Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $59.39B
• Dividend Yield: 2.04%
• Average Volume (3M): 9.35M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.89
• Revenue Growth: 1.51%
• EPS Growth: 30.09%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.88
• Shares Outstanding: 988,236,500
• 10 Day Avg. Volume: 9,093,585
• 30 Day Avg. Volume: 9,347,235
• PEG Ratio: -1.37
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 9.49
• Enterprise Value/Ebitda: 14.48
• 1Y Price Target: $62.23
• Price Target Upside: 3.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.63
• Revenue Forecast (FY): $27.89B

• Rating: 73 Outperform
• Price Target: $73.00 ▲(21.46% Upside)
• Action: Upgraded Date: 03/03/26
• Date: Action: Upgraded 03/03/26

The score is driven primarily by improved fundamentals (stronger margins, healthier leverage, and solid free cash flow) and supportive earnings momentum with record orders/backlog in IET. Technicals are bullish but stretched (high RSI/Stoch), while valuation is the main restraint due to a higher P/E and modest dividend yield.

Positive Factors

Improved margins and sustained profitability

Baker Hughes has moved from 2020–2022 losses to sustained profitability with TTM net and operating margins materially improved. Higher margins enhance earnings quality, allow reinvestment in product development and reduce sensitivity of earnings to commodity swings over the medium term.

Strong and constructive free cash flow generation

Consistent operating cash flow and multi-billion dollar free cash flow provide durable internal funding for capex, debt reduction and strategic initiatives. Reliable FCF supports balance-sheet repair and gives management flexibility to invest in higher-margin IET and digital offerings over the next several quarters.

Record IET orders and strategic shift to industrialized energy solutions

A structural mix shift toward IET, LNG and power systems increases backlog visibility and tilts revenue toward engineered, production-oriented projects. That reduces pure OFS cyclicality and supports steadier margins and cash flows as large multi-year projects convert to revenue.

Negative Factors

Decelerating revenue growth and residual cyclicality

Top-line momentum has cooled from the sharp post-recovery rebound to more modest TTM growth, leaving results still sensitive to activity cycles. Slower revenue expansion constrains operating leverage and means profitability gains could reverse if upstream spending weakens over the next several quarters.

Moderate free-cash-flow conversion

While absolute FCF is strong, conversion at ~63% of net income reflects working-capital swings and project timing. This moderates the reliability of reported profits as a cash source and can force incremental financing or constrain discretionary uses during periods of elevated receivables or inventory.

Sizable absolute debt despite improved leverage

Leverage metrics have improved, yet a ~$6.1B absolute debt stock still exposes the company to interest, refinancing and cyclical risk. In a downturn or if capex needs rise, that debt level could limit financial flexibility and increase refinancing or covenant risk over the medium term.

Baker Hughes Company Business Overview & Revenue Model

Company Description

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. It operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers exploration, drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, wireline services, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping systems, oilfield and industrial chemicals, and artificial lift technologies for oil and natural gas, and oilfield service companies. The OFE segment provides subsea and surface wellheads, pressure control and production systems and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions, including well intervention and decommissioning solutions; and services related to onshore and offshore drilling and production operations. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, downstream, onshore, offshore, and industrial customers. The DS segment provides sensor-based process measurements, machine health and condition monitoring, asset strategy and management, control systems, as well as non-destructive testing and inspection, and pipeline integrity solutions. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.

How the Company Makes Money

Baker Hughes generates revenue through several key streams, primarily from its oilfield services and products, which include drilling services, pressure pumping, and completion systems. The company also earns revenue from its turbomachinery and process solutions, which provide equipment and services for natural gas processing and power generation. Additionally, Baker Hughes offers digital solutions that leverage data analytics and software to improve operational efficiencies for its clients. Significant partnerships with major oil and gas companies enhance its market position, and the company's focus on innovation and sustainability helps to attract investments and projects, thereby contributing to its earnings.

Baker Hughes Company Financial Statement Overview

Summary

Strong multi-year turnaround with sustained profitability (TTM net margin ~10.4%, operating margin ~12.1%) and improving balance-sheet leverage (debt-to-equity ~0.33). Cash generation is solid (TTM FCF ~$2.92B), but free-cash-flow conversion is only moderate (~63% of net income) and revenue growth has decelerated, leaving cyclical exposure as a key risk.

Income Statement

Profitability has materially improved versus the 2020–2022 loss period, with TTM (Trailing-Twelve-Months) net margin ~10.4% and operating margin ~12.1%. Revenue growth remains positive in recent periods (TTM ~7.9%; 2024 ~9.1%), though it has decelerated from the sharp rebound in 2023 (~20.6%). Gross margin has also trended up (TTM ~22.8% vs ~20–21% in 2022–2024), supporting earnings quality; the main weakness is that top-line growth is moderating and results remain tied to cyclical energy activity.

