Baker Hughes (BKR) 23 Oct 242024 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Baker Hughes Company Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Chase Mulvehill, Vice President of Investor Relations. Sir, you may begin.

Thank you. welcome Hughes and Conference Quarter everyone, Call. morning, to Third Baker Earnings Good

are CEO, yesterday Chairman our with at our Here me and found our Buese. The release bakerhughes.com. be CFO, earnings Lorenzo we can issued evening on website Nancy and Simonelli;

also with prepared We this be remarks our on a be can which found using website. during presentation will our webcast,

assumptions. future As Please of statements are These provide forward-looking a statements. number filings SEC reminder, during our a guarantees review this performance of and conference risks involve call, and we will and not website operating to the for turn and factors actual measures our cause to that in can I'll that, call GAAP could over differ earnings results materially. be release. With found to Reconciliations of Lorenzo. other non-GAAP income

performance is segments clear XX% significant consecutive level for $X.X including that and being This the and margin everyone, Slide driven improve expansion IET. continue us. Starting morning, least of marks marks with at quarter our company which versatility IET year-over-year by for you, XX% EBITDA across X.X market eighth our record above diversity EBITDA third technologies. quarter strong during quarter EBITDA Chase. X. margins accelerated the made both quarter delivered highlighted the towards growth. and orders of highlights targets. Total on points margin to by XX.X%, results, another to or quarter, at at percentage the highest by progress margin orders XXXX. increasing year-on-year remained and strong an levels quarterly since Good joining pace, This thanks consecutive the solid end billion We third Thank at EBITDA for

at performance quarter, coming cash $XXX was the during equally impressive flow million. free Our in

addition capability EBITDA balanced given remain Baker the to continues and portfolio, and well, generate reoccurring IET market year service and free across is to midpoint the business cycles, cost more our the Our revenue flow and of cash is earnings Hughes becoming company's our in demonstrating full to cyclical durable improved untapped confident in less guidance. we structure achieving significant perform opportunities.

want centrifugal ICL to Kaminho and LNG offering. In iCenter. X. a compressors aftermarket East, facility solid In FSO [ this secured We secured value to Agreements increasing multi-decade into total provide FPSO agreement Slide RPO solutions, the orders a we we Gas IET increasing TotalEnergies' see for an contract New to in Including momentum. cycle Technology' leveraging digital year-to-date, million extensive continue and motor-driven to selected Service We Saipem year-to-date in compressors million highlighting we Services Technology supply us ] Angola. key IET's has orders awarded life to booked BCL order two Gas million. Middle Gas American awards (sic) Contractual for to the booked over quarter, Turning year-to-date Services, technology for in project four. $XXX $XXX project award, $XXX all-electric an basin. In of was FPSO the highlight additional to of Technology the Energy, strategic Gas Technology during services developments. FPSO provide to Latin electric and Equipment, recent a Separately,

award book Solutions, we exceed are our ICL anticipating Technology $XXX the zero-emissions Climate billion to million technology. guidance, to to time. In for our over high first billion We of end date the order the pace on for to received $X largest $X

continue Margham Brazil, ] Petrobras. momentum to order UAE's with for supply Dubai strategy, the Petroleum strong units As OFSE, we Gas (sic) Establishment part highlighting experience strengthening XX Dubai decarbonization gas the continued strong compressor infrastructure. In our facility, demand in storage Enterprise Petroleum global further of to for [ will we relationship

service multi-year support Santos Brazil's to quarter, pipe multiple also received cycle Basin. project. the supply flexible in include through systems the maintenance to we The agreements the of activities life contracts During contracts

recovery to creates also allocated a increased for fields, activity mature spending asset strong from backdrop customer trend expect This seeing are solutions. more is as brownfield We an existing last decades. we underlying to optimizing many that

enhance full integrated trend, OFSE's a offering with range awarded Our of sizable well leverages Middle innovative that recovery. technologies the East. field total contracts completion and multi-year intervention to were we Aligned this in

expanded field digital make We of enabling across orchestration wells Basin, intelligent Leucipa digital continue A from field to global production the short-cycle automated of the produce lower-carbon customer increased benefited the Leucipa, to multiple major in barrels. progress through on front. Permian optimized real-time our rates OFSE operator solution. adoption use recovery

this deploy and global with Additionally, strategic month earlier we new collaboration next-generation for AI Leucipa capabilities upstream portfolio. develop a announced its Repsol to across

Gastech the risk, powered and from simplify improve operational solution subsurface month, enhance to by alerts at regulatory surface. decision-making, mitigate This customers digital end-to-end IET's real-time CarbonEdge, infrastructure data launched efficiency, flows Cordant. last Conference and connectivity COX addition, In IET precise, delivers we across reporting. on and to enables OFSE risk-based CCUS This

