Baker Hughes Company (BKR)
NASDAQ:BKR
Top Page
Baker Hughes Company
(NASDAQ:BKR)
Select Model
Select Model
Rating:69Neutral
Price Target:
$70.00
â–²(14.29% Upside)
Action:ReiteratedDate:03/18/26
The score is driven mainly by improved financial performance (stronger margins and healthier leverage) and a generally positive, target-backed 2026 outlook from management. These are tempered by weak near-term technical momentum and macro/OFSE headwinds (including tariff pressures and execution risk tied to backlog conversion and the pending Chart deal), while valuation is supportive but not compelling.
Positive Factors
Margin Recovery & Profitability
Material margin improvement versus earlier loss years reflects structurally higher earnings quality. Sustained gross and operating margin expansion supports recurring cash generation, funds reinvestment in high‑margin IET projects and software, and increases resilience versus OFSE cyclicality over the medium term.
Negative Factors
OFSE Cyclicality & Near-Term Weakness
A material portion of revenue remains tied to oilfield services and upstream capex cycles. Persistent weakness or further capital discipline among operators can depress utilization and product sales, amplifying top‑line volatility and constraining long‑term cash flow predictability despite stronger margins elsewhere.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery & Profitability
Material margin improvement versus earlier loss years reflects structurally higher earnings quality. Sustained gross and operating margin expansion supports recurring cash generation, funds reinvestment in high‑margin IET projects and software, and increases resilience versus OFSE cyclicality over the medium term.
Read all positive factors
Baker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$60.53B
Dividend Yield2.04%
Average Volume (3M)10.08M
Price to Earnings (P/E)17.4
Beta (1Y)0.78
Revenue Growth1.51%
EPS Growth30.09%
CountryUS
Employees57,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.78
Shares Outstanding988,236,500
10 Day Avg. Volume7,589,194
30 Day Avg. Volume10,082,691
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 Cap1.09
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit10.06
Enterprise Value/Ebitda15.36
Forecast
1Y Price Target
$64.38Price Target Upside5.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)2.57
Revenue Forecast (FY)$27.71B
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), ...
How the Company Makes Money
Baker Hughes makes money primarily by selling engineered equipment and by providing field and lifecycle services tied to energy and industrial assets. Key revenue streams include: (1) Oilfield Services & Equipment: revenue from delivering services...
Baker Hughes Company Key Performance Indicators (KPIs)
Any
Orders by Segment
Tracks incoming orders across various segments, indicating demand trends and potential future revenue streams.
Tracks incoming orders across various segments, indicating demand trends and potential future revenue streams.
Data provided by:
The Fly
The FlyBaker Hughes Company Earnings Call Summary
Earnings Call Date:Jan 25, 2026
(Q4-2025)
| Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlighted multiple material achievements — record adjusted EBITDA, record IET orders and backlog, strong power systems and New Energy momentum, robust free cash flow and a strengthened balance sheet — while also acknowledging persistent macro and OFSE-focused headwinds (revenue decline, tariffs, regional softness) and some execution and timing risk around acquisitions and market-dependent backlog conversion. The positives are broad, measurable and accompanied by clear targets and guidance, and management communicated actionable steps (portfolio actions, cost-outs, integration planning) to mitigate challenges.Positive Updates
Record Adjusted EBITDA and Strong Q4 Result
Adjusted EBITDA of $1.34 billion in Q4 and a record full-year adjusted EBITDA of $4.83 billion; adjusted EBITDA increased 2% year-over-year in the quarter and company adjusted EBITDA margin expanded 30 basis points year-over-year to a record 18.1% in Q4 (full-year margin up 90 basis points to 17.4%).
Negative Updates
OFSE Revenue Decline and Softness
OFSE revenue declined 8% for the full year to $14.3 billion; Q4 OFSE revenue was $3.57 billion with segment EBITDA of $647 million and a sequential margin decline of 40 basis points to 18.1%; pressures included seasonal declines in the North Sea and Asia Pacific, softness in Mexico and weaker year-end product sales.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted EBITDA and Strong Q4 Result
Adjusted EBITDA of $1.34 billion in Q4 and a record full-year adjusted EBITDA of $4.83 billion; adjusted EBITDA increased 2% year-over-year in the quarter and company adjusted EBITDA margin expanded 30 basis points year-over-year to a record 18.1% in Q4 (full-year margin up 90 basis points to 17.4%).
