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Baker Hughes Company
(NASDAQ:BKR)
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Rating:69Neutral
Price Target:
$63.00
â–²(10.04% Upside)
Action:Reiterated
Date:07/27/26
BKR scores positively overall, led by improved profitability and strong free cash flow plus a constructive earnings call featuring record IET orders/backlog and raised orders guidance. Offsetting this are notable financial statement risks (very weak TTM revenue growth and higher leverage) and a mixed technical setup with the stock still below key intermediate-term moving averages. Valuation appears broadly reasonable rather than a clear bargain.
Positive Factors
Strong cash generation and improved margins
Baker Hughes now converts strong operating performance into recurring cash: ~$4.4B OCF and ~$3.4B FCF with mid-teens EBIT/net margins. Durable cash generation supports reinvestment, deleveraging, aftermarket growth and capacity to fund projects or return capital through cycles.
Negative Factors
Sharp TTM revenue decline and top-line volatility
A pronounced TTM revenue drop signals lumpy, timing-driven top-line performance tied to large project recognition. That volatility complicates forecasting, raises execution risk if backlog conversion slips, and limits predictability of long‑term organic growth absent steadier order-to-revenue conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and improved margins
Baker Hughes now converts strong operating performance into recurring cash: ~$4.4B OCF and ~$3.4B FCF with mid-teens EBIT/net margins. Durable cash generation supports reinvestment, deleveraging, aftermarket growth and capacity to fund projects or return capital through cycles.
Read all positive factors
Baker Hughes Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyBaker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.29B
Dividend Yield1.54%
Average Volume (3M)9.13M
Price to Earnings (P/E)18.6
Beta (1Y)0.75
Revenue Growth0.42%
EPS Growth1.75%
CountryUS
Employees53,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)3.14
Shares Outstanding992,674,100
10 Day Avg. Volume8,685,430
30 Day Avg. Volume9,130,299
Financial Highlights & Ratios
PEG Ratio-1.37
Price to Book (P/B)2.39
Price to Sales (P/S)1.62
P/FCF Ratio17.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$73.85Price Target Upside28.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)2.51
Revenue Forecast (FY)$28.01B
Baker Hughes Company Business Overview & Revenue Model
Company Description
Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OF...
How the Company Makes Money
Baker Hughes makes money primarily by selling products and services to energy producers and energy infrastructure operators through a mix of (1) oilfield services and equipment revenues tied to customer activity levels and project work, and (2) sa...
Baker Hughes Company Earnings Call Summary
Earnings Call Date:Jul 26, 2026
(Q2-2026)
| Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
Overall the call was positive: Baker Hughes delivered strong operational and commercial results with record IET orders, margin expansion, robust free cash flow, and a successful strategic acquisition (Chart) with identifiable synergies. These positives outweigh the regional and supply-chain headwinds tied to the Middle East conflict, some near-term margin pressure from inflation/logistics, and the delayed revenue conversion for certain large IET orders.Positive Updates
Record IET Orders and Backlog Expansion
IET orders doubled year-over-year to a record $7.1 billion (100% YoY), driving total company bookings of $10.5 billion for the quarter. Book-to-bill for IET was 2.2x and RPO rose 19% year-over-year to an all-time high of $37.1 billion, providing strong multi-year revenue visibility.
Negative Updates
Middle East Conflict and Regional Disruptions
Ongoing conflict in the Middle East created headwinds: management assumes IET faces a 1%–2% revenue headwind related to regional disruptions. OFSE activity in the Middle East remains volatile; OFSE product revenue outperformed but services softened, and regional disruptions increased logistics complexity.
Read all updates
Q2-2026 Updates
Positive
Negative
Record IET Orders and Backlog Expansion
IET orders doubled year-over-year to a record $7.1 billion (100% YoY), driving total company bookings of $10.5 billion for the quarter. Book-to-bill for IET was 2.2x and RPO rose 19% year-over-year to an all-time high of $37.1 billion, providing strong multi-year revenue visibility.
