Baker Hughes Company (BKR)
NASDAQ:BKR
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Baker Hughes Company (BKR) AI Stock Analysis

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BKR

Baker Hughes Company

(NASDAQ:BKR)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$54.00
â–²(13.66% Upside)
Baker Hughes' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's strategic growth in the IET and LNG sectors, along with a solid balance sheet, positions it well for future growth. Technical indicators and valuation present a neutral outlook, balancing the overall score.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, positioning Baker Hughes for continued expansion in the energy sector.
Strategic Growth in IET and LNG
The strategic growth in Industrial and Energy Technology and LNG sectors enhances Baker Hughes' competitive position and secures long-term revenue streams through a robust order backlog.
Positive Outlook for Natural Gas
The increasing demand for natural gas provides a favorable market environment for Baker Hughes, supporting long-term growth and investment in LNG infrastructure.
Negative Factors
Challenges in OFSE Margins
The decline in oilfield services and equipment margins could pressure profitability, requiring strategic adjustments to maintain financial performance.
Subdued Upstream Investment
Reduced upstream investment may limit growth opportunities in oil exploration, impacting Baker Hughes' revenue potential in this segment.
Potential Impact of Trade Policies
Trade policy changes, including tariffs, could affect cost structures and profitability, necessitating careful management to mitigate financial impacts.

Baker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)

Baker Hughes Company Business Overview & Revenue Model

Company DescriptionBaker 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 MoneyBaker 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 Key Performance Indicators (KPIs)

Any
Any
Orders by Segment
Orders by Segment
Tracks incoming orders across various segments, indicating demand trends and potential future revenue streams.
Chart InsightsBaker Hughes' Oilfield Services and Equipment segment experienced a volatile trend with a notable peak in early 2023, followed by a decline. This suggests potential challenges in sustaining demand or competitive pressures. Meanwhile, the Industrial and Energy Technology segment shows a more erratic pattern, with significant fluctuations but a general upward trajectory since late 2023, indicating possible growth opportunities in energy transition technologies. The absence of earnings call insights leaves the strategic implications open to market dynamics and internal adjustments.
Data provided by:Main Street Data

Baker Hughes Company Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic growth in key sectors such as IET and LNG, supported by a positive outlook for natural gas. However, challenges remain in OFSE margins and upstream investment, with potential impacts from trade policies.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA rose to $1.24 billion, exceeding the midpoint of guidance, and full-year adjusted EBITDA is expected to exceed $4.7 billion.
Record Orders in Industrial and Energy Technology (IET)
IET achieved orders of $4.1 billion in Q3, with a record backlog of $32.1 billion. Full-year IET orders are expected to exceed prior expectations.
Growth in Power Generation and LNG
Secured $800 million in power generation orders and $800 million in LNG equipment orders, with strong visibility into future projects.
Strategic Acquisition of Chart Industries
The acquisition is set to enhance Baker Hughes' capabilities in LNG, data centers, and gas infrastructure, with expected cost synergies of $325 million.
Positive Outlook for Natural Gas
Natural gas demand is expected to grow by 20% by 2040, with LNG demand increasing by 75%, presenting a favorable environment for Baker Hughes.
Negative Updates
Challenges in Oilfield Services and Equipment (OFSE) Margins
OFSE margins softened due to broader macroeconomic conditions, with a 30 basis point sequential decline in Q3.
Subdued Upstream Investment
Oil-related upstream investment is expected to remain subdued, with a high single-digit decline in global upstream spending in 2025 and potential further decline in 2026.
Potential Impact of Trade Policies
Ongoing trade policy changes, including tariffs, expected to have a net impact on EBITDA, with close monitoring required.
Company Guidance
During Baker Hughes' Third Quarter 2025 Earnings Call, the company provided guidance reflecting strong operational performance and strategic progress. Adjusted EBITDA rose to $1.24 billion, exceeding the midpoint of the guidance range, and the company now expects full-year adjusted EBITDA to surpass $4.7 billion. Industrial and Energy Technology (IET) segment orders reached $4.1 billion, contributing to a backlog of $32.1 billion. The company anticipates full-year IET orders to exceed prior expectations, targeting at least $40 billion over the next three years. Baker Hughes highlighted ongoing momentum in LNG, power generation, and new energy markets, with specific awards in Turkiye and Brazil. Despite macroeconomic challenges, the company remains confident in its long-term strategy, aiming for 20% total company margins by 2028, driven by continuous margin expansion and robust order pipelines.