To we to energy demand world X in consumption of overall there lives are billion who the to strategy billion potential. per increasing put the Turning X It to billion this global a primary is the grow Institute, energy in demand. which view the reiterate energy Between long-held a the emerging Xx and of to X today, in growth, now underpins a the expect our energy by in intensity remains world live impact emerging countries. demand, even a major developed in energy by on across nucleus Therefore, on population macro and XXXX, person According our sizable small consumes, can roughly growing our economies. of have important capita structurally in increase slide. in person living in people developing next XX%, and OECD countries driven with the other long-term Energy average, countries. emerging world growth the perspective, energy

even energy our natural and in clear This It gas lower constructive grow can abundant, global meeting to the XX% meet provides to very Hughes renewables the gas. By met to LNG Ultimately, multiple It is While and we expect XXXX, an the need to energy we emissions the the emissions. energy significant strategy, in decarbonize this an both primary winner. increase of view, and at backdrop sources. in existing be focusing forecast Baker low-cost of to of expect by almost age gas is by believe will demand flourish. we source hydrocarbons increase and renewables, growth demand. XX%. the has a short fall above rate will fuel system. in a increase is demand demand which on all growing replacing demand This take of In not environment to faster we natural

This the of experiencing increase We and trend natural generation as equipment infrastructure within capacity applications. In than additional power MTPA LNG this of are look we in XXXX liquefaction gas positive today, increasing outlook use and demand. under will a continue by economies significant see a more XXX meet requirement to is LNG, continue XXX FIDs. MTPA for gas anticipate a orders developing by for industrial global to view increase to sorted of many LNG capacity and construction

focus growth anticipate In OpEx the to of of as expect to shifts Turning the from environment, the this demand levels end developments. moderating spend greenfield brownfield we to decade. accelerate oil. We through

With and our in goals. We be backdrop, differentiated mature positioned energy efficiency in playing gas asset fields, role through energy lowering solutions. portfolio must a the our and this OFSE playing optimize growth production decarbonization role critical see mature focus achieving helping leading in for on mix We oil have customers technologies emissions. a net-zero

we areas and in enhance efforts are New portfolio, develop focusing our theme these CCUS, to continue traction growth fundamental Energy a technologies power company. On good on and abatement. to decarbonization, across and which our new clean emissions focuses experience geothermal, this as We see hydrogen, our for

compressors, confident will achieve demand billion. support of in motors to of This emissions $X orders XXXX and deployment zero technologies momentum efficiency electric advances continue expect billion be also anticipated our technology gain improving and our valves. adding industrial upgrading we policy this enhance turbines and project installed our decarbonization ability to backdrop, are to form from target installing strengthening base, economics. Across reduce to the solutions energy our or developing in $X We equipment. drive of With can and leak as remain we

seeing are processes and which energy asset reduces consumption. optimize Cordant, adoption for performance, of we improves levels equipment, Beyond digital increased

wanted mid-single toward global continue economic uncertainty high spend shifting to mix. outlook customer some X. Even have digits compliance for fields gas North upstream oil discussing recently single-digit both for to markets, outperform resilient growth, in weakening factors, OPEC+ East. spending backdrop, time given I slowing Middle Across Turning to macro we in near-term to we geopolitical and global oil international and including spend see this Slide uncertain maintain demand been by production-weighted American mature supply with In this as Oil market global portfolio demand North expect where the and decrease markets year-over-year outlook we our dynamics, our the we our and growth spending production, impacted year soften. to remains year. anticipate range, unchanged. the America, fundamentals

that there XXXX, that drive are beyond we Looking in prices. further oil many factors could monitoring are volatility

growth On the production planned in point supply OPEC+ in to increases, with variables oil that in increasing fundamentals for year. projections production is XXXX. to side, we North soft next planned relatively deepwater these continue America, production Combining adding to the see

prices. added However, East could geopolitical volatility uncertainty create across the Middle oil for

in guidance plans Based XXXX to upstream for continue the to January. and the environment, similar be current company, We levels. and spending geopolitical on next our we will communicate to macro we year's global expect evaluate XXXX

growth our our industry-leading of By This mature production our technologies focus decades of As supply fields. XXXX, expect cycle portfolio. will significant our the on matures, produced by asset optimizing estimate mature providing capabilities expansive we OFSE that upstream oil on for world's deep be across experience, domain and XX% knowledge customers increasingly opportunities we solutions. capitalizing gas the from assets, the leverages existing and by to

Turning gas. natural to

see for products drive and OFSE to continue gas-led our strong both and will in IET. growth, demand solutions which We

the in LNG, MTPA XXXX. between This XXXX contracting MTPA XX totaled FIDs to For for record supports which achieved contracting year-to-date pace on XXXX. MTPA, XX outlook of XXX exceed is our and strength offtake has

the see demand in We X strong for Dubai. this with facility Algeria also year storage continue and awards Arabia, for MGS infrastructure Gas gas Margham projects, significant R'Mel Saudi Hassi in to in

orders gas expect levels non-LNG than We this double XXXX. year booked technology in to equipment more

for levels the our orders towards in year Energy progressing from our we conclude production-levered internationally another of on will us will confidence New in the spending. of strong see XXXX, On OpEx portfolio increasing grow. To continue FID and giving outlook, benefit projects to several the market Energy, U.S., New back that OFSE

