes, adding that the “strength was driven by robust demand across Power Systems and LNG, with particularly strong momentum in power generation.”
Overall, the results show Baker Hughes’ shift toward energy infrastructure, LNG, and power solutions under its Horizon 2 growth strategy. The company now expects Horizon 2 orders to exceed $45 billion.
Weatherford: cash generation takes centre stage
The company's cash generation strengthened significantly versus last quarter. Operating cash flow rose quarter-on-quarter to $175 million, while adjusted free cash flow jumped to $139 million, supported by lower capital spending and disciplined cost management.
Compared with the first quarter, Weatherford delivered a weaker earnings performance in the second quarter as Middle East disruptions affected activity. Second quarter net income dropped $39 million, while revenue fell 4% quarter-on-quarter to $1.1 billion.
“Despite the significant disruption in the Middle East due to the Iran conflict, our second-quarter results, especially adjusted free cash flow, were strong, demonstrating the reliability and resilience of our operating paradigm.”
- Girish Saligram, President and CEO, Weatherford
Net income dropped 71% sequentially, mostly due to geopolitical uncertainty across key Middle East markets. However, Weatherford’s proposed Delaware redomestication is projected to deliver annual cash savings of $20 million-$30 million from 2027.
Weatherford President and CEO Girish Saligram said, “Despite the significant disruption in the Middle East due to the Iran conflict, our second-quarter results, especially adjusted free cash flow, were strong, demonstrating the reliability and resilience of our operating paradigm.”
“While the Middle East situation remains volatile and creates activity headwinds in the short term, our longer-term thesis remains intact. A return to the pre-conflict operating levels is expected to be gradual, contingent on continued regional stability, and requires an absence of further geopolitical escalation,” Saligram said.
Halliburton: international expansion supports recovery
Halliburton posted one of the strongest sequential improvements, as net income rose from $461 million to $534 million, and revenue increased to $5.7 billion from $5.4 billion in the first quarter. For Halliburton, Europe and Africa led regional performance, with revenue jumping 19% quarter-on-quarter.
This growth was supported by activity in the North Sea, Namibia, Egypt, and Angola. Middle East and Asia revenue declined 2% as a result of the ongoing geopolitical conflict in the Middle East, according to Halliburton. The quarter showed Halliburton's growing exposure to international offshore developments and its continuing investment in digital technologies, automation, and AI-enabled asset management systems.
“In North America, I see clear signs that we are in the early innings of a recovery. In international markets, our performance around the world outpaced disruptions from the Middle East conflict. I expect that our consistent focus on returns and capital discipline will drive long-term success for Halliburton and its shareholders.”
- Jeff Miller, President and CEO, Halliburton
“In North America, I see clear signs that we are in the early innings of a recovery,” said President and CEO Jeff Miller. “In international markets, our performance around the world outpaced disruptions from the Middle East conflict. I expect that our consistent focus on returns and capital discipline will drive long-term success for Halliburton and its shareholders.”
SLB: offshore growth helps soften Middle East disruption
SLB delivered a strong quarter despite its significant exposure to the Middle East. Net income increased 5% to $786 million while revenue increased 3% sequentially from $8.72 billion to $8.97 billion.
Revenue from the Middle East fell roughly 13% compared with the previous quarter as disruptions affected operations, particularly in Iraq. However, this was offset by stronger activity elsewhere, with North America revenue increasing 4% sequentially and international offshore markets maintaining momentum.
“SLB delivered solid second-quarter results, as broad-based sequential growth across international markets — led by offshore activity in Latin America, Europe & Africa and Asia — more than offset the impact of continued disruptions in the Middle East.”
- Olivier Le Peuch, CEO, SLB
“SLB delivered solid second-quarter results, as broad-based sequential growth across international markets — led by offshore activity in Latin America, Europe & Africa and Asia — more than offset the impact of continued disruptions in the Middle East,” said SLB CEO Olivier Le Peuch.
“Excluding the Middle East, revenue grew sequentially across all Divisions, supported by higher offshore activity, a rebound in U.S. unconventionals and strong demand for production and recovery solutions,” Le Peuch added.
SLB also highlighted its growth in digital technologies and data centre infrastructure. Digital revenue increased 9% compared to the previous quarter, while data centre solutions revenue grew 33%.
Honeywell Technologies: LNG demand drives automation growth trend
Honeywell Technologies’ second quarter net income surged to $5.68 billion from $821 million from the last quarter, largely due to a one-time gain related to Quantinuum's deconsolidation following its IPO. Revenue rose to $9.72 billion from $9.14 billion.
“The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today.”
- Vimal Kapur, Chairman and CEO, Honeywell Technologies
Honeywell's energy-focused businesses saw strong LNG-related order activity offsetting softer margins in parts of its process automation portfolio. The company's Process Automation and Technology segment reported a 24% increase in orders, driven by robust demand from LNG projects.
“The second quarter marked a historic milestone for Honeywell Technologies as we completed the separation of Honeywell Aerospace and began a new era as a leading pure-play automation company. The results we delivered this quarter are the outcome of a year-plus long process to simplify our business, and we are already seeing the benefits of this transformation today,” said Vimal Kapur, Chairman and CEO of Honeywell Technologies.
