Baker Hughes Announces First-Quarter 2026 Results
Rhea-AI Summary
Baker Hughes (Nasdaq: BKR) reported Q1 2026 results: revenue $6,587M (down 11% sequential, +2% YoY) and net income $930M (+131% YoY). IET delivered record orders of $4.9B and a record backlog of $33.1B with IET book-to-bill of 1.5x. Adjusted EBITDA was $1,158M and adjusted net income was $573M. Cash flow from operations was $500M and free cash flow was $210M. Portfolio actions are expected to generate ~$3B gross proceeds in 2026.
AI-generated analysis. Not financial advice.
Positive
- IET record orders of $4.9B this quarter
- IET record backlog of $33.1B (book-to-bill 1.5x)
- Net income $930M, up 131% year-over-year
- Portfolio sales expected to generate ~$3.0B in 2026 proceeds
Negative
- Revenue declined 11% sequential to $6,587M
- Cash flow from operations fell to $500M (70% sequential decline)
- Free cash flow decreased to $210M (84% sequential decline)
- Adjusted EBITDA down 13% sequential to $1,158M
News Market Reaction – BKR
On the day this news was published, BKR gained 6.90%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.4% during that session. Our momentum scanner triggered 92 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $4.47B to the company's valuation, bringing the market cap to $69.28B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BKR’s move contrasts with mixed peer action: SLB (0.33), HAL (1.38), TS (0.61), NOV (1.71), and FTI (-0.17). With no peers in the momentum scanner, trading appears more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 13 | Business divestiture | Positive | -0.4% | Agreed sale of Waygate Technologies for about $1.45B to streamline portfolio. |
| Apr 07 | Contract win | Positive | +0.9% | Order for NovaLT16 turbines and compressors supporting Argentina gas pipeline. |
| Mar 24 | AI collaboration | Positive | +1.5% | Announced Google Cloud partnership for AI-enabled power optimization in data centers. |
| Mar 23 | LNG project role | Positive | +3.6% | Selected to supply compression and power equipment for 8.4 MTPA offshore LNG project. |
| Mar 20 | Earnings schedule | Neutral | -0.6% | Announced timing for Q1 2026 earnings release and webcast. |
Recent operational and strategic announcements have usually seen modest positive price reactions, except for the Waygate sale and earnings-date notice, which saw small declines, indicating occasional divergence on portfolio or housekeeping news.
Over the last month, Baker Hughes has announced several growth-oriented developments, including LNG and gas technology contracts, an AI-focused collaboration with Google Cloud, and a major offshore LNG technology role. It also agreed to divest Waygate Technologies for about $1.45 billion and scheduled its earnings release. Most contract and technology wins were followed by positive price moves, while portfolio and timing updates saw slight negative reactions.
Market Pulse Summary
The stock moved +6.9% in the session following this news. A strong positive reaction aligns with Baker Hughes reporting higher year-over-year revenue of $6,587 million, record IET orders of $4.9 billion, and GAAP net income of $930 million. However, investors may have weighed softer sequential trends in adjusted earnings and free cash flow of $210 million. Historical data show most growth and contract headlines produced only modest gains, so any large move could later depend on how cash generation and portfolio actions evolve.
Key Terms
book-to-bill financial
free cash flow financial
adjusted EBITDA financial
non-GAAP financial
GAAP financial
IPO financial
remaining performance obligations financial
EBITDA margin financial
AI-generated analysis. Not financial advice.
HOUSTON and LONDON, April 23, 2026 (GLOBE NEWSWIRE) -- Baker Hughes Company (Nasdaq: BKR) ("Baker Hughes" or the "Company") announced results today for the first quarter of 2026.
"Our exceptional first-quarter performance highlights the strength of our portfolio and the momentum we are building as we progress through Horizon 2(1). Despite significant disruptions in the Middle East, our teams executed at a high level and delivered results that exceeded our guidance range. Although we recognize this achievement, we continue to prioritize the safety and wellbeing of our employees and their families in the region," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.
