Baker Hughes Company (BKR) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 24, 2027 — estimated from last year’s reporting date.

Consensus is $0.67 EPS for Dec 2026 across 4 estimates, ranging $0.64 to $0.68.

BKR Sep 2026

Reported Oct 27, 2026 · after the close

: 11.11%
: -7.36%

: $0.63
: $0.70
: —
: $8.03B

Reported results

: $8.03B; from $7.01B
: $411.00M; from $609.00M

Highlights

IET backlog: Orders reached $5.9 billion, up 42% year over year, and record IET RPO rose to $39.4 billion; total company RPO was $46.4 billion.
Earnings beat: Adjusted diluted EPS of $0.70 exceeded the $0.63 consensus, while adjusted EBITDA rose 14% year over year to $1.415 billion.
Chart acquisition: Chart contributed $888 million of revenue and $156 million of EBITDA in its first partial quarter; Baker Hughes has initiated $70 million of its $325 million annualized synergy target.
Revenue growth: Revenue was $8.025 billion, up 14% year over year and 19% sequentially, with most of the year-over-year increase attributable to Chart.
GAAP earnings: Net income attributable to Baker Hughes fell 33% year over year to $411 million, and diluted GAAP EPS declined to $0.41 from $0.61, reflecting acquisition-related amortization, costs and higher interest expense.
Cash generation: Operating cash flow was $1.005 billion and free cash flow was $769 million, up 10% year over year but down from $1.109 billion in Q3 2025.
OFSE improvement: Revenue rose 6% sequentially to $3.66 billion and EBITDA increased 9% to $659 million; Middle East revenue improved 17% sequentially.
Guidance and leverage: Full-year IET orders are now expected at $21.5–$23.5 billion, with Horizon 2 orders above $50 billion; leverage was 2.5x, with a target below 1.5x by the second half of 2028.

Analysis

Baker Hughes delivered a growth and order-visibility quarter, with adjusted EPS of $0.70 beating the $0.63 consensus and adjusted EBITDA reaching $1.415 billion, up 14% year over year. Revenue of $8.025 billion increased 14% from Q3 2025 and 19% from Q2 2026, though the year-over-year increase was primarily the result of adding Chart. Adjusted net income rose 2% year over year to $695 million. GAAP net income attributable to Baker Hughes, by contrast, declined 33% year over year and 40% sequentially to $411 million; GAAP EPS was $0.41 versus $0.61 a year earlier and $0.68 in Q2. Acquisition-related amortization, transaction costs and higher interest expense weighed on reported earnings.

The defining feature was IET’s continued order momentum: $5.9 billion in orders and record RPO of $39.4 billion prompted the company to raise its full-year IET order range and its 2026–2028 outlook. Chart’s first partial-quarter contribution added $888 million of revenue and $156 million of EBITDA, while integration and deleveraging become important execution priorities. OFSE also improved sequentially, helped by stronger international activity. Free cash flow remained solid at $769 million, although it was below Q2’s $1.109 billion; management expects $1.46 billion of adjusted EBITDA in Q4 and a full-year midpoint of $5.265 billion.

IET orders and backlog

Orders: IET booked $5.886 billion, 42% above the year-ago quarter but 17% below Q2’s unusually strong $7.088 billion. The company-wide book-to-bill ratio was 1.3x and IET’s was 1.7x.
Demand mix: Gas Technology orders totaled $4.247 billion, up 38% year over year, while Climate Technology Solutions orders were $804 million versus $253 million a year earlier. Management cited data centers, LNG, gas infrastructure and offshore production; data-center awards reached $4.9 billion year to date.
Visibility and guidance: IET RPO rose $2.3 billion sequentially to a record $39.4 billion, including $16.5 billion of Gas Technology Equipment and $16.8 billion of Gas Technology Services. With $17.9 billion of orders booked in the first nine months, Baker Hughes raised full-year IET order guidance to $21.5–$23.5 billion and its Horizon 2 outlook to more than $50 billion.
Conversion timing: Management expects IET book-to-bill above 1x in 2027, but described next year’s growth as more modest because longer-lead equipment orders push conversion further out. At quarter-end, 33% of combined Gas Technology Equipment and Climate Technology Solutions backlog was scheduled to convert in 2027, versus 46% of the comparable backlog scheduled for 2026 a year earlier.

