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Baker Hughes Q1 Earnings Beat Estimates on IET Segment Strength
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Key Takeaways
Baker Hughes posted Q1 2026 EPS of 58 cents, beating estimates and increasing from 51 cents year over year.
Baker Hughes' IET revenues rose 14% and EBITDA increased 35%, driving overall growth.
BKR orders surged 26% to $8.2B, reflecting strong demand across segments.
Baker Hughes Company (BKR - Free Report) reported first-quarter 2026 adjusted earnings of 58 cents per share, which beat the Zacks Consensus Estimate of 50 cents. The bottom line increased from the year-ago level of 51 cents.
Total quarterly revenues of $6,587 million beat the Zacks Consensus Estimate of $6,338.4 million. The top line increased from the year-ago quarter’s $6,427 million.
The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
Baker Hughes Company Price, Consensus and EPS Surprise
Revenues from the Oilfield Services and Equipment (“OFSE”) unit amounted to $3,237 million, down 7% from the year-ago figure of $3,499 million. The decrease was due to the SPC disposition and heightened regional instability in the Middle East.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from the segment totaled $565 million, down 9% from $623 million in the first quarter of 2025.
Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $3,350 million, up 14% from the year-ago quarter’s $2,928 million. The improvement was due to growth in Gas Technology Equipment and Gas Technology Services, partially offset by Industrial Solutions following the PSI disposition.
EBITDA from the segment totaled $678 million, up 35% year over year from $501 million, driven by productivity, volume, favorable pricing and foreign exchange rate movements, partially offset by inflation.
BKR: Costs and Expenses
Baker Hughes recorded total costs and expenses of $5,313 million in the first quarter, lower than the year-ago figure of $5,866 million.
BKR’s Orders
Orders across all business segments totaled $8.2 billion, up 26% from $6.5 billion recorded a year ago. The increase was driven by higher order intake from IET business segments.
Free Cash Flow of BKR
Baker Hughes generated a free cash flow of $210 million in the first quarter of 2026, down from the $454 million recorded a year ago.
BKR: Capex & Balance Sheet
BKR’s net capital expenditure in the first quarter of 2026 was $290 million.
As of March 31, 2026, the company had cash and cash equivalents of $14.8 billion. BKR had a long-term debt of $15.4 billion at the end of the reported quarter, with a debt-to-capitalization of 45.3%.
BKR’s Outlook
Baker Hughes, carrying a Zacks Rank #3 (Hold), expects steady performance in the second quarter of 2026, with revenues projected to be between $6.25 billion and $6.75 billion and adjusted EBITDA to be in the range of $1.04 billion to $1.22 billion. The OFSE segment is anticipated to generate $490 million to $590 million in EBITDA, while IET EBITDA is expected to be between $630 million and $710 million during the same period.
For full-year 2026, the company forecasts revenues to be in the range of $26.2 billion to $28.3 billion and adjusted EBITDA to be between $4.55 billion and $5.15 billion. OFSE segment EBITDA is expected to be in the range of $2.3-$2.6 billion, while IET is predicted to generate $2.6 billion to $2.8 billion in EBITDA during the same period. The outlook assumes limited geopolitical escalation in the Middle East and manageable supply chain constraints, with IET orders estimated at $13.5 billion to $15.5 billion for the year.
Houston-based TechnipFMC is a leading manufacturer and supplier of equipment, services and fully integrated technology solutions for the energy industry. FTI designs, manufactures and services equipment for subsea, offshore and onshore energy projects. Favorable oil prices in the March-ended quarter, with the U.S. Energy Information Administration (“EIA”) reporting Cushing, OK WTI spot prices of $60.04, $64.51 and $91.38 per barrel for January, February and March 2026, respectively, are likely to have boosted the performance of exploration companies, which in turn likely have increased demand for FTI’s oilfield equipment and services, supporting earnings during the quarter. FTI is set to release first-quarter 2026 earnings on April 30, 2026.
NCS Multistage has a strong foothold in key well construction and completion technologies. NCSM supplies products and services mainly to exploration and production companies for use in both onshore and offshore wells, across both unconventional and conventional oil and gas formations. Similarly, NCSM is likely to have enhanced its overall performance by the end of first quarter of 2026, driven by a favorable oil pricing environment. NCSM is set to release first-quarter 2026 earnings on April 30, 2026.
Kinder Morgan reported first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion.
