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BKR Q3 Earnings Beat Estimates on Strong IET Growth & Chart Gains
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Key Takeaways
BKR's Q3 adjusted EPS rose 2% to 70 cents, beating estimates by 11.1%, while revenues rose 14% to $8.03B.
BKR's IET orders increased 42% to $5.89 billion, with record performance obligations reaching $39.4 billion.
BKR expects 2026 IET orders to be between $21.5B and $23.5B & targets more than $50B in orders through 2028.
Baker Hughes Company (BKR - Free Report) reported adjusted earnings per share (EPS) of 70 cents in the third quarter of 2026, beating the Zacks Consensus Estimate of 63 cents by 11.1%. The bottom line rose 2% to 68 cents per share from the year-ago figure.
Quarterly revenues of $8.03 billion surpassed the consensus estimate of $7.76 billion by 3.4% and increased 14% year over year.
Strong quarterly results were driven by robust order momentum in Industrial and Energy Technology (IET), a recovery in international oilfield activity and incremental contributions from the Chart acquisition.
Total orders reached $10.76 billion, up 31% from $8.21 billion a year earlier.
Baker Hughes Company Price, Consensus and EPS Surprise
Reported revenues totaled $8.03 billion. Acquisitions and divestitures contributed a net 9% to year-over-year revenue growth, with the Chart acquisition being the primary contributor.
The company completed the Chart acquisition on July 16, 2026, expanding its capabilities in cryogenic technologies, thermal management and industrial gases. Chart contributed $888 million in revenues during the quarter, comprising $623 million from original equipment and $265 million from aftermarket operations.
Baker Hughes' IET Segment Sees Strong Order Momentum
IET revenues increased 3% year over year to $3.48 billion. Growth in Gas Technology Services and Climate Technology Solutions was partly offset by lower Gas Technology Equipment revenues, Industrial Solutions revenues and the impact of portfolio divestitures.
Segment EBITDA increased 8% year over year to $685 million.
IET orders rose 42% year over year to $5.89 billion, driven by demand across power generation, gas infrastructure and offshore production. The segment's remaining performance obligations reached a record $39.4 billion, increasing 23% year over year. Major awards included 1.1 gigawatts of power generation capacity for a U.S. technology company.
BKR's Oilfield Business Shows Sequential Improvement
Oilfield Services & Equipment (OFSE) revenues totaled $3.66 billion, up 1% year over year. The increase was primarily driven by higher activity in Europe/CIS/Sub-Saharan Africa and Latin America, partially offset by lower revenues in the Middle East/Asia region, reflecting the impact of the Surface Pressure Control disposition.
Segment EBITDA declined 2% year over year to $659 million.
OFSE orders totaled $4.05 billion, declining 1% from $4.07 billion recorded in the year-ago quarter.
Baker Hughes' Profitability
Adjusted EBITDA increased 14% year over year to $1.42 billion.
GAAP net income attributable to Baker Hughes declined 33% year over year to $411 million. GAAP earnings were 41 cents per share compared with 61 cents in the prior-year quarter. Transaction-related costs and higher interest expenses weighed on reported profitability.
As of Sept. 30, 2026, BKR had cash and cash equivalents of $4.07 billion and long-term debt of $17.48 billion. The company's leverage ratio reached 2.5 times at quarter-end, primarily reflecting debt incurred to finance the Chart acquisition.
Management prioritized debt reduction over share repurchases. Baker Hughes expects to begin repaying debt in the fourth quarter, supported by free cash flow and proceeds from the planned Waygate Technologies divestiture. The company targets net leverage below 1.5 times by the second half of 2028.
Baker Hughes' Cash Flow Trends
Operating cash flow increased 8% to $1.01 billion from the year-ago figure of $929 million. Free cash flow rose 10% to $769 million, despite approximately $200 million in Chart-related integration, restructuring and closing costs.
BKR Raises IET Orders Outlook for 2026
For the fourth quarter of 2026, management expects revenues between $7.80 billion and $8.70 billion, with adjusted EBITDA to be in the range of $1.33-$1.60 billion.
Full-year revenues are projected between $29.16 billion and $30.06 billion. Adjusted EBITDA is expected to be in the range of $5.13-$5.40 billion, exceeding prior expectations.
The company raised its full-year IET orders outlook to $21.5-$23.5 billion, reflecting sustained demand across LNG, data centers and gas infrastructure. It increased its cumulative IET orders target for 2026-2028 to more than $50 billion.
BKR’s Zacks Rank & Other Key Picks
Baker Hughes currently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
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BKR Q3 Earnings Beat Estimates on Strong IET Growth & Chart Gains
Key Takeaways
Baker Hughes Company (BKR - Free Report) reported adjusted earnings per share (EPS) of 70 cents in the third quarter of 2026, beating the Zacks Consensus Estimate of 63 cents by 11.1%. The bottom line rose 2% to 68 cents per share from the year-ago figure.