"In IET, we delivered another outstanding quarter, with record orders of
"The Baker Hughes Business System is strengthening our operating results, supporting disciplined execution, and positioning us for continued growth, higher margins, and stronger free cash flow. Both OFSE and IET delivered strong results amid Middle East disruptions, underscoring the versatility and durability of the portfolios."
"We also continue to advance our portfolio management strategy, including the recently announced divestiture of Waygate Technologies, which combined with the two transactions that closed in the quarter, is expected to generate gross proceeds of approximately
"Looking ahead, our outlook for the business fundamentals remains unchanged, excluding the ongoing impacts in the Middle East. While the conflict presents near-term challenges, it is further reinforcing energy security as a priority, which is expected to support structural growth in upstream and global energy infrastructure spending. Ultimately, we remain confident in our strategy and our ability to deliver long-term value for shareholders," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
_____________________
(1) Horizon 2 represents 2026-2028.
| Three Months Ended | Variance | ||||||||
| (in millions except per share amounts) | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | ||||
| Orders | $ | 8,159 | $ | 7,886 | $ | 6,459 | |||
| Revenue | 6,587 | 7,386 | 6,427 | ( | |||||
| Net income attributable to Baker Hughes | 930 | 876 | 402 | F | |||||
| Adjusted net income attributable to Baker Hughes* | 573 | 772 | 509 | ( | |||||
| Adjusted EBITDA* | 1,158 | 1,337 | 1,037 | ( | |||||
| Diluted earnings per share (EPS) | 0.93 | 0.88 | 0.40 | F | |||||
| Adjusted diluted EPS* | 0.58 | 0.78 | 0.51 | ( | |||||
| Cash flow from operating activities | 500 | 1,662 | 709 | ( | ( | ||||
| Free cash flow* | 210 | 1,341 | 454 | ( | ( | ||||
* 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
Quarter Highlights
Executing our portfolio management strategy
- Closed the previously announced joint venture with a subsidiary of Cactus, Inc., in which Baker Hughes contributed its surface pressure control product line, strengthening the Company's balance sheet and liquidity with
$344.5 million of proceeds before customary closing adjustments, while retaining a35% ownership stake. - Completed the previously announced sale of the Precision Sensors & Instrumentation (PSI) product line to Crane Company, with proceeds of
$1.15 billion before customary closing adjustments. - The Baker Hughes minority-owned drilling equipment company, HMH, completed its IPO in April 2026, raising approximately
$200 million . - In April, announced sale of Waygate Technologies business to Hexagon in an all-cash transaction for approximately
$1.45 billion , before customary closing adjustments.
Key awards and technology achievements
Leveraging enterprise-wide capabilities
- Entered into a strategic collaboration with XGS Energy and received an initial engineering award to advance its planned 150-megawatt geothermal project in New Mexico. The companies will initially partner on the subsurface exploration and the integrated surface engineering phases to derisk operations and establish a strong technical foundation for the utility-scale deployment of XGS’s geothermal technology. The project will support the delivery of clean, baseload power to the Public Service Company of New Mexico’s grid in support of Meta’s data center operations.
Industrial & Energy Technology
Industrial & Energy Technology (“IET”) secured important awards and agreements across diverse end markets and capabilities.
- Converted a fourth-quarter 2025 slot reservation agreement to a major integrated solution award for a critical infrastructure project in North America. The scope includes engineering services, 60 NovaLT™ gas turbines, and 60 BRUSH™ Power Generation electric generators, as well as gears technology and long-term support services. Once delivered, the solutions will provide up to 1 gigawatt (GW) of reliable, efficient power.
- Following an initial contract in the fourth quarter of 2025, Baker Hughes received a second contract for engineering and design to integrate its technology into Hydrostor’s advanced compressed air energy storage system in the U.S. This award is part of a previously announced collaboration that includes up to 1.4 GW of potential Baker Hughes equipment orders for Hydrostor’s flagship projects in the U.S. and Australia.
