Baker Hughes (BKR) risk factors, FY2025 10-K

Baker Hughes's FY2025 10-K, filed Feb 05, 2026, lists 47 risk factors in 5 groups. Against the prior year's 45: 7 new, 5 dropped, 25 substantially reworded.

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Risk factors listed
475 groups
New this year
7vs 45 last year
Dropped
5since the prior 10-K
Substantially reworded
25of those kept
Section length
11k wordsItem 1A

What the changes say

  • Baker Hughes added risks concerning clean energy transition shifts, M&A activity with Chart, and artificial intelligence integration.

What changed since the prior 10-K

New

  • NewOPERATIONAL RISKS

    The potential slowdown and shift in the energy transition could have an adverse effect on the demand for our clean energy technologies and services

    A potential slowdown in the energy transition could reduce demand for our clean energy technologies and services.

  • NewOPERATIONAL RISKS

    carbon economy has become increasingly uncertain and variable across different regions and markets. Recent developments indicate a potential slowdown in energy transition efforts, with sustained or increased demand for traditional oil and gas in certain markets

    Shifts in government policies and market demand away from lower-emission products may impact our investments in geothermal, CCUS, and hydrogen.

  • NewOPERATIONAL RISKS

    Our proposed transaction with Chart creates business, regulatory, and reputational risks

    Our proposed transaction with Chart creates business, regulatory, and reputational risks.

  • NewOPERATIONAL RISKS

    We may not be able to realize the potential financial or strategic benefits of the transactions we complete, or find suitable target businesses to acquire

    We may fail to realize financial benefits or find suitable targets for our future acquisitions, partnerships, or product line divestitures.

  • NewLEGAL AND REGULATORY RISKS

    Recent changes in U.S. administrative policy, including increases in tariffs and any changes in international trade relations or trade agreements, may have an adverse effect on our business

    Recent increases in U.S. tariffs on goods imported from Europe, Mexico, and China may adversely affect our international trade and business.

  • NewTECHNOLOGY RISKS

    irreversible. The inability to implement, maintain and upgrade adequate safeguards could materially and adversely affect our financial condition, results of operations and cash flows

    We may be held responsible for cybersecurity incidents originating from third-party service providers or emerging technologies like AI.

  • NewTECHNOLOGY RISKS

    We may use AI, machine learning, data science and similar technologies in our business, products and services, and challenges with properly managing such technologies could result in reputational harm, competitive harm or legal liability, and adversely affect our business, financial condition and results of operations

    Flawed or biased AI algorithms and inadequate governance could result in reputational harm, competitive harm, or legal liability.

Dropped

  • DroppedOPERATIONAL RISKS

    There is increased focus by governments and our customers, investors and other stakeholders on climate change, sustainability, and energy transition matters. Transitioning to a lower-carbon economy will likely require extensive policy, legal, technology, and market changes

  • DroppedOPERATIONAL RISKS

    Our business has previously and may in the future again be adversely affected by a public health emergency or outbreak of a contagious disease or virus

  • DroppedLEGAL AND REGULATORY RISKS

    Investor and public perception related to the Company's ESG performance as well as current and future ESG reporting requirements may affect our business and our operating results

    Transitioning to a lower-carbon economy will require extensive policy, legal, technology, and market changes.

  • DroppedLEGAL AND REGULATORY RISKS

    Voluntary initiatives to reduce GHG emissions, as well as increased climate change awareness, may result in increased costs for the oil and gas industry to curb GHG emissions and could have an adverse impact on demand for oil and natural gas

  • DroppedRISKS RELATED TO OUR STOCK

    Baker Hughes Company 2024 Form 10-K | 26

Reworded

  • 100% rewrittenOPERATIONAL RISKS

    Baker Hughes Company 2025 Form 10-K | 18

    Changed from discussing climate physical risks like hurricanes and wildfires to focusing on brand and operational harm from completed or uncompleted transactions.

