Baker Hughes Announces Third-Quarter 2026 Results
• Cash flows from operating activities of $1,005 million and free cash flow* of $769 million.
– Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the third quarter of 2026.
"Baker Hughes delivered another strong quarter, reflecting disciplined operational execution and broad-based commercial momentum across the company. Performance across IET, OFSE and Chart highlights the strength of our expanded portfolio and the growing value of our complementary capabilities as we build a more industrialized energy solutions company positioned across attractive energy and industrial markets."
"Alongside continued strong operational results, IET achieved its second-largest order quarter, booking $5.9 billion and driving RPO to another record. Broad- based demand across data centers, space, LNG and gas infrastructure, together with ongoing capacity expansions, reinforces our long-term growth outlook and supports raising our full-year IET order guidance and Horizon 2 (1) IET order outlook to $50 billion plus. The resulting backlog growth provides greater revenue visibility while expanding our installed base and long-term aftermarket opportunity."
"OFSE delivered another solid quarter, supported by growing momentum across international markets led by a meaningful improvement in the Middle East. We see additional opportunity as customers increasingly prioritize maximizing recovery and extending asset life, areas where the breadth of Baker Hughes' capabilities positions us to deliver more integrated solutions through our Mature Assets Solutions offering."
"Chart delivered a solid first quarter as part of Baker Hughes. Integration is also progressing at a strong pace, and early synergy actions reinforce our confidence in the value creation opportunity ahead. By connecting complementary technologies, installed bases and customer relationships, we are expanding our ability to pursue larger opportunities and deliver more integrated solutions across energy and industrial markets."
"Energy security, rising demand for AI and emerging opportunities across growth markets are creating new opportunities across our energy upstream, energy infrastructure and industrial end markets. With a record RPO, robust order pipeline, growing installed base and inflecting energy upstream market, Baker Hughes is well positioned to deliver durable growth, stronger earnings power and long-term value for shareholders," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
* 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)%.
Completed the previously announced all-cash acquisition of Chart Industries, Inc. ("Chart"), adding complementary capabilities that strengthen Baker Hughes’ portfolio and advance its strategy to deliver more integrated solutions across attractive industrial and energy markets, while increasing its installed base and recurring aftermarket opportunities.
• Expanded Baker Hughes’ relationship with Venture Global through a major LNG award for the Plaquemines expansion, including IET equipment across four liquefaction blocks comprising eight modules, in addition to Chart cold boxes.
Industrial & Energy Technology (“IET”) delivered broad-based commercial wins across energy and industrial markets, reflecting strong demand for its power generation, compression, digital and lifecycle service capabilities.
• Secured a major integrated power generation order to supply 1.1 gigawatt (GW) of power for a major U.S. technology company. The orders include 43 NovaLT™ and Frame 5 gas turbine packages, with gearboxes and BRUSH™ Power Generation generators to provide reliable, scalable power for advanced computing infrastructure supporting AI model training, inference, and physical AI workloads.
• Venture Global awarded Baker Hughes a substantial order for the Cloud Connector Pipeline project , including 13 Frame 5/2E gas turbine-driven compression systems to support one of the largest deployments for LNG feed gas transportation in the United States.
• Awarded a major power generation equipment order representing approximately 500 megawatts of power capacity for AI infrastructure development. Baker Hughes will provide 18 Frame 5 gas turbine generator packages with BRUSH™ Power Generation generators technology to support data center projects for a U.S. energy company.
• Received several compressor upgrade awards across the Middle East and Asia , marking a record quarter for compressor upgrade activity and reflecting continued customer investment in the installed base to improve reliability, performance and equipment longevity. 2
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
• Secured a significant long-term service agreement from SBM Offshore, covering 27 LM2500 gas turbines across four FPSOs. The agreement combines maintenance services with iCenter™ digital services for remote and condition-based monitoring to enhance equipment reliability and availability.
• Signed a significant integrated FPSO equipment order for gas compression and power generation, expanding Baker Hughes’ installed base in a major offshore field. The integrated award includes centrifugal compressors driven by LM2500 aeroderivative gas turbines for medium- and high- pressure gas compression, electric motor-driven centrifugal compressors for low-pressure gas compression, and 4-pole generators driven by LM2500 aeroderivative gas turbines for power generation.
• Industrial Solutions secured key Cordant™ wins across the data center, LNG and industrial markets, including a preferred-supplier agreement with an OEM and sensing, protection and asset health awards supporting key customers.
• Building on our long-standing relationship with Petrobras , Baker Hughes will deploy Cordant™ Process Optimization across seven offshore production units to optimize compression operations, improve efficiency, reduce emissions and support production performance.
Secured an order for Masoneilan™ control valves across six reactor units in Europe . This award strengthens our position in the growing nuclear newbuild market, while expanding our installed base and creating attractive aftermarket opportunities over the life of these assets.
Oilfield Services & Equipment (“OFSE”) secured strategic awards showcasing its differentiated capabilities across geographies and applications.
• Signed a multi-year contract with Oil & Gas Development Company (OGDC) to optimize production and recovery across more than 120 wells in Pakistan’s mature oil & gas fields, integrating Baker Hughes’ subsurface expertise, surface production technologies and digital solutions.
• Awarded a substantial subsea systems contract by Searah North Ganal Limited (2) for the integrated development of the Geng North and Gehem fields in Indonesia. Baker Hughes will supply 17 deepwater horizontal tree systems, associated manifolds and connections, subsea controls and distribution systems, as well as Cordant™ asset protection and condition monitoring solutions.
• Secured a significant award from bp to provide integrated offshore production enhancement and stimulation services in the UK North Sea. Baker Hughes will deploy a vessel-based solution featuring StimFORCE™ technology to support new well development and enhanced recovery from mature fields, optimizing reservoir performance across bp’s North Sea fields.
