BKR US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording

Baker Hughes (BKR) · Q3 2026 results and valuation

Share price: $49.41 · 2026-11-11

Baker Hughes is an energy technology company providing a portfolio of technologies and services for the energy and industrial value chain. The company operates in over 120 countries, serving markets including oil and gas, power generation, and renewable energy. Its products and services support industrial manufacturing, chemical segments, and infrastructure for data centers. Source: 10-K annual report (2026-02-05)

Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 27 Jul 2026

Net income down 39.6% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.

1 · Numbers

−39.6%

Net income vs Q2 2026

Outlook given

Net income 411.0M vs 681.0M

Revenue +19.0%

Against the same quarter last year (Q3 2025) it is −32.5%, so it is not just seasonal.

2 · How management spoke

Upbeat

More upbeat than 70% of company calls

Answers to analysts: upbeat, in line with the script.

Similar to last call.

3 · What stood out

Baker Hughes raised its full-year orders guidance to $21.5 billion to $23.5 billion, supported by $18 billion in year-to-date IET orders and ongoing capacity expansions.

Valuation

Is Baker Hughes undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 9.4% growth a year (3-year revenue growth), the model's fair value is $47.35 a share — the stock trades 4% above it. Today's price assumes 9.9% growth a year.

Current price

$49.41

close of 2026-11-11

Market implies growth of i

+9.9% for 10 yrs

Fair value / share

$47.35

Buy below

$35.52

Price vs fair value

Overvalued 4%

Price vs buy-below price

Overvalued 39%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

BKR raised its full-year orders guidance to $21.5 billion to $23.5 billion, supported by $18 billion in year-to-date IET orders and ongoing capacity expansions.
Figure

Adjusted EBITDA reached $1.42 billion with margins of 17.6 percent, which remained comparable to last year's results.

Source quote
“Adjusted EBITDA totaled $1.42 billion, with margins of 17.6 percent comparable to last year.”
Figure

The company expects EBITDA margins to reach 22-23 percent by the second half of 2028 due to improvements and the realization of synergies.

Source quote
“Together with the realization of synergies, these improvements give us confidence that chart EBITDA margins can reach 22-23 percent by the second half of 2028, with further expansion beyond that.”
Key theme

Existing capacity and committed projects are expected to bring global LNG capacity to approximately 800 MTPA by 2030.

Source quote
“With existing capacity and committed projects expected to bring global LNG capacity to approximately 800 MTPA by 2030.”
Key theme

U.S. data center capacity is expected to grow by 100 gigawatt by 2035, requiring an additional 18 BCF per day of gas supply to meet electricity demand.

Source quote
“In the U.S. alone, approximately 100 gigawatt of incremental data center capacity is expected by 2035, requiring roughly 18 BCF per day of incremental gas supply to meet the associated electricity demand.”

4 more

Figure

The company increased the midpoint of total company EBITDA to $5.265 billion for the current period.

Source quote
“As a result, we are increasing the midpoint of total company EBITDA to $5.265 billion.”
Guidance

The company executed $70 million of its $325 million cost synergy target within the first 100 days of integration.
Figure

IET recorded $5.9 billion of orders with a 1.7 book-to-bill ratio, including $1 billion for LNG equipment and $2.2 billion for power systems driven by data center demand.

Source quote
“IET recorded $5.9 billion of orders, representing a 1.7 times book-to-bill ratio, including $1 billion of LNG equipment awards and $2.2 billion of power systems orders led by strong data center demand.”
Figure

Year to date, Baker Hughes has now booked $4.9 billion of data center awards.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Upbeat (was upbeat)

Answers to analysts Upbeat (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Given the strength of demand and increased visibility into future opportunities, we now expect IET orders to exceed $50 billion over Horizon 2.”

“OFSC revenue benefited from strength across several international markets, including Latin America and Europe, as well as an increase in the Middle East, where revenue increased 17% sequentially.”

