Baker Hughes (BKR) - Company Research
Last Updated: 27 April 2026
Baker Hughes (NASDAQ: BKR) is one of the three super-majors of oilfield services and the only large peer with a sizeable industrial-energy-technology business outside upstream. The Q1 2026 print on 23 April 2026 surprised on the upside – record IET orders of $4.89 bn, total orders of $8.16 bn (+26% YoY) and a record Remaining Performance Obligation of $36.1 bn – reinforcing the central thesis that LNG, data-centre power and aeroderivative gas turbines are growing materially faster than the legacy oilfield-services cycle. Adjusted EBITDA grew 12% YoY despite Strait of Hormuz disruption. The pending $13.6 bn acquisition of Chart Industries (closing mid-2026) and ~$3 bn of completed/announced 2026 divestitures are remaking the portfolio around energy infrastructure and industrial gas. This report covers the Q1 2026 numbers, the segment economics, the LNG + data-centre order book, the Chart Industries deal and the principal risks – including Strait of Hormuz exposure that may persist into H2 2026.
1. Company Snapshot
| Company | Baker Hughes Company |
| Ticker | NASDAQ: BKR |
| Sector / Industry | Energy – Oil & Gas Equipment & Services / Industrial Energy Technology |
| HQ | 17021 Aldine Westfield, Houston, Texas (with London co-HQ) |
| Chair, President & CEO | Lorenzo Simonelli (since 2017 merger) |
| CFO | Ahmed Moghal (appointed 2025; previously CFO of IET segment) |
| Founded | Hughes Tool (1908) & Baker Oil Tools (1907); merged 1987; merged with GE Oil & Gas July 2017 to form Baker Hughes Co |
| Employees | ~56,000 |
| Fiscal year end | 31 December |
| Share price (24 Apr 2026) | $68.94 |
| 52-week range | $34.56 – $69.90 |
| Market cap | ~$68.4 bn |
| Enterprise value | ~$68.6 bn (pre Chart close) |
| FY2025 revenue | $27.73 bn (flat YoY) |
| FY2025 adjusted EBITDA | $4.83 bn (margin 17.4%) |
| FY2025 GAAP net income | $2.59 bn |
| Quarterly dividend | $0.23 (annualised $0.92); ex-div ~5 May 2026, paid 15 May 2026 |
| Dividend yield | ~1.33% |
| Q1 2026 RPO | $36.1 bn (record); IET RPO $33.1 bn |
| Next earnings | Q2 2026 – expected late July 2026 |
2. Bull Case vs Bear Case
| Bull Case | Bear Case |
|---|---|
| Q1 2026 IET orders set a record at $4.89 bn (third straight quarter >$4 bn); total orders +26% YoY to $8.16 bn; RPO record $36.1 bn (IET $33.1 bn) provides 2–3 years of visibility. | OFSE revenue declining (FY2025 -8%); Q1 2026 OFSE Middle East -19% YoY on Strait of Hormuz disruption; CFO indicates impact may persist into H2 2026. |
| IET segment EBITDA margin expanded to 20.2% in Q1 2026 (+310 bps YoY); OFSE held 17.4% despite revenue softness; FY2025 IET margin 18.5% (+170 bps). | Q1 2026 FCF only $210 m (-54% YoY) on customer-payment timing; payments-driven volatility a feature of equipment-heavy business. |
| LNG: 83 MTPA of FIDs already supplied 2024–2025; on track to exceed 100 MTPA outlook for 2024–2026; Q1 2026 alone booked $1.2 bn LNG equipment orders (Qatar mega-trains and ST LNG Texas). | Strait of Hormuz disruption hit ~20% of global LNG capacity; persistence into 2026 H2 risks deferring further FIDs and turbine deliveries. |
| Data-centre orders accelerating – 2025–2027 target lifted to $3 bn (doubled); Q1 2026 Power Systems orders ~$1.4 bn (~30% of IET); recent wins with Boom Supersonic (1.21 GW), Frontier Infrastructure (270 MW NovaLT), Twenty20 Energy and TURBINE-X. | Chart Industries integration risk – $13.6 bn EV deal closing mid-2026; net leverage initially 2.25×, target 1.0–1.5× within 24 months; buybacks paused/limited until target hit. |
| $3 bn of 2026 divestitures (Waygate $1.45 bn, PSI $1.15 bn, SPC JV $345 m, HMH IPO ~$200 m) and inaugural debt raise ($6.5 bn USD + €3 bn EUR in March 2026) fund Chart at attractive cost of capital. | FY2024 GAAP loss reflects Russia impairment legacy; sensitivity to oil price and capex cycles remains; rig count -43 YoY in US. |