• Signed a significant integrated subsea systems award with Eni for the deepwater Cronos gas development offshore Cyprus, supporting a fast-track approach to safely develop reserves. The scope includes four subsea tree systems, wellheads, manifolds and connections, topside controls and associated services.
to provide hybrid Kymera™ drill bits, as well as polycrystalline diamond compact (PDC) and tricone drill bits for drilling applications.
• Secured multiple drill bit awards in Türkiye, one of the world’s largest geothermal power markets. The awards include first-time orders from multiple geothermal operators, further strengthening the Company’s position in this important market for always-on energy.
• KOC awarded Baker Hughes a significant multi-year contract to deploy fit-for- purpose production, digital and AI-enabled solutions , while establishing an in- country research and technology development center to accelerate innovation, optimize upstream production and build local expertise.
• Received a significant award to deliver subsea production systems and services for gas field development in Azerbaijan, inclusive of Aptara trees, wellheads and associated distribution, controls and connections.
(2) Searah North Ganal Limited is a subsidiary of Searah Limited, a joint venture between Eni and PETRONAS. 3
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
Received a significant integrated Well Construction award from Eni for the Baleine Phase 3 project in Côte d’Ivoire. The scope will include drilling services, digital solutions, drilling fluids, cementing, drill bits, liner hangers and wellbore clean out to support full-field production.
Following the acquisition, the Chart segment delivered broad-based orders across its diverse customer base, while opening new opportunities across Baker Hughes’ technology portfolio and global commercial network.
• Expanded relationships with three commercial space customers through launch- pad equipment and specialized tank awards, supporting next-generation testing and launch infrastructure.
• Building on its established relationship with Golar LNG, Baker Hughes will supply two cryogenic cold boxes and two Peter Brotherhood steam turbines for the customer's fourth floating LNG project.
Hanwha Engine Co. Ltd. placed additional orders for Howden exhaust gas recirculation blowers, strengthening Howden’s position as a preferred supplier of marine emissions-reduction technology.
• Leveraging its leadership in cooling fan technology, Baker Hughes received an order from Bechtel to supply air coolers for the heat rejection system supporting an expansion train at an existing Gulf Coast LNG export facility. 4
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
Revenue for the quarter was $8,025 million , an increase of $1,283 million, or 19% sequentially, and up $1,015 million, or 14% year-over-year. The increase in revenue year-o ver-year was mainly driven by the contribution from the Chart acquisition.
Net income, as determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the third quarter of 2026, was $411 million . Net income decreased $270 million , or 40% sequentially, and decreased $198 million, or 33% year-over-year .
Adjusted net income (a non-GAAP financial measure) for the third quarter of 2026 was $695 million , which excludes adjustments totaling $284 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 third quarter of 2026 wa s up $55 million , or 8% sequentially, and up $17 million, or 2% year-over-year.
Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2026 was $1,415 million , which excludes adjustments totaling $214 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the third quarter was up $184 million, or 15% sequentially, and up $177 million, or 14% year-over-year.
The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by the Chart acquisition, higher volume and price, partially offset by reduced productivity benefits and inflation.
The year-over-year increase in adjusted net income and adjusted EBITDA was primarily driven by the Chart acquisition, price, higher volume, and cost-out initiatives, partially offset by reduced productivity benefits, change in business mix, and inflation.
Remaining Performance Obligations ("RPO") in the third quarter of 2026 ended at $46.4 billion, an increase of $6.4 billion from the second quarter of 2026. OFSE RPO was $3.4 billion, up $0.4 billion sequentially, while IET RPO was $39.4 billion, up $2.3 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $16.5 billion and $16.8 billion, respectively. Chart RPO was $3.6 billion for the third quarter.
Other (income) expense, net in the third quarter of 2026 was $157 million , primarily from transaction related costs incurred in connection with business disposals and acquisitions.
GAAP diluted earnings per share was $0.41 for the third quarter of 2026. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.70. 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 $1,005 million for the third quarter of 2026. Free cash flow (a non-GAAP financial measure) for the quarter was $769 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 third quarter of 2026, of which $145 million was for OFSE, $65 million was for IET, and $15 million was for Chart. 5
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
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, $266 million, and $221 million for the three months ended September 30, 2026, June 30, 2026, and September 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 $4,047 million for the third quarter of 2026 increased by $634 million, or 19% sequentially. Subsea and Surface Pressure Systems orders were $1,090 million, up $423 million, or 63% sequentially, and down $100 million, or 8% year-over-year.
OFSE revenue of $3,660 million for the third quarter of 2026 was up $209 million, or 6% sequentially, and up $24 million , or 1% year-over-year. The year-over-year increase was driven mainly by higher activity in Europe/CIS/Sub- Saharan Africa and Latin America, partially offset by a decrease in Middle East/Asia due to the Surface Pressure Control ("SPC") disposition. 6
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
North America revenue was $955 million, up $22 million , or 2% sequentially. International revenue was $2,705 million, up $187 million, or 7% sequentially, with an increase in Europe/CIS/Sub-Saharan Africa, and Middle East/Asia.
Segment EBITDA for the third quarter of 2026 was $659 million, an increase of $54 million , or 9% sequentially. The sequential increase in EBITDA was a result of higher volume and price, partially offset by reduced productivity benefits, primarily reflecting the linearity of variable expenses, and a change in business mix. 7
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
EBITDA excludes depreciation and amortization of $62 million, $60 million, and $55 million for the three months ended September 30, 2026, June 30, 2026, and September 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 $5,886 million for the third quarter of 2026 increased by $1,747 million , or 42% year-over-year. The increase was driven by continued strength in Climate Technology Solutions ("CTS"), Gas Technology Equipment ("GTE") and Gas Technology Services ("GTS").