    Was: Baker Hughes Company 2024 Form 10-K | 17

  • 100% rewrittenOPERATIONAL RISKS

    Baker Hughes Company 2025 Form 10-K | 19

    Removed specific figures about receivables from our primary customer in Mexico (7%, 9%, 10%) and credit default swaps, focusing instead on asset impairments.

    Was: Baker Hughes Company 2024 Form 10-K | 19

  • 100% rewrittenLEGAL AND REGULATORY RISKS

    Baker Hughes Company 2025 Form 10-K | 22

    Replaced general tax law and tariff language with specific exposure to corruption requirements, sanctions, and prosecution.

    Was: Baker Hughes Company 2024 Form 10-K | 20

  • 100% rewrittenLEGAL AND REGULATORY RISKS

    Baker Hughes Company 2025 Form 10-K | 23

    Replaced Superfund sites and hazardous discharge risks with specific litigation claims like personal injury, product failure, and labor disputes.

    Was: Baker Hughes Company 2024 Form 10-K | 21

  • 100% rewrittenTECHNOLOGY RISKS

    Baker Hughes Company 2025 Form 10-K | 27

    Replaced general cyber remediation resource expenditures with specific risks concerning AI statutory compliance, data privacy, and intellectual property.

    Was: Baker Hughes Company 2024 Form 10-K | 24

  • 98% rewrittenOPERATIONAL RISKS

    Baker Hughes Company 2025 Form 10-K | 17

    Added specific operational dependencies and risks involving GE Aerospace, GE Vernova, and the Aero JV.

    Was: Baker Hughes Company 2024 Form 10-K | 14

  • 83% rewrittenOPERATIONAL RISKS

    Seasonal and weather conditions could adversely affect demand for our services and operations

    Removed specific examples of extreme winter conditions in Canada or the North Sea from weather-related business interruption risks.

    Was: Seasonal and weather conditions, including severe weather associated with climate change, could adversely affect demand for our services and operations

  • 80% rewrittenLEGAL AND REGULATORY RISKS

    We could be subject to litigation and environmental claims arising out of our products and services which could adversely affect our reputation, financial condition, results of operations and cash flows

    Truncated the description of technical complexities and insurance coverage for health, safety, and environmental litigation risks.

  • 80% rewrittenLEGAL AND REGULATORY RISKS

    Anti-money laundering and anti-terrorism financing laws could have adverse consequences for us

  • 79% rewrittenLEGAL AND REGULATORY RISKS

    Baker Hughes Company 2025 Form 10-K | 24

    Was: Baker Hughes Company 2024 Form 10-K | 22

  • 78% rewrittenLEGAL AND REGULATORY RISKS

    Our failure to comply with the Foreign Corrupt Practices Act ("FCPA") and other similar laws could have a negative impact on our ongoing operations

  • 59% rewrittenOPERATIONAL RISKS

    The partial or complete loss of GE Vernova or GE Aerospace as suppliers, as well as contracts with our Aero JV with GE Vernova, may adversely affect our business, financial condition, results of operations and cash flows

    Was: The partial or complete loss of GE Vernova or GE Aerospace as suppliers, as well as contracts with our aeroderivative joint venture (the "Aero JV") with GE Vernova may adversely affect our business, financial condition, results of operations and cash flows

  • 56% rewrittenTECHNOLOGY RISKS

    Increased cybersecurity vulnerabilities and threats, and more sophisticated and targeted cyber-attacks and other security incidents, pose risks to our systems, data and business, and our relationships with customers and other third parties

  • 55% rewrittenLEGAL AND REGULATORY RISKS

    Compliance with, and rulings and litigation in connection with, environmental regulations and the environmental impacts of our operations may adversely affect our business and operating results

  • 55% rewrittenLEGAL AND REGULATORY RISKS

    We may be subject to litigation if another party claims that we have infringed upon, misappropriated or otherwise violated its intellectual property rights

  • 48% rewrittenOPERATIONAL RISKS

    Our customers' activity levels and spending for our products and services and ability to pay amounts owed us could be impacted by the reduction of their cash flow, financial condition and the ability of our customers to access equity or credit markets