3. What Does This Company Actually Do?
Baker Hughes operates two reportable segments. Oilfield Services & Equipment (OFSE) serves NOC and IOC upstream customers with drilling services and bits, completions (frac, perforating, wireline), artificial lift, production chemicals, subsea systems, flexible pipes and surface pressure control. Industrial & Energy Technology (IET) provides heavy-duty industrial gas turbines (Frame 5/6/7/9), the NovaLT aeroderivative platform, centrifugal and reciprocating compressors, LNG liquefaction trains, FPSO compression, hydrogen-ready turbines, CCUS compression, power for data-centres, geothermal generation equipment and condition-monitoring/inspection (Waygate – being divested).
FY2025 segment revenue mix:
| Segment | FY2025 revenue | % of total | EBITDA margin |
|---|---|---|---|
| Oilfield Services & Equipment (OFSE) | $14.32 bn | ~51.6% | ~17.9–18% |
| Industrial & Energy Technology (IET) | $13.41 bn | ~48.4% | 18.5% |
| Group | $27.73 bn | 100% | 17.4% |
Geographic split (FY2025): United States ~$7.70 bn (~28%), non-US ~$20.03 bn (~72%). The Q1 2026 OFSE international split: Middle East/Asia $1.15 bn (-19% YoY due to Strait of Hormuz), Europe/CIS/Sub-Saharan Africa softer, Latin America declining, North America $927 m.
4. The Business Model
Two distinct cycles inside one company. OFSE behaves like a traditional oilfield-services franchise – revenue tracks E&P capex, with services and consumables generating steady recurring revenue and equipment sales tied to rig count, frac spreads and well counts. IET behaves like an industrial-equipment OEM with a long-cycle order book – LNG mega-projects book equipment 18–36 months ahead of delivery, and the aftermarket service contracts on installed base extend 10–25 years.
Key economics:
- OFSE – FY2025 EBITDA margin 17.9–18%, Q1 2026 17.4% (-40 bps YoY). Mix tilt to high-margin completions and Subsea/Surface offsets pressure pumping cyclicality.
- IET – FY2025 EBITDA margin 18.5%, Q1 2026 20.2% (+310 bps YoY). The aftermarket services line is a multi-decade annuity layered on top of equipment book.
- Aeroderivative gas-turbine market – combined GE/Baker Hughes share of aeroderivative MWs ~73% in 2024 (Turbomachinery Magazine).
- LNG backlog – cumulative FIDs supplied 2024–2025 at 83 MTPA, on track to exceed the company’s 100 MTPA outlook for the 2024–2026 trio of years.
- Capital allocation – FY2024 returned $1.32 bn (incl. $484 m buybacks); buyback paused/limited until Chart Industries leverage falls to 1.0–1.5×. Dividend held at $0.23 quarterly.
5. Financial Health
Five-year financials (FY2021–FY2025):
| Metric ($m) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | 20,502 | 21,156 | 25,506 | 27,829 | 27,733 |
| Adjusted EBITDA | n/a | ~3,400 | ~3,780 | 4,591 | 4,825 |
| GAAP net income | (219) | (601) | 1,943 | 2,979 | 2,588 |
| GAAP diluted EPS | (0.27) | (0.61) | 1.91 | 2.98 | 2.60 |
| Adjusted diluted EPS | n/a | ~0.91 | 1.60 | 2.35 | 2.60 |
| Free cash flow | 1,518 | 899 | 2,054 | 2,257 | 2,732 |
| Diluted shares (m) | 909 | 1,006 | 998 | 990 | 987 |
Quarterly revenue and adjusted EBITDA margin (last five quarters):
| Quarter | Revenue ($m) | OFSE / IET EBITDA margin | Adj. EBITDA ($m) / margin |
|---|---|---|---|
| Q1 2025 | ~6,427 | ~18% / ~16% | 1,038 / 16.2% |
| Q2 2025 | 6,910 | 18.7% / 17.7% | 1,212 / 17.5% |
| Q3 2025 | ~7,010 | 18.5% / 18.8% | 1,238 / ~17.7% |
| Q4 2025 | 7,386 | ~18% / ~20% | 1,338 / ~18.1% |
| Q1 2026 | 6,587 | 17.4% / 20.2% | 1,158 / 17.6% |
Cash & capital structure (Q1 2026): Cash $14.76 bn (boosted by inaugural March 2026 debt raise of $6.5 bn USD + €3 bn EUR to fund Chart Industries). Total debt ~$16.16 bn (long-term lifted from $5.4 bn to $15.4 bn). Net debt / Adj EBITDA 0.3×. Post-Chart close, leverage moves to 2.25× with a 24-month deleveraging plan to 1.0–1.5×.