IET revenue of $3,477 million for the third quarter of 2026 increased 3% year- over-year, driven by an increase primarily in CTS and GTS, partially offset by a decrease in GTE and Industrial Solutions ("IS") reflective of the Precision Sensors & Instrumentation ("PSI") disposition. 8
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
Segment EBITDA for the quarter was $685 million, an increase of $50 million, or 8% year-over-year. The year-over-year increase in Segment EBITDA, after taking into consideration the impact of the PSI disposition, was driven by price and higher volume, partially offset by a change in business mix and inflation.
(in millions) Three Months Ended Orders by Product Line September 30, 2026 ─────────────────────────────────────────────────── Original Equipment $ 587 Aftermarket 244 Total Orders 831
(in millions) Three Months Ended Revenue by Product Line September 30, 2026 ──────────────────────────────────────────────────── Original Equipment $ 623 Aftermarket 265 Total Revenue $ 888
EBITDA excludes depreciation and amortization of $170 million for the three months ended September 30, 2026. 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)%. On July 16, 2026, Baker Hughes acquired Chart and third-quarter reported financial results reflect activity from the acquisition date through the quarter ended September 30, 2026.
Since the acquisition, Chart received orders of $831 million comprised of $587 million of Original Equipment orders and $244 million of Aftermarket orders, and achieved revenue of $888 million for the third quarter of 2026, driven by Original Equipment revenue of $623 million and Aftermarket revenue of $265 million. Chart's resulting Segment EBITDA for the quarter was $156 million. 9
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
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 a re 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. 10
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes
(in millions, except per Three share Months September June 30, September amounts) Ended 30, 2026 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Net income attribu… $ 411 $ 681 $ 609 to Baker Hughes (GAAP) Restruc… 28 11 — Gain on business — 24 — disposi… Change in fair value of -6 -125 8 equity securit… Transac… related 158 30 54 costs Amortiz… of Chart 143 — — intangi… assets Invento… step-up 25 — — charges Other 17 — 24 adjustm… Tax -81 19 -17 adjustm… Total adjustm… net of 284 -41 69 income tax Adjustm… attribu… 284 -41 69 to Baker Hughes Adjusted net income attribu… $ 695 $ 640 $ 678 to Baker Hughes (non-GA… Denomin… Weighte… shares of Class A 998 997 992 common stock outstan… diluted Earnings per share - $ 0.41 $ 0.68 $ 0.61 diluted (GAAP) Total adjustm… per share, 0.29 -0.04 0.07 net of income tax Adjusted earnings per $ 0.70 $ 0.64 $ 0.68 share - diluted (non-GA…
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. 11
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
September 30, December 31, (In millions) 2026 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current Assets: Cash and cash $ 4,068 $ 3,715 equivalents Current 7,871 6,641 receivables, net Inventories, net 5,975 4,954 All other 3,726 3,518 current assets Total current 21,640 18,828 assets Property, plant and equipment, less 6,775 5,326 accumulated depreciation Goodwill 13,897 6,068 Other intangible 9,773 4,097 assets, net All other assets 6,978 6,562 Total assets $ 59,063 $ 40,881 LIABILITIES AND EQUITY Current Liabilities: Accounts payable $ 5,200 $ 4,579 Short-term debt 788 689 Progress collections and 8,037 5,904 deferred income All other current 3,450 2,705 liabilities Total current 17,475 13,877 liabilities Long-term debt 17,476 5,398 Liabilities for pensions and other 978 1,066 postretirement benefits All other 2,573 1,530 liabilities Equity 20,561 19,010 Total liabilities and $ 59,063 $ 40,881 equity Outstanding Baker Hughes Company shares: Class A common 993 987 stock
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
(In Three millions) Months Nine Months Cash flows Ended Ended from September September operating 30, 30, activities: 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 422 $ 2,042 $ 1,737 Adjustments to reconcile net income to net cash flows from operating activities: Depreciati… and 505 1,192 861 amortizati… Stock-based compensati… 57 159 153 cost Change in fair value -6 -81 29 of equity securities Gain on business — -697 — dispositio… Benefit for deferred -244 -186 -44 income taxes Working — 350 -34 capital Other operating 271 71 -554 items, net Net cash flows provided by 1,005 2,850 2,148 operating activities Cash flows from investing activities: Expenditur… for capital -271 -907 -896 assets Proceeds from 35 145 139 disposal of assets Net cash paid for -14,150 -14,150 -800 acquisitio… Proceeds from 69 1,450 — business dispositio… Other investing 41 60 -94 items, net Net cash flows used in -14,276 -13,402 -1,651 investing activities Cash flows from financing activities: Proceeds from issuance of 2,000 11,885 — long-term debt Dividends -228 -684 -683 paid Repurchase of Class A — — -384 common stock Other financing -154 -296 -157 items, net Net cash flows provided by 1,618 10,905 -1,224 (used in) financing activities Effect of currency exchange rate -6 — 56 changes on cash and cash equivalents (Decrease) increase in cash and -11,659 353 -671 cash equivalents Cash and cash equivalent… 15,727 3,715 3,364 beginning of period Cash and cash equivalent… $ 4,068 $ 4,068 $ 2,693 end of period Supplement… cash flows disclosure… Income taxes paid, $ 288 $ 669 $ 754 net of refunds Interest $ 70 $ 307 $ 197 paid
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.
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 Wednesday, October 28, 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.
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," "guidance," "outlook" 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:
• Economic and political conditions - the impact of worldwide economic conditions; the impact of inflation and interest rates; the impact of tariffs, including the potential for significant increases in tariffs and changes in global trade policy that could affect supply chain costs, pricing, and customer demand; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
• Orders and RPO - our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
• Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; LNG supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas. 15
Baker Hughes Company News Release Baker Hughes Company Announces Third-Quarter 2026 Results
• Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East and the associated impact to the Strait of Hormuz; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation; expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.
