Second-quarter highlights
- Orders of $10.5 billion, including $7.1 billion of IET orders.
- RPO of $40.1 billion, including record IET RPO of $37.1 billion.
- Revenue of $6.7 billion.
- Attributable net income of $681 million.
- GAAP diluted EPS of $0.68 and adjusted diluted EPS* of $0.64.
- Adjusted EBITDA* of $1,231 million.
- Cash flows from operating activities of $1,345 million and free cash flow* of $1,109 million.
HOUSTON and LONDON, July 26, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company NASDAQ:BKR ("Baker Hughes" or the "Company") announced results today for the second quarter of 2026.
"Baker Hughes delivered another strong quarter, reflecting the breadth of our portfolio and continued momentum across data center, gas infrastructure, and upstream markets. Disciplined execution and our ability to effectively navigate ongoing Middle East challenges contributed to Adjusted EBITDA exceeding the high end of our guidance range. Looking ahead, favorable underlying fundamentals support our confidence in achieving the midpoint of our full-year guidance as we continue to manage through the Middle East uncertainty."
"IET delivered another exceptional quarter of orders, with record bookings doubling year-over-year to $7.1 billion and backlog increasing 19% to a new all-time high. The strength was driven by robust demand across Power Systems and LNG, with particularly strong momentum in power generation. Given broadening customer demand, a growing pipeline across industrial and energy infrastructure markets, and our decision to further expand capacity, we are raising our full-year IET order guidance and increasing our Horizon 2(1) IET orders outlook to more than $45 billion."
"OFSE delivered an impressive quarter, with EBITDA exceeding the high end of our guidance range despite a complex operating environment. Increased activity and higher product shipments late in the quarter in the Middle East, along with solid performance in North America land and Latin America, drove the upside and demonstrated the resilience and durability of our portfolio despite higher inflationary costs."
"Our second-quarter performance further reinforces confidence in Baker Hughes’ strategic direction. Energy security and rising power demand are driving investment across both energy and industrial value chains, and our expanding portfolio is increasingly aligned with the most attractive growth opportunities across our core end markets."
"The successful closing of the Chart acquisition marks a major milestone in our evolution as a leading industrialized energy solutions company. Chart enhances our capabilities in thermal management, air and gas handling, compression and lifecycle services, while expanding our reach across attractive core and adjacent markets. The addition of Chart further advances our portfolio, broadens our growth opportunities, and enhances our ability to create long-term value for customers and shareholders. We are pleased to welcome Chart’s employees to Baker Hughes and look forward to their contributions as part of our team," concluded Simonelli.
(1) Horizon 2 represents 2026-2028.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
| Three Months Ended Variance | (in millions except per share amounts)June 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year | Orders$10,501$8,159$7,032 29%49% | Revenue 6,742 6,587 6,910 2%(2%) | Net income attributable to Baker Hughes 681 930 701 (27%)(3%) | Adjusted net income attributable to Baker Hughes* 640 573 623 12%3% | Adjusted EBITDA* 1,231 1,158 1,212 6%2% | Diluted earnings per share (EPS) 0.68 0.93 0.71 (27%)(3%) | Adjusted diluted EPS* 0.64 0.58 0.63 12%2% | Cash flow from operating activities 1,345 500 510 FF | Free cash flow* 1,109 210 239 FF |
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers."F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
Quarter Highlights
Executing our portfolio management strategy
- Announced the sale of Waygate Technologies to Hexagon, in an all-cash transaction for approximately $1.45 billion, before customary closing adjustments.
- In July, completed the previously announced purchase of Chart Industries, Inc. NYSE:GTLSin an all-cash transaction. The acquisition enhances Baker Hughes' portfolio with highly complementary technologies and expands exposure to attractive industrial and energy markets, while increasing the Company's installed base and recurring aftermarket opportunities.
