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Baker Hughes Company (68V) AI Stock Analysis

7 Followers
DE:68V

Baker Hughes Company

(XETRA:68V)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Profitability and cash generationThe profitability turnaround and strong cash generation provide an enduring foundation for reinvestment, debt reduction, and shareholder returns. Free cash flow equal to roughly 78% of net income also supports earnings quality, indicating that reported profits are converting into usable liquidity.
Negative Factors
Higher leverage and reduced flexibilityThe acquisition-driven increase in leverage raises interest expense and reduces financial flexibility while Baker Hughes integrates Chart. Management plans to deleverage with free cash flow and divestiture proceeds, but until leverage declines, more cash may be directed to debt reduction rather than growth or shareholder returns.

Baker Hughes Company (68V) vs. iShares MSCI Germany ETF (EWG)

-10%0%10%20%30%40%50%DE:68V+12.82%EWG+6.38%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
EUR 49.07B
Dividend Yield
1.77%
Average Volume (3M)
216
Price to Earnings (P/E)
16.9
Beta (1Y)
0.04
Revenue Growth
-1.42%
EPS Growth
-5.28%
Country
Germany
Employees
65,600
Sector
Energy
Sector Strength
65
Industry
Oil & Gas Equipment & Services

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 OFSE...

Baker Hughes Company Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-9.88%|Next Earnings Date:Jan 25, 2026
Earnings Call SentimentPositive

The call was strongly positive overall. Highlights significantly outweighed the lowlights, with record IET RPO, broad-based order momentum, a raised IET order outlook, strong cash generation, progress integrating Chart, and constructive 2027 expectations. Management also acknowledged higher leverage, interest expense, Middle East disruptions, logistics and supply chain challenges, seasonal declines, and a longer backlog conversion profile.

Positive Updates

Strong Quarterly Financial Performance
Third-quarter revenue was approximately $8 billion, up 14% year over year. Adjusted EBITDA increased 14% year over year to $1.42 billion, with a 17.6% margin broadly in line with the prior year. Adjusted diluted EPS was $0.70, up 2% year over year.

Negative Updates

Higher Interest Expense
Higher interest expense partially offset strong operational performance and contributed to adjusted diluted EPS increasing only 2% year over year.

Company Guidance

Fourth quarter guidance is company revenue of $8.25 billion and adjusted EBITDA of $1.46 billion, including IET revenue of $3.55 billion and EBITDA of $715 million, OFSE revenue of $3.6 billion and EBITDA of $640 million, and Chart revenue of approximately $1.1 billion and EBITDA of approximately $195 million; full-year adjusted EBITDA midpoint is $5.265 billion, free cash flow conversion is expected at 45 to 50%, and IET orders are expected at $21.5 billion to $23.5 billion, implying a book to bill of above 1.6x. For 2027, company book to bill is expected to remain above 1x, with revenue growth and EBITDA margin expansion; IET organic revenue growth is expected in the low to mid single digit range, GTS growth is expected to normalize to mid single digit growth, and Chart revenue is expected to grow at a low to mid single digit rate, with book to bill above 1x. Baker Hughes expects Chase EBITDA margins to reach 22% to 23% by the second half of 2028, is targeting a high single digit CAGR in MAS-related revenue achieving at least $3 billion by 2030, expects net leverage of less than 1.5x by the second half of 2028, and expects IET orders to exceed $50 billion over Horizon 2.

Baker Hughes Company Risk Analysis

Baker Hughes Company disclosed 39 risk factors in its most recent earnings report. Baker Hughes Company reported the most risks in the "Production" category.

  • Finance & Corporate7
  • Tech & Innovation4
  • Legal & Regulatory8
  • Production9
  • Ability to Sell7
  • Macro & Political4
Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Baker Hughes Company Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

DE:68V against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
FTIFTI76Outperform$25.10B20.1838.54%0.31%7.95%42.53%
WFRDWFRD73Outperform$6.11B15.4022.51%1.27%-5.65%0.77%
HALHAL66Neutral$26.35B13.7818.46%2.06%1.53%58.46%
SLBSLB66Neutral$73.65B24.5011.77%2.30%4.57%-20.58%
Sector *65Neutral$15.17B7.614.09%5.20%3.87%-62.32%
NOVNOV57Neutral$6.30B45.002.31%2.42%-0.96%-59.98%

* Energy Sector Average

Performance Comparison

0%20%40%60%80%DE:68VFTIHALNOVSLBWFRDDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
DE:68V and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:68VBaker Hughes Company44.884.7811.92%
FTITechnipFMC65.3922.3752.00%
HALHalliburton Company32.936.4524.34%
NOVNOV Inc.18.003.0720.56%
SLBSLB N.V.50.9615.5243.78%
WFRDWeatherford International Plc86.6915.3021.42%
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.