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:
Full text with the tables
Exhibit 99.1
Baker Hughes Announces Third-Quarter 2026 Results
Third-quarter highlights
• Orders of $10.8 billion, including $5.9 billion of IET orders.
• RPO of $46.4 billion, including record IET RPO of $39.4 billion.
• Revenue of $8.0 billion.
• Attributable net income of $411 million.
• GAAP diluted EPS of $0.41 and adjusted diluted EPS* of $0.70.
• Adjusted EBITDA* of $1,415 million.
• Cash flows from operating activities of $1,005 million and free cash flow* of
$769 million.
HOUSTON & LONDON (October 27, 2026)
– Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced
results today for the third quarter of 2026.
"Baker Hughes delivered another strong quarter, reflecting disciplined
operational execution and broad-based commercial momentum across the company.
Performance across IET, OFSE and Chart highlights the strength of our expanded
portfolio and the growing value of our complementary capabilities as we build a
more industrialized energy solutions company positioned across attractive energy
and industrial markets."
"Alongside continued strong operational results, IET achieved its second-largest
order quarter, booking $5.9 billion and driving RPO to another record. Broad-
based demand across data centers, space, LNG and gas infrastructure, together
with ongoing capacity expansions, reinforces our long-term growth outlook and
supports raising our full-year IET order guidance and Horizon 2 (1) IET order
outlook to $50 billion plus. The resulting backlog growth provides greater
revenue visibility while expanding our installed base and long-term aftermarket
opportunity."
"OFSE delivered another solid quarter, supported by growing momentum across
international markets led by a meaningful improvement in the Middle East. We see
additional opportunity as customers increasingly prioritize maximizing recovery
and extending asset life, areas where the breadth of Baker Hughes' capabilities
positions us to deliver more integrated solutions through our Mature Assets
Solutions offering."
"Chart delivered a solid first quarter as part of Baker Hughes. Integration is
also progressing at a strong pace, and early synergy actions reinforce our
confidence in the value creation opportunity ahead. By connecting complementary
technologies, installed bases and customer relationships, we are expanding our
ability to pursue larger opportunities and deliver more integrated solutions
across energy and industrial markets."
"Energy security, rising demand for AI and emerging opportunities across growth
markets are creating new opportunities across our energy upstream, energy
infrastructure and industrial end markets. With a record RPO, robust order
pipeline, growing installed base and inflecting energy upstream market, Baker
Hughes is well positioned to deliver durable growth, stronger earnings power and
long-term value for shareholders," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of
GAAP to non-GAAP Financial Measures."
(1) Horizon 2 represents 2026-2028.
1
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
(in
mil…
exc…
per Thr… Sep… June Sep…
sha… Mon… 30, 30, 30,
amo… End… 2026 2026 2025 Vari… Seq… Year…
──────────────────────────────────────────────────────────────────────────────
Or… $ 10,… $ 10,5… $ 8,2… 2 % 31 %
Re… 8,0… 6,742 7,0… 19 % 14 %
Net
in…
at… 411 681 609 (40 %) (33 %)
to
Ba…
Hu…
Ad…
net
in…
at… 695 640 678 8 % 2 %
to
Ba…
Hu…
Ad… 1,4… 1,231 1,2… 15 % 14 %
EB…
Di…
ea…
per 0.41 0.68 0.61 (40 %) (33 %)
sh…
(E…
Ad…
di… 0.70 0.64 0.68 8 % 2 %
EP…
Ca…
fl…
fr… 1,0… 1,345 929 (25 %) 8 %
op…
ac…
Fr…
ca… 769 1,109 699 (31 %) 10 %
fl…
* 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
•
Completed the previously announced all-cash acquisition of Chart Industries,
Inc. ("Chart"), adding complementary capabilities that strengthen Baker Hughes’
portfolio and advance its strategy to deliver more integrated solutions across
attractive industrial and energy markets, while increasing its installed base
and recurring aftermarket opportunities.
Key awards and technology achievements
Leveraging enterprise-wide capabilities
• Expanded Baker Hughes’ relationship with Venture Global through a major LNG
award for the Plaquemines expansion, including IET equipment across four
liquefaction blocks comprising eight modules, in addition to Chart cold boxes.
Industrial & Energy Technology
Industrial & Energy Technology (“IET”) delivered broad-based commercial wins
across energy and industrial markets, reflecting strong demand for its power
generation, compression, digital and lifecycle service capabilities.
• Secured a major integrated power generation order to supply 1.1 gigawatt (GW)
of power for a major U.S. technology company. The orders include 43 NovaLT™ and
Frame 5 gas turbine packages, with gearboxes and BRUSH™ Power Generation
generators to provide reliable, scalable power for advanced computing
infrastructure supporting AI model training, inference, and physical AI
workloads.
• Venture Global awarded Baker Hughes a substantial order for the Cloud
Connector Pipeline project , including 13 Frame 5/2E gas turbine-driven
compression systems to support one of the largest deployments for LNG feed gas
transportation in the United States.
• Awarded a major power generation equipment order representing approximately
500 megawatts of power capacity for AI infrastructure development. Baker Hughes
will provide 18 Frame 5 gas turbine generator packages with BRUSH™ Power
Generation generators technology to support data center projects for a U.S.
energy company.
• Received several compressor upgrade awards across the Middle East and Asia ,
marking a record quarter for compressor upgrade activity and reflecting
continued customer investment in the installed base to improve reliability,
performance and equipment longevity.
2
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
• Secured a significant long-term service agreement from SBM Offshore, covering
27 LM2500 gas turbines across four FPSOs. The agreement combines maintenance
services with iCenter™ digital services for remote and condition-based
monitoring to enhance equipment reliability and availability.
