Hughes Tool Company was established in 1909 when Howard R. Hughes, Sr. introduced the first roller cutter bit that dramatically improved the rotary drilling process. When Hughes, Sr. died the company was left to Howard Hughes Jr., who at the time was a student at Rice University.

In 1932, Howard Hughes Jr. formed Hughes Aircraft as a division of the Hughes Tool Company. In 1936 this became a separate company.

In 1972, Howard Hughes sold the tool division of the Hughes Tool Company. This became the "new" Hughes Tool Company while the remaining parts of the business were placed in a new holding company, the Summa Corporation.

In 1987, the company merged with Baker International to form Baker Hughes Incorporated.