  • 48% rewrittenRISKS RELATED TO OUR STOCK

    The market price and trading volume of our Class A common stock may be volatile, which could result in rapid and substantial losses for our shareholders

  • 47% rewrittenTECHNOLOGY RISKS

    An inability to obtain, maintain, protect, defend or enforce our intellectual property rights could adversely affect our business

  • 43% rewrittenOPERATIONAL RISKS

    We operate in a highly competitive environment, which may adversely affect our ability to succeed. Our investments in new technologies, equipment, and facilities may not provide competitive returns

  • 40% rewrittenLEGAL AND REGULATORY RISKS

    Baker Hughes Company 2025 Form 10-K | 25

    Was: Baker Hughes Company 2024 Form 10-K | 23

  • 39% rewrittenLEGAL AND REGULATORY RISKS

    Changes in laws or regulations relating to data privacy and security, or any actual or perceived failure by us to comply with such laws or regulations, or contractual or other obligations relating to data privacy or security, may adversely affect our business and operating results

  • 39% rewrittenINDUSTRY AND MARKET RISKS

    Changes in economic and/or market conditions may impact our ability to borrow and/or cost of borrowing

  • 29% rewrittenOPERATIONAL RISKS

    Providing services on an integrated, turnkey, or fixed price basis could require us to assume additional risks

  • 24% rewrittenOPERATIONAL RISKS

    Our operations involve a variety of operating hazards and risks that could cause losses

  • 23% rewrittenOPERATIONAL RISKS

    Our business could be impacted by both geopolitical and terrorism threats, including armed conflict, in countries where we or our customers do business and our business operations may be impacted by civil unrest and/or government expropriations

All 47 risk factors

Headings as the filing states them, in filing order.

OPERATIONAL RISKS

  1. 01We operate in a highly competitive environment, which may adversely affect our ability to succeed. Our investments in new technologies, equipment, and facilities may not provide competitive returns43% rewritten
  2. 02The potential slowdown and shift in the energy transition could have an adverse effect on the demand for our clean energy technologies and servicesNew
  3. 03carbon economy has become increasingly uncertain and variable across different regions and markets. Recent developments indicate a potential slowdown in energy transition efforts, with sustained or increased demand for traditional oil and gas in certain marketsNew
  4. 04Disruptions in our supply chain, the high cost or unavailability of raw materials, equipment, and supplies essential to our business could adversely affect our ability to execute our operations on a timely basis
  5. 05The partial or complete loss of GE Vernova or GE Aerospace as suppliers, as well as contracts with our Aero JV with GE Vernova, may adversely affect our business, financial condition, results of operations and cash flows59% rewritten
  6. 06Baker Hughes Company 2025 Form 10-K | 1798% rewritten
  7. 07Our proposed transaction with Chart creates business, regulatory, and reputational risksNew
  8. 08We may not be able to realize the potential financial or strategic benefits of the transactions we complete, or find suitable target businesses to acquireNew
  9. 09Baker Hughes Company 2025 Form 10-K | 18100% rewritten
  10. 10If we are unable to attract and retain key personnel, we may not be able to execute our business strategy effectively and our operations could be adversely affected
  11. 11The implementation of any plan to restructure our corporate organization and operating segments may not achieve the results we anticipate, which could adversely affect our business
  12. 12Our business could be impacted by both geopolitical and terrorism threats, including armed conflict, in countries where we or our customers do business and our business operations may be impacted by civil unrest and/or government expropriations23% rewritten
  13. 13Baker Hughes Company 2025 Form 10-K | 19100% rewritten
  14. 14Control of oil and natural gas reserves by national oil companies may impact the demand for our services and products and create additional risks in our operations
  15. 15Our operations involve a variety of operating hazards and risks that could cause losses24% rewritten
  16. 16Seasonal and weather conditions could adversely affect demand for our services and operations83% rewritten
  17. 17Providing services on an integrated, turnkey, or fixed price basis could require us to assume additional risks29% rewritten
  18. 18We may not be able to satisfy technical requirements, testing requirements or other specifications required under our service contracts and equipment purchase agreements
  19. 19We sometimes enter into consortium or similar arrangements for certain projects, which could impose additional costs and obligations on us
  20. 20Our contracts may be terminated early in certain circumstances
  21. 21The credit risks of having a concentrated customer base in the energy industry could result in losses
  22. 22Our customers' activity levels and spending for our products and services and ability to pay amounts owed us could be impacted by the reduction of their cash flow, financial condition and the ability of our customers to access equity or credit markets48% rewritten