IET flow be will which outlook. outlined well drivers supplemented recurring more by and earnings addition, stability, In structural leverage to cash I significant revenue drive portfolio our our the to position growth us diversified long-term and in free energy

long-term the minutes from our business few select valuable of is equipment includes Xx a higher many preventive orders. After the equipment that closely desired is generate In optimize spend meet the on aftermarket provide of installed to customer service availability full equipment. Commercial solutions recurring typically design with appropriate revenue a revenue total our the wanted life technical in also linkage We with right early customer associated ownership. are award, these sale, cycle project. parts, linked of maintenance, recurring cases, the I the agreements our plan strong repairs, the discussing X. to these over the turn, conditions life spare high-quality provides over to connectivity to and Slide the and engineering their to and along Technology, and This, the equipment can X into Compared the to customers and agreements while that maintenance original the cost design This we providing of to of industrial loyalty characteristics Gas of provision worked performance, This our efficient. are service visibility field the receiving contract, by IET services. service this revenue that stream of streams This guarantees. safe, the support equipment there equipment. future more work equipment life is supplemented value phase reliability reliable with where opportunities with engagement support. to aligned our operating significant the are Turning aspect recurring the between to revenue of upgrade peers. Starting drives and margins.

of of the we equipment manufacturer the decades best the experience, original feasibility knowledge service assess As have to various options. with

cycle the production, original and executed we of upstream We upgrade LNG output successfully availability, costs the projects pipeline reliability, volumes, improve much and petrochemical world, equipment. refinery around X,XXX demand, running optimizing transport and over new and gas technology have keeps life emissions, are To upgrade and productivity in oil that life equipment beyond installed meet more. rising our production, investing its design customers'

life Our our industrial cloud to cycle applications the over with advanced machines. and we of specialize emissions In the opportunities XX increase reflective we provide our our diagnostic Technology. Gas of higher-margin with that journey, our of ensure which additional stream recurring rewarded efficiency best operating leveraging service differentiated the extract to aftermarket evolve growth the are asset revenue service years by closely every this will the from provided throughout stage aligned life from and and solutions, a services our customers reduce are AI continue iCenter of to and equipment. and capabilities are to they facilities, data value return, we like equipment. At also edge is operations, in remote improve capabilities, Through able performance, latest for the monitoring

Looking X. Slide at

demonstrated Technology downstream and units XXXX production, to the LNG, infrastructure Due and has notable in Gas the service billion to units equipment XXXX. of million from spans increase early in serviceable $XXX which markets business from models Services growth Gas in revenues Agreements a X,XXX industrial, base, Onshore/Offshore about to $X.X in gas doubled XXXX. Contractual XXXXs, XXXX the Our across Service like in X,XXX our significant Technology about introduction

over by we outlook of XXXX, to our for XX%, the gives serviceable us equipment the is base us segment our group. sets model, base increase and decade. Anchored we multi-decade and to truly growth revenue Gas Services IET installed grow what structurally our This our that from and cycle Gas significant can out level expect robust business Looking of by next equipment orders. installed Technology lifespan our backlog positive life Technology's our confidence differentiated peer apart given

her Executive pivotal welcome company Nancy, would and President into margin to the in upon Amerino to He both and the of horizons Before as by strong be also to Vice Gatti our Claudia to moment in over the achieve team will take new sectors. Maria has targets. I EBITDA an call industrial building turning energy leading the a foundations like XXXX laid next to background OFSE. Borras OFSE Amerino our extensive

towards Energy. three and next our accelerating the include our are our on of the remain profitable growth, We delivering we phase executing for driving Across horizons, pillars, strategic which focused New transforming journey. core,

diversified the We higher the and Nancy. driving turn margins potential over company. With energy that, are full industrial committed and returns to call I'll to realizing and of our

and Thanks, our Lorenzo. summarizing overview will I with to then XX before begin on an speak details Slide of our outlook. consolidated results segment

clear We have solidly EBITDA our and $X.XX generating exceptionally our and excellence to operational adjusted increase above our highest It the profitable quarter strong third growth helping results. year-over-year and midpoint. company of both and is performance, demonstrating delivered margin OFSE guidance drive is IET, for record record approximately a since EBITDA on results, the on setting another EBITDA XX% again margins that focus XXXX. quarterly delivered for billion,

X or midpoint that EBITDA guidance. the providing of met all we've now guidance have been for quarters our We exceeded

on adjustments operating our $XXX There were earnings income commitments, on meeting remain quarter. were operating $X.XX. the income million. was targets. GAAP to We per and diluted during delivering GAAP focused are no share we our

Excluding to earnings the per adjusting an XX% same year. were items, last of quarter share compared when increase $X.XX,

to optimization declined to tax rate adjusted as continue program. our tax execute XX% we Our

the full below midpoint guidance slightly be year range. to rate tax year-end our expect We of our