Key awards and technology achievements Leveraging enterprise-wide capabilities Industrial & Energy Technology Industrial & Energy Technology (“IET”) secured important awards and agreements across diverse end markets and capabilities. Oilfield Services & Equipment Oilfield Services & Equipment (“OFSE”) secured strategic orders and agreements across key product lines and geographies. Consolidated Financial Results Revenue for the quarter was $6,742 million, an increase of $155 million, or 2% sequentially, and down $168 million, or 2% year-over-year. The decrease in revenue year-over-year was mainly driven by the impact of the Precision Sensors & Instrumentation (“PSI”) and Surface Pressure Control (“SPC”) dispositions. The Company's total book-to-bill ratio in the second quarter of 2026 was 1.6; the IET book-to-bill ratio was 2.2. Net income, as determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the second quarter of 2026, was $681 million. Net income decreased $249 million, or 27% sequentially, and decreased $20 million, or 3% year-over-year. Adjusted net income (a non-GAAP financial measure) for the second quarter of 2026 was $640 million, which excludes adjustments totaling $41 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the second quarter of 2026 was up $67 million, or 12% sequentially, and up $17 million, or 3% year-over-year. Depreciation and amortization for the second quarter of 2026 was $333 million. Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2026 was $1,231 million, which excludes adjustments totaling $60 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the second quarter was up $73 million, or 6% sequentially, and up $19 million, or 2% year-over-year. The sequential increase in adjusted net income and Adjusted EBITDA was primarily driven by higher volume, price, productivity, FX, and cost-out initiatives, partially offset by inflation. The year-over-year increase in adjusted net income and Adjusted EBITDA was primarily driven by productivity, price, cost-out initiatives, and FX, partially offset by inflation, lower volume, change in business mix, and the PSI and SPC dispositions. Other Financial Items Remaining Performance Obligations ("RPO") in the second quarter of 2026 ended at $40.1 billion, an increase of $4.0 billion from the first quarter of 2026. OFSE RPO was $3.0 billion, remained flat sequentially, while IET RPO was $37.1 billion, up $4.0 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $15.0 billion and $16.7 billion, respectively. Income tax expense in the second quarter of 2026 was $210 million. Other (income) expense, net in the second quarter of 2026 was $(104) million, primarily related to a net gain of $125 million from the change in fair value of equity securities, partially offset by transaction related costs of $30 million incurred in connection with business disposals and acquisitions, and $24 million working capital adjustments related to business dispositions. GAAP diluted earnings per share was $0.68 for the second quarter of 2026. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.64. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Cash flow from operating activities was $1,345 million for the second quarter of 2026. Free cash flow (a non-GAAP financial measure) for the quarter was $1,109 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Capital expenditures, net of proceeds from disposal of assets, were $236 million for the second quarter of 2026, of which $135 million was for OFSE and $85 million was for IET. Results by Reporting Segment The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments. Oilfield Services & Equipment EBITDA excludes depreciation and amortization of $266 million, $278 million, and $233 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. EBITDA margin is defined as EBITDA divided by revenue."F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%. OFSE orders of $3,413 million for the second quarter of 2026 increased by $141 million, or 4% sequentially. Subsea and Surface Pressure Systems orders were $667 million, up $17 million, or 3% sequentially, and down $31 million, or 4% year-over-year. OFSE revenue of $3,451 million for the second quarter of 2026 was up $214 million, or 7% sequentially, and down $166 million, or 5% year-over-year. The year-over-year decrease was driven mainly by the impact of the SPC disposition and disruptions in the Middle East, offset by the benefit of FX in Latin America. North America revenue was $933 million, up $5 million, or 1% sequentially. International revenue was $2,518 million, up $208 million, or 9% sequentially, with an increase in Latin America, Middle East/Asia, and Europe/CIS/Sub-Saharan Africa. Segment EBITDA for the second quarter of 2026 was $605 million, an increase of $40 million, or 7% sequentially. The sequential increase in EBITDA was a result of higher volume, price, cost-out initiatives, and FX, partially offset by inflation, productivity, and a change in business mix. Industrial & Energy Technology EBITDA excludes depreciation and amortization of $60 million, $69 million, and $56 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. EBITDA margin is defined as EBITDA divided by