BKR

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the oilfield services industry, including Baker Hughes (NASDAQ:BKR) and its peers. Oilfield services companies provide equipment, technology, and services enabling exploration and production activities, including drilling, completion, well intervention, and reservoir evaluation. Their fortunes closely track upstream capital spending cycles. Tailwinds include increased drilling activity during favorable commodity environments, demand for efficiency-enhancing technologies, and growing offshore and unconventional resource development. Headwinds include significant revenue volatility tied to oil and gas price swings and producer spending discipline. Intense competition pressures pricing and margins, while the energy transition may structurally reduce long-term demand. Workforce availability and technological disruption require continuous adaptation. The 26 oilfield services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.4%. Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results. Tracing lineage to a 1907 cable tool drill bit patent, Baker Hughes (NASDAQ:BKR) provides equipment and services for oil and gas drilling, production, and transport. Baker Hughes reported revenues of $6.74 billion, down 2.4% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates. Interestingly, the stock is up 8.4% since reporting and currently trades at $62.08. Is now the time to buy Baker Hughes? Access our full analysis of the earnings results here, it’s free. Serving over 150,000 customers from commercial jets to cargo ships to heating oil consumers, World Kinect (NYSE:WKC) procures and delivers fuel and energy products to airlines, shipping companies, trucking fleets, and industrial businesses worldwide. World Kinect reported revenues of $13.59 billion, up 50.3% year on year, outperforming analysts’ expectations by 27.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. World Kinect scored the biggest analyst estimate beat in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.4% since reporting. It currently trades at $35.39. Is now the time to buy World Kinect? Access our full analysis of the earnings results here, it’s free. Operating exclusively in the Permian Basin—one of America's most prolific oil-producing regions—ProPetro (NYSE:PUMP) provides hydraulic fracturing services that pump high-pressure fluid and sand into oil wells to release trapped hydrocarbons. ProPetro reported revenues of $305.8 million, down 6.2% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. The stock is flat since the results and currently trades at $10.75. Read our full analysis of ProPetro’s results here. Operating across 16 countries from Algeria to Indonesia, NESR (NASDAQ:NESR) provides oilfield services like hydraulic fracturing, cementing, and drilling to oil and gas companies. NESR reported revenues of $520.8 million, up 59.1% year on year. This result beat analysts’ expectations by 17.8%. It was an incredible quarter as it also logged a beat of analysts’ EPS and EBITDA estimates. NESR scored the fastest revenue growth among its peers. The stock is up 15.5% since reporting and currently trades at $33.52. Read our full, actionable report on NESR here, it’s free. With origins dating back over a century to 1921, Noble Corporation (NYSE:NE) operates drilling rigs that oil and gas companies charter to drill wells in deep ocean waters and shallow seas. Noble Corporation reported revenues of $719.7 million, down 15.2% year on year. This number surpassed analysts’ expectations by 3.6%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS and EBITDA estimates. Noble Corporation had the slowest revenue growth of the whole group. The stock is up 3.2% since reporting and currently trades at $44.47. Read our full, actionable report on Noble Corporation here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Baker Hughes (BKR). Shares have added about 2.3% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Baker Hughes due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Baker Hughes Company reported second-quarter 2026 adjusted earnings of 64 cents per share, up 2% year over year. The figure beat the Zacks Consensus Estimate of 51 cents by 25.5%. Revenues of $6.74 billion surpassed the consensus mark of $6.49 billion by 3.9%. However, the figure declined 2% from the year-ago quarter. Better-than-expected quarterly results reflected strong OFSE execution, firm IET profitability and record order momentum. Remaining performance obligations, a measure of contracted future work, reached $40.06 billion, up 18% year over year. The increase reflected a record Industrial & Energy Technology (“IET”) backlog, which rose to $37.09 billion and an increased Oilfield Services & Equipment (“OFSE”) backlog, up 10% year over year. Orders across all business segments totaled $10.5 billion, up 49% from $7.03 billion recorded a year ago, driven by record order intake from the IET business segment. Notably, IET orders nearly doubled from the prior-year