$X.X for billion. free additional quarter by generated to $X.X continue Lorenzo IET. strengthened flow support the awards. infrastructure diversity of IET's FPSO year-to-date two $X.X $XXX we end orders bringing total of mentioned, solid book to quarter, company and from orders another projects order total almost As including our million billion billion, gas cash delivered healthy of of a The with markets We

year, the cash are For of free full we targeting conversion to XX%. flow XX%

$X.X balance billion. sheet billion, the ratio ending quarter debt-to-EBITDA liquidity remains strong, of of third of $X.X X.Xx Our cash and net with

$XXX shareholders. million have Turning during to million Slide third Year-to-date, This the returned repurchased the $XXX capital on shares third includes quarter. allocation million we to $XXX returned to billion In investors. $X.X XX. dividend, of we and quarter,

XX% cash full we to returning free to remain shareholders. the flow to year, XX% of committed For

Our primary structural of continue focus increases dividend is with the aligned with growth the business. growing to the

share remain target we range will We use and opportunistic. to repurchases continue reach the to

Now Slide with and more our to Starting through in guidance on results walk performance. I Energy outperformed XX. segment detail IET provide will business attributed our Industrial you outlook. Technology entirely the & outstanding margin EBITDA midpoint,

orders. a is and As reflected culture I of productivity, $X.X orders and will is mindset infrastructure discuss gas driving performance. team further efficiency strong billion, process later, adopted which FPSO by clearly driven the in IET remained segment's at margin by the improved the

solutions, We to order Year-to-date, versatility pace now IET our Cordant core The profitably portfolio we $XX.X to are the orders, across quarter's advantages at seeing from also the visibility and differentiation and prior year-on-year. with of $X.X on orders. us RPO have revenue exceptional over Hughes, Baker remain ended allowing billion solid record significant level billion, customers increase full record booked grow we X% for energy booked year guidance. up level new an industrial RPO of momentum provides quarter which IET end and years. achieve remain the earnings of coming markets. IET and both and for This

our margins which year-over-year. XXX% drive up points margin and specifically Services. productivity well base, installed to increased in Technology higher-margin percentage are significantly in the increase in which increase due want Equipment to a then up IET efficiency EBITDA this significantly improvement Gas Technology As backlog, conversion X.X I technology our strong and XX.X%. cost led X% gains. billion, equipment business up growth highlight to structural year, climate of million, solutions backlog, X% $XXX year-over-year was in EBITDA was XXXX. IET prior Gas XX% $X.X will progress our we for beyond execute will revenue the growth aftermarket the versus robust service quarter by

levered We good also a continue more few digital our of to see industrial in and expansion margin businesses.

OFSE to Equipment is The done year. service Slide next testament margin to strong we growth for are maintain focused towards segment has efficiencies team maintained remain they to XX. its Services target work Oilfield and to on on This profitable as our the & Turning trajectory, delivery the XX% drive stronger driving and on cost discipline track and to a customers. margin achieve commercial

strength Continued drive Surface helped in $XXX Pressure million. of Subsea Systems flexibles to & orders

and anticipate remain $X revenue and in to systems activity billion, due Gulf tree increased to Flexible activities was the million, year-over-year. cost quarter in XXXX. Pipe we've contribution subsea in solid by North our rate levels offshore was expect OFSE sequentially, awards increasing rig growth Mexico. mostly improvement We flat again led at from OFSE Surface This quarter Growth order across XX% towards sequential EBITDA in by artificial outperforming revenue Control and higher margin year-over-year. sequentially, East XX.X%, Sub-Saharan in Africa, up percentage heavy Pressure in the $XXX the by efficiency were and offset revenue margin of to weighting been lift. executing North continued America, flat sequentially. business. levered strong Middle International productivity Latin was and X% enhancements revenues that In America. was land declined lower revenues led businesses. OFSE which Europe X.X due production the EBITDA was the was points pricing, America

particularly improvement continued pleased with to the in levels. performance, SSPS where margins We increased record are

our has making important margin structural contributor we half will the year-over-year team is aspect margin This clearly we to of results. take across XX. to actions evident the progress XXXX. This is An our emphasize want continue are transformation margin progress be the improvement than as moment large more to quarter's to the Slide in a attributed highlight strong through that to to company. improvement executed improvement. I to this driving a from Turning is

and several duplication modernize lower. pace of structurally activities, is executing management improving colleagues are projects remove drive work We to transparency smarter and enabling systems. our This costs clarity, streamline decision-making, the and to

enterprise. our continue We also across chain enhance the to supply

margins significant by Technology on margins. as XXXX, Technology volume achieving larger track to achieve we strategy, Eastern supply quarter. Europe. a and have our reaching journey highlighted key leveraging our higher year, progress reduced on this towards in EBITDA We XX% an drivers by R&D Mexico from this IET, countries remain suppliers are grow. procurement the higher-margin our conversion margin and in high-quality high industrial on we to demonstrated target sourcing spending best milestone focused important in cost continue Gas of teens Specifically, In of and margin India, Equipment backlog, include in margins target The chain revenues Industrial cost type our efficiencies, materials

