BKR changes
Pick any two versions below to diff them.
- Price
- $55.70 → $49.41(−11.3%)
- Next earnings
- Oct 27, 2026 → Jan 27, 2027
- Next earnings is estimate
- No → Yes
- About
- Baker Hughes sells equipment and services to energy and industrial companies. Its Industrial & Energy Technology (IET) segment makes gas turbines, compressors, LNG equipment and power generation systems, and it serves LNG plants, pipelines, data centers and industry. Its Oilfield Services & Equipment (OFSE) segment provides drilling, well and production services and subsea equipment to oil and gas producers. On July 16, 2026, it bought Chart Industries, a maker of air and gas handling and thermal management equipment, which is now a third segment. Revenue was removed: $6.7 added: $8.0 billion in removed: Q2 added: Q3 2026, and remaining performance obligations were removed: $40.1 billion. added: a record $46.4 billion at September 30, 2026.
- Thesis
- The market prices Baker Hughes for weaker oilfield services and for the debt from the Chart purchase. OFSE revenue removed: fell 5% added: grew only 1% from a year earlier in removed: Q2 added: Q3 2026, removed: mainly added: partly because removed: of a business sale and disruptions in the Middle East. Baker Hughes added: sold its Surface Pressure Control business. Baker Hughes paid $210 per share in cash for Chart, with new notes and term loans, so added: net debt added: rose to $14.2 billion at September 30, 2026, and integration risk removed: are added: is higher. For the gap to close, three things must be true. IET must turn its record backlog into revenue and margin, as orders for power generation and LNG equipment stay strong. IET orders were removed: a record $7.1 added: $5.9 billion in removed: Q2 added: Q3 2026, added: IET remaining performance obligations were a record $39.4 billion, and the company raised its outlook for IET orders in 2026 to 2028 to more than removed: $45 added: $50 billion. Chart must deliver the planned $325 million of annual cost synergies by the third year. Cash flow and the sale of Waygate Technologies for about $1.45 billion must bring net leverage to the target of 1.0 to 1.5 times within 24 months of the Chart close. The removed: Q3 added: Q4 2026 removed: report on October 27, 2026 added: report, expected in late January 2027, is the removed: first with Chart. added: next test of synergies and debt reduction. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a fall in oil and gas spending, which lowers OFSE results.
- Risks
- OFSE depends on oil and gas drilling and production spending. Lower oil prices or conflict in the Middle East can reduce activity. Disruptions in the Middle East reduced OFSE revenue in Q2 added: 2026, and activity there improved in Q3 2026. The Chart purchase added debt and integration work. If the $325 million of cost synergies come late, or Chart's markets slow, debt falls more slowly than planned. IET's growth depends on large LNG and power projects. If customers delay or cancel projects, orders and backlog can fall. The sale of Waygate Technologies needs added: regulatory approvals and other closing removed: conditions. added: conditions, and it was not complete at September 30, 2026. If it does not close, Baker Hughes has less cash to pay down debt.