Balance Sheet

Leverage is moderate and improving, with debt-to-equity down to ~0.33 in TTM (Trailing-Twelve-Months) from ~0.46 in 2022, indicating a stronger capital structure. Equity has expanded meaningfully (TTM ~$21.6B vs ~$14.4B in 2022), and returns on equity are solid (TTM ~16.6%; 2024 ~17.6%) after being negative in 2020–2022. Key risk is that absolute debt remains sizable (~$6.1B), so the balance sheet is healthier but still exposed if the cycle turns.

Cash Flow

Cash generation is constructive: TTM (Trailing-Twelve-Months) operating cash flow is ~$3.81B and free cash flow is ~$2.92B, with a very strong reported free-cash-flow growth rate in TTM. Free cash flow conversion versus earnings is moderate (TTM free cash flow is ~63% of net income, broadly consistent with prior years). The main weakness is that cash flow does not fully match accounting profits (conversion below 1.0), suggesting working-capital swings and/or investment needs can meaningfully affect cash results.

Breakdown	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.73B	27.83B	25.51B	21.16B	20.50B
Gross Profit	6.54B	5.84B	5.25B	4.40B	4.05B
EBITDA	4.29B	4.60B	3.96B	1.33B	1.83B
Net Income	2.59B	2.98B	1.94B	-601.00M	-219.00M
Balance Sheet
Total Assets	40.88B	38.36B	36.95B	34.18B	35.35B
Cash, Cash Equivalents and Short-Term Investments	4.96B	3.36B	2.65B	2.49B	3.85B
Total Debt	7.14B	6.02B	6.02B	6.66B	6.73B
Total Liabilities	21.87B	21.31B	21.43B	19.66B	18.56B
Stockholders Equity	18.83B	16.89B	15.37B	14.39B	14.83B
Cash Flow
Free Cash Flow	2.54B	2.05B	1.84B	1.12B	1.83B
Operating Cash Flow	3.81B	3.33B	3.06B	1.89B	2.37B
Investing Cash Flow	-2.04B	-1.02B	-817.00M	-1.56B	-463.00M
Financing Cash Flow	-1.48B	-1.53B	-2.03B	-1.59B	-2.14B

Baker Hughes Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Positive. The current price of 60.1 is below the 20-day moving average (MA) of 61.96, above the 50-day MA of 55.83, and above the 200-day MA of 46.94, indicating a neutral trend. The MACD of 1.38 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 8.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKR.

Baker Hughes Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TS	80 Outperform	$28.35B	10.34	11.48%	4.43%	-9.76%	-18.94%
FTI	79 Outperform	$25.38B	19.37	29.62%	0.44%	11.73%	45.70%
BKR	73 Outperform	$59.39B	17.39	14.43%	2.04%	1.51%	30.09%
SLB	73 Outperform	$70.56B	16.85	14.64%	2.98%	-2.13%	-16.76%
HAL	66 Neutral	$29.02B	18.48	12.36%	2.41%	-4.06%	-47.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	62 Neutral	$6.83B	40.10	2.26%	3.24%	-1.43%	-63.13%

Baker Hughes Company Corporate Events

Baker Hughes Advances Chart Industries Acquisition With New Filings

Baker Hughes Company, the energy technology and industrial services firm, is moving forward with its planned acquisition of Chart Industries, Inc., a Delaware-based maker of highly customized engineered products and systems, under a merger agreement first announced on July 28, 2025. As part of that process, Baker Hughes has filed Chart’s audited consolidated financial statements for the years ended December 31, 2025 and 2024, along with an unqualified audit opinion and confirmation of effective internal controls from Deloitte & Touche LLP, providing investors with greater visibility into Chart’s financial condition ahead of its integration as an indirect wholly owned subsidiary.

The filings detail that a significant portion of Chart’s 2025 sales was recognized over time on complex, engineered contracts, an area identified by Deloitte as a critical audit matter due to the judgment involved in estimating total costs at completion. By placing these audited results and controls assessments on the record, Baker Hughes underscores the robustness of Chart’s financial reporting framework, which may ease regulatory review and stakeholder scrutiny as it incorporates a large, project-driven revenue base into its own financial and operational structure.

The most recent analyst rating on (BKR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

Baker Hughes Delivers Record 2025 Profitability and Orders

On January 25, 2026, Baker Hughes reported its fourth-quarter and full-year 2025 results, highlighting flat quarterly revenue of $7.4 billion and full-year revenue of $27.7 billion, but stronger profitability with full-year attributable net income of $2.59 billion and a 5% increase in adjusted EBITDA to a record $4.83 billion. Fourth-quarter orders reached $7.9 billion and full-year orders $29.6 billion, driven by the IET segment, which delivered a record $14.9 billion in annual orders and a record year-end backlog of $32.4 billion, while the company generated record annual free cash flow of $2.7 billion supported by working capital efficiencies and customer prepayments. Management emphasized that robust LNG, FPSO, gas infrastructure and power-systems demand is underpinning IET’s order book and margin expansion, helping offset macro-driven softness in OFSE and supporting Baker Hughes’ strategic shift toward a more industrialized, production-oriented energy solutions model with reduced cyclicality and more durable cash flows.

The most recent analyst rating on (BKR) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.