“These awards reflect continued investment in our installed base and demonstrate the value customers place on enhancing the reliability, efficiency, and performance of existing assets, while creating additional high-margin, recurring...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)

Metric	Q3 2026period end 2026-09-30	Q2 2026period end 2026-06-30	Change	Q3 2025	YoY
Revenue	8.03B	6.74B	+19.0%	7.01B	+14.5%
Operating income	519.0M	892.0M	−41.8%	821.0M	−36.8%
Net income	411.0M	681.0M	−39.6%	609.0M	−32.5%
P/E today 16.1	—	—	—	—	—

Topics

Most discussed now

Prior to handing the call over to Ahmed, I will discuss Baker Hughes' mature asset solutions or mass offering.
From a linearity standpoint, Baker Hughes would expect the normal seasonal step down in the first quarter, followed by revenue and...
This represents a growing opportunity that expands Baker Hughes' role across the life cycle of producing assets while helping customers…
Baker Hughes delivered another exceptional quarter, reflecting disciplined execution, strong cash generation, and continued progress in its…
Adjusted EBITDA margin was 17.6%, broadly in line with the prior year as IET margin expansion offset lower margins in...

Faded since Q2 2026

Fading When this additional capacity comes online by 2029, Baker Hughes estimates it could support nearly $5 billion in annual Power Systems...
Fading Adjusted earnings per share were $0.64, up modestly year-over-year as strong operational performance more than offset the effects of the...
Fading The outperformance was driven primarily by strong OFSC execution supported by greater resilience in the Middle East and a solid...
Fading Baker Hughes delivered another strong quarter as disciplined execution and the strength of its diversified portfolio more than offset…

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-27 Results of operations; Regulation FD disclosure · SEC 8-K
Baker Hughes reported revenue of $8.0 billion and adjusted EBITDA of $1,415 million for the third quarter of 2026, with revenue increasing 14% compared to the same period in 2025.
2026-09-09 Regulation FD disclosure · SEC 8-K
Baker Hughes reported a record 18.5% EBITDA margin for the Industrial & Energy Technology segment in 2025, which represents an increase of 170 basis points year over year.
2026-07-27 Results of operations; Regulation FD disclosure · SEC 8-K
Baker Hughes reported revenue of $6.7 billion and adjusted EBITDA of $1,231 million for the second quarter of 2026, with revenue decreasing 2% compared to the same period in 2025.
2026-07-16 Material agreement; Agreement terminated; Acquisition or disposal; New financial obligation; Regulation FD disclosure · SEC 8-K
Baker Hughes completed the acquisition of Chart Industries, which reported $4.3 billion in revenue for fiscal year 2025 and is expected to generate $325 million in annualized cost synergies within three years.
2026-06-22 Other events · SEC 8-K
The filing references Baker Hughes' Annual Report on Form 10-K for the year ended December 31, 2025, and notes that forward-looking statements are not subject to updates unless required by law.
2026-05-21 Other events · SEC 8-K
The filing references Baker Hughes' Annual Report on Form 10-K for the year ended December 31, 2025, and notes that forward-looking statements are not subject to updates unless required by law.
2026-05-19 Director or officer change; Shareholder vote results · SEC 8-K
Stockholders approved the 2026 Long-Term Incentive Plan with a 9,500,000 share reserve and the Employee Stock Purchase Plan, which increased the available shares to a total of 14,408,532.
2026-04-23 Results of operations; Regulation FD disclosure · SEC 8-K
Baker Hughes reported revenue of $6.6 billion, up 2% year-over-year, and adjusted EBITDA of $1,158 million, up 12% year-over-year, for the first quarter of 2026.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-29.

Cash & runway

Cash & equivalents

$5.63B

2018-03-31

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: +23.1% YoY.

Quarter	Shares
Q2 2020	655.0M
Q2 2021	806.0M

Shares outstanding: 993.1M (2026-10-26)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 58 filings; 50 filings parsed.

Sold by insiders

1.2M shares

$73.1M · 19 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

second half of 2028

chart EBITDA margins can reach 22-23 percent

Source quote
“Together with the realization of synergies, these improvements give us confidence that chart EBITDA margins can reach 22-23 percent by the second half of 2028, with further expansion beyond that.”
year-over-year, with an improving outlook into 2027

global upstream spending

Source quote
“Against that backdrop, we expect global upstream spending to be broadly flat year-over-year, with an improving outlook into 2027.”
by 2030

global LNG capacity to approximately 800 MTPA

Source quote
“With existing capacity and committed projects expected to bring global LNG capacity to approximately 800 MTPA by 2030.”
by 2035

future FIDs supporting further growth to 950 MTPA

Source quote
“We see future FIDs supporting further growth to 950 MTPA by 2035, as countries increasingly prioritize supply diversification and reliable power generation.”
by 2040

global power demand expected to double

Source quote
“Demand also remains exceptionally strong across power markets, with AI adding another structural driver to global power demand, which is expected to double by 2040.”