Baker Hughes Q4 revenue, profit beat expectations on higher IET booking

Overview

• Energy technology firm's Q4 revenue flat yr/yr but beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company achieved record annual free cash flow of $2.7 bln in 2025

Outlook

• Company projects mid-single digit organic Adjusted EBITDA growth in 2026

• Baker Hughes expects IET margins to reach 20% target in 2026

• Company anticipates robust IET orders driven by LNG and gas infrastructure awards

Result Drivers

• IET PERFORMANCE - Strong Q4 bookings in IET contributed to record full-year orders, driven by non-LNG equipment demand

• COST MANAGEMENT - Resilient OFSE margins achieved through disciplined cost actions despite revenue decline

• PRODUCTIVITY GAINS - Adjusted EBITDA growth driven by productivity improvements and strategic portfolio management

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Baker Hughes Co is $54.66, about 1.4% above its January 23 closing price of $53.92

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX13Xy35

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