Baker Hughes Company (BKR) Q3 2026 Earnings Report
MX:BKR Q3 2026 EPS Results
- Actual EPS
- MXN 13.15
- Consensus EPS
- MXN 11.46
- Beat/Miss
- Beat by +MXN 1.69
- One Year Ago EPS
- MXN 12.78
MX:BKR Q3 2026 Revenue Results
- Actual Revenue
- MXN 150.81B
- Expected Revenue
- MXN 145.46B
- Beat/Miss
- Beat by +MXN 5.34B
- YoY Revenue Growth
- +14.48%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
MX:BKR Upcoming Earnings
Baker Hughes Company's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:BKR Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.
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.
- Strong Quarterly Financial PerformanceThird-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.
- Robust Free Cash Flow GenerationFree cash flow was $769 million, up 10% year over year, despite approximately $200 million of integration, restructuring, and closing-related cash costs associated with the Chart acquisition. Year-to-date free cash flow was $2.1 billion.
- Record Orders and Backlog VisibilityCompany orders totaled $10.8 billion in the third quarter, with a year-to-date book-to-bill ratio of 1.4x. IET recorded $5.9 billion of orders and a 1.7x book-to-bill ratio. IET RPO reached a record $39.4 billion, up 6% sequentially and 23% year over year.
- Raised IET Order OutlookBaker Hughes raised its full-year IET order outlook to $21.5 billion to $23.5 billion. Through the first three quarters, IET had booked $17.9 billion of orders, and the company expects IET orders to exceed $50 billion over Horizon 2.
- Data Center and Power Demand MomentumBaker Hughes booked $4.9 billion of data center awards year to date, up approximately 500% year over year. The company secured orders for approximately 1.1 GW of power generation capacity for a major U.S. technology company and approximately 500 MW for a U.S. energy company supporting AI infrastructure. Power systems orders are expected to approach $7 billion this year, with Horizon 2 power systems orders potentially reaching up to $15 billion.
- Broad LNG and Gas Infrastructure AwardsIET booked approximately $4 billion of LNG equipment orders year to date, with LNG orders potentially reaching about $5 billion for the year. The company won LNG liquefaction, feed gas transportation, compression, and behind-the-meter power awards, including agreements with Venture Global covering up to 16 power islands and up to 10 GW of generation capacity.
- Chart Acquisition Integration ProgressThe Chart acquisition closed on July 16 and Baker Hughes has already executed actions representing approximately $70 million of annualized savings against a $325 million cost synergy target within three years of closing. The company expects to realize more than $10 million of cost synergies in the second half of 2026, including $3 million in the third quarter.
- Chart Performance and Margin Expansion PlanChart generated third-quarter revenue of $888 million and EBITDA of $156 million, representing a 17.6% EBITDA margin, supported by project execution in LNG, data centers, and space. Baker Hughes expects Chart EBITDA margins to reach 22% to 23% in the second half of 2028, with additional upside beyond that level over time.
- Early Commercial Synergies from ChartBaker Hughes secured a major power generation order from a legacy Chart customer, providing an early example of commercial opportunities created by combining the two companies. The potential order synergy pipeline spans data centers, geothermal, and space.
- IET Revenue and Margin GrowthIET revenue was $3.48 billion, up 3% year over year despite an approximately 3% net headwind from the PSI and CDC transactions. IET EBITDA increased 8% to $685 million, while EBITDA margin expanded 90 basis points to 19.7%.
- OFSE Sequential ImprovementOFSE revenue increased 6% sequentially to $3.66 billion, supported by international markets, including Latin America and Europe, higher Middle East activity, and the absence of hurricane-related disruptions in North America offshore. OFSE EBITDA was $659 million, with margins increasing 50 basis points sequentially to 18.1%.
- Strong Subsea and Lifecycle Services ActivitySSPS revenue increased 5% sequentially and orders were $1.09 billion, representing a book-to-bill ratio of approximately 1.5x. Baker Hughes also secured a long-term service agreement with SBM Offshore covering 27 LM2500 gas turbines across four FPSOs, combining maintenance, repair, and iCenter digital services.
- Expansion of Mature Asset SolutionsBaker Hughes signed a multiyear mature asset solutions contract with OGDC covering more than 120 wells in Pakistan, is progressing an integrated program across approximately 50 wells in Libya, and is expanding related awards across the Middle East and Asia Pacific. The company is targeting a high single-digit CAGR in MAS-related revenue and at least $3 billion of MAS revenue by 2030.
- Additional Energy and Industrial AwardsThe company won awards covering offshore production, compressor upgrades, digital asset health solutions, nuclear control valves across six European reactor units, subsea systems offshore Indonesia and Cyprus, and production and infrastructure agreements in Venezuela. These awards span data centers, LNG, industrial markets, nuclear, upstream, subsea, and digital services.
- Positive Long-Term Market OutlookManagement cited continued investment needs in energy security, LNG, gas infrastructure, and reliable power generation. Global LNG capacity is expected to reach approximately 800 MTPA by 2030 and potentially 950 MTPA by 2035. Global power demand is expected to double by 2040, while approximately 100 GW of incremental U.S. data center capacity is expected by 2035.
- Raised Full-Year EBITDA OutlookBaker Hughes increased the midpoint of its 2026 total-company EBITDA outlook to $5.265 billion. The company expects fourth-quarter revenue of $8.25 billion and adjusted EBITDA of $1.46 billion.
- Constructive 2027 OutlookManagement expects company book-to-bill to remain above 1x in 2027, with revenue growth and EBITDA margin expansion. IET organic revenue growth is expected in the low to mid single-digit range, OFSE growth is expected in the low to mid single-digit range based on the early view of global upstream spending, and Chart revenue is expected to grow at a low to mid single-digit rate using annualized second-half 2026 revenue as the base.
- Progress Toward DeleveragingAlthough leverage increased after the Chart acquisition, management expects to begin reducing debt in the fourth quarter using free cash flow and proceeds from the announced Waygate divestiture. Baker Hughes remains confident in achieving net leverage below 1.5x by the second half of 2028.
- Business System Deployment at ChartBaker Hughes established tier-one and tier-two KPI frameworks at Chart covering growth, free cash flow, safety, and people. The company is applying structured improvement processes to manufacturing, facility utilization, productivity, delivery performance, and capacity, including an ambition to double dry cooler revenue by 2029.
MX:BKR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 27, 2027 | 2026 (Q4) | 13.29- | 14.66 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 11.4613.15 | 12.78 | 2.94% (+0.38) | |
| Jul 26, 2026 | 2026 (Q2) | 9.4312.03 | 11.84 | 1.59% (+0.19) | |
| Apr 23, 2026 | 2026 (Q1) | 9.2610.90 | 9.58 | 13.73% (+1.32) | |
| Jan 25, 2026 | 2025 (Q4) | 12.5514.66 | 13.15 | 11.43% (+1.50) | |
| Jan 25, 2026 | 2026 (Q4) | 13.1516.54 | 14.66 | 12.82% (+1.88) | |
| Oct 23, 2025 | 2025 (Q3) | 11.5812.78 | 12.59 | 1.49% (+0.19) | |
| Jul 22, 2025 | 2025 (Q2) | 10.4311.84 | 10.71 | 10.53% (+1.13) | |
| Apr 22, 2025 | 2025 (Q1) | 8.879.58 | 8.08 | 18.60% (+1.50) | |
| Jan 30, 2025 | 2024 (Q4) | 11.7313.15 | 9.58 | 37.25% (+3.57) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