- Secured an order from Hitachi Energy to supply synchronous condenser systems for grid stability in Australia. The scope includes the design, manufacturing, installation and commissioning of four synchronous condensers, delivering system reliability and resiliency as critical grids become more reliant on intermittent power.
- Received an award from Boom Supersonic for electric generators that will deliver 1.21 gigawatts of highly efficient and reliable power generation capacity for an advanced artificial intelligence (“AI”) data center. The award includes 25 BRUSH™ Power Generation generators, along with Automatic Voltage Regulators (AVRs) and cubicles, to be paired with Boom’s gas turbines.
- Announced a collaboration with Google Cloud to develop advanced AI-enabled power optimization and sustainability solutions for the global data center sector. The companies will work together to unlock greater value from underutilized industrial and operational data across data center environments using Google Cloud’s AI and data analytics services. By combining Baker Hughes’ deep domain expertise in turbomachinery and power systems performance with Google Cloud’s AI and data analytics services, the collaboration aims to provide enterprise-scale solutions that enhance efficiency, improve reliability, and reduce the cognitive load of data center operators in managing multiple power generation sources.
- Baker Hughes will supply gas compression units to San Matias Pipeline S.A. in Argentina, supporting natural gas transportation from Vaca Muerta to the Gulf of San Matias. The order includes three NovaLT™16 gas turbines paired with three centrifugal compressors, iCenter™ remote monitoring and diagnostic digital services, commissioning, and associated spare parts. The award represents the first NovaLT™ technology deployment in South America.
- Received a major LNG equipment award for the main refrigerant compressor train and power generation packages across two LNG "mega trains" from QatarEnergy LNG for the North Field West project. The award includes six Frame 9 gas turbines and 12 centrifugal compressors, as well as integrated power solutions utilizing three Frame 6 gas turbines and three BRUSH™ Power Generation generators.
- Signed an agreement with ST LNG under which Baker Hughes will supply critical gas compression, power generation equipment, and project development support for the customer’s proposed 8.4 million tonnes per annum (MTPA) liquefied natural gas (LNG) export terminal offshore of Matagorda, Texas.
- Awarded a significant contract to supply key compression and pumping technologies for a QatarEnergy LNG large‑scale carbon capture and transport facility. The order includes six centrifugal compressor trains driven by variable speed electric motors, designed to capture and transport up to 4.1 million tons of CO₂ annually.
- Won a significant order to supply an advanced electric motor‑driven centrifugal compression solution, supporting offshore operations in the Middle East. The scope includes gas injection, wet gas booster and dry gas compression solutions, designed for complex operations with high‑power requirements and demanding operating conditions.
- Secured a substantial five-year aftermarket services award from Petrobras to support critical turbomachinery across Brazil’s offshore operations and a large refinery. The contract covers maintenance, repair and engineering advisory services for up to 64 aeroderivative gas turbines across approximately 19 FPSOs.
- Secured several Industrial Solutions contracts, deploying Cordant™ Asset Health solutions to enhance the reliability of key equipment at an NOC’s LNG pre-conditioning facility, as well as at Basin Electric Power Cooperative’s Bison Generation station, a nearly 1.5 GW combined cycle power plant in the United States.
Oilfield Services & Equipment
Oilfield Services & Equipment (“OFSE”) secured strategic orders and agreements across key product lines and geographies.
- Signed a major contract, following open tender, with Petrobras to provide 91 km of flexible pipe systems to support production in Brazil’s pre-salt and post-salt fields. The multiyear agreement includes risers and flowlines for oil and gas production and gas injection, along with associated storage, maintenance and installation services with delivery expected to begin in early 2027.
- Signed a major contract extension with Petrobras to provide integrated workover plug & abandonment (“P&A”) solutions for one of the world’s largest offshore P&A projects.