• Signed a significant integrated FPSO equipment order for gas compression and
power generation, expanding Baker Hughes’ installed base in a major offshore
field. The integrated award includes centrifugal compressors driven by LM2500
aeroderivative gas turbines for medium- and high- pressure gas compression,
electric motor-driven centrifugal compressors for low-pressure gas compression,
and 4-pole generators driven by LM2500 aeroderivative gas turbines for power
generation.
• Industrial Solutions secured key Cordant™ wins across the data center, LNG and
industrial markets, including a preferred-supplier agreement with an OEM and
sensing, protection and asset health awards supporting key customers.
• Building on our long-standing relationship with Petrobras , Baker Hughes will
deploy Cordant™ Process Optimization across seven offshore production units to
optimize compression operations, improve efficiency, reduce emissions and
support production performance.
•
Secured an order for Masoneilan™ control valves across six reactor units in
Europe . This award strengthens our position in the growing nuclear newbuild
market, while expanding our installed base and creating attractive aftermarket
opportunities over the life of these assets.
Oilfield Services & Equipment
Oilfield Services & Equipment (“OFSE”) secured strategic awards showcasing its
differentiated capabilities across geographies and applications.
• Signed a multi-year contract with Oil & Gas Development Company (OGDC) to
optimize production and recovery across more than 120 wells in Pakistan’s mature
oil & gas fields, integrating Baker Hughes’ subsurface expertise, surface
production technologies and digital solutions.
• Awarded a substantial subsea systems contract by Searah North Ganal Limited
(2) for the integrated development of the Geng North and Gehem fields in
Indonesia. Baker Hughes will supply 17 deepwater horizontal tree systems,
associated manifolds and connections, subsea controls and distribution systems,
as well as Cordant™ asset protection and condition monitoring solutions.
• Secured a significant award from bp to provide integrated offshore production
enhancement and stimulation services in the UK North Sea. Baker Hughes will
deploy a vessel-based solution featuring StimFORCE™ technology to support new
well development and enhanced recovery from mature fields, optimizing reservoir
performance across bp’s North Sea fields.
• Signed a significant integrated subsea systems award with Eni for the
deepwater Cronos gas development offshore Cyprus, supporting a fast-track
approach to safely develop reserves. The scope includes four subsea tree
systems, wellheads, manifolds and connections, topside controls and associated
services.
•
Received an award from Kuwait Oil Company (KOC)
to provide hybrid Kymera™ drill bits, as well as polycrystalline diamond compact
(PDC) and tricone drill bits for drilling applications.
• Secured multiple drill bit awards in Türkiye, one of the world’s largest
geothermal power markets. The awards include first-time orders from multiple
geothermal operators, further strengthening the Company’s position in this
important market for always-on energy.
• KOC awarded Baker Hughes a significant multi-year contract to deploy fit-for-
purpose production, digital and AI-enabled solutions , while establishing an in-
country research and technology development center to accelerate innovation,
optimize upstream production and build local expertise.
• Received a significant award to deliver subsea production systems and services
for gas field development in Azerbaijan, inclusive of Aptara trees, wellheads
and associated distribution, controls and connections.
(2) Searah North Ganal Limited is a subsidiary of Searah Limited, a joint
venture between Eni and PETRONAS.
3
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
•
Received a significant integrated Well Construction award from Eni for the
Baleine Phase 3 project in Côte d’Ivoire. The scope will include drilling
services, digital solutions, drilling fluids, cementing, drill bits, liner
hangers and wellbore clean out to support full-field production.
Chart
Following the acquisition, the Chart segment delivered broad-based orders across
its diverse customer base, while opening new opportunities across Baker Hughes’
technology portfolio and global commercial network.
• Expanded relationships with three commercial space customers through launch-
pad equipment and specialized tank awards, supporting next-generation testing
and launch infrastructure.
• Building on its established relationship with Golar LNG, Baker Hughes will
supply two cryogenic cold boxes and two Peter Brotherhood steam turbines for the
customer's fourth floating LNG project.
•
Hanwha Engine Co. Ltd. placed additional orders for Howden exhaust gas
recirculation blowers, strengthening Howden’s position as a preferred supplier
of marine emissions-reduction technology.
• Leveraging its leadership in cooling fan technology, Baker Hughes received an
order from Bechtel to supply air coolers for the heat rejection system
supporting an expansion train at an existing Gulf Coast LNG export facility.
4
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Consolidated Financial Results
Revenue for the quarter was $8,025 million , an increase of $1,283 million, or
19% sequentially, and up $1,015 million, or 14% year-over-year. The increase in
revenue year-o ver-year was mainly driven by the contribution from the Chart
acquisition.
The Company's total book-to-bill ratio in the third quarter of 2026 was 1.3 ;
the IET book-to-bill ratio was 1.7.
Net income, as determined in accordance with generally accepted accounting
principles in the United States ("GAAP") for the third quarter of 2026, was $411
million . Net income decreased $270 million , or 40% sequentially, and decreased
$198 million, or 33% year-over-year .
Adjusted net income (a non-GAAP financial measure) for the third quarter of 2026
was $695 million , which excludes adjustments totaling $284 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 third quarter of 2026 wa s up $55 million
, or 8% sequentially, and up $17 million, or 2% year-over-year.
Depreciation and amortization for the third quarter of 2026 was $505 million .
Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2026 was
$1,415 million , which excludes adjustments totaling $214 million. See Table 1a
in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Adjusted EBITDA for the third quarter was up $184 million, or 15% sequentially,
and up $177 million, or 14% year-over-year.
The sequential increase in adjusted net income and adjusted EBITDA was primarily
driven by the Chart acquisition, higher volume and price, partially offset by
reduced productivity benefits and inflation.
The year-over-year increase in adjusted net income and adjusted EBITDA was
primarily driven by the Chart acquisition, price, higher volume, and cost-out
initiatives, partially offset by reduced productivity benefits, change in
business mix, and inflation.