demonstrating product reduce throughput, efficiency EBITDA tremendous deploying in made our the The We mindset margin we kaizen is of alone, increased is a EBITDA kaizens, driving targeted X embracing our performance we the culture is and delivered This approaching OFSE, industrial give in projects. which example lower and lean industrial refocusing driven lines. and over supply XX.X% quarters peers. has an subsea OFSE. X-Ray our and have XX% To equipment across lead customers. This last target. margins automation chain, team is team now our product in quarter, progress costs recently great productivity. year and year initiated our of of commercial further IET of SSPS capacity times and portfolio to This and delivery adopted have productivity, the this that our yielding significantly are made improvements the optimize for improve costs, our rate broader a has are has some improvements rightsizing more model, IET. line SSPS still improving a our execution. There are to these manufacturing cost OFSE by service in with improved been reduced across drive opportunities progress of process has higher perspective you strategies over on inspection our operations. on the time X/X, from XXX the significant multiple by lead one machines In

by even making drive improvement remain over operate We higher driving continuous and changing still the many the Baker significant to excited Overall, are way and our XX% growth we we Hughes. profitable in are across margins margin coming the are progress available years opportunities focused on confident beyond target. in

this our and The XXXX on and The found on like to you shown EBITDA year I'd update is Next, I for infrastructure, gas our benefiting multiple revenue, maintain are outlook company. on our details our from focus and will on the of offshore of guidance. cycles, Energy. for the fourth LNG, New are Overall, slide, full guidance ranges and outlook. midpoint we D&A IET quarter including Slide XX.

portfolio suited the on in areas. to of is Our well positive capitalize each momentum these

tailwinds Given at quarter operational continued approximately these and billion midpoint expect of the our total $X.XX EBITDA we fourth improvement, range. of our guidance

range. factors in Equipment, Technology Technology guidance any range Gas be execution of of this Gas expect and Technology, benefit the and we in our the robust results of process fourth major productivity IET, as backlog solutions. $XXX operational of well enhancements supply conversion technology For aeroderivative impact quarter revenue as to IET fourth improvements, from conversion backlog. expect the at and million pace continued we will the climate tightness strong midpoint segment's quarter The of chain EBITDA Overall, driving in Industrial

America. the million of include OFSE, and activity For of of we fourth Arabia, and sales. of impacting cost-out initiatives, uncertainty product $XXX backlog Saudi quarter our this expect broader activity the North further by conversion, in Mexico EBITDA at SSPS range midpoint amount the impacted levels Factors realization year-end range guidance

Now guidance. turning to our full year

remains EBITDA the unchanged. for have total We and midpoint range guidance narrowed company the

to maintain We orders to with for robust billion year guidance We orders expect of $XX.X expectations strong this IET year, billion portfolio. of driven our approach $XX.X range the aspects at momentum by full across to IET levels midpoint. the all remain

and As performance, are to billion range. guidance full a strong robust for the outlook of year result increasing conversion we our of $X EBITDA our at IET backlog margin midpoint

by is summary, revenues. In EBITDA we operational half performance margin $X.XX the our where OFSE, OFS with extremely updated lower billion, For strength are company. pleased to second the be expected offset is midpoint of

EPS improving journey quarter quarter These opportunities third quarterly a portfolio in and on second increase record of highest to entire The clear working. market committed products structurally more XXX% the consecutive and quarter drivers margin margins the in organization just key with EBITDA than capitalizing value. to and our differentiated are further is which our since is years. increase are that services, shareholder The XXXX EBITDA, indicators X transformation our of marks of both for

We future turn of progress is making, are call the of the over are we Baker the Hughes. I'll Lorenzo. and the to about excited proud company back

Thank you, Nancy.

to XX. Slide Turning

in expected compared results Our strategy clear are showing success. years, to delivering and doubled has is X the X to company's be points up margins are almost XXXX. our EBITDA percentage progress as

Looking robust forward, Baker have we fields. Recent resulted by levels aftermarket provide market strong a differentiated natural markets IET's see across Hughes, equipment for mature revenue Energy, for across growth service positioning growth New and end multiple and opportunity LNG, cycles our gas, order industrial that led significant visibility in businesses.

XX% on It quarter our journey peer-leading toward portfolio on a since In segments. To margins our Total addition, this highest call margin are destination. a teen value is is continue the target. culture to relentless we very thank results. both milestone have both path to yet strong margins again created, improvement. our I'll delivering journey for of margins the EBITDA XX% reached a like over close, not to Baker of the level XXXX, Baker with only across the enterprise. With we segments high the the turn our and the building, team strength of the Hughes testament to people, I'd we Hughes Chase. a achieving It's that,

for let's Operator, questions. the open call Lorenzo. Thanks,

question first Anderson from with Our Instructions] comes David [Operator Barclays.