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Baker Hughes Q1 Earnings Beat Estimates on IET Segment Strength
Key Takeaways
Baker Hughes Company (BKR - Free Report) reported first-quarter 2026 adjusted earnings of 58 cents per share, which beat the Zacks Consensus Estimate of 50 cents. The bottom line increased from the year-ago level of 51 cents.
Total quarterly revenues of $6,587 million beat the Zacks Consensus Estimate of $6,338.4 million. The top line increased from the year-ago quarter’s $6,427 million.
The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
Segmental Performance of BKR
Revenues from the Oilfield Services and Equipment (“OFSE”) unit amounted to $3,237 million, down 7% from the year-ago figure of $3,499 million. The decrease was due to the SPC disposition and heightened regional instability in the Middle East.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from the segment totaled $565 million, down 9% from $623 million in the first quarter of 2025.
Revenues from the Industrial & Energy Technology (“IET”) unit amounted to $3,350 million, up 14% from the year-ago quarter’s $2,928 million. The improvement was due to growth in Gas Technology Equipment and Gas Technology Services, partially offset by Industrial Solutions following the PSI disposition.
EBITDA from the segment totaled $678 million, up 35% year over year from $501 million, driven by productivity, volume, favorable pricing and foreign exchange rate movements, partially offset by inflation.
BKR: Costs and Expenses
Baker Hughes recorded total costs and expenses of $5,313 million in the first quarter, lower than the year-ago figure of $5,866 million.
BKR’s Orders
Orders across all business segments totaled $8.2 billion, up 26% from $6.5 billion recorded a year ago. The increase was driven by higher order intake from IET business segments.
Free Cash Flow of BKR
Baker Hughes generated a free cash flow of $210 million in the first quarter of 2026, down from the $454 million recorded a year ago.
BKR: Capex & Balance Sheet
BKR’s net capital expenditure in the first quarter of 2026 was $290 million.
As of March 31, 2026, the company had cash and cash equivalents of $14.8 billion. BKR had a long-term debt of $15.4 billion at the end of the reported quarter, with a debt-to-capitalization of 45.3%.
BKR’s Outlook
Baker Hughes, carrying a Zacks Rank #3 (Hold), expects steady performance in the second quarter of 2026, with revenues projected to be between $6.25 billion and $6.75 billion and adjusted EBITDA to be in the range of $1.04 billion to $1.22 billion. The OFSE segment is anticipated to generate $490 million to $590 million in EBITDA, while IET EBITDA is expected to be between $630 million and $710 million during the same period.
For full-year 2026, the company forecasts revenues to be in the range of $26.2 billion to $28.3 billion and adjusted EBITDA to be between $4.55 billion and $5.15 billion. OFSE segment EBITDA is expected to be in the range of $2.3-$2.6 billion, while IET is predicted to generate $2.6 billion to $2.8 billion in EBITDA during the same period. The outlook assumes limited geopolitical escalation in the Middle East and manageable supply chain constraints, with IET orders estimated at $13.5 billion to $15.5 billion for the year.
Stocks to Consider
Some better-ranked stocks from the energy sector are TechnipFMC plc (FTI - Free Report) , NCS Multistage Holdings, Inc. (NCSM - Free Report) and Kinder Morgan, Inc. (KMI - Free Report) . FTI and NCSM each sport a Zacks Rank #1 (Strong Buy), while KMI has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Houston-based TechnipFMC is a leading manufacturer and supplier of equipment, services and fully integrated technology solutions for the energy industry. FTI designs, manufactures and services equipment for subsea, offshore and onshore energy projects. Favorable oil prices in the March-ended quarter, with the U.S. Energy Information Administration (“EIA”) reporting Cushing, OK WTI spot prices of $60.04, $64.51 and $91.38 per barrel for January, February and March 2026, respectively, are likely to have boosted the performance of exploration companies, which in turn likely have increased demand for FTI’s oilfield equipment and services, supporting earnings during the quarter. FTI is set to release first-quarter 2026 earnings on April 30, 2026.
NCS Multistage has a strong foothold in key well construction and completion technologies. NCSM supplies products and services mainly to exploration and production companies for use in both onshore and offshore wells, across both unconventional and conventional oil and gas formations. Similarly, NCSM is likely to have enhanced its overall performance by the end of first quarter of 2026, driven by a favorable oil pricing environment. NCSM is set to release first-quarter 2026 earnings on April 30, 2026.
Kinder Morgan reported first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion.