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Baker Hughes Company
(NASDAQ:BKR)
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Rating:70Outperform
Price Target:
$62.00
â–²(3.71% Upside)
Action:Reiterated
Date:07/18/26
BKR’s score is supported primarily by improved financial performance (profitability, ROE, and positive free cash flow) and a constructive earnings outlook driven by record IET orders/backlog and margin expansion. The score is held back by weak technical momentum (negative MACD and trading below key moving averages) and some financial risk factors including uneven revenue consistency and the recent increase in absolute debt levels.
Positive Factors
Strong cash generation & profitability
Sustained FCF (~$2.6B TTM) alongside a recovered net margin (~9%) and robust revenue growth provides durable internal funding for capex, aftermarket investment, and strategic actions. Reliable cash generation bolsters resilience across commodity cycles and supports long-term value creation.
Negative Factors
Step-up in absolute debt
A material increase in absolute debt in the trailing period (despite moderate leverage ratios) raises interest and rollover exposure. If industry conditions weaken or FCF underperforms, the higher nominal debt burden could compress financial flexibility and slow planned deleveraging or capital deployment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & profitability
Sustained FCF (~$2.6B TTM) alongside a recovered net margin (~9%) and robust revenue growth provides durable internal funding for capex, aftermarket investment, and strategic actions. Reliable cash generation bolsters resilience across commodity cycles and supports long-term value creation.
Read all positive factors
Baker Hughes Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyBaker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.51B
Dividend Yield1.67%
Average Volume (3M)8.64M
Price to Earnings (P/E)17.5
Beta (1Y)0.72
Revenue Growth0.20%
EPS Growth6.96%
CountryUS
Employees53,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)3.16
Shares Outstanding992,068,700
10 Day Avg. Volume9,347,123
30 Day Avg. Volume8,643,422
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$74.20Price Target Upside24.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)2.39
Revenue Forecast (FY)$27.50B
Baker Hughes Company Business Overview & Revenue Model
Company Description
Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OF...
How the Company Makes Money
Baker Hughes makes money primarily by selling products and services to energy producers and energy infrastructure operators through a mix of (1) oilfield services and equipment revenues tied to customer activity levels and project work, and (2) sa...
Baker Hughes Company Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 26, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported record IET orders, strong margin expansion (notably in IET), robust backlog/RPO and a strengthened balance sheet while executing portfolio actions and strategic partnerships. However, meaningful near-term headwinds persist—primarily from the Middle East conflict—which pressure OFSE revenue and create macro uncertainty. Management maintained full-year guidance ranges (with expectations slightly below midpoint), provided constructive Q2 segmentation, and emphasized progress on integration and divestitures. Overall, the positives (record orders, margin expansion, balance sheet strength, and portfolio momentum) materially outweigh the near-term geopolitical and transactional headwinds.Positive Updates
Strong Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $1.16 billion, exceeding guidance; adjusted EBITDA increased ~12% year-over-year and adjusted EBITDA margin rose 140 basis points YoY to 17.6%.
Negative Updates
Middle East Conflict Causing Material Disruptions
Ongoing conflict caused shipping/logistics disruptions and tightened global oil and LNG balances; management notes >10% of global oil volumes impacted and ~20% of global LNG capacity offline, creating volatility and supply risk that hit operations and market outlook.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $1.16 billion, exceeding guidance; adjusted EBITDA increased ~12% year-over-year and adjusted EBITDA margin rose 140 basis points YoY to 17.6%.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $6.5 billion and adjusted EBITDA of $1.13 billion (assumes Middle East disruption through end‑June and Strait of Hormuz reopening thereafter), with IET EBITDA expected at about $670 million and OFSE EBITDA about $540 million (OFSE revenue ~ $3.2 billion); for the full year they maintained company revenue and adjusted EBITDA ranges but expect results slightly below the midpoint, reaffirmed at least the $14.5 billion midpoint for full‑year IET orders and the $2.7 billion midpoint for IET EBITDA, and noted OFSE may only reach the low end of its EBITDA range (~$2.325 billion) if the conflict resolves by end‑June; additional metrics cited in the call include Q1 adjusted EBITDA $1.16 billion, Q1 adjusted EPS $0.58 (ex‑items), Q1 free cash flow $210 million, Q1 IET bookings $4.9 billion and RPO $33.1 billion, net debt/adjusted EBITDA 0.32x, cash $14.8 billion, liquidity $17.8 billion, targeted Chart integration cost synergies of $325 million, and expected ~ $3 billion gross proceeds from 2026 portfolio actions.Baker Hughes Company Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.89B | 27.73B | 27.83B | 25.51B | 21.16B | 20.50B |
| Gross Profit | 6.57B | 6.54B | 6.48B | 5.90B | 4.96B | 4.54B |
| EBITDA | 5.10B | 4.29B | 4.60B | 3.96B | 1.33B | 1.83B |
| Net Income | 3.12B | 2.59B | 2.98B | 1.94B | -601.00M | -219.00M |
Balance Sheet | ||||||
| Total Assets | 50.90B | 40.88B | 38.36B | 36.95B | 34.18B | 35.35B |
| Cash, Cash Equivalents and Short-Term Investments | 14.76B | 4.96B | 3.36B | 2.65B | 2.49B | 3.85B |
| Total Debt | 16.16B | 7.14B | 6.02B | 6.02B | 6.66B | 6.73B |
| Total Liabilities | 31.41B | 21.87B | 21.31B | 21.43B | 19.66B | 18.56B |
| Stockholders Equity | 19.31B | 18.83B | 16.89B | 15.37B | 14.39B | 14.83B |
Cash Flow | ||||||
| Free Cash Flow | 2.29B | 2.54B | 2.05B | 1.84B | 1.12B | 1.83B |
| Operating Cash Flow | 3.60B | 3.81B | 3.33B | 3.06B | 1.89B | 2.37B |
| Investing Cash Flow | -696.00M | -2.04B | -1.02B | -817.00M | -1.56B | -463.00M |
| Financing Cash Flow | 8.54B | -1.48B | -1.53B | -2.03B | -1.59B | -2.14B |
Baker Hughes Company Technical Analysis
Negative
59.78
Price Trends
60.95
Negative
61.55
Negative
55.79
Negative
Market Momentum
-1.28
Negative
37.88
Neutral
35.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Negative. The current price of 59.78 is above the 20-day moving average (MA) of 56.33, below the 50-day MA of 60.95, and above the 200-day MA of 55.79, indicating a bearish trend. The MACD of -1.28 indicates Negative momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of 35.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $30.34B | 15.03 | 11.65% | 4.43% | 1.69% | 16.35% | |
74 Outperform | $28.73B | 27.09 | 32.54% | 0.44% | 9.44% | 36.97% | |
70 Outperform | $55.51B | 17.45 | 16.84% | 2.04% | 0.20% | 6.96% | |
70 Outperform | $70.25B | 20.17 | 13.46% | 2.98% | -0.53% | -22.59% | |
68 Neutral | $29.42B | 19.28 | 14.67% | 2.41% | -1.72% | -23.60% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $7.01B | 81.46 | 1.45% | 3.24% | -1.33% | -84.10% |
* Energy Sector Average
BKR
Baker Hughes Company
55.15
15.98
40.79%
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SLB
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54.02%
Baker Hughes Company Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Baker Hughes Completes Strategic Acquisition of Chart Industries
Positive
Jul 17, 2026
On July 16, 2026, Baker Hughes completed its acquisition of Chart Industries, following a merger in which Chart shareholders received $210 per share in cash and Chart’s equity awards were converted into a mix of cash, Baker Hughes stock unit...
M&A TransactionsRegulatory Filings and Compliance
Baker Hughes Advances Toward EU Approval of Chart Merger
Positive
Jun 22, 2026
Baker Hughes Company and Chart Industries, Inc., which signed a merger agreement on July 28, 2025, reported that they are in discussions with the European Commission over potential commitments aimed at securing antitrust clearance for their planne...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Baker Hughes Advances EU Review for Chart Industries Acquisition
Positive
May 21, 2026
Baker Hughes Company plans to expand its energy technology portfolio through the acquisition of Chart Industries, Inc., under a merger agreement announced on July 28, 2025, in which Chart will become an indirect wholly owned subsidiary. Baker Hugh...
Executive/Board ChangesShareholder Meetings
Baker Hughes Shareholders Approve Directors and Compensation Plans
Positive
May 19, 2026
At its annual meeting held on May 19, 2026, Baker Hughes Company shareholders elected ten directors to one-year terms, affirming the existing board lineup and governance structure. The meeting was conducted with a strong quorum, as 911,637,899 of ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Baker Hughes Posts Strong Q1 2026 Results, Grows Backlog
Positive
Apr 23, 2026
Baker Hughes reported strong first-quarter 2026 results on April 23, 2026, posting $8.2 billion in orders, $6.6 billion in revenue, $930 million in attributable net income and adjusted EBITDA of $1.16 billion, with revenue up 2% year over year des...
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.