- Signed a significant 3-year contract to provide well construction technology for YPF Argentina to support the Vaca Muerta unconventional shale development in the country. YPF will utilize the Lucida RSS technology along with PermaFORCE drill bits to support efficiently drilling longer and deeper wells in a single run.
- Signed a substantial multiyear agreement with Marathon Petroleum to become the preferred provider for hydrocarbon treatment products and services at 12 refineries and two renewable fuels facilities across North America.
- Awarded a contract to provide subsea production systems, including deepwater horizontal tree systems, manifolds, subsea distribution infrastructure, and subsea and topside control units, in the Black Sea for five wells for Turkish Petroleum, helping to secure natural gas supply for Türkiye.
- Gulf Energy E&P BV-Kenya awarded Baker Hughes a significant Integrated Solutions project to drill and complete 43 wells in the South Lokichar basin, marking the Company’s first fully integrated project in Sub-Saharan Africa. The scope includes well construction, artificial lift services, completions, intervention and measurement.
Consolidated Financial Results
Revenue for the quarter was
The Company's total book-to-bill ratio in the first quarter of 2026 was 1.2; the IET book-to-bill ratio was 1.5.
Net income, as determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the first quarter of 2026, was
Adjusted net income (a non-GAAP financial measure) for the first quarter of 2026 was
Depreciation and amortization for the first quarter of 2026 was
Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2026 was
The sequential decrease in adjusted net income and Adjusted EBITDA was primarily driven by lower volume, the PSI and Surface Pressure Control (SPC) dispositions, and change in business mix, partially offset by productivity and cost-out initiatives.
The year-over-year increase in adjusted net income and Adjusted EBITDA was primarily driven by productivity, cost-out initiatives, FX, and price, partially offset by inflation, lower volume, change in business mix, and the PSI and SPC dispositions.
Other Financial Items
Remaining Performance Obligations ("RPO") in the first quarter of 2026 ended at
Income tax expense in the first quarter of 2026 was
Other (income) expense, net in the first quarter of 2026 was
GAAP diluted earnings per share was
Cash flow from operating activities was
Capital expenditures, net of proceeds from disposal of assets, were
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
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Segment results | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | |||||||||
| Orders | $ | 3,272 | $ | 3,862 | $ | 3,281 | (15 | %) | — | % | ||||
| Revenue | $ | 3,237 | $ | 3,572 | $ | 3,499 | (9 | %) | (7 | %) | ||||
| EBITDA | $ | 565 | $ | 647 | $ | 623 | (13 | %) | (9 | %) | ||||
| EBITDA margin | 17.4 | % | 18.1 | % | 17.8 | % | -0.7pts | -0.4pts | ||||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Revenue by Product Line | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | |||||||||
| Well Construction | $ | 843 | $ | 880 | $ | 892 | (4 | %) | (5 | %) | ||||
| Completions, Intervention, and Measurements | 883 | 944 | 925 | (6 | %) | (5 | %) | |||||||
| Production Solutions | 898 | 973 | 899 | (8 | %) | — | % | |||||||
| Subsea & Surface Pressure Systems | 613 | 775 | 782 | (21 | %) | (22 | %) | |||||||
| Total Revenue | $ | 3,237 | $ | 3,572 | $ | 3,499 | (9 | %) | (7 | %) | ||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Revenue by Geographic Region | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | |||||||||