Other Financial Items
Remaining Performance Obligations ("RPO") in the third quarter of 2026 ended at
$46.4 billion, an increase of $6.4 billion from the second quarter of 2026. OFSE
RPO was $3.4 billion, up $0.4 billion sequentially, while IET RPO was $39.4
billion, up $2.3 billion sequentially. Within IET RPO, Gas Technology Equipment
and Gas Technology Services were $16.5 billion and $16.8 billion, respectively.
Chart RPO was $3.6 billion for the third quarter.
Income tax expense in the third quarter of 2026 was $97 million .
Other (income) expense, net in the third quarter of 2026 was $157 million ,
primarily from transaction related costs incurred in connection with business
disposals and acquisitions.
GAAP diluted earnings per share was $0.41 for the third quarter of 2026.
Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.70.
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 $1,005 million for the third quarter of
2026. Free cash flow (a non-GAAP financial measure) for the quarter was $769
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 third quarter of 2026, of which $145 million was for OFSE, $65 million
was for IET, and $15 million was for Chart.
5
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
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
Th… Sep… Ju… Sep…
(… Seg… Mo… 30, 30, 30,
m… res… En… 2026 20… 2025 Va… Seq… Yea…
──────────────────────────────────────────────────────────────────────────────
O… $ 4,0… $ 3,… $ 4,0… 19 % (1 %)
R… $ 3,6… $ 3,… $ 3,6… 6 % 1 %
E… $ 659 $ 605 $ 671 9 % (2 %)
E… 18.1 % 17… % 18.5 % 0.… -0…
m…
Rev…
by Three Sep… June Sep…
(in Pro… Mont… 30, 30, 30,
mi… Line Ended 2026 2026 2025 Vari… Seq… Year…
──────────────────────────────────────────────────────────────────────────────
We… $ 958 $ 899 $ 954 7 % — %
Co…
Co…
In… 1,0… 944 945 7 % 7 %
and
Me…
Pr… 983 930 966 6 % 2 %
So…
Su…
&
Su… 711 678 771 5 % (8 %)
Pr…
Sy…
To… $ 3,6… $ 3,451 $ 3,6… 6 % 1 %
Re…
Rev…
by Thr… Sep… June Sep…
(in Geo… Mon… 30, 30, 30,
mi… Reg… End… 2026 2026 2025 Vari… Seq… Year…
──────────────────────────────────────────────────────────────────────────────
No… $ 955 $ 933 $ 980 2 % (3 %)
Am…
La… 674 732 603 (8 %) 12 %
Am…
Eu… 770 568 599 35 % 29 %
Af…
Mi… 1,2… 1,218 1,4… 3 % (13 %)
Ea…
To… $ 3,6… $ 3,451 $ 3,6… 6 % 1 %
Re…
No… $ 955 $ 933 $ 980 2 % (3 %)
Am…
In… $ 2,7… $ 2,518 $ 2,6… 7 % 2 %
EBITDA excludes depreciation and amortization of $266 million, $266 million, and
$221 million for the three months ended September 30, 2026, June 30, 2026, and
September 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 $4,047 million for the third quarter of 2026 increased by $634
million, or 19% sequentially. Subsea and Surface Pressure Systems orders were
$1,090 million, up $423 million, or 63% sequentially, and down $100 million, or
8% year-over-year.
OFSE revenue of $3,660 million for the third quarter of 2026 was up $209
million, or 6% sequentially, and up $24 million , or 1% year-over-year. The
year-over-year increase was driven mainly by higher activity in Europe/CIS/Sub-
Saharan Africa and Latin America, partially offset by a decrease in Middle
East/Asia due to the Surface Pressure Control ("SPC") disposition.
6
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
North America revenue was $955 million, up $22 million , or 2% sequentially.
International revenue was $2,705 million, up $187 million, or 7% sequentially,
with an increase in Europe/CIS/Sub-Saharan Africa, and Middle East/Asia.
Segment EBITDA for the third quarter of 2026 was $659 million, an increase of
$54 million , or 9% sequentially. The sequential increase in EBITDA was a result
of higher volume and price, partially offset by reduced productivity benefits,
primarily reflecting the linearity of variable expenses, and a change in
business mix.
7
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Industrial & Energy Technology
Th… Sep… Ju… Sep…
(… Seg… Mo… 30, 30, 30,
m… res… En… 2026 20… 2025 Va… Seq… Yea…
──────────────────────────────────────────────────────────────────────────────
O… $ 5,8… $ 7,… $ 4,1… (17 %) 42 %
R… $ 3,4… $ 3,… $ 3,3… 6 % 3 %
E… $ 685 $ 678 $ 635 1 % 8 %
E… 19.7 % 20… % 18.8 % -0… 0.…
m…
Ord…
by Thr… Sep… June Sep…
(in Pro… Mon… 30, 30, 30,
mi… Line End… 2026 2026 2025 Vari… Seq… Year…
──────────────────────────────────────────────────────────────────────────────
Gas
Te… $ 3,1… $ 4,913 $ 2,1… (36 %) 43 %
Eq…
Gas
Te… 1,1… 1,314 896 (14 %) 26 %
Se…
To…
Gas 4,2… 6,227 3,0… (32 %) 38 %
Te…
In… 591 533 481 11 % 23 %
Pr…
In… 244 274 336 (11 %) (28 %)
So…
To…
In… 835 807 817 3 % 2 %
Te…
Cl…
Te… 804 54 253 F F
So…
To… $ 5,8… $ 7,088 $ 4,1… (17 %) 42 %
Or…
Rev…
by Thr… Sep… June Sep…
(in Pro… Mon… 30, 30, 30,
mi… Line End… 2026 2026 2025 Vari… Seq… Year…
──────────────────────────────────────────────────────────────────────────────
Gas
Te… $ 1,5… $ 1,524 $ 1,6… 3 % (7 %)
Eq…
Gas
Te… 897 831 803 8 % 12 %
Se…
To…
Gas 2,4… 2,355 2,4… 5 % (1 %)
Te…
In… 537 549 511 (2 %) 5 %
Pr…
In… 205 182 288 13 % (29 %)
So…
To…
In… 742 731 799 2 % (7 %)
Te…
Cl…
Te… 262 205 84 28 % F
So…
To… $ 3,4… $ 3,291 $ 3,3… 6 % 3 %
Re…
EBITDA excludes depreciation and amortization of $62 million, $60 million, and
$55 million for the three months ended September 30, 2026, June 30, 2026, and
September 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 $5,886 million for the third quarter of 2026 increased by $1,747
million , or 42% year-over-year. The increase was driven by continued strength
in Climate Technology Solutions ("CTS"), Gas Technology Equipment ("GTE") and
Gas Technology Services ("GTS").
