Baker Hughes Co (BKR)

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AI: Fair-priced

Price checkThe shares look fairly priced, with strong growth hopes offset by acquisition risk.

At $64.82, Baker Hughes is worth about $64.35 billion. Its last four reported quarters produced roughly $3.13 billion of free cash flow, meaning cash left after running and investing in the business. The price is therefore about 20.6 times that cash. Reported earnings of approximately $3.10 billion imply a similar 20.8 times earnings. These are not bargain levels for a cyclical supplier, but they exclude Chart’s post-closing contribution. The valuation looks fair only if contracted work converts and Chart adds cash without major setbacks.

Big pictureCash generation is improving, but profits still depend on uneven energy spending.

Revenue slipped 0.3% to $27.73 billion in 2025 and net income fell 13% to $2.59 billion. However, operating cash flow rose 14% to $3.81 billion, lifting free cash flow 24% to $2.54 billion. Second-quarter 2026 free cash flow reached $1.11 billion despite revenue falling 2% from a year earlier. That supports improving durability, but losses of $9.94 billion in 2020 and $601 million in 2022 show how industry downturns and asset write-downs can overwhelm normal earnings.

Business strengthRecord contracted work supports growth, while the Chart deal temporarily weakens financial flexibility.

At June 30, current assets of $30.58 billion comfortably exceeded current liabilities of $14.60 billion, while cash exceeded debt by $248 million. That snapshot is misleadingly strong because acquisition financing had been raised before Chart closed. The $13.6 billion purchase subsequently used cash and added debt; management expected debt after cash to equal 2.25 times adjusted annual operating profit at closing. Contracted work not yet completed reached $40.1 billion. Meanwhile, diluted shares rose from 991 million to 997 million despite buybacks, while 2025 dividends consumed $910 million.

What could change the storyChart savings and power orders could lift value; slower debt reduction would expose the premium.

The bull case combines Chart’s $4.3 billion of 2025 revenue, targeted annual cost savings of $325 million by year three, and $37.1 billion of contracted Industrial and Energy work. At 16 times recurring free cash flow, the present equity value requires roughly $4.0 billion annually, versus the legacy business’s recent $3.13 billion. The bear case is failed integration or delayed projects alongside weaker oilfield activity: second-quarter oilfield revenue fell 5% and segment operating profit before certain charges fell 11%. Higher acquisition interest costs would then slow debt reduction.

$64.82 price considered

AI: News

Second-quarter earnings beatResults exceeded expectations as power equipment orders and quarterly cash generation reached unusually strong levels.

On July 26, Baker Hughes reported second-quarter adjusted earnings of $0.64 per share, versus the $0.49 market estimate, and $6.74 billion of revenue. Orders jumped 49% from a year earlier to $10.5 billion, while free cash flow reached $1.11 billion. Shares closed 5.83% higher on July 27. The earnings surprise and raised order outlook were widely cited as positive factors, although one-day movement cannot be attributed solely to the report.

Chart acquisition closesThe large cash acquisition broadens industrial exposure but raises debt and integration demands.

Baker Hughes completed its Chart Industries acquisition on July 16 at an announced enterprise value of $13.6 billion. Funding included cash, previously issued senior notes and $2.0 billion of new term loans. Chart contributed $4.3 billion of 2025 revenue, and Baker Hughes targets $325 million of annual cost savings by the third year. The strategic benefit is greater exposure to gas infrastructure, data centers and recurring services; the offset is materially higher debt and a stated two-year reduction plan.

Data-center turbine orderA major turbine agreement strengthened evidence that data-center power demand can become a meaningful business.

On July 8, Baker Hughes and Kodiak Gas Services announced a multi-year framework covering up to 1.8 gigawatts of power capacity. The initial order covers turbines and generators supporting approximately one gigawatt by 2030. The dollar value was not disclosed, limiting precise valuation analysis, but equipment sales may lead to parts and long-term service revenue. Baker Hughes shares closed 5.71% higher that day; the timing suggests a positive reception but does not prove the agreement caused the entire move.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$27.73B	$27.83B	$25.51B	$21.16B	$20.50B	$20.70B	$23.84B	$22.88B	$17.18B	$13.08B	$16.69B
Gross profit	—	—	—	—	—	—	$4.43B	$3.99B	$3.04B	$3.15B	—
Research & development	$600.0M	$643.0M	$651.0M	$552.0M	$492.0M	$595.0M	$687.0M	$700.0M	$501.0M	$352.0M	$408.0M
Operating expenses	—	—	—	$19.97B	$19.19B	$36.68B	$22.76B	$22.18B	—	—	—
Operating income	—	$3.08B	$2.32B	$1.19B	$1.31B	−$15.98B	$1.07B	$701.0M	−$284.0M	$457.0M	−$138.0M
EBITDAderived	—	$4.22B	$3.40B	$2.25B	$2.42B	−$14.66B	$2.49B	$2.19B	$819.0M	$1.01B	$392.0M
Net income	$2.59B	$2.98B	$1.94B	−$601.0M	−$219.0M	−$9.94B	$128.0M	$195.0M	−$103.0M	$0	$0
Basic EPSper diluted share	—	$3.00	$1.93	-$0.61	-$0.27	-$14.73	$0.23	$0.46	-$0.24	—	—
Diluted EPSper diluted share	—	$2.98	$1.91	-$0.61	-$0.27	-$14.73	$0.23	$0.45	-$0.24	—	—

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)41$116.17M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 22, 2026Form 4 · 10b5-1	Simonelli LorenzoChairman, President and CEO	SellClass A Common Stock	181.4K	$58.43	$10.60M	703.4K
Jun 15, 2026Form 4 · 10b5-1	Moghal Ahmed FarhanEVP, Chief Financial Officer	SellClass A Common Stock · indirect	3.4K	$62.38	$211.6K	0
Jun 15, 2026Form 4 · 10b5-1	Moghal Ahmed FarhanEVP, Chief Financial Officer	SellClass A Common Stock	20.0K	$62.38	$1.25M	21.0K
Jun 12, 2026Form 4 · 10b5-1	Simonelli LorenzoChairman, President and CEO	SellClass A Common Stock	181.4K	$63.36	$11.49M	784.9K
Jun 3, 2026Form 4 · 10b5-1	Charlton Rebecca LSVP, Controller & CAO	SellClass A Common Stock	5.1K	$64.22	$326.8K	16.0K

Review ownership filings at SEC.gov ↗

Baker Hughes Co (BKR)

Financial charts

Financial statements

Insider buys & sells