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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)

Rating:75Outperform
Price Target:
$51.00
â–²(10.75%Upside)
Baker Hughes demonstrates strong financial performance with impressive revenue growth and margins, driving the overall score. Technical indicators suggest bullish momentum, though overbought conditions imply potential short-term corrections. The valuation is reasonable, and the earnings call underscores strategic growth, despite some industry challenges.
Positive Factors
Earnings Performance
BKR's 2Q Adj. EPS of $0.63 handily beat Cons. $0.56 helped by higher revenue & margins in both IET & OFSE.
Order Growth
IET orders of $3.53bn were 13% above Cons, helped by BKR’s largest data center award-to-date and strong gas infrastructure orders, showcasing growing diversity of IET end-markets.
Portfolio Management
BKR expects to realize $1B of net proceeds from portfolio transactions, which should be accretive to margins.
Negative Factors
Cash Flow Expectations
Near-term free cash flow is expected to be below consensus estimates.
Market Pressures
The activity-levered OFSE business lines face pressure related to oil macro headwinds through at least 2026.
Regional Market Challenges
North American activity in the OFSE segment is declining more than expected, with rig drops exceeding initial forecasts.

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

Baker Hughes Company Business Overview & Revenue Model

Company DescriptionBaker 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 MoneyBaker Hughes makes money primarily through the sale of oilfield products, services, and digital solutions to the energy sector. The company's revenue streams are diversified across its four business segments. Oilfield Services generate income by providing drilling, evaluation, completion, and production services to oil and gas operators. Oilfield Equipment earns revenue through the sale and maintenance of critical equipment used in the exploration and extraction of oil and gas. Turbomachinery & Process Solutions segment generates income by supplying and servicing turbomachinery used in the energy and industrial markets. Lastly, the Digital Solutions segment provides software, sensors, and analytics to optimize performance and efficiency across various industries. Significant partnerships with major energy companies, along with a focus on innovation and sustainability, contribute to the company's earnings.

Baker Hughes Company Key Performance Indicators (KPIs)

Any
Any
Operating Income by Segement
Operating Income by Segement
Examines profit from each business segment, providing insight into operational efficiency and profitability across different parts of the company.
Chart InsightsBaker Hughes' Industrial & Energy Technology segment is showing strong growth, supported by a robust equipment backlog and recurring revenues, despite macroeconomic challenges. The segment's operating income has steadily increased, aligning with a 30% year-over-year EBITDA rise. Conversely, the Oilfield Services & Equipment segment faces variability due to reduced upstream spending and tariff-related cost inflation, impacting its performance. The company's strategic focus on productivity and structural margin improvements is crucial as it navigates geopolitical tensions and trade uncertainties, with a targeted 16.1% adjusted EBITDA margin for the year.
Data provided by:Main Street Data

Baker Hughes Company Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 15.07%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Baker Hughes' strong financial performance and strategic positioning, particularly in the Industrial & Energy Technology segment. However, challenges remain due to tariff impacts and subdued market conditions in Oilfield Services & Equipment, coupled with trade policy uncertainties.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA rose to $1.21 billion, a 170 basis point year-over-year improvement in margins. The company has maintained the trend of meeting or exceeding the midpoint of their EBITDA guidance for the 10th consecutive quarter.
Industrial & Energy Technology (IET) Orders
IET orders totaled $3.5 billion in the quarter, with a record backlog of $31.3 billion, reinforcing the durability of the company's growth outlook.
Significant Data Center Awards
Baker Hughes booked more than $550 million in power generation equipment orders for data centers, reflecting growing demand for their solutions.
Strategic Transactions
Three strategic transactions were announced, including divestitures and acquisitions, expected to generate about $1 billion in net proceeds, further strengthening the balance sheet.
Growth in New Energy Orders
The company booked $1 billion in new energy orders during the quarter, exceeding their expectations and reinforcing confidence in achieving their order target by 2030.
Negative Updates
Tariff Impacts
The increase in tariff rates negatively impacted EBITDA by approximately $15 million in the second quarter, with expectations of a higher impact in the second half of the year.
Challenges in Oilfield Services & Equipment (OFSE)
Despite strong margin performance, OFSE remains challenged by subdued market conditions and a forecasted high single-digit decline in global upstream spending.
Trade Policy Uncertainties
Significant changes in trade policies, including announced tariffs on steel, aluminum, and copper imports, are expected to impact the company's operations and financial performance.
Company Guidance
In the second quarter of 2025, Baker Hughes reported strong financial results, highlighted by an adjusted EBITDA of $1.21 billion, reflecting a 170 basis point year-over-year improvement in margins. The Oilfield Services & Equipment (OFSE) segment showed a 90 basis point sequential margin improvement, driven by stronger international revenue and cost-out initiatives, while the Industrial & Energy Technology (IET) segment saw margins expand by 190 basis points year-over-year, supported by its business system. IET orders totaled $3.5 billion, with notable growth in data center solutions, securing over $550 million in power generation equipment orders. The IET backlog also reached a record $31.3 billion, reinforcing a robust growth outlook. Additionally, the company generated $239 million in free cash flow, returning $423 million to shareholders, including $196 million in share repurchases. Despite macroeconomic challenges, Baker Hughes maintained confidence in its full-year order guidance, expecting IET's orders to range from $12.5 billion to $14.5 billion.

