Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $46.63B
• Dividend Yield: 1.84%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.77
• Revenue Growth: 2.13%
• EPS Growth: 54.69%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.68
• Shares Outstanding: 985,879,150
• 10 Day Avg. Volume: 8,445,204
• 30 Day Avg. Volume: 7,321,911
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $53.93
• Price Target Upside: 10.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 79 Outperform
• Price Target: $56.00 ▲(14.54% Upside)

Baker Hughes' overall stock score is driven by its strong financial performance and positive earnings call insights, highlighting strategic growth in key sectors. The technical analysis indicates a stable trend, while the valuation remains attractive. Challenges in certain segments are noted but are outweighed by the company's robust order pipeline and strategic positioning.

Positive Factors

Revenue Growth

The company's consistent revenue growth reflects its expanding market presence and successful adaptation to industry demands, supporting long-term business sustainability.

Strategic Partnerships

Securing long-term contracts with major players like Petrobras enhances Baker Hughes' market position and ensures steady revenue streams, reinforcing its competitive edge.

Portfolio Optimization

Strategic transactions to optimize the portfolio demonstrate proactive management, aiming to improve earnings consistency and strengthen financial health over the long term.

Negative Factors

Tariff Impact

Rising tariffs pose a risk to cost structures and profitability, potentially affecting Baker Hughes' financial performance and competitive positioning in the long run.

Market Conditions in OFSE

Challenging market conditions in the OFSE segment could hinder growth prospects and pressure margins, impacting Baker Hughes' ability to maintain its market share.

Debt Levels

Stable debt levels without significant deleveraging efforts can limit financial flexibility, potentially constraining Baker Hughes' ability to invest in growth opportunities.

Baker Hughes Company Business Overview & Revenue Model

Company Description

Baker Hughes Company (BKR) is a leading energy technology company that provides solutions for oil and gas exploration and production. Operating in multiple sectors, including oilfield services, industrial services, and digital solutions, Baker Hughes offers a wide range of products and services such as drilling services, completion systems, pressure pumping, and advanced manufacturing technologies. The company is dedicated to driving the energy transition by leveraging innovative technologies and sustainable practices to serve its global clientele.

How the Company Makes Money

Baker Hughes generates revenue through several key streams, primarily by providing oilfield services and products to the global oil and gas industry. This includes offering drilling and evaluation services, pressure pumping, and completions solutions that are essential for efficient resource extraction. Additionally, the company earns revenue from its industrial services division, which supplies advanced technologies and equipment for various industries, including power generation and chemicals. Significant partnerships with major oil and gas companies, as well as collaborations on technology development and energy transition initiatives, further contribute to its earnings. The company's focus on digital solutions, such as data analytics and predictive maintenance, also enhances its value proposition and revenue potential in a rapidly evolving energy landscape.

Baker Hughes Company Financial Statement Overview

Summary

Baker Hughes exhibits strong financial health with impressive revenue growth and improved profitability. The income statement shows robust margins, while the balance sheet indicates stable leverage and improved shareholder returns. Cash flows are solid, supporting ongoing operations and investments, with a positive outlook for growth in the sector.

Income Statement

Baker Hughes has shown strong revenue growth, increasing from $20.5B in 2021 to $27.6B in TTM (Trailing-Twelve-Months) 2025. The gross profit margin improved from 19.7% in 2021 to 22.3% in TTM 2025, indicating efficient cost management. The net profit margin increased significantly from a loss to 11.0% over the same period, reflecting improved profitability. EBIT and EBITDA margins also strengthened, showing robust operational performance.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.30 in TTM 2025, indicating moderate leverage. Return on Equity (ROE) improved significantly to 15.1% from negative figures, demonstrating better returns to shareholders. The equity ratio stands at 52.3%, reflecting a solid equity base. However, the total debt has remained relatively constant, suggesting limited efforts to further deleverage.

