Shares of Baker Hughes (BKR) are rising in pre-market trading on Monday after the company announced a major asset sale. The company has agreed to sell its Waygate Technologies unit to Sweden-based Hexagon (HXGBY) for about $1.45 billion in cash. Through this and other recent deals, Baker Hughes is streamlining its business to boost cash flow, strengthen its balance sheet, and support long-term growth. As of this writing, BKR stock is up about 0.43% in pre-market trading.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
For context, Baker Hughes is an energy technology company that provides equipment and services to oil, gas, and industrial sectors worldwide. Meanwhile, Hexagon is a global industrial technology firm that provides digital solutions for measurement, imaging, and data analytics across multiple industries.
More Details on the Sale
The deal covers Waygate’s entire inspection and imaging business, including technologies like remote visual inspection, ultrasound, and radiography, along with all related assets such as intellectual property, operations, and employees.
The transaction still needs regulatory approvals and other standard conditions to be met, and is expected to close in the second half of 2026.
What the Deal Means for Baker Hughes
The Waygate sale helps Baker Hughes streamline its business and focus on higher-growth, higher-return areas. The company is reshaping its business through asset sales and acquisitions to improve profits and support long-term growth. Last year, the company agreed to buy Chart Industries in a $13.6 billion all-cash deal to expand its presence in natural gas and LNG.
These moves show a clear push to build a more efficient business while boosting earnings, cash flow, and overall financial strength over time.
Management is also focusing on key areas like equipment, flow control, digital solutions, and energy transition. CEO Lorenzo Simonelli said the goal is to drive higher returns and invest more in fast-growing parts of the business.
Is BKR a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BKR stock based on 12 Buys and one Hold assigned in the past three months. The average Baker Hughes price target of $64.38 per share implies a 2.5% upside potential.