6. Valuation & Market Data
| Share price (24 Apr 2026) | $68.94 |
| Market cap | ~$68.4 bn |
| Enterprise value (pre Chart) | ~$68.6 bn |
| Trailing P/E | ~17.8–22.0× (sources differ) |
| Forward P/E | ~20.8–28.7× |
| Price / Sales (TTM) | ~2.45× |
| Price / Book | ~3.54× |
| EV / EBITDA (TTM) | ~13.1–14.7× |
| EV / Revenue | ~2.46× |
| Price / FCF | ~29.8× |
| 52-week high / low | $69.90 (Apr 2026) / $34.56 (early 2025) |
| YTD performance | +25.5% |
| 52-week return | +92% |
| Short interest | ~23.1 m sh / ~2.33% of float (peer avg 8.77%) |
| Dividend yield | ~1.33% |
| Annualised dividend | $0.92 ($0.23 quarterly) |
| Payout ratio (TTM) | ~29.4% |
7. What Are They Building / What’s Coming?
LNG & gas infrastructure: Q1 2026 booked $1.2 bn of LNG equipment orders, including Qatar mega-trains (six Frame 9 turbines + 12 centrifugal compressors + 3 Frame 6 turbines + 3 BRUSH generators for two LNG mega-trains) and the QatarEnergy LNG carbon capture contract (six motor-driven centrifugal compressor trains capturing/transporting 4.1 Mtpa CO2). 83 MTPA of FIDs already supplied 2024–2025; track to exceed the 100 MTPA outlook for 2024–2026.
Power systems / data centres: 2025–2027 data-centre order target raised to $3 bn (doubled). Q1 2026 Power Systems orders ~$1.4 bn (~30% of IET orders). Recent named wins: Boom Supersonic (1.21 GW generator order for AI data centre), Frontier Infrastructure (270 MW NovaLT for US data centre), Twenty20 Energy (gas turbine order, US data centre), TURBINE-X Energy (NovaLT contract). Q4 2025 booked 25 generators for AI data centres.
New energy: Hanwha partnership for small ammonia turbines (Feb 2025); Wabash Valley Resources long-term low-carbon ammonia tech provider (Louisiana); Fervo Energy power-gen equipment for Cape Station Phase II geothermal (Utah); Controlled Thermal Resources 500 MW geothermal (California). NovaLT certified for 100% hydrogen operation (2024 milestone).
M&A and portfolio: Chart Industries acquisition signed 28 July 2025 at $13.6 bn EV; expected to close mid-2026 with $325 m annual cost synergies by year-3. 2026 divestitures: Waygate to Hexagon ($1.45 bn, announced 13 April 2026), PSI to Crane Co ($1.15 bn), Surface Pressure Control JV with Cactus ($345 m, 35% retained), HMH IPO (~$200 m). Combined ~$3 bn of divestiture proceeds in 2026.
8. Competitive Landscape
The competitive set is split along the two-segment model.
