Baker Hughes Company (BKR) AI Stock Analysis

• Market Cap: $56.33B
• Dividend Yield: 2.04%
• Average Volume (3M): 9.59M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.93
• Revenue Growth: 1.51%
• EPS Growth: 30.09%
• Country: US
• Employees: 57,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.78
• Shares Outstanding: 988,236,500
• 10 Day Avg. Volume: 12,078,405
• 30 Day Avg. Volume: 9,587,892
• PEG Ratio: -1.37
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 14.00
• 1Y Price Target: $62.23
• Price Target Upside: 9.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.62
• Revenue Forecast (FY): $27.87B

• Rating: 69 Neutral
• Price Target: $62.00 ▲(8.77% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 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

Improved Profitability & Margins

Sustained margin expansion and record adjusted EBITDA signal durable operational improvement. Higher structural margins increase cash generation per revenue dollar, support reinvestment in technology and backlog conversion, and make earnings less sensitive to cyclical top-line swings over the next 2–6 months.

Strong Free Cash Flow & Deleveraging

Robust free cash flow and a low net-debt/EBITDA ratio provide durable financial flexibility. This supports funding for strategic deals, portfolio actions, and shareholder returns while insulating investment plans and working-capital needs from short-term oilfield volatility over the medium term.

Record IET Backlog & Energy-transition Wins

A large, high-margin IET backlog and growing New Energy/power-systems orders provide multi-quarter revenue visibility and shift mix toward industrial, project-driven work. This reduces reliance on transactional OFSE cycles and supports higher recurring aftermarket and service revenue long term.

Negative Factors

OFSE Cyclicality & Revenue Pressure

Significant exposure to oilfield services leaves revenue sensitive to upstream capital discipline. Management expects upstream spend declines in 2026, which can compress OFSE activity and delay backlog conversion, making top-line recovery dependent on an industry upcycle beyond the near term.

Tariff, Supply Chain & FX Headwinds

Structural trade frictions and supply-chain tightness increase input costs and execution complexity. Annualized tariff impacts and volatile FX can erode margins on large engineered projects and complicate backlog realization, creating persistent cost pressure that management must offset with productivity gains.

Acquisition & Portfolio Execution Risk

The Chart deal introduces regulatory timing and integration risk; financing activity shows material funding needs. Concurrent deconsolidation/divestitures reduce reported revenue and may modestly dilute near-term margins, raising execution and timing uncertainty during integration and regulatory review.

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 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 and tools used in exploration and production, such as drilling-related services, formation evaluation, completions, artificial lift, and production chemicals; these are typically paid per job, per day, or per unit of service/tool usage, often with activity levels linked to customer capital spending and rig/completion activity. (2) Turbomachinery, compression, and process solutions: revenue from selling large, project-based equipment packages (e.g., gas turbines, compressors, and related systems) used in LNG and gas infrastructure as well as other industrial applications; these businesses generate revenue through initial equipment sales (often tied to large contracts and project milestones) and recurring aftermarket revenue (spare parts, repairs, upgrades, and long-term service agreements). (3) Digital and industrial technology services: revenue from software, digital monitoring, and analytics offerings (including subscription/usage-based models where applicable) and from inspection, integrity management, and related services that support reliability and performance of customer assets. A significant earnings driver is the installed base of equipment (especially turbomachinery/compression), which supports higher-margin, recurring aftermarket service and parts revenue over the life of the asset. Results are influenced by commodity-price-driven customer spending, large LNG and infrastructure project cycles, and contract mix between one-time equipment deliveries and recurring service agreements. Specific partnership details: null.

Baker Hughes Company Financial Statement Overview

Summary

Strong turnaround with consistently positive profitability (TTM net margin ~10.4%, operating margin ~12.1%) and improving gross margin (~22.8%). Balance sheet leverage is moderating (debt-to-equity ~0.33) and equity has expanded, while cash generation is solid but with only moderate conversion (TTM FCF ~63% of net income). Key constraint is moderating revenue growth and ongoing cyclicality.

Income Statement

Profitability has materially improved versus the 2020–2022 loss period, with TTM (Trailing-Twelve-Months) net margin ~10.4% and operating margin ~12.1%. Revenue growth remains positive in recent periods (TTM ~7.9%; 2024 ~9.1%), though it has decelerated from the sharp rebound in 2023 (~20.6%). Gross margin has also trended up (TTM ~22.8% vs ~20–21% in 2022–2024), supporting earnings quality; the main weakness is that top-line growth is moderating and results remain tied to cyclical energy activity.