Read all positive updates
Company Guidance
Baker Hughes guided Q3 company revenue of $6.87 billion and adjusted EBITDA of $1.205 billion, with IET revenue of about $3.32 billion and IET EBITDA ~$660 million and OFSE revenue of $3.55 billion with OFSE EBITDA ~$625 million; for full‑year 2026 the company now expects revenue of $27.35 billion and adjusted EBITDA of $4.85 billion, maintains full‑year IET revenue midpoint of $13.5 billion while modestly raising IET EBITDA midpoint to $2.725 billion, expects OFSE full‑year revenue of $13.85 billion and EBITDA of $2.425 billion, and raised full‑year IET orders guidance to $17.5–$19.5 billion; guidance assumes Middle East activity broadly unchanged (with a 1–2% IET revenue headwind), logistics/supply‑chain costs in line with recent levels, the Waygate divestiture closing at year‑end, and a commitment to deleverage back to ~1.0–1.5x net debt/EBITDA within 24 months while realizing $325 million of annualized Chart cost synergies by year 3 ($95M Y1, $230M Y2).Baker Hughes Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.73B | 27.73B | 27.83B | 25.51B | 21.16B | 20.50B |
| Gross Profit | 6.54B | 6.54B | 6.48B | 5.90B | 4.96B | 4.54B |
| EBITDA | 4.75B | 4.29B | 4.60B | 3.96B | 1.33B | 1.83B |
| Net Income | 3.10B | 2.59B | 2.98B | 1.94B | -601.00M | -219.00M |
Balance Sheet | ||||||
| Total Assets | 52.62B | 40.88B | 38.36B | 36.95B | 34.18B | 35.35B |
| Cash, Cash Equivalents and Short-Term Investments | 17.06B | 4.96B | 3.36B | 2.65B | 2.49B | 3.85B |
| Total Debt | 16.25B | 7.14B | 6.02B | 6.02B | 6.66B | 6.73B |
| Total Liabilities | 32.54B | 21.87B | 21.31B | 21.43B | 19.66B | 18.56B |
| Stockholders Equity | 19.91B | 18.83B | 16.89B | 15.37B | 14.39B | 14.83B |
Cash Flow | ||||||
| Free Cash Flow | 3.13B | 2.54B | 2.05B | 1.84B | 1.12B | 1.83B |
| Operating Cash Flow | 4.44B | 3.81B | 3.33B | 3.06B | 1.89B | 2.37B |
| Investing Cash Flow | -574.00M | -2.04B | -1.02B | -817.00M | -1.56B | -463.00M |
| Financing Cash Flow | 8.75B | -1.48B | -1.53B | -2.03B | -1.59B | -2.14B |
Baker Hughes Company Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $30.39B | 14.66 | 11.65% | 3.16% | 1.69% | 16.35% | |
77 Outperform | $28.60B | 27.22 | 35.29% | 0.26% | 9.44% | 36.97% | |
69 Neutral | $58.29B | 18.62 | 16.25% | 1.61% | 0.42% | 1.75% | |
68 Neutral | $73.20B | 47.60 | 11.70% | 2.21% | 2.34% | -29.38% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $25.99B | 16.34 | 15.08% | 2.04% | 0.63% | -10.50% | |
52 Neutral | $6.84B | 82.58 | 1.52% | 2.02% | -1.63% | -78.44% |
* Energy Sector Average
BKR
Baker Hughes Company
59.90
17.13
40.05%
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Baker Hughes Company Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Baker Hughes posts strong Q2 results and outlook
Positive
Jul 27, 2026
On July 26, 2026, Baker Hughes reported robust second-quarter 2026 results, with orders rising to $10.5 billion, revenue at $6.7 billion, net income of $681 million and adjusted EBITDA of $1.23 billion, supported by strong data center, gas infrast...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Baker Hughes Completes Strategic Acquisition of Chart Industries
Positive
Jul 17, 2026
On July 16, 2026, Baker Hughes completed its acquisition of Chart Industries, following a merger in which Chart shareholders received $210 per share in cash and Chart’s equity awards were converted into a mix of cash, Baker Hughes stock unit...
M&A TransactionsRegulatory Filings and Compliance
Baker Hughes Advances Toward EU Approval of Chart Merger
Positive
Jun 22, 2026
Baker Hughes Company and Chart Industries, Inc., which signed a merger agreement on July 28, 2025, reported that they are in discussions with the European Commission over potential commitments aimed at securing antitrust clearance for their planne...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Baker Hughes Advances EU Review for Chart Industries Acquisition
Positive
May 21, 2026
Baker Hughes Company plans to expand its energy technology portfolio through the acquisition of Chart Industries, Inc., under a merger agreement announced on July 28, 2025, in which Chart will become an indirect wholly owned subsidiary. Baker Hugh...
Executive/Board ChangesShareholder Meetings
Baker Hughes Shareholders Approve Directors and Compensation Plans
Positive
May 19, 2026
At its annual meeting held on May 19, 2026, Baker Hughes Company shareholders elected ten directors to one-year terms, affirming the existing board lineup and governance structure. The meeting was conducted with a strong quorum, as 911,637,899 of ...
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.