| North America | $ | 927 | $ | 943 | $ | 922 | (2 | %) | 1 | % | ||||
| Latin America | 600 | 613 | 568 | (2 | %) | 6 | % | |||||||
| Europe/CIS/Sub-Saharan Africa | 558 | 624 | 580 | (10 | %) | (4 | %) | |||||||
| Middle East/Asia | 1,152 | 1,392 | 1,429 | (17 | %) | (19 | %) | |||||||
| Total Revenue | $ | 3,237 | $ | 3,572 | $ | 3,499 | (9 | %) | (7 | %) | ||||
| North America | $ | 927 | $ | 943 | $ | 922 | (2 | %) | 1 | % | ||||
| International | $ | 2,310 | $ | 2,629 | $ | 2,577 | (12 | %) | (10 | %) | ||||
EBITDA excludes depreciation and amortization of
"F" is used in the above table when variance is above
OFSE orders of
OFSE revenue of
North America revenue was
Segment EBITDA for the first quarter of 2026 was
Industrial & Energy Technology
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Segment results | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | |||||||||
| Orders | $ | 4,887 | $ | 4,024 | $ | 3,178 | 21 | % | 54 | % | ||||
| Revenue | $ | 3,350 | $ | 3,814 | $ | 2,928 | (12 | %) | 14 | % | ||||
| EBITDA | $ | 678 | $ | 761 | $ | 501 | (11 | %) | 35 | % | ||||
| EBITDA margin | 20.2 | % | 20.0 | % | 17.1 | % | 0.3pts | 3.1pts | ||||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Orders by Product Line | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | |||||||||
| Gas Technology Equipment | $ | 1,824 | $ | 1,785 | $ | 1,335 | 2 | % | 37 | % | ||||
| Gas Technology Services | 973 | 974 | 913 | — | % | 7 | % | |||||||
| Total Gas Technology | 2,797 | 2,759 | 2,248 | 1 | % | 24 | % | |||||||
| Industrial Products | 604 | 603 | 501 | — | % | 21 | % | |||||||
| Industrial Solutions | 229 | 352 | 281 | (35 | %) | (19 | %) | |||||||
| Total Industrial Technology | 833 | 955 | 782 | (13 | %) | 7 | % | |||||||
| Climate Technology Solutions | 1,257 | 310 | 148 | F | F | |||||||||
| Total Orders | $ | 4,887 | $ | 4,024 | $ | 3,178 | 21 | % | 54 | % | ||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Revenue by Product Line | March 31, 2026 | December 31, 2025 | March 31, 2025 | Sequential | Year-over- year | |||||||||
| Gas Technology Equipment | $ | 1,665 | $ | 1,852 | $ | 1,456 | (10 | %) | 14 | % | ||||
| Gas Technology Services | 791 | 881 | 592 | (10 | %) | 34 | % | |||||||
| Total Gas Technology | 2,456 | 2,733 | 2,047 | (10 | %) | 20 | % | |||||||
| Industrial Products | 491 | 547 | 445 | (10 | %) | 10 | % | |||||||
| Industrial Solutions | 185 | 304 | 258 | (39 | %) | (28 | %) | |||||||
| Total Industrial Technology | 676 | 851 | 703 | (21 | %) | (4 | %) | |||||||
| Climate Technology Solutions | 218 | 229 | 178 | (4 | %) | 23 | % | |||||||
| Total Revenue | $ | 3,350 | $ | 3,814 | $ | 2,928 | (12 | %) | 14 | % | ||||
EBITDA excludes depreciation and amortization of
"F" is used in the above table when variance is above
IET orders of
IET revenue of
Segment EBITDA for the quarter was
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 Months Ended | ||||||||
| (in millions) | March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||
| Net income attributable to Baker Hughes (GAAP) | $ | 930 | $ | 876 | $ | 402 | ||
| Net income attributable to noncontrolling interests | 8 | 11 | 7 | |||||
| Provision for income taxes | 336 | (359 | ) | 152 | ||||
| Interest expense, net | 86 | 61 | 51 | |||||
| Depreciation & amortization | 354 | 323 | 285 | |||||
| Restructuring | 37 | 215 | — | |||||
| Inventory impairment | 2 | 22 | — | |||||
| Gain on business dispositions(1) | (721 | ) | — | — | ||||
| Change in fair value of equity securities(1) | 50 | 74 | 140 | |||||
| Transaction related costs(1) | 28 | 49 | — | |||||
| Other charges and credits(1) | 48 | 65 | — | |||||
| Adjusted EBITDA (non-GAAP) | 1,158 | 1,337 | 1,037 | |||||
