Baker Hughes Announces First-Quarter 2026 Results
HOUSTON and LONDON, April 23, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the first quarter of 2026.
"Our exceptional first-quarter performance highlights the strength of our portfolio and the momentum we are building as we progress through Horizon 2 (1). Despite significant disruptions in the Middle East, our teams executed at a high level and delivered results that exceeded our guidance range. Although we recognize this achievement, we continue to prioritize the safety and wellbeing of our employees and their families in the region," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.
"In IET, we delivered another outstanding quarter, with record orders of $4.9 billion, marking the third consecutive quarter above $4 billion. This performance reflects the diversity and versatility of the IET portfolio and the growing strength across energy infrastructure, as highlighted by $1.4 billion in Power Systems orders and further progress in LNG, gas infrastructure and CCS. IET also reported a book-to-bill of 1.5x for the quarter, resulting in record backlog of $33.1 billion."
"The Baker Hughes Business System is strengthening our operating results, supporting disciplined execution, and positioning us for continued growth, higher margins, and stronger free cash flow. Both OFSE and IET delivered strong results amid Middle East disruptions, underscoring the versatility and durability of the portfolios."
"We also continue to advance our portfolio management strategy, including the recently announced divestiture of Waygate Technologies, which combined with the two transactions that closed in the quarter, is expected to generate gross proceeds of approximately $3 billion in 2026, further strengthening our balance sheet."
"Looking ahead, our outlook for the business fundamentals remains unchanged, excluding the ongoing impacts in the Middle East. While the conflict presents near-term challenges, it is further reinforcing energy security as a priority, which is expected to support structural growth in upstream and global energy infrastructure spending. Ultimately, we remain confident in our strategy and our ability to deliver long-term value for shareholders," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
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(1) Horizon 2 represents 2026-2028.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
Quarter Highlights
Executing our portfolio management strategy
Key awards and technology achievements
Leveraging enterprise-wide capabilities
Industrial & Energy Technology
Industrial & Energy Technology (“IET”) secured important awards and agreements across diverse end markets and capabilities.
Oilfield Services & Equipment
Oilfield Services & Equipment (“OFSE”) secured strategic orders and agreements across key product lines and geographies.
Consolidated Financial Results
Revenue for the quarter was $6,587 million, a decrease of $799 million, or 11% sequentially, and up $160 million, or 2% year-over-year. The increase in revenue year-over-year was driven by an increase in IET, partially offset by a decrease in OFSE.
The Company's total book-to-bill ratio in the first quarter of 2026 was 1.2; the IET book-to-bill ratio was 1.5.
Net income, as determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the first quarter of 2026, was $930 million. Net income increased $55 million, or 6% sequentially, and increased $528 million, or 131% year-over-year.
Adjusted net income (a non-GAAP financial measure) for the first quarter of 2026 was $573 million, which excludes adjustments totaling $357 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the first quarter of 2026 was down $200 million, or 26% sequentially, and up $63 million, or 12% year-over-year.
Depreciation and amortization for the first quarter of 2026 was $354 million.
Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2026 was $1,158 million, which excludes adjustments totaling $556 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the first quarter was down $179 million, or 13% sequentially, and up $121 million, or 12% year-over-year.
The sequential decrease in adjusted net income and Adjusted EBITDA was primarily driven by lower volume, the PSI and Surface Pressure Control (SPC) dispositions, and change in business mix, partially offset by productivity and cost-out initiatives.
The year-over-year increase in adjusted net income and Adjusted EBITDA was primarily driven by productivity, cost-out initiatives, FX, and price, partially offset by inflation, lower volume, change in business mix, and the PSI and SPC dispositions.
Other Financial Items
Remaining Performance Obligations ("RPO") in the first quarter of 2026 ended at $36.1 billion, an increase of $0.2 billion from the fourth quarter of 2025. OFSE RPO was $3.0 billion, down $0.5 billion sequentially, while IET RPO was $33.1 billion, up $0.7 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $11.6 billion and $16.0 billion, respectively.