Cash Flow

Operating cash flow has shown consistent growth, reaching $3.4B in TTM 2025. Free cash flow also improved, with a growth rate of 20% from 2024 to TTM 2025. The operating cash flow to net income ratio of 1.12 in TTM 2025 indicates strong cash conversion. The free cash flow to net income ratio of 0.81 suggests effective capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.61B	27.83B	25.51B	21.16B	20.50B	20.70B
Gross Profit	6.16B	5.84B	5.25B	4.40B	4.05B	3.20B
EBITDA	4.69B	4.60B	3.96B	1.33B	1.83B	-13.62B
Net Income	3.05B	2.98B	1.94B	-601.00M	-219.00M	-9.94B
Balance Sheet
Total Assets	38.74B	38.36B	36.95B	34.18B	35.35B	38.03B
Cash, Cash Equivalents and Short-Term Investments	3.09B	3.36B	2.65B	2.49B	3.85B	4.13B
Total Debt	6.03B	6.02B	6.02B	6.66B	6.73B	7.63B
Total Liabilities	20.87B	21.31B	21.43B	19.66B	18.56B	19.77B
Stockholders Equity	17.70B	16.89B	15.37B	14.39B	14.83B	12.89B
Cash Flow
Free Cash Flow	2.47B	2.05B	1.84B	1.12B	1.83B	517.00M
Operating Cash Flow	3.42B	3.33B	3.06B	1.89B	2.37B	1.30B
Investing Cash Flow	-1.08B	-1.02B	-817.00M	-1.56B	-463.00M	-618.00M
Financing Cash Flow	-1.54B	-1.53B	-2.03B	-1.59B	-2.14B	225.00M

Baker Hughes Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 48.89 is above the 20-day moving average (MA) of 47.37, above the 50-day MA of 46.40, and above the 200-day MA of 42.27, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 61.60 is Neutral, neither overbought nor oversold. The STOCH value of 79.24 is Neutral, 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
BKR	79 Outperform	$46.63B	15.99	18.32%	1.84%	2.13%	54.69%
FTI	79 Outperform	$15.42B	18.30	28.72%	0.53%	11.80%	45.70%
HAL	79 Outperform	$22.43B	18.02	12.77%	2.50%	-4.06%	-47.41%
TS	75 Outperform	$18.60B	9.39	12.06%	4.52%	-12.06%	-21.43%
SLB	73 Outperform	$52.14B	13.92	15.46%	3.14%	-2.11%	-16.76%
NOV	70 Outperform	$4.85B	10.74	7.31%	3.62%	-1.21%	-54.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Baker Hughes Company Corporate Events

Baker Hughes Secures $2.6 Billion Loan for Acquisition

On August 15, 2025, Baker Hughes Holdings LLC and Baker Hughes Company entered into a $2.6 billion term loan credit agreement with Goldman Sachs Bank USA to finance the acquisition of Chart Industries, Inc. The loan, which is contingent upon the completion of the acquisition, will be used to cover costs and fees associated with the merger if permanent financing is not secured beforehand. The agreement includes various covenants and conditions, with loans maturing two years from the funding date.

Baker Hughes Announces $13.6 Billion Chart Industries Merger

On July 28, 2025, Baker Hughes announced a merger agreement to acquire Chart Industries for $13.6 billion, with the transaction expected to close by mid-2026. This acquisition is anticipated to enhance Baker Hughes’ portfolio in the energy and industrial technology sectors, offering significant synergies and financial benefits, including $325 million in annualized cost synergies and immediate accretion to growth, margins, and cash flow.

Baker Hughes Reports Strong Q2 2025 Performance

On July 22, 2025, Baker Hughes Company announced its second-quarter results, highlighting a strong performance with an adjusted EBITDA increase of 7% year-over-year despite a slight revenue decline. The company reported significant order momentum, particularly in its Industrial & Energy Technology (IET) segment, and executed strategic transactions to optimize its portfolio, including forming a joint venture with Cactus, Inc., selling a product line to Crane Company, and acquiring Continental Disc Corporation. These actions aim to enhance earnings durability and shareholder value, positioning the company for sustainable growth.

Baker Hughes Approves Board and Executive Compensation

On May 20, 2025, Baker Hughes Company held its Annual Meeting of Stockholders to elect nine members to its Board of Directors, approve the executive compensation program, and ratify KPMG LLP as its independent registered public accounting firm for fiscal year 2025. All nominated directors were elected, the executive compensation program was approved, and KPMG LLP was ratified, with a significant majority of the votes cast in favor of each proposal.