Oilfield services (Big-3 + others):
| Competitor | FY2025 revenue / market position | Notes |
|---|---|---|
| SLB (Schlumberger) | ~$36 bn revenue; ~30% global high-end OFS share; ~30% of OG drilling-equipment manufacturing | #1 OFS global |
| Halliburton | ~$22 bn revenue | #2 globally; dominant North America completions / pressure pumping |
| Baker Hughes (BKR) | $14.32 bn OFSE FY2025; $27.73 bn group | #3 global OFS but uniquely IET-diversified |
| Weatherford International | ~$5 bn revenue | #4; niche specialist |
| China Oilfield Services (COSL) | ~$5 bn revenue | Dominant in China domestic |
Total OFS market: ~$126 bn 2025, projected $168 bn by 2030 (5.83% CAGR per Mordor Intelligence).
Industrial gas turbines / LNG equipment:
| OEM | Market position | Notes |
|---|---|---|
| GE Vernova | ~12.5%+ of industrial gas turbines; ~73% aero MWs combined with Baker Hughes | Heavy-frame leader |
| Siemens Energy | Top-3 | Heavy-frame & aeroderivative |
| Mitsubishi Heavy Industries (Mitsubishi Power) | Top-3 | Heavy-frame focus |
| Baker Hughes (IET) | $13.41 bn FY2025; aeroderivative + LNG-turbine-focused; ~73% combined aero MW share with GE | LNG-equipment specialism |
| Rolls-Royce | Top-5 | Aero & small-frame |
Top-3 (Siemens Energy + GE Vernova + Mitsubishi Power) account for ~67% of global gas-turbine demand and >70% of production capacity (Bloomberg / GMI). Top-5 collectively ~46% of industrial gas-turbine segment in 2025.
9. Leadership and Ownership
| Chair, President & CEO | Lorenzo Simonelli (since 2017 GE merger) |
| Chief Financial Officer | Ahmed Moghal (CFO 2025; ex-IET segment CFO) |
| EVP, OFSE | Maria Borras |
| EVP, IET | Ganesh Ramaswamy |
| VP, Investor Relations | Chase Mulvehill |
Top institutional holders (~92% institutional ownership):
| Holder | Shares (m) | % of shares | ~Value |
|---|---|---|---|
| Vanguard Group | 123.5 | 12.51% | ~$5.79 bn |
| BlackRock Institutional Trust | 51.05 | 5.17% | ~$2.39 bn |
| State Street Corp | Top-3 | n/d | n/d |
| JPMorgan / Geode / Capital Research / Norges Bank / Dodge & Cox | Top-10 | Supplementary | n/d |
Selected insider transactions (last 12 months):
| Date | Insider | Transaction | 10b5-1? |
|---|---|---|---|
| 4 Mar 2026 | Lorenzo Simonelli (CEO) | Exercised 187,344 options at $35.70 strike; sold 272,594 sh at weighted avg $58.79 (range $60.54–$62.28); ~$16.6 m total | Yes – 10 Nov 2025 plan |
No reported insider open-market purchases in the trailing twelve months. Insider activity is routine compensation-driven selling under pre-arranged 10b5-1 plans.
10. Risks and Challenges
- Strait of Hormuz disruption – CFO indicated may stay shut into H2 2026; Q1 2026 OFSE Middle East -19% YoY; ~20% of global LNG capacity offline; Q2 2026 OFSE Middle East could decline 20% sequentially.
- Oil-price & capex sensitivity – OFSE revenue tracks E&P capex; FY2025 OFSE revenue down 8% on macro softness and WTI weakness.
- North America frac-spread declines – frac spread count fell 6 to 165 crews in the week to 17 April 2026 (Baker Hughes’ own data).
- Global rig count – US total rigs at 544 (April 2026), -43 YoY; oil 407, gas 129 (+22 YoY).
- LNG demand risk – sensitive to gas price and FID timing; mitigated by 2–3 year RPO visibility.
- Russia exposure – largely written off in 2022 (FY2021/FY2022 GAAP losses).
- US LNG export pause – reversed by Trump administration January 2025; permits flowing again (Commonwealth LNG, CP2, Golden Pass extension), but project economics challenged at higher rates.
- Chart Industries integration – $13.6 bn deal closing mid-2026; net leverage initially 2.25×, target 1.0–1.5× within 24 months; buybacks paused/limited until target hit.
- FX exposure – ~72% non-US revenue; first-time euro bond issuance (€3 bn) creates partial natural hedge.
