BKR · Baker Hughes Company

Baker Hughes reported a strong first quarter of 2026, with revenue reaching $6.6 billion, a 2% increase year-over-year. This growth was primarily driven by the Industrial & Energy Technology (IET) segment, which offset a decline in Oilfield Services & Equipment (OFSE). The company highlighted the strength and versatility of its portfolio, particularly within IET, which secured record orders of $4.9 billion and achieved a record backlog (RPO) of $33.1 billion. This performance in IET was bolstered by significant demand in energy infrastructure, including Power Systems and LNG projects. GAAP net income saw a substantial increase of 131% year-over-year to $930 million, while adjusted EBITDA rose 12% to $1,158 million, driven by productivity initiatives, cost-out measures, and favorable foreign exchange impacts. However, sequential results showed a decline in adjusted net income and EBITDA, attributed to lower volumes and the divestiture of the PSI and Surface Pressure Control product lines. The company is actively executing a portfolio management strategy, highlighted by the recently announced sale of Waygate Technologies to Hexagon for approximately $1.45 billion. Combined with other closed transactions, the company expects to generate roughly $3 billion in gross proceeds in 2026 to strengthen its balance sheet. Management noted that despite disruptions in the Middle East, the outlook for business fundamentals remains unchanged, with the conflict reinforcing energy security as a priority.