Income tax expense in the first quarter of 2026 was $336 million.
Other (income) expense, net in the first quarter of 2026 was $(588) million, primarily related to $721 million gain on business dispositions, a net loss of $50 million from the change in fair value of equity securities, and transaction related costs of $28 million incurred in connection with business disposals and acquisitions.
GAAP diluted earnings per share was $0.93 for the first quarter of 2026. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.58. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Cash flow from operating activities was $500 million for the first quarter of 2026. Free cash flow (a non-GAAP financial measure) for the quarter was $210 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Capital expenditures, net of proceeds from disposal of assets, were $290 million for the first quarter of 2026, of which $177 million was for OFSE and $100 million was for IET.
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
Oilfield Services & Equipment
EBITDA excludes depreciation and amortization of $278 million, $252 million, and $226 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. EBITDA margin is defined as EBITDA divided by revenue.
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
OFSE orders of $3,272 million for the first quarter of 2026 decreased by $(591) million, or 15% sequentially. Subsea and Surface Pressure Systems orders were $650 million, down $(417) million, or 39% sequentially, and up $118 million, or 22% year-over-year.
OFSE revenue of $3,237 million for the first quarter of 2026 was down $336 million, or 9% sequentially, and down $262 million, or 7% year-over-year. Both the sequential and year-on-year declines were primarily driven by the SPC disposition and disruptions in the Middle East.
North America revenue was $927 million, down $17 million, or 2% sequentially. International revenue was $2,310 million, down $319 million, or 12% sequentially, with a decrease in Middle East/Asia, Europe/CIS/Sub-Saharan Africa, and Latin America.
Segment EBITDA for the first quarter of 2026 was $565 million, a decrease of $82 million, or 13% sequentially. The sequential decrease in EBITDA was a result of lower volume, change in mix, and the SPC disposition, partially offset by overall productivity.
Industrial & Energy Technology
EBITDA excludes depreciation and amortization of $69 million, $69 million, and $53 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. EBITDA margin is defined as EBITDA divided by revenue.
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
IET orders of $4,887 million for the first quarter of 2026 increased by $1,709 million, or 54% year-over-year. The increase was driven by continued strength in Gas Technology Equipment and Climate Technology Solutions.
IET revenue of $3,350 million for the first quarter of 2026 increased $422 million, or 14% year-over-year. The increase was driven by Gas Technology Equipment, up $210 million, or 14% year-over-year, and Gas Technology Services, up $199 million, or 34% year-over-year, partially offset by Industrial Solutions down $73 million, or 28% year-over-year driven by the PSI disposition.
Segment EBITDA for the quarter was $678 million, an increase of $177 million, or 35% year-over-year. The year-over-year increase in segment EBITDA was driven by FX, price, higher volume, and productivity, partially offset by inflation.
Reconciliation of GAAP to non-GAAP Financial Measures
Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.
Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA
(1) The gain on business dispositions, change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the condensed consolidated statements of income (loss).
Table 1a reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.
Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes
(1) For the periods ending March 31, 2026 and December 31, 2025, transaction related costs include $43 million and $14 million, respectively, of interest expense fees related to the Bridge Facility.
(2) All periods reflect the tax associated with the other (income) loss adjustments. The period ending March 31, 2026 includes $191 million related to the tax impact on the gain on disposition, representing the utilization of tax assets recorded in the fourth quarter of 2025.
Table 1b reconciles net income attributable to Baker Hughes, which is the most directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.
Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow
Table 1c reconciles net cash flows from operating activities, which is the most directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.
Supplemental Financial Information
Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.
Conference Call and Webcast
The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Friday, April 24, 2026, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company's website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K for the annual period ended December 31, 2025 and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: https://investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.
These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:
About Baker Hughes:
Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward - making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
Media Relations
Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com