Quarterly revenues of $8.03 billion surpassed the consensus estimate of $7.76 billion by 3.4% and increased 14% year over year.
Strong quarterly results were driven by robust order momentum in Industrial and Energy Technology (IET), a recovery in international oilfield activity and incremental contributions from the Chart acquisition.
Total orders reached $10.76 billion, up 31% from $8.21 billion a year earlier.
Baker Hughes Company Price, Consensus and EPS Surprise
Baker Hughes Company price-consensus-eps-surprise-chart | Baker Hughes Company Quote
BKR's Revenues Benefit From Chart Acquisition
Reported revenues totaled $8.03 billion. Acquisitions and divestitures contributed a net 9% to year-over-year revenue growth, with the Chart acquisition being the primary contributor.
The company completed the Chart acquisition on July 16, 2026, expanding its capabilities in cryogenic technologies, thermal management and industrial gases. Chart contributed $888 million in revenues during the quarter, comprising $623 million from original equipment and $265 million from aftermarket operations.
Baker Hughes' IET Segment Sees Strong Order Momentum
IET revenues increased 3% year over year to $3.48 billion. Growth in Gas Technology Services and Climate Technology Solutions was partly offset by lower Gas Technology Equipment revenues, Industrial Solutions revenues and the impact of portfolio divestitures.
Segment EBITDA increased 8% year over year to $685 million.
IET orders rose 42% year over year to $5.89 billion, driven by demand across power generation, gas infrastructure and offshore production. The segment's remaining performance obligations reached a record $39.4 billion, increasing 23% year over year. Major awards included 1.1 gigawatts of power generation capacity for a U.S. technology company.
BKR's Oilfield Business Shows Sequential Improvement
Oilfield Services & Equipment (OFSE) revenues totaled $3.66 billion, up 1% year over year. The increase was primarily driven by higher activity in Europe/CIS/Sub-Saharan Africa and Latin America, partially offset by lower revenues in the Middle East/Asia region, reflecting the impact of the Surface Pressure Control disposition.
Segment EBITDA declined 2% year over year to $659 million.
OFSE orders totaled $4.05 billion, declining 1% from $4.07 billion recorded in the year-ago quarter.
Baker Hughes' Profitability
Adjusted EBITDA increased 14% year over year to $1.42 billion.
GAAP net income attributable to Baker Hughes declined 33% year over year to $411 million. GAAP earnings were 41 cents per share compared with 61 cents in the prior-year quarter. Transaction-related costs and higher interest expenses weighed on reported profitability.
BKR's Balance Sheet Reflects Higher Acquisition Debt
As of Sept. 30, 2026, BKR had cash and cash equivalents of $4.07 billion and long-term debt of $17.48 billion. The company's leverage ratio reached 2.5 times at quarter-end, primarily reflecting debt incurred to finance the Chart acquisition.
Management prioritized debt reduction over share repurchases. Baker Hughes expects to begin repaying debt in the fourth quarter, supported by free cash flow and proceeds from the planned Waygate Technologies divestiture. The company targets net leverage below 1.5 times by the second half of 2028.
Baker Hughes' Cash Flow Trends
Operating cash flow increased 8% to $1.01 billion from the year-ago figure of $929 million. Free cash flow rose 10% to $769 million, despite approximately $200 million in Chart-related integration, restructuring and closing costs.
BKR Raises IET Orders Outlook for 2026
For the fourth quarter of 2026, management expects revenues between $7.80 billion and $8.70 billion, with adjusted EBITDA to be in the range of $1.33-$1.60 billion.
Full-year revenues are projected between $29.16 billion and $30.06 billion. Adjusted EBITDA is expected to be in the range of $5.13-$5.40 billion, exceeding prior expectations.
The company raised its full-year IET orders outlook to $21.5-$23.5 billion, reflecting sustained demand across LNG, data centers and gas infrastructure. It increased its cumulative IET orders target for 2026-2028 to more than $50 billion.
BKR’s Zacks Rank & Other Key Picks
Baker Hughes currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are Range Resources Corporation (RRC - Free Report) , Equinor ASA (EQNR - Free Report) and Eni S.p.A. (E - Free Report) . EQNR and E sport a Zacks Rank #1 (Strong Buy) each, while RRC carries a Zacks Rank #2, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Range Resources reported third-quarter 2026 adjusted earnings of 81 cents per share, surpassing the Zacks Consensus Estimate of 70 cents per share.
As of Sept. 30, 2026, RRC had total debt of $980.92 million and cash and cash equivalents of $12,000.
Equinor reported third-quarter 2026 adjusted earnings of $1.20 per share, missing the Zacks Consensus Estimate of $1.38 per share.
As of Sept. 30, 2026, EQNR had cash and cash equivalents of $6.30 billion.
Eni reported third-quarter 2026 adjusted earnings of $2.13 per share, surpassing the Zacks Consensus Estimate of $1.92 per share.
As of Sept. 30, 2026, E had total debt of $34.39 billion and cash and cash equivalents of $11.77 billion.