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Baker Hughes Company
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S&P 500 Nasdaq 100
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$52.6B
Market Cap
20.0
P/E
1.25
PEG
10.6%
ROCE
16.6%
ROE
0.81
D/E
12.8%
OPM
-20.2%
% from 52W High
61
α RS
🔍 BKR is showing a multi-screen setup because it matches 4 of 39 tracked screener presets, RS Rating is 61, and it's hugging the 21 EMA. The main caution: the Graham Defensive preset's Backtest win rate is only 47.4%. Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating Technicals Backtest
Sources
Conviction 4/39 · RS Rating 61 · hugging 21 EMA · Backtest win rate 47.4%
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About

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain. Its Oilfield Services & Equipment segment designs and manufactures exploration, appraisal, development, production, rejuvenation, and decommissioning products and related services for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The company’s Industrial & Energy Technology segment offers gas technology equipment, such as drivers, driven equipment, and turnkey solutions for the mechanical and electric-drive, compression, and power-generation applications; aftermarket support and uptime gas technology services; non-destructive testing technologies, software, and services; pre-commissioning and maintenance services; flow control and safety solutions; mechanical and electromechanical gear transmission systems; Cordant, a software solution to optimize assets, processes, and energy use; Bently Nevada, a sensing and protection hardware for rack-based vibrating monitoring equipment and sensors; and climate technology solutions. It serves industrial, upstream, midstream, downstream, onshore, offshore, and small-to-large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. The company was incorporated in 2016 and is based in Houston, Texas.

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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 1.26M $76.8M 0.12% Mar 2026
Steve Cohen Point72 Asset Management 1.12M $68.7M 0.09% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.7B
-2% YoY
Net Income
$0.68B
-3% YoY
Adjusted EBITDA
$1.23B
+2% YoY
Adjusted EPS
$0.64
+2% YoY
What Went Right
  • Adjusted EBITDA of $1.23B exceeded the high end of guidance, with a record 18.3% margin, up 70bps YoY.
  • IET orders doubled YoY to a record $7.1B; RPO rose 19% to an all-time high of $37.1B.
  • OFSE EBITDA of $605M beat guidance and free cash flow was robust at $1.1B, despite Middle East disruptions.
What to Watch
  • Middle East conditions remain fluid; guidance assumes activity broadly unchanged through year-end, with IET still facing a 1-2% revenue headwind from the region.
  • OFSE Middle East revenue is down 10% from Q4 2025, and inflationary/logistics cost pressures continue to weigh on segment margins.
  • Longer GTE cycle times mean a meaningful portion of 2026 IET orders will convert to revenue after 2027; GTS growth is expected to level off in H2.
Management Guidance
  • Q3 2026: company revenue of ~$6.87B and adjusted EBITDA of ~$1.205B.
  • Q3 2026: IET revenue of ~$3.32B / EBITDA of ~$660M; OFSE revenue of ~$3.55B / EBITDA of ~$625M.
  • FY2026: revenue of ~$27.35B and adjusted EBITDA of ~$4.85B, modestly above prior expectations.
  • FY2026: IET orders guidance raised to $17.5-$19.5B; Horizon Two IET orders now expected to exceed $45B.
  • FY2026: IET revenue maintained at $13.5B with EBITDA midpoint raised to $2.725B; OFSE revenue of $13.85B and EBITDA of $2.425B.
  • Chart integration targeting $325M of annualized cost synergies by year three.
Investor Lens
The thesis is stronger after this call: record IET orders and the expanded power capacity outlook support multi-year growth, while OFSE proved resilient despite Middle East disruption. The Chart acquisition adds a third segment and $325M of targeted cost synergies, broadening exposure to data centers, gas infrastructure, and industrial adjacencies. Management raised full-year EBITDA expectations and remains confident in the demand cycle, though Middle East logistics and GTE revenue conversion timing are the key factors to monitor.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record IET orders of $7.1B drive beat; EBITDA $1.23B above guidance.
Revenue
Q2 company revenue was $6.7B, down 2% YoY, with PSI/CVC divestitures a 2% headwind. OFSE revenue of $3.45B came in above guidance with 7% sequential growth, while IET revenue of $3.3B was near the midpoint of guidance.
Profitability
Net income attributable to Baker Hughes was $681M, down 3% YoY, and adjusted EPS of $0.64 was up 2% YoY. Adjusted EBITDA totaled $1.23B, up 2% YoY and above the high end of guidance, helped by IET EBITDA of $678M, up 16%, and OFSE EBITDA of $605M.
Margins
Adjusted EBITDA margin expanded 70bps YoY to a record 18.3%. IET margin was 20.6%, up 280bps, reflecting favorable backlog pricing and execution, while OFSE margin was 17.5%, up 10bps sequentially, with strong SSPS margins partly offsetting inflationary and logistics costs.
Balance Sheet
Free cash flow was $1.1B in Q2, supported by strong customer collections and milestone payments. Net debt to adjusted EBITDA was 0.1x at quarter-end; leverage is expected to rise temporarily after the Chart close but should return to 1-1.5x within 24 months.
Key Risks
Middle East geopolitical conditions remain the biggest uncertainty, with guidance assuming current activity levels persist through year-end. IET still faces a 1-2% revenue headwind from the region, and longer GTE cycle times push revenue conversion beyond 2027. Trade policy and FX are also cited as potential swing factors.
Outlook
For Q3 2026, Baker Hughes guides to revenue of $6.87B and adjusted EBITDA of $1.205B. Full-year 2026 revenue and adjusted EBITDA were modestly raised to $27.35B and $4.85B, with IET full-year orders raised to $17.5-$19.5B.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-27
Q2 results exceeded expectations with record IET orders, strong margin expansion, and robust free cash flow. The Chart acquisition adds a third segment and significant synergy potential, while full-year guidance was raised on strong order momentum and favorable market trends.
Q1 2026 Q1 2026 2026-04-24
Q1 2026 saw strong financial results with adjusted EBITDA up 12% year-over-year, driven by record IET orders and robust Power Systems demand, despite Middle East disruptions. Guidance for 2026 remains steady, with portfolio optimization and the pending Chart acquisition supporting future growth.
Q4 2025 Q4 2025 2026-01-26
Record 2025 results driven by IET growth, margin expansion, and robust free cash flow, with strong order momentum in Power Systems and New Energy. 2026 guidance calls for continued EBITDA growth, resilient margins, and a focus on strategic portfolio actions and the pending Chart acquisition.
Q3 2025 Q3 2025 2025-10-24
Third-quarter results exceeded expectations with strong EBITDA, record IET orders, and robust free cash flow. Guidance was raised for full-year EBITDA and IET performance, while the pending Chart Industries acquisition and portfolio actions are set to enhance long-term growth.
Q2 2025 Q2 2025 2025-07-23
Strong Q2 results featured robust margin expansion, major data center and new energy orders, and strategic portfolio moves. Guidance was raised for IET, with continued margin focus and disciplined capital allocation amid macro and tariff headwinds.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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