- Balance sheet
- Cash: removed: $15.7B added: $4.1B Debt: removed: $16.3B added: $18.3B Net debt: removed: $526M added: $14.2B Debt due within 12 months: removed: $774M added: $788M Baker Hughes removed: raised debt added: paid for removed: the Chart removed: purchase before added: on July 16, 2026, with cash on hand, the notes it removed: closed. added: issued in March 2026 and $2.0 billion of new long-term debt in Q3 2026. Net cash paid for acquisitions was $14.15 billion in Q3 2026. At removed: June added: September 30, 2026, short-term debt was removed: $774 added: $788 million and long-term debt was removed: $15.48 added: $17.48 billion, so total debt was removed: $16.25 added: $18.26 billion, up from $6.09 billion at December 31, 2025. Cash was removed: $15.73 added: $4.07 billion, removed: because most of the money for Chart added: so net debt was removed: still added: about $14.2 billion. Net interest expense was $177 million in removed: hand. On July 16, added: Q3 2026, removed: Baker Hughes paid for Chart with this cash added: up from $56 million a year earlier. Adjusted EBITDA was $1,415 million and removed: with new two-year term loans, so net debt is now much higher. added: free cash flow was $769 million in Q3 2026. The company targets net leverage of 1.0 to 1.5 times within 24 removed: months, added: months of the Chart close, helped by free cash removed: flow, which was $1,109 million in Q2 2026, added: flow and by the sale of Waygate Technologies for about $1.45 removed: billion. Adjusted EBITDA added: billion, which was removed: $1,231 million in Q2 added: still pending at September 30, 2026. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Oct 27, 2026: Q3 2026 earnings: first quarter with Chart. removed: Pending. added: Passed. Watch: Strong IET orders, stable OFSE margins and a clear plan for Chart synergies and debt reduction pass; weak orders or a cut in guidance fail. added: Outcome: IET orders were $5.9 billion, the OFSE EBITDA margin was 18.1%, and the company raised its IET order outlook for 2026 to 2028 to more than $50 billion. Jan 27, 2027 (estimate): Q4 2026 earnings: synergies and debt. Pending. Watch: Net debt below the $14.2 billion of September 30, 2026, progress on Chart synergies and steady IET orders pass; higher net debt or a fall in IET orders fails. Q3 2027 (estimate): Net leverage falls toward the target. Pending. Watch: Net leverage clearly falling toward 1.0 to 1.5 times by mid-2027, with the Waygate sale closed, passes; flat or rising leverage fails.
- Recent events
- Oct added: 27, 2026: Baker Hughes reported Q3 2026 results, the first quarter with Chart. Orders were $10.8 billion, including IET orders of $5.9 billion, and remaining performance obligations were a record $46.4 billion. Revenue was $8.0 billion, adjusted EBITDA was $1,415 million and free cash flow was $769 million. GAAP diluted EPS was $0.41 and adjusted EPS was $0.70. Chart had revenue of $888 million and EBITDA of $156 million after July 16. The company raised its outlook for IET orders in 2026 to 2028 to more than $50 billion. IET won a power generation order of 1.1 gigawatts for a large US technology company. Oct 15, 2026: Baker Hughes and Venture Global signed a Power Frame Agreement for gas turbines, steam turbines and related equipment and services for up to 16 power island units, with deliveries from 2028 to 2034. Venture Global said each unit is rated 720 megawatts and that it signed a similar agreement with GE Vernova. The agreement is a framework, not a firm order. Venture Global expects to place its first power island purchase order by the end of 2026. Sep 28, 2026: Baker Hughes said it will release its Q3 2026 results on October 27, 2026, after the market closes, and hold its call on October 28, 2026. Jul 26, 2026: Baker Hughes reported Q2 2026 results. Orders were $10.5 billion, including record IET orders of $7.1 billion, and remaining performance obligations were $40.1 billion. Revenue was $6.7 billion, adjusted EBITDA was $1,231 million and free cash flow was $1,109 million. GAAP diluted EPS was $0.68 and adjusted EPS was $0.64. The removed: company announced the sale of Waygate Technologies to Hexagon for about $1.45 billion in removed: cash. added: cash, agreed in April 2026, was still pending. Jul 26, 2026: IET received a major Venture Global award for six LNG blocks, awards from Cheniere and Bechtel for Sabine Pass Train 7, and orders for gas turbines from Dynamis Power Solutions and Kodiak Gas Services for power at data centers and energy sites. Jul 16, 2026: Baker Hughes completed the purchase of Chart Industries for $210 per share in cash. It paid with cash on hand, the $6.5 billion and EUR 3.0 billion of notes issued on March 11, 2026, and new two-year term loans. It expects $325 million of annual cost synergies by the third year and targets net leverage of 1.0 to 1.5 times within 24 months.