Baker Hughes Company Financial Statement Overview

Summary
Baker Hughes demonstrates robust financial health with strong revenue growth and profitability. The balance sheet is solid with manageable debt levels, and cash flows are generally healthy despite some recent declines in free cash flow growth.
Income Statement
85
Very Positive
Baker Hughes has shown strong revenue growth with a 36.9% increase in TTM, supported by improving margins. The gross profit margin stands at 22.81%, and the net profit margin is 10.43%, indicating solid profitability. The EBIT and EBITDA margins are also healthy at 12.11% and 16.27% respectively, reflecting efficient operations.
Balance Sheet
78
Positive
The company maintains a stable financial position with a debt-to-equity ratio of 0.33, which is relatively low for the industry, indicating prudent leverage. The return on equity is strong at 16.53%, showcasing effective use of equity. The equity ratio is 46.71%, reflecting a balanced capital structure.
Cash Flow
70
Positive
Cash flow performance is mixed, with a slight decline in free cash flow growth at -3.08% TTM. However, the operating cash flow to net income ratio is 0.27, and the free cash flow to net income ratio is 0.72, indicating reasonable cash generation relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.71B27.83B25.51B21.16B20.50B20.70B
Gross Profit6.32B5.84B5.25B4.40B4.05B3.20B
EBITDA4.51B4.60B3.96B1.33B1.83B-13.62B
Net Income2.89B2.98B1.94B-601.00M-219.00M-9.94B
Balance Sheet
Total Assets39.23B38.36B36.95B34.18B35.35B38.03B
Cash, Cash Equivalents and Short-Term Investments2.69B3.36B2.65B2.49B3.85B4.13B
Total Debt6.06B6.02B6.02B6.66B6.73B7.63B
Total Liabilities20.91B21.31B21.43B19.66B18.56B19.77B
Stockholders Equity18.16B16.89B15.37B14.39B14.83B12.89B
Cash Flow
Free Cash Flow2.09B2.05B1.84B1.12B1.83B517.00M
Operating Cash Flow3.34B3.33B3.06B1.89B2.37B1.30B
Investing Cash Flow-1.87B-1.02B-817.00M-1.56B-463.00M-618.00M
Financing Cash Flow-1.46B-1.53B-2.03B-1.59B-2.14B225.00M

Baker Hughes Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.51
Price Trends
50DMA
47.26
Positive
100DMA
44.65
Positive
200DMA
42.35
Positive
Market Momentum
MACD
0.32
Negative
RSI
50.77
Neutral
STOCH
59.15
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 47.51 is above the 20-day moving average (MA) of 47.42, above the 50-day MA of 47.26, and above the 200-day MA of 42.35, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 59.15 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$17.36B19.2428.72%0.53%11.73%45.70%
78
Outperform
$46.90B16.3716.83%1.94%1.51%30.09%
75
Outperform
$53.89B13.9415.46%3.11%-2.13%-16.76%
75
Outperform
$22.20B10.9811.69%4.16%-9.76%-18.94%
72
Outperform
$22.67B17.8312.77%2.52%-4.06%-47.41%
72
Outperform
$5.62B15.385.93%3.34%-1.43%-63.13%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKR
Baker Hughes Company
47.51
5.47
13.01%
FTI
TechnipFMC
43.16
15.16
54.14%
HAL
Halliburton
27.02
-1.84
-6.38%
NOV
NOV
15.27
-0.09
-0.59%
SLB
Schlumberger
36.94
-4.98
-11.88%
TS
Tenaris SA
40.96
5.69
16.13%

Baker Hughes Company Corporate Events

Baker Hughes and Chart Industries Merger: Navigating Complex Risks and Challenges
Oct 26, 2025

The proposed merger between Baker Hughes Company and Chart Industries, Inc. introduces a complex array of business, regulatory, and reputational risks that could significantly impact both entities. Key concerns include the timing and likelihood of transaction completion, regulatory approvals, and potential legal challenges. Additionally, the integration of operations and realization of anticipated benefits such as shareholder returns and synergies pose substantial challenges. The merger also risks disrupting existing operations and relationships, potentially affecting market perceptions and financial stability.

Baker Hughes Earnings Call: Strong Growth Amid Challenges
Oct 25, 2025

During the recent earnings call, Baker Hughes Company expressed a generally positive sentiment, highlighting robust financial performance and strategic growth in key sectors such as Industrial and Energy Technology (IET) and Liquefied Natural Gas (LNG). Despite this optimism, the company acknowledged challenges in Oilfield Services and Equipment (OFSE) margins and upstream investment, with potential impacts from evolving trade policies.

Business Operations and StrategyFinancial Disclosures
Baker Hughes Reports Q3 Results with Revenue Growth
Positive
Oct 23, 2025

On October 23, 2025, Baker Hughes Company announced its third-quarter results, reporting $8.2 billion in orders and $7.0 billion in revenue, marking a 1% year-over-year increase. The company highlighted strong performance in its Industrial & Energy Technology segment, with significant orders in LNG and power generation, and completed strategic acquisitions to enhance its portfolio, positioning itself strongly in the market.

The most recent analyst rating on (BKR) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Baker Hughes EVP Resignation and Interim Appointment
Neutral
Oct 14, 2025

On October 7, 2025, Ganesh Ramaswamy resigned as Executive Vice President, Industrial & Energy Technology of Baker Hughes Company to pursue another opportunity. Maria Claudia Borras will take over the role on an interim basis starting October 24, 2025, while continuing her duties as Chief Growth and Experience Officer. Borras, with over 30 years of experience in the energy sector, is tasked with driving growth and enhancing customer experience, indicating a strategic focus on business expansion.

The most recent analyst rating on (BKR) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Baker Hughes Secures $2.6 Billion Loan for Acquisition
Neutral
Aug 18, 2025

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.

The most recent analyst rating on (BKR) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

M&A Transactions
Baker Hughes Announces $13.6 Billion Chart Industries Merger
Positive
Jul 29, 2025

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.

The most recent analyst rating on (BKR) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 26, 2025