period, supported by continued momentum in Gas Technology Equipment and Gas Technology Services. The company posted a total book-to-bill ratio of 1.6, indicating that orders exceeded current-quarter revenues. Industrial & Energy Technology revenues were $3.29 billion, flat year over year. Lower Gas Technology Equipment and Industrial Solutions revenues, including the effect of the PSI disposition, affected segment results in the quarter, offset by growth across the other product lines. Segment EBITDA increased 16% from the year-ago quarter to $678 million. The EBITDA margin expanded 280 basis points to 20.6%, driven by pricing, productivity, cost-out initiatives and favorable foreign exchange movements. The positives were partly offset by lower volume and inflation. Oilfield Services & Equipment revenues fell 5% year over year to $3.45 billion, mainly due to the SPC divestment and Middle East disruptions. North America revenues increased 1%, while International revenues declined 6% year over year. OFSE EBITDA declined 11% to $605 million, while the margin contracted 120 basis points to 17.5%. Sequentially, however, revenues and EBITDA each rose 7%, driven by higher volume, pricing, cost actions and foreign exchange. Adjusted EBITDA increased 2% year over year to $1.23 billion. The adjusted EBITDA margin improved 70 basis points to 18.3%, with company-wide results exceeding the midpoint of management's guidance. Operating cash flow was $1.35 billion compared with $510 million in the corresponding period of 2025. Free cash flow in the second quarter totaled $1.11 billion compared with $239 million a year earlier. Net capital expenditures were $236 million, including $135 million for OFSE and $85 million for IET. BKR ended June with cash and cash equivalents of $15.73 billion. Long-term debt stood at $15.48 billion at the end of the second quarter, reflecting the financing associated with the all-cash Chart Industries acquisition. The company paid $228 million in dividends during the second quarter and made no share repurchases. Management remains focused on deleveraging after the Chart closing and targets net debt to adjusted EBITDA of 1x-1.5x within 24 months. The company completed the Chart acquisition, adding thermal management, air and gas handling, compression and lifecycle-service capabilities. Baker Hughes expects Chart to become a third reporting segment beginning in the third quarter of 2026. Management expects run-rate cost synergies of $95 million in year one, $230 million in year two and $325 million in year three. The integration plan also targets commercial benefits from a larger installed base, expanded aftermarket reach and broader digital penetration. For the third quarter of 2026, Baker Hughes expects revenues of $6.57-$7.17 billion and adjusted EBITDA of $1.12-$1.30 billion. OFSE revenues are projected at $3.40-$3.70 billion, while IET revenues are forecast at $3.17-$3.47 billion. For 2026, the company now expects revenues of $26.65-$28.05 billion and adjusted EBITDA of $4.6-$5.1 billion. IET order guidance was raised to $17.5-$19.5 billion, and the Horizon 2 IET order target increased to more than $45 billion for 2026-2028. The outlook excludes guidance for the Chart segment. It assumes that Middle East activity remains broadly consistent through year-end and that logistics inflation and supply-chain challenges remain in line with recent trends. It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 17.06% due to these changes. Currently, Baker Hughes has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Baker Hughes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Baker Hughes belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Halliburton (HAL), has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Halliburton reported revenues of $5.71 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $0.55 for the same period compares with $0.55 a year ago. For the current quarter, Halliburton is expected to post earnings of $0.58 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Halliburton. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baker Hughes Company (BKR) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Kodiak Gas Services, Inc.? Here are five stocks we like better. Record Q2 results: Revenue rose 21% year over year to $391 million, while adjusted EBITDA increased 22% to $217 million. Compression margins reached 70% as pricing, utilization and operational efficiency improved. Power expansion accelerates: Kodiak secured approximately 1.8 GW of generation capacity and is targeting 2 GW by 2030, supported by a Baker Hughes turbine agreement and a growing data-center project pipeline. Outlook strengthened: The company raised 2026 adjusted EBITDA guidance to $830 million-$860 million and discretionary cash flow guidance to $570 million-$600 million, while lowering power infrastructure capital expenditure guidance to $400 million-$450 million. 