revenue."F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%. IET orders of $7,088 million for the second quarter of 2026 increased by $3,558 million, or 101% year-over-year. The increase was driven by continued strength in Gas Technology Equipment and Gas Technology Services. IET revenue of $3,291 million for the second quarter of 2026 remained flat year-over-year, with decreases in Gas Technology Equipment and Industrial Solutions driven by the PSI disposition, offset by increases in all other product lines. Segment EBITDA for the quarter was $678 million, an increase of $93 million, or 16% year-over-year. The year-over-year increase in segment EBITDA was driven by price, productivity, cost-out initiatives, and FX, partially offset by lower volume and inflation. Reconciliation of GAAP to non-GAAP Financial Measures Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP. Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA (1) The gain on business dispositions, change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the condensed consolidated statements of income (loss). Table 1a reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items. Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes (1) For the period ending March 31, 2026, transaction related costs included $43 million of interest expense fees related to the Bridge Facility. Table 1b reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items. Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow Table 1c reconciles net cash flows from operating activities, which is the most directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets. Supplemental Financial Information Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results. Conference Call and Webcast The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Monday, July 27, 2026, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company's website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast. Forward-Looking Statements This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K for the annual period ended December 31, 2025 and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: https://investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements. Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters. These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors: About Baker Hughes: Baker Hughes NASDAQ:BKR is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward - making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com. For more information, please contact: Investor Relations Chase Mulvehill +1 346-297-2561 Media Relations Adrienne M. Lynch +1 713-906-8407(in millions)Three Months Ended Variance Segment resultsJune 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year Orders$3,413 $3,272 $3,503 4%(3%) Revenue$3,451 $3,237 $3,617 7%(5%) EBITDA$605 $565 $677 7%(11%) EBITDA margin 17.5% 17.4% 18.7% 0.1pts-1.2pts (in millions)Three Months Ended Variance Revenue by Product LineJune 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year Well Construction$899$843$921 7%(2%) Completions, Intervention, and Measurements 944 883 935 7%1% Production Solutions 930 898 968 4%(4%) Subsea & Surface Pressure Systems 678 613 793 11%(14%) Total Revenue$3,451$3,237$3,617 7%(5%) (in millions)Three Months Ended Variance Revenue by Geographic RegionJune 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year North America$933$927$928 1%1% Latin America 732 600 639 22%15% Europe/CIS/Sub-Saharan Africa 568 558 653 2%(13%) Middle East/Asia 1,218 1,152 1,398 6%(13%) Total Revenue$3,451$3,237$3,617 7%(5%) North America$933$927$928 1%1% International$2,518$2,310$2,689 9%(6%) (in millions)Three Months Ended Variance Segment resultsJune 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year Orders$7,088 $4,887 $3,530 45%F Revenue$3,291 $3,350 $3,293 (2%)—% EBITDA$678 $678 $585 —%16% EBITDA margin 20.6% 20.2% 17.8% 0.3pts2.8pts (in millions)Three Months Ended Variance Orders by Product LineJune 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year Gas Technology Equipment$4,913$1,824$781 FF Gas Technology Services 1,314 973 986 35%33% Total Gas Technology 6,227 2,797 1,767 FF Industrial Products 533 604 513 (12%)4% Industrial Solutions 274 229 327 20%(16%) Total Industrial Technology 807 833 839 (3%)(4%) Climate Technology Solutions 54 1,257 923 (96%)(94%) Total Orders$7,088$4,887$3,530 45%F (in millions)Three Months Ended Variance Revenue by Product LineJune 30, 2026March 31, 2026June 30, 2025 SequentialYear-over-year Gas Technology Equipment$1,524$1,665$1,624 (9%)(6%) Gas Technology Services 831 791 752 5%11% Total Gas Technology 2,355 2,456 2,377 (4%)(1%) Industrial Products 549 491 488 12%13% Industrial Solutions 182 185 273 (2%)(33%) Total Industrial Technology 731 676 761 8%(4%) Climate Technology Solutions 205 218 156 (6%)31% Total Revenue$3,291$3,350$3,293 (2%)—% Three Months Ended (in millions)June 30, 2026March 31, 2026June 30, 2025 Net income attributable to Baker Hughes (GAAP)$681 $930 $701 Net income attributable to noncontrolling interests 1 8 10 Provision for income taxes 210 336 256 Interest expense, net 66 86 54 Depreciation & amortization 333 354 293 Restructuring 11 37 — Inventory impairment — 2 — Gain (loss) on business dispositions(1) 24 (721) — Change in fair value of equity securities(1) (125) 50 (119) Transaction related costs(1) 30 28 — Other charges and credits(1) 48 17 Adjusted EBITDA (non-GAAP) 1,231 1,158 1,212 Corporate costs 82 74 78 Other (income) / expense not allocated to segments (30) 11 (28) Total Segment EBITDA (non-GAAP)$1,283 $1,243 $1,262 OFSE 605 565 677 IET 678 678 585 Three Months Ended (in millions, except per share amounts)June 30, 2026March 31, 2026June 30, 2025 Net income attributable to Baker Hughes (GAAP)$681 $930 $701 Restructuring 11 37 — Inventory impairment — 2 — (Gain) loss on business dispositions 24 (721) — Change in fair value of equity securities (125) 50 (119) Transaction related costs(1) 30 72 — Other adjustments — 48 17 Tax adjustments 19 155 24 Total adjustments, net of income tax (41) (357) (78) Less: adjustments attributable to noncontrolling interests — — — Adjustments attributable to Baker Hughes (41) (357) (78) Adjusted net income attributable to Baker Hughes (non-GAAP)$640 $573 $623 Denominator: Weighted-average shares of Class A common stock outstanding diluted 997 996 991 Earnings per share - diluted (GAAP)$0.68 $0.93 $0.71 Total adjustments per share, net of income tax (0.04) (0.35) (0.08) Adjusted earnings per share - diluted (non-GAAP)$0.64 $0.58 $0.63 Three Months Ended (in millions)June 30, 2026March 31, 2026June 30, 2025 Net cash flows from operating activities (GAAP)$1,345 $500 $510 Add: cash used for capital expenditures, net of proceeds from disposal of assets (236) (290) (271) Free cash flow (non-GAAP)$1,109 $210 $239 Financial Tables (GAAP) Condensed Consolidated Statements of Income (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions, except per share amounts) 2026 2025 2026 2025 Revenue$6,742 $6,910 $13,329 $13,337 Costs and expenses: Cost of revenue 5,165 5,295 10,246 10,247 Selling, general and administrative 569 567 1,131 1,144 Research and development costs 143 161 277 307 Restructuring 11 — 50 — Other (income) expense, net (104) (134) (691) 6 Interest expense, net 66 54 151 105 Income before income taxes 892 967 2,165 1,528 Provision for income taxes (210) (256) (545) (408) Net income 682 711 1,620 1,120 Less: Net income attributable to noncontrolling interests 1 10 9 17 Net income attributable to Baker Hughes Company$681 $701 $1,611 $1,103 Per share amounts: Basic income per Class A common stock$0.69 $0.71 $1.63 $1.11 Diluted income per Class A common stock$0.68 $0.71 $1.62 $1.11 Weighted average shares: Class A basic 992 988 991 990 Class A diluted 997 991 996 995 Cash dividend per Class A common stock$0.23 $0.23 $0.46 $0.46 Condensed Consolidated Statements of Financial Position (Unaudited) (In millions)June 30, 2026December 31, 2025 ASSETS Current Assets: Cash and cash equivalents$15,727$3,715 Current receivables, net 6,654 6,641 Inventories, net 4,961 4,954 All other current assets 3,241 3,518 Total current assets 30,583 18,828 Property, plant and equipment, less accumulated depreciation 5,540 5,326 Goodwill 5,566 6,068 Other intangible assets, net 3,997 4,097 Contract and other deferred assets 1,947 1,620 All other assets 4,987 4,942 Total assets$52,620$40,881 LIABILITIES AND EQUITY Current Liabilities: Accounts payable$4,509$4,579 Short-term debt 774 689 Progress collections and deferred income 6,598 5,904 All other current liabilities 2,718 2,705 Total current liabilities 14,599 13,877 Long-term debt 15,479 5,398 Liabilities for pensions and other postretirement benefits 959 1,066 All other liabilities 1,499 1,530 Equity 20,084 19,010 Total liabilities and equity$52,620$40,881 Outstanding Baker Hughes Company shares: Class A common stock 992 987 Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions) 2026 2026 2025 Cash flows from operating activities: Net income$682 $1,620 $1,120 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 333 687 579 Stock-based compensation cost 57 102 102 Change in fair value of equity securities (125) (75) 21 (Gain) loss on business dispositions 24 (697) — (Benefit) provision for deferred income taxes (166) 58 (17) Working capital 523 350 98 Other operating items, net 17 (200) (684) Net cash flows provided by operating activities 1,345 1,845 1,219 Cash flows from investing activities: Expenditures for capital assets (300) (636) (601) Proceeds from disposal of assets 64 110 74 Proceeds from business dispositions — 1,381 — Other investing items, net 72 19 (69) Net cash flows provided by (used in) investing activities (164) 874 (596) Cash flows from financing activities: Proceeds from issuance of long-term debt — 9,885 — Dividends paid (228) (456) (456) Repurchase of Class A common stock — — (384) Other financing items, net (8) (142) (105) Net cash flows provided by (used in) financing activities (236) 9,287 (945) Effect of currency exchange rate changes on cash and cash equivalents 18 6 45 (Decrease) increase in cash and cash equivalents 963 12,012 (277) Cash and cash equivalents, beginning of period 14,764 3,715 3,364 Cash and cash equivalents, end of period$15,727 $15,727 $3,087 Supplemental cash flows disclosures: Income taxes paid, net of refunds$193 $381 $418 Interest paid$181 $237 $148