Baker Hughes Company Financial Statement Overview

Summary
Baker Hughes exhibits solid financial health with impressive revenue growth and profitability improvements. The income statement reflects strong margins and growth trajectories. The balance sheet indicates moderate leverage with improved shareholder returns. Cash flows are robust, supporting the company's operational and investment activities. The company's financial position is stable, with a positive outlook for continued growth and profitability in the oil & gas services sector.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.83B25.51B21.16B20.50B20.70B
Gross Profit5.84B5.25B4.40B4.05B3.20B
EBITDA4.60B3.96B1.33B1.83B-13.62B
Net Income2.98B1.94B-601.00M-219.00M-9.94B
Balance Sheet
Total Assets38.36B36.95B34.18B35.35B38.03B
Cash, Cash Equivalents and Short-Term Investments3.36B2.65B2.49B4.89B4.13B
Total Debt6.02B6.02B6.66B7.56B8.44B
Total Liabilities21.31B21.43B19.66B18.60B19.79B
Stockholders Equity16.89B15.37B14.39B14.83B12.89B
Cash Flow
Free Cash Flow2.05B1.84B1.12B1.83B517.00M
Operating Cash Flow3.33B3.06B1.89B2.37B1.30B
Investing Cash Flow-1.02B-817.00M-1.56B-463.00M-618.00M
Financing Cash Flow-1.53B-2.03B-1.59B-2.14B225.00M

Baker Hughes Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.05
Price Trends
50DMA
38.85
Positive
100DMA
39.24
Positive
200DMA
40.60
Positive
Market Momentum
MACD
1.45
Negative
RSI
77.78
Negative
STOCH
98.35
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 46.05 is above the 20-day moving average (MA) of 40.31, above the 50-day MA of 38.85, and above the 200-day MA of 40.60, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 77.78 is Negative, neither overbought nor oversold. The STOCH value of 98.35 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

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$14.98B17.2629.27%0.55%12.15%91.88%
81
Outperform
$20.40B11.6410.43%5.78%-15.42%-45.54%
76
Outperform
$19.30B10.5018.16%3.03%-4.08%-29.26%
75
Outperform
$45.40B15.0718.32%1.91%2.13%54.69%
74
Outperform
$53.24B12.1519.78%3.16%0.94%-4.63%
74
Outperform
$5.25B9.329.29%3.65%0.54%-39.88%
52
Neutral
C$2.95B-1.61-3.48%6.56%3.05%-49.39%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BKR
Baker Hughes Company
46.05
8.45
22.47%
FTI
TechnipFMC
36.45
7.31
25.09%
HAL
Halliburton
22.45
-10.54
-31.95%
NOV
NOV
13.97
-5.10
-26.74%
SLB
Schlumberger
35.47
-11.06
-23.77%
TS
Tenaris SA
38.07
7.97
26.48%

Baker Hughes Company Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Baker Hughes Reports Strong Q2 2025 Performance
Positive
Jul 22, 2025

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.

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.

Executive/Board ChangesShareholder Meetings
Baker Hughes Approves Board and Executive Compensation
Neutral
May 22, 2025

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.

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: Jul 25, 2025