11. Recent Developments
Last 48 hours:
- 24–25 Apr 2026 – QatarEnergy LNG North Field West contract: 6 Frame 9 turbines + 12 centrifugal compressors + 3 Frame 6 turbines + 3 BRUSH generators for two LNG mega-trains. Separately QatarEnergy LNG carbon capture contract: 6 motor-driven centrifugal compressor trains, 4.1 Mtpa CO2 capture/transport.
- 23 Apr 2026 (after-hours) / 24 Apr 2026 (pre-market) – Q1 2026 results: revenue $6,587 m (+2% YoY), adjusted EPS $0.58 (+13% YoY), GAAP net income $930 m (+131% YoY), adjusted EBITDA $1,158 m (margin 17.6%, +140 bps YoY). Total orders $8,159 m (+26% YoY); IET orders record $4,887 m. RPO record $36.1 bn; IET RPO $33.1 bn. Quarterly dividend $0.23 declared (payable 15 May 2026, record 5 May 2026).
Last six months:
- 13 Apr 2026 – Sale of Waygate Technologies to Hexagon for ~$1.45 bn cash announced.
- March 2026 – Inaugural debt raise: $6.5 bn USD bonds + €3 bn euro bonds, to fund Chart Industries.
- 4 Mar 2026 – CEO Lorenzo Simonelli exercised 187,344 options at $35.70 strike; sold 272,594 shares at weighted avg $58.79, ~$16.6 m total, under 10 Nov 2025 10b5-1 plan.
- 28 Jan 2026 (Q4/FY 2025) – revenue $7,386 m (+5% QoQ, flat YoY); IET revenue $3,814 m (+9% YoY); IET EBITDA $761 m (+19% YoY); FY2025 IET EBITDA margin 18.5% (+170 bps); Q4 GAAP NI $876 m; FY2025 RPO record $35.9 bn (IET $32.4 bn).
- October 2025 – Chart Industries shareholder approval received; deal closing expected mid-2026.
- 29 Jul 2025 – Chart Industries acquisition announced at $13.6 bn EV; outbid Flowserve.
12. Key Dates Coming Up
| Date | Event |
|---|---|
| 5 May 2026 | Q1 2026 dividend record date |
| 15 May 2026 | Q1 2026 dividend payment date ($0.23) |
| Mid-May 2026 | Annual General Meeting (date TBC; 2025 AGM was 14 May) |
| Mid-2026 (Q2/Q3) | Expected closing of Chart Industries acquisition ($13.6 bn EV) |
| Late July 2026 | Q2 2026 earnings (Q2 2025 was 22 July) |
| Late October 2026 | Q3 2026 earnings (Q3 2025 was 23 October) |
| Late January 2027 | Q4/FY 2026 earnings (Q4 2025 was 28 January 2026) |
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Disclaimer: This research note is prepared for educational and informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. ChartsView and its authors are not registered investment advisers. All financial figures are sourced from Baker Hughes press releases (Q1 2026 release 23 April 2026 and FY2025 release 28 January 2026), the FY2025 10-K, and reputable financial media as of 27 April 2026 and may be subject to revision. Energy investing carries the additional risks that commodity-price cycles, geopolitical events (Strait of Hormuz, sanctions), regulatory rulings (LNG export licensing) and large-cap M&A integration (Chart Industries) can move share prices materially in either direction.
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13. Thesis Verdict
The central thesis. The report describes a mixed financial trajectory across the last five years with peer-comparable positioning on structural metrics. A dated catalyst within the next month will provide the nearest test of management guidance. The bull case and bear case presented by the report carry broadly comparable weight on the evidence compiled here.
What would confirm or break it. Recent news flow has been broadly mixed with a limited number of high-severity risks disclosed. Subsequent earnings landing in line with or above management guidance would reinforce the thesis; materialisation of the top disclosed risk — or any filing that fundamentally alters the growth or capital-return profile — would invalidate it. The deterministic rule engine classifies this evidence base as moderate.
Watchpoints
- ConfirmsSubsequent earnings and filings reinforcing the figures presented in this report.
- ConfirmsSubsequent earnings and filings reinforcing the figures presented in this report.
- InvalidatesAny disclosure that directly contradicts a material claim in the bull case.
Diagnostic grid
Generated by ChartsView research tooling (rule-derived summary — LLM unavailable). Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 27 Apr 2026.