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Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segments

5. Segments

The Company has two reportable segments, Energy Products and Services, and Energy Equipment, based on the products and services provided, customer base, and operating environment. These reportable segments are determined as those businesses for which results are reviewed regularly by the Chief Operating Decision Maker, who is identified as our Chief Executive Officer, in allocating resources and assessing performance.

The following table presents financial data by business segment (in millions):

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

 

Energy Products and Services

 

 

Energy Equipment

 

 

Eliminations and corporate costs (1)

 

 

Total

 

 

Energy Products and Services

 

 

Energy Equipment

 

 

Eliminations and corporate costs (1)

 

 

Total

 

Revenue from external customers

 

$

971

 

 

$

1,132

 

 

$

—

 

 

$

2,103

 

 

$

993

 

 

$

1,162

 

 

$

—

 

 

$

2,155

 

Intersegment revenue

 

 

21

 

 

 

14

 

 

 

(35

)

 

 

—

 

 

 

24

 

 

 

16

 

 

 

(40

)

 

 

—

 

Total revenue

 

 

992

 

 

 

1,146

 

 

 

(35

)

 

 

2,103

 

 

 

1,017

 

 

 

1,178

 

 

 

(40

)

 

 

2,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue (2)

 

 

726

 

 

 

864

 

 

 

(14

)

 

 

1,576

 

 

 

712

 

 

 

924

 

 

 

(15

)

 

 

1,621

 

Selling, general, and administrative (2)

 

 

126

 

 

 

120

 

 

 

42

 

 

 

288

 

 

 

131

 

 

 

131

 

 

 

28

 

 

 

290

 

Depreciation and amortization

 

 

59

 

 

 

28

 

 

 

2

 

 

 

89

 

 

 

54

 

 

 

28

 

 

 

1

 

 

 

83

 

Gain on sales of fixed assets

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

(1

)

Operating profit

 

$

83

 

 

$

134

 

 

$

(65

)

 

$

152

 

 

$

121

 

 

$

95

 

 

$

(54

)

 

$

162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and financial costs

 

 

—

 

 

 

—

 

 

 

(22

)

 

 

(22

)

 

 

—

 

 

 

—

 

 

 

(24

)

 

 

(24

)

Interest income

 

 

—

 

 

 

—

 

 

 

11

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

8

 

 

 

8

 

Equity income (loss) in unconsolidated affiliates

 

 

(4

)

 

 

4

 

 

 

—

 

 

 

—

 

 

 

29

 

 

 

—

 

 

 

—

 

 

 

29

 

Other expenses, net

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

(20

)

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

(10

)

Income before income taxes

 

$

79

 

 

$

138

 

 

$

(96

)

 

$

121

 

 

$

150

 

 

$

95

 

 

$

(80

)

 

$

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

49

 

 

$

33

 

 

$

2

 

 

$

84

 

 

$

56

 

 

$

10

 

 

$

3

 

 

$

69

 

Investment in unconsolidated affiliates

 

$

149

 

 

$

8

 

 

$

—

 

 

$

157

 

 

$

242

 

 

$

5

 

 

$

—

 

 

$

247

 

Goodwill

 

$

805

 

 

$

816

 

 

$

—

 

 

$

1,621

 

 

$

786

 

 

$

816

 

 

$

—

 

 

$

1,602

 

Intangibles, net

 

$

375

 

 

$

131

 

 

$

—

 

 

$

506

 

 

$

362

 

 

$

146

 

 

$

—

 

 

$

508

 

Total assets

 

$

5,072

 

 

$

4,874

 

 

$

1,327

 

 

$

11,273

 

 

$

5,116

 

 

$

5,533

 

 

$

656

 

 

$

11,305

 

 

(1)
Sales from one segment to another generally are priced at estimated equivalent commercial selling prices; however, segments originating an external sale are credited with the full profit to the Company. Eliminations and corporate costs include intercompany transactions conducted between the two reporting segments that are eliminated in consolidation, as well as corporate costs not allocated to the segments. Intercompany transactions within each reporting segment are eliminated within each reporting segment. Also included in the eliminations and corporate costs column are capital expenditures and total assets related to corporate. Corporate assets consist primarily of cash and fixed assets.
(2)
Included in cost of revenue and selling, general, and administrative expenses are pre-tax charges (credits) within Other Items of $13 million and $(3) million, for the three months ended March 31, 2025, and 2024, respectively. Other Items included in cost of revenue for the three months ended March 31, 2025 includes charges related to severance and other restructuring costs (Energy Products and Services: $4 million; and Energy Equipment: $3 million); and charges resulting from the deconsolidation of the Company’s Russian subsidiaries based on our determination that control over the subsidiaries was restricted following the levy of additional U.S. sanctions on Russian operations (Corporate: $1 million). Other Items included in selling, general, and administrative expenses includes charges related to currency translation adjustment write-offs (Energy Products and Services: $1 million); and charges related to the aforementioned deconsolidation of our Russian subsidiaries (Corporate: $4 million). Other items included in cost of revenue for three months ended March 31, 2024 include credits related to gains on sales of previously reserved inventory (Energy Equipment: $(5) million); charges related to severance and other restructuring costs (Energy Equipment: $1 million; and Corporate: $1 million).