IET revenue of $3,477 million for the third quarter of 2026 increased 3% year-
over-year, driven by an increase primarily in CTS and GTS, partially offset by a
decrease in GTE and Industrial Solutions ("IS") reflective of the Precision
Sensors & Instrumentation ("PSI") disposition.
8
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Segment EBITDA for the quarter was $685 million, an increase of $50 million, or
8% year-over-year. The year-over-year increase in Segment EBITDA, after taking
into consideration the impact of the PSI disposition, was driven by price and
higher volume, partially offset by a change in business mix and inflation.
Chart
(in millions) Three Months Ended
Segment results September 30, 2026
────────────────────────────────────────────────
Orders $ 831
Revenue $ 888
EBITDA $ 156
EBITDA margin 17.6 %
(in millions) Three Months Ended
Orders by Product Line September 30, 2026
───────────────────────────────────────────────────
Original Equipment $ 587
Aftermarket 244
Total Orders 831
(in millions) Three Months Ended
Revenue by Product Line September 30, 2026
────────────────────────────────────────────────────
Original Equipment $ 623
Aftermarket 265
Total Revenue $ 888
EBITDA excludes depreciation and amortization of $170 million for the three
months ended September 30, 2026. 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)%.
On July 16, 2026, Baker Hughes acquired Chart and third-quarter reported
financial results reflect activity from the acquisition date through the quarter
ended September 30, 2026.
Since the acquisition, Chart received orders of $831 million comprised of $587
million of Original Equipment orders and $244 million of Aftermarket orders, and
achieved revenue of $888 million for the third quarter of 2026, driven by
Original Equipment revenue of $623 million and Aftermarket revenue of $265
million. Chart's resulting Segment EBITDA for the quarter was $156 million.
9
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
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
Three
(in Months September June 30, September
millions) Ended 30, 2026 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
attribu… $ 411 $ 681 $ 609
to Baker
Hughes
(GAAP)
Net
income
attribu… 11 1 8
to
noncont…
interes…
Provisi…
for 97 210 204
income
taxes
Interest
expense, 177 66 56
net
Depreci…
& 505 333 282
amortiz…
Restruc… 28 11 —
Gain on
business — 24 —
disposi…
Change
in fair
value of -6 -125 8
equity
securit…
Transac…
related 158 30 47
costs(1)
Invento…
step-up 25 — —
charges
Other
charges 9 — 24
and
credits…
Adjusted
EBITDA 1,415 1,231 1,238
(non-GA…
Corpora… 79 82 76
costs
Other
(income)
/
expense 6 -30 -8
not
allocat…
to
segments
Total
Segment $ 1,500 $ 1,283 $ 1,306
EBITDA
(non-GA…
OFSE 659 605 671
IET 685 678 635
Chart 156 — —
(1) The gain on business dispositions, change in fair value of equity
securities, transaction related costs, and other charges and credits a re
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.
10
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted
Net Income Attributable to Baker Hughes
(in
millions,
except per Three
share Months September June 30, September
amounts) Ended 30, 2026 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
attribu… $ 411 $ 681 $ 609
to Baker
Hughes
(GAAP)
Restruc… 28 11 —
Gain on
business — 24 —
disposi…
Change
in fair
value of -6 -125 8
equity
securit…
Transac…
related 158 30 54
costs
Amortiz…
of Chart 143 — —
intangi…
assets
Invento…
step-up 25 — —
charges
Other 17 — 24
adjustm…
Tax -81 19 -17
adjustm…
Total
adjustm…
net of 284 -41 69
income
tax
Adjustm…
attribu… 284 -41 69
to Baker
Hughes
Adjusted
net
income
attribu… $ 695 $ 640 $ 678
to
Baker
Hughes
(non-GA…
Denomin…
Weighte…
shares
of Class
A 998 997 992
common
stock
outstan…
diluted
Earnings
per
share - $ 0.41 $ 0.68 $ 0.61
diluted
(GAAP)
Total
adjustm…
per
share, 0.29 -0.04 0.07
net of
income
tax
Adjusted
earnings
per $ 0.70 $ 0.64 $ 0.68
share -
diluted
(non-GA…
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
Three
(in Months September June 30, September
millions) Ended 30, 2026 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
flows
from $ 1,005 $ 1,345 $ 929
operati…
activit…
(GAAP)
Add:
cash
used for
capital
expendi…
net -236 -236 -230
of
proceeds
from
disposal
of
assets
Free
cash $ 769 $ 1,109 $ 699
flow
(non-GA…
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.