Balance Sheet

Leverage is moderate and improving, with debt-to-equity down to ~0.33 in TTM (Trailing-Twelve-Months) from ~0.46 in 2022, indicating a stronger capital structure. Equity has expanded meaningfully (TTM ~$21.6B vs ~$14.4B in 2022), and returns on equity are solid (TTM ~16.6%; 2024 ~17.6%) after being negative in 2020–2022. Key risk is that absolute debt remains sizable (~$6.1B), so the balance sheet is healthier but still exposed if the cycle turns.

Cash Flow

Cash generation is constructive: TTM (Trailing-Twelve-Months) operating cash flow is ~$3.81B and free cash flow is ~$2.92B, with a very strong reported free-cash-flow growth rate in TTM. Free cash flow conversion versus earnings is moderate (TTM free cash flow is ~63% of net income, broadly consistent with prior years). The main weakness is that cash flow does not fully match accounting profits (conversion below 1.0), suggesting working-capital swings and/or investment needs can meaningfully affect cash results.

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	5.84B	5.25B	4.40B	4.05B
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

• Technical Analysis Sentiment: Neutral
• Last Price: 57.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Neutral. The current price of 57 is below the 20-day moving average (MA) of 60.93, below the 50-day MA of 57.17, and above the 200-day MA of 47.55, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 20.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BKR.

Baker Hughes Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TS	80 Outperform	$29.81B	10.34	11.48%	4.43%	-9.76%	-18.94%
FTI	79 Outperform	$26.14B	19.37	29.62%	0.44%	11.73%	45.70%
BKR	69 Neutral	$56.33B	17.39	14.43%	2.04%	1.51%	30.09%
SLB	69 Neutral	$68.98B	16.85	14.64%	2.98%	-2.13%	-16.76%
HAL	66 Neutral	$29.85B	18.48	12.36%	2.41%	-4.06%	-47.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	58 Neutral	$6.73B	40.10	2.26%	3.24%	-1.43%	-63.13%

Baker Hughes Company Corporate Events

Baker Hughes Prices Multi-Currency Notes for Chart Acquisition

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, across nine tranches maturing between 2029 and 2056. The notes, fully and unconditionally guaranteed by Baker Hughes Company, were issued under existing shelf registrations and an established indenture framework, with the offerings closing on March 11, 2026.

Baker Hughes plans to use the proceeds, alongside cash on hand and borrowings under an existing term loan, to fund part of the cash consideration for its pending acquisition of Chart Industries, Inc., pay related transaction costs, and refinance Chart’s outstanding debt. In connection with this permanent financing, the company had already terminated about $11 billion of prior bridge facility commitments effective March 11, 2025, underscoring a shift from contingent to long‑term capital market funding for the Chart transaction.

The most recent analyst rating on (BKR) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

Baker Hughes Advances Chart Industries Acquisition With New Filings

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 agreement first announced on July 28, 2025. As part of that process, Baker Hughes has filed Chart’s audited consolidated financial statements for the years ended December 31, 2025 and 2024, along with an unqualified audit opinion and confirmation of effective internal controls from Deloitte & Touche LLP, providing investors with greater visibility into Chart’s financial condition ahead of its integration as an indirect wholly owned subsidiary.

The filings detail that a significant portion of Chart’s 2025 sales was recognized over time on complex, engineered contracts, an area identified by Deloitte as a critical audit matter due to the judgment involved in estimating total costs at completion. By placing these audited results and controls assessments on the record, Baker Hughes underscores the robustness of Chart’s financial reporting framework, which may ease regulatory review and stakeholder scrutiny as it incorporates a large, project-driven revenue base into its own financial and operational structure.

The most recent analyst rating on (BKR) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.

Baker Hughes Delivers Record 2025 Profitability and Orders

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 of $2.59 billion and a 5% increase in adjusted EBITDA to a record $4.83 billion. Fourth-quarter orders reached $7.9 billion and full-year orders $29.6 billion, driven by the IET segment, which delivered a record $14.9 billion in annual orders and a record year-end backlog of $32.4 billion, while the company generated record annual free cash flow of $2.7 billion supported by working capital efficiencies and customer prepayments. Management emphasized that robust LNG, FPSO, gas infrastructure and power-systems demand is underpinning IET’s order book and margin expansion, helping offset macro-driven softness in OFSE and supporting Baker Hughes’ strategic shift toward a more industrialized, production-oriented energy solutions model with reduced cyclicality and more durable cash flows.

The most recent analyst rating on (BKR) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Baker Hughes Company stock, see the BKR Stock Forecast page.