LEGAL AND REGULATORY RISKS

  1. 23Compliance with and changes in laws could be costly and could affect operating results. In addition, government disruptions could negatively impact our ability to conduct our business
  2. 24Our failure to comply with the Foreign Corrupt Practices Act ("FCPA") and other similar laws could have a negative impact on our ongoing operations78% rewritten
  3. 25Baker Hughes Company 2025 Form 10-K | 22100% rewritten
  4. 26Anti-money laundering and anti-terrorism financing laws could have adverse consequences for us80% rewritten
  5. 27Recent changes in U.S. administrative policy, including increases in tariffs and any changes in international trade relations or trade agreements, may have an adverse effect on our businessNew
  6. 28We could be subject to litigation and environmental claims arising out of our products and services which could adversely affect our reputation, financial condition, results of operations and cash flows80% rewritten
  7. 29Baker Hughes Company 2025 Form 10-K | 23100% rewritten
  8. 30We may be subject to litigation if another party claims that we have infringed upon, misappropriated or otherwise violated its intellectual property rights55% rewritten
  9. 31Compliance with, and rulings and litigation in connection with, environmental regulations and the environmental impacts of our operations may adversely affect our business and operating results55% rewritten
  10. 32Baker Hughes Company 2025 Form 10-K | 2479% rewritten
  11. 33Changes in laws or regulations relating to data privacy and security, or any actual or perceived failure by us to comply with such laws or regulations, or contractual or other obligations relating to data privacy or security, may adversely affect our business and operating results39% rewritten
  12. 34Baker Hughes Company 2025 Form 10-K | 2540% rewritten

TECHNOLOGY RISKS

  1. 35An inability to obtain, maintain, protect, defend or enforce our intellectual property rights could adversely affect our business47% rewritten
  2. 36Increased cybersecurity vulnerabilities and threats, and more sophisticated and targeted cyber-attacks and other security incidents, pose risks to our systems, data and business, and our relationships with customers and other third parties56% rewritten
  3. 37irreversible. The inability to implement, maintain and upgrade adequate safeguards could materially and adversely affect our financial condition, results of operations and cash flowsNew
  4. 38We may use AI, machine learning, data science and similar technologies in our business, products and services, and challenges with properly managing such technologies could result in reputational harm, competitive harm or legal liability, and adversely affect our business, financial condition and results of operationsNew
  5. 39Baker Hughes Company 2025 Form 10-K | 27100% rewritten

INDUSTRY AND MARKET RISKS

  1. 40Volatility of oil and natural gas prices can adversely affect demand for our products and services
  2. 41Demand for our products and services is subject to factors beyond our control and depends substantially on expenditures by our customers. Changes in the global economy could impact our customers' spending levels and our financial condition, results of operations and cash flows
  3. 42Supply of oil and natural gas is subject to factors beyond our control, which may adversely affect our operating results
  4. 43Currency fluctuations or devaluations may impact our operating results
  5. 44Changes in economic and/or market conditions may impact our ability to borrow and/or cost of borrowing39% rewritten

RISKS RELATED TO OUR STOCK

  1. 45The market price and trading volume of our Class A common stock may be volatile, which could result in rapid and substantial losses for our shareholders48% rewritten
  2. 46Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that might be considered favorable
  3. 47Our fourth amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may be initiated by our shareholders, which could limit our shareholders' ability to obtain a favorable judicial forum for disputes with us

Other Baker Hughes 10-Ks

  • FY2024 10-K risk factors
    45 risks

    The risk factors are dominated by energy transition pressures, customer credit risk in Mexico, GE supplier dependency, and geopolitical conflicts.

    Filed Feb 04, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.