Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $60.82B
• Dividend Yield: 2.04%
• Average Volume (3M): 9.47M
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.86
• 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: 7,988,574
• 30 Day Avg. Volume: 9,473,543
• 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: 1.07
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 15.14
• 1Y Price Target: $62.62
• Price Target Upside: 0.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $69.00 ▲(10.91% Upside)

Score is driven primarily by improved financial performance (stronger profitability and healthier leverage) and a positive earnings outlook supported by record IET orders/backlog. Technicals are supportive with a clear uptrend, but elevated momentum readings suggest the stock is somewhat extended. Valuation is reasonable but not cheap, with a modest dividend yield.

Positive Factors

Strong revenue and margins

Sustained high revenue growth and solid gross and net margins indicate durable demand and operational efficiency across Baker Hughes’ diversified portfolio. Consistent profitability supports reinvestment, R&D, and margin expansion initiatives, strengthening long-term competitive positioning.

Large IET order backlog

A multi-billion dollar IET backlog provides multi-year revenue visibility and underpins future margin improvement as projects convert to revenue. This recurring order book supports capital planning, capacity utilization, and predictable cash flows over the medium term.

Strategic Chart acquisition enhances LNG capability

Merging Chart expands Baker Hughes’ LNG and gas-infrastructure capabilities, creating cross-selling opportunities and scale in fast-growing LNG markets. Expected synergies and complementary tech strengthen long-term product mix and positioning in energy transition segments.

Negative Factors

OFSE margin softness

Persistent weakness in oilfield services margins reflects exposure to cyclical upstream spending and pricing pressure. If structural demand for upstream services remains subdued, OFSE could drag consolidated margins and slow enterprise-wide margin-improvement targets.

Subdued upstream investment

Lower global upstream capex reduces long-term demand for drilling and equipment services, pressuring utilization and order flow for core OFSE businesses. Structural declines in upstream spending can limit revenue growth and extend cyclicality risk for several segments.

Weakening free cash flow trend

A declining free cash flow trend and relatively low operating-cash-to-net-income conversion constrain long-term financial flexibility. This can limit funding for M&A integration, capital expenditures, and shareholder returns, making execution of growth strategies more dependent on external financing.

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

Multi-year profitability turnaround with improved margins (TTM net margin ~10.4%, operating margin ~12.1%) and continued revenue growth (TTM ~7.9%), but growth is moderating and remains cyclical. Balance sheet leverage is improving (TTM debt-to-equity ~0.33) though debt is still sizable (~$6.1B). Cash generation is solid (TTM FCF ~$2.92B) but FCF conversion is only moderate (~63% of net income).

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: 62.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 62.21 is above the 20-day moving average (MA) of 58.56, above the 50-day MA of 52.10, and above the 200-day MA of 45.50, indicating a bullish trend. The MACD of 2.79 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 90.07 is Negative, 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	$26.60B	13.55	11.67%	4.43%	-9.76%	-18.94%
FTI	79 Outperform	$25.19B	27.07	29.85%	0.44%	11.73%	45.70%
BKR	73 Outperform	$60.82B	23.64	14.49%	2.04%	1.51%	30.09%
SLB	73 Outperform	$77.14B	21.97	14.28%	2.98%	-2.13%	-16.76%
HAL	66 Neutral	$29.12B	23.12	12.24%	2.41%	-4.06%	-47.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	62 Neutral	$7.20B	51.69	2.29%	3.24%	-1.43%	-63.13%

Baker Hughes Company Corporate Events

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.