Baker Hughes Announces Second-Quarter 2026 Results

Baker Hughes Announces Second-Quarter 2026 Results Second-quarter highlights

HOUSTON and LONDON, July 26, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the second quarter of 2026.

"Baker Hughes delivered another strong quarter, reflecting the breadth of our portfolio and continued momentum across data center, gas infrastructure, and upstream markets. Disciplined execution and our ability to effectively navigate ongoing Middle East challenges contributed to Adjusted EBITDA exceeding the high end of our guidance range. Looking ahead, favorable underlying fundamentals support our confidence in achieving the midpoint of our full-year guidance as we continue to manage through the Middle East uncertainty."

"IET delivered another exceptional quarter of orders, with record bookings doubling year-over-year to $7.1 billion and backlog increasing 19% to a new all-time high. The strength was driven by robust demand across Power Systems and LNG, with particularly strong momentum in power generation. Given broadening customer demand, a growing pipeline across industrial and energy infrastructure markets, and our decision to further expand capacity, we are raising our full-year IET order guidance and increasing our Horizon 2 ( 1 ) IET orders outlook to more than $45 billion."

"OFSE delivered an impressive quarter, with EBITDA exceeding the high end of our guidance range despite a complex operating environment. Increased activity and higher product shipments late in the quarter in the Middle East, along with solid performance in North America land and Latin America, drove the upside and demonstrated the resilience and durability of our portfolio despite higher inflationary costs."

"Our second-quarter performance further reinforces confidence in Baker Hughes’ strategic direction. Energy security and rising power demand are driving investment across both energy and industrial value chains, and our expanding portfolio is increasingly aligned with the most attractive growth opportunities across our core end markets."

"The successful closing of the Chart acquisition marks a major milestone in our evolution as a leading industrialized energy solutions company. Chart enhances our capabilities in thermal management, air and gas handling, compression and lifecycle services, while expanding our reach across attractive core and adjacent markets. The addition of Chart further advances our portfolio, broadens our growth opportunities, and enhances our ability to create long-term value for customers and shareholders. We are pleased to welcome Chart’s employees to Baker Hughes and look forward to their contributions as part of our team," concluded Simonelli.

( 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 $6,742 million, an increase of $155 million, or 2% sequentially, and down $168 million, or 2% year-over-year. The decrease in revenue year-over-year was mainly driven by the impact of the Precision Sensors & Instrumentation (“PSI”) and Surface Pressure Control (“SPC”) dispositions.

The Company's total book-to-bill ratio in the second quarter of 2026 was 1.6; the IET book-to-bill ratio was 2.2.

Net income, as determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the second quarter of 2026, was $681 million. Net income decreased $249 million, or 27% sequentially, and decreased $20 million, or 3% year-over-year.

Adjusted net income (a non-GAAP financial measure) for the second quarter of 2026 was $640 million, which excludes adjustments totaling $41 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 second quarter of 2026 was up $67 million, or 12% sequentially, and up $17 million, or 3% year-over-year.

Depreciation and amortization for the second quarter of 2026 was $333 million.

Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2026 was $1,231 million, which excludes adjustments totaling $60 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the second quarter was up $73 million, or 6% sequentially, and up $19 million, or 2% year-over-year.

The sequential increase in adjusted net income and Adjusted EBITDA was primarily driven by higher volume, price, productivity, FX, and cost-out initiatives, partially offset by inflation.

The year-over-year increase in adjusted net income and Adjusted EBITDA was primarily driven by productivity, price, cost-out initiatives, and FX, 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 second quarter of 2026 ended at $40.1 billion, an increase of $4.0 billion from the first quarter of 2026. OFSE RPO was $3.0 billion, remained flat sequentially, while IET RPO was $37.1 billion, up $4.0 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $15.0 billion and $16.7 billion, respectively.

Income tax expense in the second quarter of 2026 was $210 million.

Other (income) expense, net in the second quarter of 2026 was $(104) million, primarily related to a net gain of $125 million from the change in fair value of equity securities, partially offset by transaction related costs of $30 million incurred in connection with business disposals and acquisitions, and $24 million working capital adjustments related to business dispositions.

GAAP diluted earnings per share was $0.68 for the second quarter of 2026. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.64. 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 $1,345 million for the second quarter of 2026. Free cash flow (a non-GAAP financial measure) for the quarter was $1,109 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 $236 million for the second quarter of 2026, of which $135 million was for OFSE and $85 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 $266 million, $278 million, and $233 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 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 $3,413 million for the second quarter of 2026 increased by $141 million, or 4% sequentially. Subsea and Surface Pressure Systems orders were $667 million, up $17 million, or 3% sequentially, and down $31 million, or 4% year-over-year.

OFSE revenue of $3,451 million for the second quarter of 2026 was up $214 million, or 7% sequentially, and down $166 million, or 5% year-over-year. The year-over-year decrease was driven mainly by the impact of the SPC disposition and disruptions in the Middle East, offset by the benefit of FX in Latin America.

North America revenue was $933 million, up $5 million, or 1% sequentially. International revenue was $2,518 million, up $208 million, or 9% sequentially, with an increase in Latin America, Middle East/Asia, and Europe/CIS/Sub-Saharan Africa.

Segment EBITDA for the second quarter of 2026 was $605 million, an increase of $40 million, or 7% sequentially. The sequential increase in EBITDA was a result of higher volume, price, cost-out initiatives, and FX, partially offset by inflation, productivity, and a change in business mix.

Industrial & Energy Technology

EBITDA excludes depreciation and amortization of $60 million, $69 million, and $56 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 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 $7,088 million for the second quarter of 2026 increased by $3,558 million, or 101% year-over-year. The increase was driven by continued strength in Gas Technology Equipment and Gas Technology Services.

IET revenue of $3,291 million for the second quarter of 2026 remained flat year-over-year, with decreases in Gas Technology Equipment and Industrial Solutions driven by the PSI disposition, offset by increases in all other product lines.

Segment EBITDA for the quarter was $678 million, an increase of $93 million, or 16% year-over-year. The year-over-year increase in segment EBITDA was driven by price, productivity, cost-out initiatives, and FX, partially offset by lower volume and 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 period ending March 31, 2026, transaction related costs included $43 million of interest expense fees related to the Bridge Facility.

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 Monday, July 27, 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