3 Energy Stocks to Buy and 2 to Avoid as AI Power Demand Explodes Kodiak Gas Services (NYSE:KGS) reported record second-quarter adjusted EBITDA and raised portions of its 2026 outlook, as its contract compression business delivered higher pricing and margins and the company advanced plans to build a larger behind-the-meter power generation platform. The company reported second-quarter revenue of $391 million, up 21% from a year earlier, and adjusted EBITDA of $217 million, up 22% year over year. Adjusted net income was $54 million, or $0.55 per diluted share, according to Executive Vice President and Chief Financial Officer John Griggs. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management attributed revenue growth primarily to the addition of DPS, alongside continued expansion in its Compression Infrastructure business. Kodiak acquired DPS four months ago and has since focused its Power Infrastructure commercial efforts on larger projects with longer-term contracts, the company said. In Compression Infrastructure, Kodiak ended the quarter with 4.4 million revenue-generating horsepower. Revenue-generating horsepower increased by about 24,000 sequentially, while fleet utilization reached 98.2%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Revenue in the segment increased 7% year over year and 3% from the prior quarter. Ending revenue per horsepower was $23.80, representing a 4.5% increase from a year earlier. Compression Infrastructure adjusted gross margin was 70%, up 170 basis points year over year and marking the second straight quarter at or above that level. Griggs said the margin performance occurred despite increased lubricant oil expenses. He said the company mitigated those costs through vendor relationships, supply-chain management, and operational improvements tied to training, artificial intelligence and machine-learning tools. → No Hangover: Revisiting Microsoft One Week After Earnings “What we see is we truthfully break things less,” Griggs said, describing the effects of expanded fleet monitoring and maintenance practices. “We fix things when they need to be fixed, not just based on hours and time, and we have higher labor productivity.” Chief Executive Officer Mickey McKee said Kodiak added approximately 80,000 horsepower during the first half of 2026 and expects to add about 170,000 horsepower for the full year. The company has secured large-horsepower compressor packages for delivery in 2027, 2028 and 2029, and is already about 50% contracted for its 2027 deliveries, he said. Kodiak continues to target annual fleet growth of roughly 150,000 horsepower and a compression fleet of at least 5.2 million horsepower by the end of 2030. The company’s new Power Infrastructure segment generated $33 million of revenue and a 65% adjusted gross margin in the second quarter. Kodiak exited the quarter with a 405-megawatt power fleet, about 90% of which was utilized, McKee said. Kodiak recently entered a multiyear gas-turbine supply agreement with Baker Hughes that provides 1 gigawatt of turbine capacity through 2030, with an option to increase the order by up to 1.8 gigawatts. Including previously announced generation purchases and other acquisitions, Kodiak said it has secured approximately 1.8 GW of generation capacity available by the end of the decade. About 66% of that capacity is expected to be turbines. The company is seeking to reach 2 GW of power-producing assets by 2030. Griggs said the target fleet composition remains roughly three-quarters turbines and one-quarter reciprocating engines. Management said it expects to receive approximately 50 MW of new generator sets in the second half of 2026. Deliveries are expected to increase in 2027, though McKee said the first significant Baker Hughes turbine deliveries are expected near the fourth quarter of that year. Kodiak expects power deliveries to average roughly 400 MW annually over the subsequent years, he said. Kodiak estimates average raw generation equipment costs of about $1.2 million per megawatt, before balance-of-plant components. Griggs said total costs including balance-of-plant equipment are expected to be approximately $1.5 million per megawatt, plus or minus depending on project requirements. McKee said the company’s commercial pipeline has expanded rapidly, with about 2 GW of potential projects added during the past month. Kodiak has also moved away from opportunities that did not meet its timing requirements or counterparty standards. The company executed a limited notice to proceed for detailed engineering and design work on a West Texas data center project whose capacity is leased to a hyperscaler. Kodiak has invoiced an initial deposit to reserve equipment while negotiating a long-term contract that could begin supplying power in early 2027 and scale over time. McKee said the initial project is expected to be below 100 MW, reflecting Kodiak’s limited available capacity early next year, but it could expand. The company expects to provide a more substantive update before the end of 2026. When evaluating power projects, Kodiak is prioritizing the creditworthiness of