clearly it really the IET dig little that component. of equipment gas clearly thought services of more. was of you're you is decade. highlighted, bit So kind that and and through interconnectivity growth just as is the a the Services The between about I business the into I the here. theme, a was infrastructure well wondering accretive talk kind really little interesting, could highlighting if a you -- global angle end over bit positioned being an

changes. how highlighted this You whole

about assuming more but as order expect also of most of I'm year a the you're in change how is this seeing book then bit talk services shift you LNG forward? now, this non-LNG. going happening you could So is mix to we have a

of components services and So could sort over see inflecting the the about of how several years? those various you talk next you

with And aspect gas think Yes, we and our the differentiator key can I overlooked, business customers, that service an with and stream, our sometimes revenue connectivity for offering presentation, their the characteristics. see definitely, associated ownership. And it's recurring life a and of valuable you X, because that have important of technology their we're cycle able total that's optimize is to of cost the Dave. Slide it's in

that entire the some revenue a cycle of higher As really Xx and industrial blade, it razor margins have equipment. recurring high-quality already our and period business margin equipment compared it's And mentioned the when as this an revenue X our with the of XX% get to of years, I've XX generates the sold. stream for service today, generate equipment for accounts can of at standpoint, margin. And originally to nearly from that look razor, peers life Also, you as Services it total IET's to EBITDA. before, from the we aligned XX across aftermarket Gas spans a characteristics same And Tech

service it can it lot I award revenue of different XX And from Production, timing XX years just some to It XX you typically than when service significant about the also a build that diverse but equipment in but of think LNG to X revenue And to over intervals we've not equipment gas the our visibility infrastructure. cycle years just lumpy look milestone. that so because the takes at had provides to peers. our maintenance, on us Onshore/Offshore the traditional is of next of be

facilities now XXXX, see booked MTPA their to the to starting commissioned, and benefits LNG started MTPA yet won't which starting of again, and major XXX we construction we're projects, now XXX early the part material cycle, more under interesting these were next. what this latter is the to revenue do related XXXX hasn't accordingly, of to start reach milestones. What's today and are than LNG important to though, until So inspection is of generate the the service decade, that where

on gas Production, is expected machines, you the is, on we is also capacity know, several and LNG with pipelines, backlog grow and service important The The XXXX. have and number of already by construction. aspect under infrastructure, though, that installed today, today in that industrial our a downstream capacity same have as installed sites to FPSOs, by Onshore/Offshore true XX% we in

the with XX% it since further start beyond a XXXX. of billion $XX Tech will our along of with orders confidence XXXX lot and installed by the upside us XXXX, outlook So positive orders nearly further that the base GTE drive gives in a for Equipment of Gas growth

decade, So Slide a that and visibility the will as the led the revenue within structural as -- calories high page us well Tech that as it mentioned, opportunities FPSO the give least installed Services Gas hence, base gives growth next LNG. upgrade shine the also on by focus at a over But of too important it's mix us service increasing you the continuous to for of want we element light and our business X increasing and today. the gas infrastructure, very the and

noticeable everything difference Lorenzo, Is there. else? quick LNG Is it follow-up higher slightly a Are higher? those a calories or just real services? the from and calories

on on you on LNG, last as there rate is The transactional attachment the some service rate LNG service And we've definitely then higher. a of also also agreements of we decades. course We know, the the attachment higher and FPSOs, And is well. that models over implemented contractual rate. same have have the as do attachment

So all going forward. Services regards to bodes Tech with well Gas

comes Citigroup. question Scott with from Gruber next Our

most that could is say guys on been beating have you this all I quarter. but margins impressive by far year, Well, the

here? 'XX. in congrats. In smooth do expansion how 'XX the about over How will the mentioned 'XX, in think cadence in more the next So just improvement to that from Or are you you already X it margin given threshold years, the And about 'XX biggest confidence be? realized the achieving margin over is the think contributors what date? you improvement margin of as drivers, weighted IET, XX% and

Scott, take one. Yes, I'll that

little the that's significant X.X this by company on really margin We and since with increased pace, making improve we've pleased company. margin attributed We're that's across help over really are as isolate is you've to noted and would the the little truly, percentage quarter across self-help improvement that formed. And the up the improvement about year-over-year front, highest the segments XX.X%, points I one made. is really margins a to -- and half done. corporate. to really just is at a I the you've really And half was been at, way say, that the progress continuing And that's to bit frame we're was the up strong asked, think drivers, both notable of about the which accelerated is to progress margin those work driven

duplication and and about to center our that's part example, annually the were about super years and lower you're been $XX effective. And a down we've the have that any couple driving X up and in corporate being of found play of we're now than the and corporate, be So quarters, work IET, around good of ago, that's margins systems and the costs, removing million then they percentage due efficiencies really going if EBITDA on for and pace similar really on We between right to think enhancing the X.X be that just points driven in processes, over lot increased done segments seeing XX.X%, year-over-year record, to that's work last a out that's and segments. to today. also you the

some gears. today, XXX and on expansion in over driving like I valves, margin and more segment our Gas in as cost improvements, are signaled of margins So all has significantly industrial done higher-margin due and they're in Equipment efficiency up mentioned, businesses gains chain. for more projects see to kaizen strong of also in we've We've as the Bentley work to good improvements. productivity backlog, conversion really very also Tech supply great levered being Nevada some going year-over-year example, And continued for

to clear. more is The is there go. really progress So

in very -- than Gas Gas more XXXX IET. And Equipment we Services, Tech EBITDA I also between think note one that that and confident ever just would to differential before. it's target thing we're question Tech is achieving that I restated say by muted actually XX% our mix in we is that, get

not segment. And done the excellent up on year-over-year. EBITDA being have similarly, driver. So that's work This by is driven percentage increased really XX.X%, to a that's margins points really side, then on X.X OFSE's the