Read all positive updates
Company Guidance
The company guided full-year 2026 revenue of $27.25 billion and adjusted EBITDA of $4.85 billion (implying roughly 18% company adjusted EBITDA margin), with organic adjusted EBITDA growth in the mid-single digits, free cash flow conversion approaching 50%, and an effective tax rate of 22–26%; segment guidance called for IET orders of $13.5–$15.5 billion, IET revenue of $13.5 billion and IET EBITDA of $2.7 billion (targeting a 20% IET margin in 2026), and OFSE revenue of $13.75 billion with OFSE EBITDA of $2.475 billion, while first‑quarter 2026 guidance was $6.4 billion of revenue and $1.06 billion of adjusted EBITDA (Q1 IET EBITDA ~$600 million; Q1 OFSE EBITDA ~$540 million); the outlook excludes divested PSI and the SPC deconsolidation, assumes Chart closing (targeted in Q2 subject to review), and the company reiterated a post-Chart net‑debt/adjusted‑EBITDA goal of 1.0–1.5x within 24 months, noting year-end cash of $3.7 billion, liquidity of $6.7 billion, net debt/EBITDA of 0.5x, and planned ~$1 billion of portfolio proceeds (having already generated ~$1.5 billion gross).Baker Hughes Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.73B | 27.83B | 25.51B | 21.16B | 20.50B |
| Gross Profit | 6.54B | 6.48B | 5.90B | 4.96B | 4.54B |
| EBITDA | 4.29B | 4.60B | 3.96B | 1.33B | 1.83B |
| Net Income | 2.59B | 2.98B | 1.94B | -601.00M | -219.00M |
Balance Sheet | |||||
| Total Assets | 40.88B | 38.36B | 36.95B | 34.18B | 35.35B |
| Cash, Cash Equivalents and Short-Term Investments | 4.96B | 3.36B | 2.65B | 2.49B | 3.85B |
| Total Debt | 7.14B | 6.02B | 6.02B | 6.66B | 6.73B |
| Total Liabilities | 21.87B | 21.31B | 21.43B | 19.66B | 18.56B |
| Stockholders Equity | 18.83B | 16.89B | 15.37B | 14.39B | 14.83B |
Cash Flow | |||||
| Free Cash Flow | 2.54B | 2.05B | 1.84B | 1.12B | 1.83B |
| Operating Cash Flow | 3.81B | 3.33B | 3.06B | 1.89B | 2.37B |
| Investing Cash Flow | -2.04B | -1.02B | -817.00M | -1.56B | -463.00M |
| Financing Cash Flow | -1.48B | -1.53B | -2.03B | -1.59B | -2.14B |
Baker Hughes Company Technical Analysis
Positive
61.25
Price Trends
60.14
Positive
54.21
Positive
49.19
Positive
Market Momentum
0.46
Positive
53.50
Neutral
30.94
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 61.25 is above the 20-day moving average (MA) of 59.89, above the 50-day MA of 60.14, and above the 200-day MA of 49.19, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 30.94 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $31.71B | 10.34 | 11.48% | 4.43% | -9.76% | -18.94% | |
79 Outperform | $29.29B | 19.37 | 29.62% | 0.44% | 11.73% | 45.70% | |
69 Neutral | $60.53B | 17.39 | 14.43% | 2.04% | 1.51% | 30.09% | |
69 Neutral | $75.29B | 16.85 | 14.64% | 2.98% | -2.13% | -16.76% | |
66 Neutral | $32.43B | 18.48 | 12.36% | 2.41% | -4.06% | -47.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $7.05B | 40.10 | 2.26% | 3.24% | -1.43% | -63.13% |
* Energy Sector Average
BKR
Baker Hughes Company
61.25
23.27
61.27%
FTI
TechnipFMC
73.21
47.16
181.05%
HAL
Halliburton
38.72
17.24
80.25%
NOV
NOV
19.56
7.27
59.17%
SLB
Schlumberger
50.35
15.44
44.22%
TS
Tenaris SA
58.74
27.63
88.79%
Baker Hughes Company Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Baker Hughes Prices Multi-Currency Notes for Chart Acquisition
Positive
Mar 12, 2026
On March 5, 2026, Baker Hughes’ main operating subsidiary Baker Hughes Holdings LLC and its co‑obligor priced a $6.5 billion U.S. dollar senior unsecured notes offering and a €3 billion euro senior unsecured notes offering, acros...
Financial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Baker Hughes Advances Chart Industries Acquisition With New Filings
Positive
Mar 2, 2026
Baker Hughes Company, the energy technology and industrial services firm, is moving forward with its planned acquisition of Chart Industries, Inc., a Delaware-based maker of highly customized engineered products and systems, under a merger agreeme...
Business Operations and StrategyFinancial Disclosures
Baker Hughes Delivers Record 2025 Profitability and Orders
Positive
Jan 26, 2026
On January 25, 2026, Baker Hughes reported its fourth-quarter and full-year 2025 results, highlighting flat quarterly revenue of $7.4 billion and full-year revenue of $27.7 billion, but stronger profitability with full-year attributable net income...
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.