the counterparty and the maturity of a data center’s tenant commitments, McKee said. Management said it is generally pursuing 10- to 15-year contract terms, although some projects could involve seven- or eight-year agreements depending on their economics. Griggs said the company continues to support its prior target of five-year paybacks and unlevered internal rates of return above 15% for power projects. Kodiak raised its 2026 Compression Infrastructure adjusted gross margin guidance to 69% to 70.5%. It also increased adjusted EBITDA guidance to $830 million to $860 million and discretionary cash flow guidance to $570 million to $600 million. Compression Infrastructure capital expenditure guidance increased to $280 million to $300 million. Power Infrastructure capital expenditure guidance was reduced to $400 million to $450 million. Other capital expenditure guidance was unchanged and excludes a $43 million non-cash capital lease related to a Midland facility. The higher compression capital spending outlook includes $33 million used to terminate operating leases on 43,000 horsepower of contracted large-horsepower equipment. Griggs said the transaction converted leased equipment into owned assets and was financed using Kodiak’s lower-cost asset-based lending facility. Power capital spending guidance declined because the company has gained greater certainty on equipment pricing, delivery timing and payment terms through its supply agreements, management said. Kodiak ended the quarter with approximately $2.6 billion in net debt and a leverage ratio of 3.1 times, which Griggs said was the company’s lowest on record. The company raised about $836 million, after expenses, through a primary equity offering in May. Its board also declared a quarterly dividend of $0.49 per share, which management said was covered more than three times by second-quarter discretionary cash flow. Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil. The Other Services segment provides a range of contract services, including station construction, maintenance and overhaul, and other ancillary time and material-based offerings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kodiak Gas Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record adjusted EBITDA of $217 million, driven by 70% margins in compression and the successful integration of the DPS acquisition. Secured a multiyear framework agreement with Baker Hughes for 1 gigawatt of turbine power through 2030, providing price certainty and a dedicated technician training curriculum. Executed a limited notice to proceed for a West Texas data center project leased to a hyperscaler, marking a critical transition from legacy power services to large-scale infrastructure. Maintained industry-leading compression utilization of 98.2% while realizing a 4.5% year-over-year price increase to $23.80 per revenue-generating horsepower. Mitigated significant lube oil price headwinds through preferred supplier relationships and technology-driven operational efficiencies that reduced mechanical failures. High-graded the power project pipeline by adding 2 gigawatts of potential opportunities in a single month while exiting projects with misaligned timelines or credit profiles. Raised full-year 2026 adjusted EBITDA guidance to $830 million - $860 million based on increased visibility and strong pricing momentum. Targeting a total power fleet of 2 gigawatts by 2030, with approximately 75% comprised of turbines and 25% reciprocating engines. Expects to receive approximately 50 megawatts of new power generation sets in the second half of 2026 before delivery volumes ramp up significantly in 2027. Anticipates compression fleet growth of 150,000 horsepower annually to reach a target of 5.2 million horsepower by year-end 2030. Guidance assumes a total power build program cost of approximately $1.2 million per megawatt for equipment, or roughly $1.5 million including balance of plant. Reduced 2026 power infrastructure CapEx guidance to $400 million - $450 million due to improved cash flow management and timing certainty under the Baker Hughes agreement. Invested $33 million to terminate operating leases on 43,000 horsepower of large compression units, converting them to owned assets at a discount to replacement cost. Leverage ratio reached a company record low of 3.1x following a $836 million primary equity offering in May 2026. Identified grid instability and data center demand surges as primary catalysts for behind-the-meter power solutions, citing recent emergency alerts in over half of U.S. states. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized that their expertise in operating rotating equipment and strong balance sheet differentiates them from peers. The project targets equipment installation in Q1 2027, with a firm long-term contract expected to be finalized before the end of 2026. Management views the moratorium as a positive catalyst that will flush out speculative projects and increase demand for behind-the-meter solutions. Feedback from potential customers suggests the grid interconnect delays are reinforcing the necessity of Kodiak's primary power offerings. The company will no longer strictly tie dividends to 35% of discretionary cash flow due to the high-growth, high-CapEx nature of the power segment. Priorities include funding power growth and maintaining the balance sheet, though management still intends to grow the dividend at an attractive annual rate. Kodiak is partnering with Baker Hughes to implement an in-house turbine curriculum before the first units arrive in late 2027. The BEARS Academy will become one of only two U.S. facilities certified for specific electrical-mechanical certifications on both compressors and gensets.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kodiak Gas Services Inc (NYSE:KGS) reported record adjusted EBITDA of $217 million in Q2 2026, up 22% year-over-year, and raised its full-year 2026 adjusted EBITDA guidance to $830-$860 million. The company secured a multi-year gas turbine supply agreement with Baker Hughes for 1 gigawatt of turbine power by 2030, with an option to increase to 1.8 gigawatts, providing price certainty and securing equipment for growth. Compression infrastructure segment delivered strong results with a 70% adjusted gross margin for the second consecutive quarter, despite headwinds from higher lube oil prices, and achieved a fleet utilization rate of 98.2%. Kodiak Gas Services Inc (NYSE:KGS) executed a limited notice to proceed for a data center project in West Texas with a hyperscaler tenant, demonstrating commercial progress in its power infrastructure segment. The company reduced its leverage ratio to 3.1 times, the lowest in its history, following a successful equity offering, providing financial flexibility and a competitive advantage for future growth. Kodiak Gas Services Inc (NYSE:KGS) is on track to achieve its 2030 goals, having secured new large horsepower compression packages for 2027-2029 deliveries and already contracted 50% of its 2027 compression deliveries. Kodiak Gas Services Inc (NYSE:KGS) faced a significant headwind from higher lube oil costs in Q2 2026, driven by the spike in oil prices and crack spreads caused by the war in Iran, which pressured margins. The company's power infrastructure segment is still in early stages, with adjusted gross margin of 64.5% in Q2 2026, and management expects margin expansion only as the business scales. Kodiak Gas Services Inc (NYSE:KGS) reduced its 2026 power infrastructure capital expenditure forecast to $400-$450 million, reflecting uncertainty in the timing and cost of securing power generation equipment. The company's power infrastructure fleet is only about 90% utilized, with a portion of the idle fleet being made ready, indicating some underutilization of assets. Kodiak Gas Services Inc (NYSE:KGS) faces long lead times for new large horsepower compression equipment, with deliveries still almost 200 weeks out, limiting near-term growth flexibility. The company's dividend was kept flat at $0.49 per share, and management indicated it cannot tie the dividend to discretionary cash flow due to the high capital expenditure requirements of the power business. Warning! GuruFocus has detected 5 Warning Signs with KGS. Is KGS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the limited notice to proceed (LNTP) for the West Texas data center project, specifically the counterparty structure and their commitment with the underlying hyperscaler?A: Mickey McKee (President and CEO) stated that the company is not ready to divulge the counterparty details publicly yet, but emphasized they are paying close attention to ensuring the counterparty is creditworthy and carries the appropriate amount of risk for the project's size. Q: What differentiates Kodiak from peers in the power infrastructure space, and what milestones should we expect before a contract is signed?A: Mickey McKee (President and CEO) highlighted that Kodiak brings a high level of expertise in operating rotating equipment, backed by the engineering and commercial capabilities from the DPS acquisition and Kodiak's operational expertise and balance sheet. He noted the company is working towards installing equipment in Q1 and hopes to announce a firm contract before the end of the year. Q: Can you elaborate on the delivery timeline for the 1.8 gigawatts of secured power generation equipment from 2027 through 2030?A: Mickey McKee (President and CEO) explained that the megawatts will come in ratably at about 400 megawatts per year over the next four years. However, 2027 deliveries will be more back-end loaded, with the first large Baker Hughes turbines arriving early in the fourth quarter, before leveling out through 2028-2030. Q: What are the typical balance of plant requirements for data center projects, and how does this impact the overall capital needs and return equation?A: Mickey McKee (President and CEO) stated that typical projects will include transformers, switchgears, and SCRs for emissions reduction, bringing the