Chart acquisition and integration

First contribution: Acquired on July 16, Chart contributed $888 million of revenue and $156 million of EBITDA, a 17.6% margin, from the close through quarter-end. Its $831 million of orders included $587 million of original equipment and $244 million of aftermarket.
Integration targets: Baker Hughes reported $70 million of annualized cost-synergy actions initiated and remained on track for $325 million in annualized savings within three years of closing. It expects more than $10 million of savings in the second half of 2026, including $3 million realized in Q3.
Margin plan: Management targets Chart EBITDA margins of 22%–23% in the second half of 2028, with improvement expected to build through 2027 and become more meaningful in 2028. Planned levers include cost synergies, operating improvements and a better project mix.
Acquisition funding: The transaction’s total consideration was $14.8 billion, including $14.2 billion of net cash paid. Quarter-end leverage reached 2.5x; management’s priority is debt reduction, with a goal of net leverage below 1.5x by the second half of 2028.

Earnings and cash flow

Adjusted results: Adjusted EBITDA increased 15% sequentially and 14% year over year to $1.415 billion; adjusted net income was $695 million, up 8% sequentially and 2% year over year. Adjusted diluted EPS of $0.70 compared with $0.64 in Q3 2025 and $0.68 in Q2 2026.
GAAP gap: Net income attributable to Baker Hughes was $411 million, versus $609 million a year ago and $681 million in Q2. GAAP diluted EPS was $0.41, compared with $0.61 and $0.68, respectively. The quarter included $143 million of Chart intangible amortization, $158 million of transaction-related costs and $25 million of inventory step-up charges; net interest expense was $177 million, up $121 million year over year.
Cash conversion: Operating cash flow of $1.005 billion and free cash flow of $769 million were up 8% and 10% year over year, respectively, but down from $1.345 billion and $1.109 billion in Q2. Cash generation benefited from customer collections and progress payments, partly offset by about $200 million of Chart-related integration, restructuring and closing cash costs.
Full-year outlook: Management raised the midpoint of full-year adjusted EBITDA guidance to $5.265 billion and expects full-year free-cash-flow conversion of 45%–50%.

OFSE recovery and mature assets

Sequential improvement: OFSE revenue increased 6% sequentially to $3.660 billion and EBITDA rose 9% to $659 million. EBITDA margin improved to 18.1% from 17.5% in Q2, though it remained below 18.5% in Q3 2025.
Regional pattern: International revenue increased 7% sequentially to $2.705 billion. Middle East/Asia revenue rose 3% sequentially to $1.261 billion, and management said Middle East revenue increased 17% sequentially; North America revenue was $955 million, up 2%.
More measured near term: OFSE orders were $4.047 billion, up 19% sequentially but down 1% year over year. Management expects Middle East activity to moderate in Q4, with regional activity broadly returning to Q2 levels; it sees a low- to mid-single-digit global upstream-spending growth outlook for 2027.
Mature asset opportunity: Baker Hughes is developing its Mature Assets Solutions offering around recovery optimization, asset productivity and integrity, and decommissioning or repurposing. The company targets high-single-digit annual revenue growth and at least $3 billion of MAS revenue by 2030; a new Pakistan contract covers optimization across more than 120 wells.

Fourth-quarter setup

Company guidance: For Q4, Baker Hughes expects revenue of $8.25 billion and adjusted EBITDA of $1.46 billion, implying sequential revenue growth and margin expansion.
Segment assumptions: The midpoint outlook calls for 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 about $1.1 billion with EBITDA of about $195 million.
Risks and timing: Management cited Middle East disruptions, more challenging logistics and aeroderivative supply constraints as variables. It expects the normal seasonal Q1 decline in 2027, with performance strengthening through the year and greater improvement in the second half.

Baker Hughes Company

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