| Corporate costs | 74 | 79 | 85 | |||||
| Other (income) / expense not allocated to segments | 11 | (8 | ) | 1 | ||||
| Total Segment EBITDA (non-GAAP) | $ | 1,243 | $ | 1,408 | $ | 1,124 | ||
| OFSE | 565 | 647 | 623 | |||||
| IET | 678 | 761 | 501 | |||||
(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
| Three Months Ended | |||||||||
| (in millions, except per share amounts) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||
| Net income attributable to Baker Hughes (GAAP) | $ | 930 | $ | 876 | $ | 402 | |||
| Restructuring | 37 | 215 | — | ||||||
| Inventory impairment | 2 | 22 | — | ||||||
| Gain on business dispositions | (721 | ) | — | — | |||||
| Change in fair value of equity securities | 50 | 74 | 140 | ||||||
| Transaction related costs(1) | 72 | 63 | — | ||||||
| Other adjustments | 48 | 63 | — | ||||||
| Tax adjustments(2) | 155 | (541 | ) | (32 | ) | ||||
| Total adjustments, net of income tax | (357 | ) | (104 | ) | 108 | ||||
| Less: adjustments attributable to noncontrolling interests | — | — | — | ||||||
| Adjustments attributable to Baker Hughes | (357 | ) | (104 | ) | 108 | ||||
| Adjusted net income attributable to Baker Hughes (non-GAAP) | $ | 573 | $ | 772 | $ | 509 | |||
| Denominator: | |||||||||
| Weighted-average shares of Class A common stock outstanding diluted | 996 | 994 | 999 | ||||||
| Earnings per share - diluted (GAAP) | $ | 0.93 | $ | 0.88 | $ | 0.40 | |||
| Total adjustments per share, net of income tax | (0.35 | ) | (0.10 | ) | 0.11 | ||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.58 | $ | 0.78 | $ | 0.51 | |||
(1) For the periods ending March 31, 2026 and December 31, 2025, transaction related costs include
(2) All periods reflect the tax associated with the other (income) loss adjustments. The period ending March 31, 2026 includes
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 Months Ended | |||||||||
| (in millions) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||
| Net cash flows from operating activities (GAAP) | $ | 500 | $ | 1,662 | $ | 709 | |||
| Add: cash used for capital expenditures, net of proceeds from disposal of assets | (290 | ) | (321 | ) | (255 | ) | |||
| Free cash flow (non-GAAP) | $ | 210 | $ | 1,341 | $ | 454 | |||
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.
| Financial Tables (GAAP) Condensed Consolidated Statements of Income (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| (In millions, except per share amounts) | 2026 | 2025 | ||||
| Revenue | $ | 6,587 | $ | 6,427 | ||
| Costs and expenses: | ||||||
| Cost of revenue | 5,083 | 4,952 | ||||
| Selling, general and administrative | 562 | 577 | ||||
| Research and development costs | 133 | 146 | ||||
| Restructuring | 37 | — | ||||
| Other (income) expense, net | (588 | ) | 140 | |||
| Interest expense, net | 86 | 51 | ||||
| Income before income taxes | 1,274 | 561 | ||||
| Provision for income taxes | (336 | ) | (152 | ) | ||
| Net income | 938 | 409 | ||||
| Less: Net income attributable to noncontrolling interests | 8 | 7 | ||||
| Net income attributable to Baker Hughes Company | $ | 930 | $ | 402 | ||
| Per share amounts: | ||||||
| Basic income per Class A common stock | $ | 0.94 | $ | 0.41 | ||
| Diluted income per Class A common stock | $ | 0.93 | $ | 0.40 | ||
| Weighted average shares: | ||||||
| Class A basic | 990 | 992 | ||||
| Class A diluted | 996 | 999 | ||||
| Cash dividend per Class A common stock | $ | 0.23 | $ | 0.23 | ||
| Condensed Consolidated Statements of Financial Position (Unaudited) | ||||||
| (In millions) | March 31, 2026 | December 31, 2025 | ||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 14,764 | $ | 3,715 | ||