total cost to approximately $1.6 million per megawatt including balance of plant. If battery backup is required, costs will be higher, but these are priced into the return equations. Q: How are you mitigating lube oil cost headwinds that are impacting peers, and what allowed you to raise compression margin guidance?A: John Griggs (EVP and CFO) attributed the success to continued gains from next-level training and operational AI/machine learning across the fleet, which reduces breakdowns and improves labor productivity. Additionally, Kodiak's supply chain strategy of partnering with vendors, including favorable lube oil contracts, has helped blunt the impact of price spikes. Q: Is there still potential for accretive purchases of compression horsepower, either from customers or other E&Ps and midstream companies?A: Mickey McKee (President and CEO) confirmed there are other opportunities for purchase leasebacks being discussed, though not imminent. John Griggs (EVP and CFO) clarified that the recent transaction was a buyout of operating leases, converting them to owned assets, and the company will pursue similar opportunities opportunistically. Q: How should we think about shareholder returns given the significant CapEx requirements for the power business?A: John Griggs (EVP and CFO) explained that with the addition of the power business, the company can no longer tie the dividend to discretionary cash flow. The strategy is to pay an attractive, growing dividend, manage the balance sheet, and fund power growth. Share repurchases will remain opportunistic, but the focus is on executing the power business plan. Q: What criteria are you using to high-grade the power generation commercial pipeline, and how has this evolved?A: Mickey McKee (President and CEO) stated the two main criteria are the creditworthiness of the counterparty and how close a data center is to securing a tenant. The company wants to avoid spending time on speculative projects and focus on real opportunities that can accelerate and contract quickly. Q: Has your view on the economics of power projects changed as customer conversations have advanced?A: John Griggs (EVP and CFO) confirmed the company stands behind its previous guidance of five-year paybacks and 15%+ internal rates of return. Mickey McKee (President and CEO) added that contract durations are typically 10-15 years, with some flexibility for 7-8 year terms depending on the deal. Q: What is the size and structure of the deals you are working on, and where do you see the biggest competitive advantage?A: Mickey McKee (President and CEO) noted the first LNTP deal is sub-100 megawatts with the ability to scale over time. The pipeline includes opportunities ranging from a couple hundred megawatts of long-term contracted commissioning equipment to permanent islanded behind-the-meter solutions up to a gigawatt, all with a focus on long-term contracts and the right counterparties. Q: Is the reduction in Power CapEx guidance purely driven by down payments, and has the cost per megawatt including balance of plant increased?A: John Griggs (EVP and CFO) explained the reduction reflects increased certainty on costs and timing after securing the Baker Hughes agreement, which also provided favorable payment terms. He clarified the cost remains around $1.5 million per megawatt including balance of plant, plus or minus, with high certainty locked in through 2030. Q: What are your thoughts on the Texas moratorium on data center grid connections, and how might it impact your business?A: Mickey McKee (President and CEO) viewed the moratorium positively, as it benefits behind-the-meter power solution providers like Kodiak. He noted initial feedback from customers indicates that behind-the-meter solutions will be key to their future, making the moratorium a positive development for the company and its peers. Q: How are discussions progressing in other areas beyond data centers, such as microgrids for oil and gas customers?A: Mickey McKee (President and CEO) confirmed there are progressing conversations for microgrid opportunities in the Permian Basin, which are becoming more attractive as power limitations become apparent. The company's mix of turbines and reciprocating engines provides optionality to pursue both data center and oil and gas microgrid opportunities. Q: Under what circumstances would you consider accelerating compression build-out to meet customer demand?A: Mickey McKee (President and CEO) noted that engine lead times are nearly 200 weeks out, making it difficult to accelerate in the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Baker Hughes delivered a second quarter that was well received by the market, as results surpassed Wall Street expectations despite a modest decline in revenue. Management pointed to strong order momentum in its Industrial & Energy Technology (IET) segment, successful navigation of Middle East headwinds, and robust execution in upstream energy and energy infrastructure. CEO Lorenzo Simonelli cited “solid seasonal recovery