Baker Hughes (BKR) shares plummeted 5.33% on Wednesday after the oilfield services giant reported mixed first-quarter results and warned of potential tariff impacts on its 2025 outlook. The stock's significant drop occurred during intraday trading, reflecting investors' concerns about the company's performance and future prospects.

The company's Q1 earnings per share of $0.51 beat analyst estimates of $0.47, showing a 19% year-over-year increase. However, revenues of $6.43 billion fell short of the expected $6.49 billion, remaining flat compared to the previous year. The revenue miss was primarily attributed to an 8% decline in the Oilfield Services and Equipment (OFSE) segment, which was partially offset by an 11% growth in the Industrial & Energy Technology (IET) segment.

Adding to investor concerns, Baker Hughes flagged potential tariff impacts on its 2025 outlook. The company estimates that tariffs could have a negative impact of $100 million to $200 million on its 2025 EBITDA. This uncertainty, coupled with broader macroeconomic and trade policy concerns, has led Baker Hughes to adopt a more cautious stance on its financial performance for the year. The company also reported a decline in both domestic and international operations during the first quarter, with North American operations down 5% and international operations falling 11%.

Despite these challenges, Baker Hughes remains optimistic about its long-term prospects, particularly in the liquefied natural gas (LNG) sector. The company highlighted that several key LNG customers in the US Gulf Coast are indicating plans to further expand capacity beyond 2030, which could provide a positive outlook for its Gas Technology Equipment business. However, the immediate focus remains on navigating the current market uncertainties and mitigating the potential impacts of tariffs on its operations.