SSPS, twice year-over-year, with around So was they're really peers. them. which and more noted it's line margins made we now important driver EBITDA where up in The in than really change a progress strong main for were also

been removed They've really really So a narrowed work duplication, if volume we customers actions receiving service year, they've of And drive additional than to lot capacity layers of of and to program. earlier and this and the numerous rightsized the and great focusing about around the were focus And and basins to beyond we duplication in there. rate still rest from XX%. benefits talked taking you OFSE, remove more margin delivery. on we've more price taking recall actions on we're that

more work but in signs. some be also OFSE So early done to great

also that both control a we to important and segments. lot it's progressing highlight are think within I is really our there for actively

we We way are the changing fundamentally work.

thing we're on environment. margin Another note, is the to though, not the totally journey is reliant external market on

beyond So there self-help drive changing, markets even with ability our in the improvement is XX% are lot and well target. a to continuous very external of confident the we margin

of little gives color that headed. you bit hopefully, on we're So a where

frame, And is visibility frame. margin and then time have 'XX to and note, a milestone OFSE will milestone, and not it for can I to is a continue a go longer This that's It and time is to we above mentioned this as just the what a destination, continue the Baker 'XX And accrete during to a And remarks the Scott, IET, well. rates, XX%, along you just see improve. as in the goal for Hughes, obviously that journey. the to is longer XX%. for

with comes question next Stifel. from Stephen Gengaro Our

on You I have installed And was looking the a GTS curious, in at on presentation slide. slide the base. the

the I X%. installed has the seen, X.X% about grown, in for You've I last think, revenue CAGR base about think, XX-plus years, but

And strong to about Should we revenue base. think XXXX, growth the we that? look So XX% growth kind how there's continue base? would maybe relative base to as of curious installed the And versus installed outperformance? installed in drive in I'm what you outperformance the so, revenue we to and if guided forward through should been see

see out it's base really And we as main revenue definitely, the outpace that Stephen. to should growth. increase And that look the revenue growth go we rightly XX% Yes, the four to down contribute you're that you correct XXXX. installed do will that in our to as continue to factors history, at

higher pricing. Firstly,

for factors. up, by the indexed As agreements, And market know, you conditions, the you of pricing environment see that through the are being which as services able look come as that. agreements we'll are in transactional see we're we Likewise, driven inflation pricing service contractual from benefit to contracts. some see at

fact, mix as the installed and at was XXXX. and going between see Dave's look in you forward, being with as also and base now LNG do improvement, we're Secondly, LNG highlighted expected by increase our mix to higher we a is XX% as question,

attachment overall that's outpacing higher XX% installed the So and per unit. installed GTS revenue base with more rates

upgrades. have service advanced XX see there's and evolve efficiencies. we They've which we doing upgrades, not emissions do go to benefit as digital on more. And and been base opportunities capabilities we equipment Typically, data upgrades. market. diagnostics of of finally, their of on from for machines now, on running years, we've really think investing right as Thirdly, good to that we solutions, looking the been been technology to actually with and and our especially monitoring forward, the to to releasing continue capabilities continue for customers capabilities in a we've and been But have upgrade an a focus got we've lot our And installed the from and basket to technology deemphasized. the

XX% in our revenue ones four is So really give comfort those that going outpace the the to that increase growth by are installed base levers the us XXXX.

with from West Evercore comes question next Our ISI. James

third income the third A one break One, the 'XX a on IET orders? late If are number here. you, And things. terms how puts then could ask high. kind think ask OFSE importance to next the anticipate and couple rules throw $XX.X should so years order wanted when and for takes billion pretty I on for Two, the business, that next or over throw lastly, I given of and it's in could and the I maybe And to on October, the would Obviously, business. so one this comfort of all you about operators' few of probably kind the company? that? in surpass for of what starting if especially the So again IET, we of decades year. a of

questions way that's get three great one. to into James, a

go. you There

IET, So look, to of with for the aspect billion. feel question first regards $XX $XX.X the XXXX about billion the to on good

guidance And able about we And at beginning about As order $XX.X what of at I you LNG been we the XXXX. we and you only equipment orders, see $XX.X been the you orders. and know, of even midpoint, LNG if good I've gave that beginning levels guidance take to the orders year to moratorium, we've knew billion before lighter at feel again, to of that the pleased million $XXX of is, think of if year-over-year in LNG year a year, year-to-date so look very particularly this robust far intake able about $X.X we billion. gave that. the billion And of achieve being with

