Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $45.40B
• Dividend Yield: 1.91%
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.73
• Revenue Growth: 2.13%
• EPS Growth: 54.69%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.63
• Shares Outstanding: 985,879,150
• 10 Day Avg. Volume: 9,926,149
• 30 Day Avg. Volume: 8,131,493
• PEG Ratio: 3.38
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.48
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 68.51
• Enterprise Value/Ebitda: 74.84
• 1Y Price Target: $50.79
• Price Target Upside: 10.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: $51.00 ▲(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 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 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 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.83B	25.51B	21.16B	20.50B	20.70B
Gross Profit	5.84B	5.25B	4.40B	4.05B	3.20B
EBITDA	4.60B	3.96B	1.33B	1.83B	-13.62B
Net Income	2.98B	1.94B	-601.00M	-219.00M	-9.94B
Balance Sheet
Total Assets	38.36B	36.95B	34.18B	35.35B	38.03B
Cash, Cash Equivalents and Short-Term Investments	3.36B	2.65B	2.49B	4.89B	4.13B
Total Debt	6.02B	6.02B	6.66B	7.56B	8.44B
Total Liabilities	21.31B	21.43B	19.66B	18.60B	19.79B
Stockholders Equity	16.89B	15.37B	14.39B	14.83B	12.89B
Cash Flow
Free Cash Flow	2.05B	1.84B	1.12B	1.83B	517.00M
Operating Cash Flow	3.33B	3.06B	1.89B	2.37B	1.30B
Investing Cash Flow	-1.02B	-817.00M	-1.56B	-463.00M	-618.00M
Financing Cash Flow	-1.53B	-2.03B	-1.59B	-2.14B	225.00M

Baker Hughes Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.05
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	82 Outperform	$14.98B	17.26	29.27%	0.55%	12.15%	91.88%
TS	81 Outperform	$20.40B	11.64	10.43%	5.78%	-15.42%	-45.54%
HAL	76 Outperform	$19.30B	10.50	18.16%	3.03%	-4.08%	-29.26%
BKR	75 Outperform	$45.40B	15.07	18.32%	1.91%	2.13%	54.69%
SLB	74 Outperform	$53.24B	12.15	19.78%	3.16%	0.94%	-4.63%
NOV	74 Outperform	$5.25B	9.32	9.29%	3.65%	0.54%	-39.88%
Sector *	52 Neutral	C$2.95B	-1.61	-3.48%	6.56%	3.05%	-49.39%

Baker Hughes Company Corporate Events

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.

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.

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.

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.