| Current receivables, net | 6,696 | 6,641 | ||||
| Inventories, net | 4,868 | 4,954 | ||||
| All other current assets | 2,263 | 3,518 | ||||
| Total current assets | 28,591 | 18,828 | ||||
| Property, plant and equipment, less accumulated depreciation | 5,540 | 5,326 | ||||
| Goodwill | 6,032 | 6,068 | ||||
| Other intangible assets, net | 4,073 | 4,097 | ||||
| Contract and other deferred assets | 1,747 | 1,620 | ||||
| All other assets | 4,913 | 4,942 | ||||
| Total assets | $ | 50,896 | $ | 40,881 | ||
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts payable | $ | 4,257 | $ | 4,579 | ||
| Short-term debt | 753 | 689 | ||||
| Progress collections and deferred income | 5,999 | 5,904 | ||||
| All other current liabilities | 2,404 | 2,705 | ||||
| Total current liabilities | 13,413 | 13,877 | ||||
| Long-term debt | 15,411 | 5,398 | ||||
| Liabilities for pensions and other postretirement benefits | 1,041 | 1,066 | ||||
| All other liabilities | 1,541 | 1,530 | ||||
| Equity | 19,490 | 19,010 | ||||
| Total liabilities and equity | $ | 50,896 | $ | 40,881 | ||
| Outstanding Baker Hughes Company shares: | ||||||
| Class A common stock | 992 | 987 | ||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
| Three Months Ended March 31, | ||||||
| (In millions) | 2026 | 2025 | ||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 938 | $ | 409 | ||
| Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
| Depreciation and amortization | 354 | 285 | ||||
| Stock-based compensation cost | 45 | 50 | ||||
| Change in fair value of equity securities | 50 | 140 | ||||
| Gain on business dispositions | (721 | ) | — | |||
| (Benefit) provision for deferred income taxes | 224 | (53 | ) | |||
| Working capital | (173 | ) | 218 | |||
| Other operating items, net | (217 | ) | (340 | ) | ||
| Net cash flows provided by operating activities | 500 | 709 | ||||
| Cash flows from investing activities: | ||||||
| Expenditures for capital assets | (336 | ) | (300 | ) | ||
| Proceeds from disposal of assets | 46 | 45 | ||||
| Proceeds from business dispositions | 1,381 | — | ||||
| Other investing items, net | (53 | ) | (55 | ) | ||
| Net cash flows provided by (used in) investing activities | 1,038 | (310 | ) | |||
| Cash flows from financing activities: | ||||||
| Proceeds from issuance of long-term debt | 9,885 | — | ||||
| Dividends paid | (228 | ) | (229 | ) | ||
| Repurchase of Class A common stock | — | (188 | ) | |||
| Other financing items, net | (134 | ) | (85 | ) | ||
| Net cash flows provided by (used in) financing activities | 9,523 | (502 | ) | |||
| Effect of currency exchange rate changes on cash and cash equivalents | (12 | ) | 16 | |||
| (Decrease) increase in cash and cash equivalents | 11,049 | (87 | ) | |||
| Cash and cash equivalents, beginning of period | 3,715 | 3,364 | ||||
| Cash and cash equivalents, end of period | $ | 14,764 | $ | 3,277 | ||
| Supplemental cash flows disclosures: | ||||||
| Income taxes paid, net of refunds | $ | 188 | $ | 207 | ||
| Interest paid | $ | 56 | $ | 50 | ||
Supplemental Financial Information
Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.
Conference Call and Webcast
The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Friday, April 24, 2026, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company's website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K for the annual period ended December 31, 2025 and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: https://investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.
These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:
- 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.
- 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