So than significantly we booked for lower last when $X.X the year billion. year,

at the going billion we the billion. come look to gave orders the gas year, FPSO million Energy, time we're New So as $XXX to really New which, relative to significant of infrastructure, guidance in diversity to as well first our highlight through. And the the Energy. look top see And I as you able at for $X $X beginning of you again, as the at we've the portfolio been

to quarter we with similar about back XXXX, feel fourth good with guidance the for and number we specific question growth. are year. And feel We'll that next to slight I'd good really showing come give which with headwinds, more most So expectations. order we look second was XXXX, this we even XXXX. segments all though, your IET associated the in call say relative looking as year, solid earnings the to

our and the next equipment the positive we resolution XXXX the of considerable as assuming good had LNG similar in We continues FIDs Other and we've got LNG pace equipment, moratorium pick again, very be if slightly XXXX accelerating to year before well think opportunities as a XXXX. we're for are in infrastructure, expect Also, $XXX off markets solid the well XXXX, as a but very That And means may that year a in FPSO strong. in side, as of LNG microgrid there. do pace. start stated LNG I addressable GTE market as that again, to overall, we've market $XXX billion seeing of international and a well that billion you projects to to with year, be again, softer U.S. up remain XXXX. takes significant outside the CTS. puts XXXX. Gas between that

with look, made the of about story orders positive margin, up is to segments. growing. XXXX. And growth regards So IET both trajectory, in feel good of the we feel both about question, last And Baker them Hughes more on We both on the good your getting obviously, accretive.

Saurabh from comes of question with Bank next Our America. Pant

continue that, more But things. with Nancy, at side number to but nearer don't the Equipment what's I guide color little revenue how a right, third for below rebound fourth this things is the quarter, Tech were the want Gas implies please. color of third If over it can quarter you on us the on we and a And timing, little Maybe evolving that little quarter? pretty term. give rebound. driving a Maybe IET especially were look if the little range just good And mind, discussion, maybe the quarter? a in the Lorenzo it a you was fourth the expecting. it's on make we

to Happy take that one. Yes.

and really, business, lumpiness large GTE just range some why a give the an in As you of projects factor. delay due some And to for do. that particular. experience that's from this quarter-to-quarter kind they're experience external cases, And some can we in we can certainly is remember, long-cycle that we

in timing. that IET we happened related QX, had just GTE over delays exactly and million, that is delays. So the some missed supplier to by vessel and $XXX just But midpoint, all where some we

note in in it confident coming QX, coming do see remain and And our some that of by so the the revenue, revenue of our in is super I And see some year. point would guidance. And the quarters, that intact. continues, lumpy in is that to still you we'll improvement still will XX% is even this increasing margin with revenue and we QX. say overall important But guidance

GTE margins give XX% you year-over-year. context 'XX to just So year-to-date X% revenue it's around up is little versus up year-to-date are to at up that, And now XX.X%. 'XX, look if a actually and

on but of executing backlog. And $XX billion mix, totally not to remain deep of note, continue XX And are margins also revenues these we just up. GTE ability very in nearly including earlier, on really are and are them it's confident down year-over-year, that we confident up all backlog. as it's good in I diverse and are And are executing again, that really up points So said businesses in growing. Gas about Tech, are the margins too, our the and IET to

the there, So we are all are working is -- backlog. confident and and orders still the GTE we are through

on been for that's element laid orders the backlog on out the and the staying shipping coming these and I than takes These back some it's peers. of Having beginning, also decade, have EBITDA here think about logistics some the going momentum with to our at the well based what just go target different maybe some mentioned in again, I the good track for very a would are deliveries. and over the of you're as over the to projects. I Again, puts timing feel and and of the seen Nancy is all as just course quarters being related. add, And to we're know long-cycle of XX% converted. and continued XXXX,

Our last Cowen. from Marc TD with Bianchi comes question

book-to-bill the I on guess about think XXXX. IET first was question had the just I we as

base maybe the is. how should it for level thinking we the is be backlog sounds case I'm curious conversion. XXXX about flattish like the So where with order

Yes.

continues momentum year-over-year, same. perspective, cycle these time So of level moratorium again, of January XXXX quarter earnings robust give the positive lifted. again, And in to at official again, if with of during projects look read early to you the obviously, the XXXX. we'll conversion like the then call looking guidance be a And again, being LNG from XXXX, fourth again, and seeing, and a We're the activity.

same you when at about as the again, So continuing think RPO convert to at to be record the go and we continuing levels pace. forward

Chief conclude last our and I Officer, hand Mr. Executive the to call. to question. was you Simonelli, will back That Chairman Lorenzo

lot to again join I now the soon. you and with to everyone speaking a look call time Thanks all our today, close to call. you may taking for Operator, earnings forward the

the gentlemen, This thank and concludes participating Ladies in conference. you today's program. for

disconnect. Everyone, have great You may all a day.