11
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Financial Tables (GAAP)
Condensed Consolidated Statements of Income
(Unaudited)
(In
million… Three Nine
except Months Months
per Ended Ended
share September Septemb…
amounts) 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 8,025 $ 7,010 $ 21,354 $ 20,347
Costs
and
expense…
Cost of 6,097 5,309 16,343 15,556
revenue
Selling,
general 732 597 1,844 1,716
and
adminis…
Research
and 150 146 427 453
develop…
costs
Restruc… 28 — 78 —
Amortiz…
of
acquired 165 10 184 35
intangi…
assets
Other
(income) 157 71 -534 77
expense,
net
Interest
expense, 177 56 328 161
net
Income
before 519 821 2,684 2,349
income
taxes
Provisi…
for -97 -204 -642 -612
income
taxes
Net 422 617 2,042 1,737
income
Less:
Net
income
attribu… 11 8 20 25
to
noncont…
interes…
Net
income
attribu… $ 411 $ 609 $ 2,022 $ 1,712
to Baker
Hughes
Company
Per
share
amounts:
Basic
income
per $ 0.41 $ 0.62 $ 2.04 $ 1.73
Class A
common
stock
Diluted
income
per $ 0.41 $ 0.61 $ 2.03 $ 1.72
Class A
common
stock
Weighted
average
shares:
Class A 993 986 992 988
basic
Class A 998 992 997 994
diluted
Cash
dividend
per $ 0.23 $ 0.23 $ 0.69 $ 0.69
Class A
common
stock
12
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Condensed Consolidated Statements of Financial Position
(Unaudited)
September 30, December 31,
(In millions) 2026 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current Assets:
Cash and cash $ 4,068 $ 3,715
equivalents
Current 7,871 6,641
receivables, net
Inventories, net 5,975 4,954
All other 3,726 3,518
current assets
Total current 21,640 18,828
assets
Property, plant
and equipment,
less 6,775 5,326
accumulated
depreciation
Goodwill 13,897 6,068
Other intangible 9,773 4,097
assets, net
All other assets 6,978 6,562
Total assets $ 59,063 $ 40,881
LIABILITIES AND
EQUITY
Current
Liabilities:
Accounts payable $ 5,200 $ 4,579
Short-term debt 788 689
Progress
collections and 8,037 5,904
deferred income
All other
current 3,450 2,705
liabilities
Total current 17,475 13,877
liabilities
Long-term debt 17,476 5,398
Liabilities for
pensions and
other 978 1,066
postretirement
benefits
All other 2,573 1,530
liabilities
Equity 20,561 19,010
Total
liabilities and $ 59,063 $ 40,881
equity
Outstanding
Baker Hughes
Company shares:
Class A common 993 987
stock
13
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Three
millions) Months Nine Months
Cash flows Ended Ended
from September September
operating 30, 30,
activities: 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 422 $ 2,042 $ 1,737
Adjustments
to
reconcile
net income
to
net cash
flows from
operating
activities:
Depreciati…
and 505 1,192 861
amortizati…
Stock-based
compensati… 57 159 153
cost
Change in
fair value -6 -81 29
of equity
securities
Gain on
business — -697 —
dispositio…
Benefit for
deferred -244 -186 -44
income
taxes
Working — 350 -34
capital
Other
operating 271 71 -554
items, net
Net cash
flows
provided by 1,005 2,850 2,148
operating
activities
Cash flows
from
investing
activities:
Expenditur…
for capital -271 -907 -896
assets
Proceeds
from 35 145 139
disposal of
assets
Net cash
paid for -14,150 -14,150 -800
acquisitio…
Proceeds
from 69 1,450 —
business
dispositio…
Other
investing 41 60 -94
items, net
Net cash
flows used
in -14,276 -13,402 -1,651
investing
activities
Cash flows
from
financing
activities:
Proceeds
from
issuance of 2,000 11,885 —
long-term
debt
Dividends -228 -684 -683
paid
Repurchase
of Class A — — -384
common
stock
Other
financing -154 -296 -157
items, net
Net cash
flows
provided by 1,618 10,905 -1,224
(used in)
financing
activities
Effect of
currency
exchange
rate -6 — 56
changes
on cash and
cash
equivalents
(Decrease)
increase in
cash and -11,659 353 -671
cash
equivalents
Cash and
cash
equivalent… 15,727 3,715 3,364
beginning
of
period
Cash and
cash
equivalent… $ 4,068 $ 4,068 $ 2,693
end of
period
Supplement…
cash flows
disclosure…
Income
taxes paid, $ 288 $ 669 $ 754
net of
refunds
Interest $ 70 $ 307 $ 197
paid
14
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
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 Wednesday, October
28, 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," "guidance," "outlook" 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:
• Economic and political conditions - the impact of worldwide economic
conditions; the impact of inflation and interest rates; the impact of tariffs,
including the potential for significant increases in tariffs and changes in
global trade policy that could affect supply chain costs, pricing, and customer
demand; the effect that declines in credit availability may have on worldwide
economic growth and demand for hydrocarbons; foreign currency exchange
fluctuations and changes in the capital markets in locations where we operate;
and the impact of government disruptions and sanctions.
• Orders and RPO - our ability to execute on orders and RPO in accordance with
agreed specifications, terms and conditions and convert those orders and RPO to
revenue and cash.
• Oil and gas market conditions - the level of petroleum industry exploration,
development and production expenditures; the price of, volatility in pricing of,
and the demand for crude oil and natural gas; drilling activity; drilling
permits for and regulation of the shelf and the deepwater drilling; excess
productive capacity; crude and product inventories; LNG supply and demand;
seasonal and other adverse weather conditions that affect the demand for energy;
severe weather conditions, such as tornadoes and hurricanes, that affect
exploration and production activities; Organization of Petroleum Exporting
Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC
production quotas.
15
Baker Hughes Company News Release
Baker Hughes Company Announces Third-Quarter 2026
Results
• Terrorism and geopolitical risks - war, military action, terrorist activities
or extended periods of international conflict, particularly involving any
petroleum-producing or consuming regions, including Russia and Ukraine; and the
recent conflict in the Middle East and the associated impact to the Strait of
Hormuz; labor disruptions, civil unrest or security conditions where we operate;
potentially burdensome taxation; expropriation of assets by governmental action;
cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.
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
16