across broader markets,” and emphasized that resilience in the Middle East and a diversified portfolio allowed the company to outperform, even as global energy markets adjusted to ongoing volatility. Is now the time to buy BKR? Find out in our full research report (it’s free). Revenue: $6.74 billion vs analyst estimates of $6.50 billion (2.4% year-on-year decline, 3.7% beat) Adjusted EPS: $0.64 vs analyst estimates of $0.49 (31.5% beat) Operating Margin: 12.7%, in line with the same quarter last year Market Capitalization: $60.05 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Arun Jayaram (JPMorgan) asked about the revenue ramp and capital allocation for the power systems capacity expansion. CEO Lorenzo Simonelli detailed that paybacks for incremental capacity investments are expected to be below two years, with growth driven by gas turbines and a phased spend through 2028. Scott Gruber (Citigroup) inquired about commercial synergies from the Chart acquisition. Simonelli explained that data centers and gas infrastructure represent immediate opportunities, while the combination also enables entry into markets like space, geothermal, and mining. Dave Anderson (Barclays) focused on the drivers behind OFSE’s outperformance and the outlook for the rest of the year. CFO Ahmed Moghal attributed results to strong international activity and product mix, with continued resilience expected from backlog conversion and geographic diversification. Carlos Escalante (Wolfe Research) sought clarity on what drove record IET orders and associated margin prospects. Simonelli emphasized diversified end-market demand, especially in power systems and LNG, and noted that pricing strength and disciplined execution are expected to support future margin expansion. Marc Bianchi (TD Cowen) asked about the cadence of IET revenue and free cash flow conversion in the second half. Moghal responded that while project timing and working capital movements may create quarter-to-quarter variability, backlog quality and favorable pricing provide confidence in margin and cash flow outlook. As we look ahead, our team will focus on (1) the pace and scale of power systems capacity expansion, especially for data center and AI-related demand; (2) execution and synergy realization from the Chart Industries integration; and (3) continued resilience in energy infrastructure and upstream markets outside the Middle East. Progress in cross-selling new solutions and managing supply chain headwinds will also be key to tracking Baker Hughes’ execution. Baker Hughes currently trades at $61, up from $57.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Dynamis Power Solutions has placed a large order with Baker Hughes (BKR) for 76 NovaLT16 gas turbines, targeting around 1.3GW of hypermobile power capacity for data center and oil and gas projects. See our latest analysis for Baker Hughes. Baker Hughes shares trade at US$58.72 after a strong year to date, with a 24.57% year to date share price return. However, a 90 day share price decline of 15.72% points to fading near term momentum, despite a 5 year total shareholder return of 220.81%. If this kind of data center and energy infrastructure story interests you, it might be a good time to scan other power and grid opportunities through the 34 power grid technology and infrastructure stocks For Baker Hughes, the share price drop over the past 90 days sits alongside solid orders and earnings. Is this mainly sentiment catching up with a strong run, or is it a signal that the business momentum is mispriced as things stand? The most followed narrative on Baker Hughes places fair value at $71.24, compared with the current $58.72 share price, and leans heavily on long duration energy and infrastructure demand. Read the complete narrative. Want to see what sits behind that backlog story? The narrative focuses on steady revenue growth, firm margins and a richer future earnings multiple. The exact mix may surprise you. Result: Fair Value of $71.24 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Baker Hughes upside story still depends on risks related to trade tariffs increasing cost pressure, as well as policy shifts that could curb LNG and data center power demand. Find out about the key risks to this Baker Hughes narrative. The narrative around Baker Hughes leans optimistic, but the real question is how that lines up with your own risk and reward trade off. To see what investors are focusing on in terms of upside, take a closer look at the 5 key rewards. If you like the Baker Hughes narrative, do not stop here. Use the Simply Wall Street Screener to spot fresh opportunities before they move without you. Target higher quality at better prices by reviewing the 49 high quality undervalued stocks that combine strong fundamentals with appealing valuations. Prioritise resilience by scanning the 85 resilient stocks with low risk scores that show lower risk scores and potentially steadier business profiles. Get ahead of the crowd by checking the screener containing 21 high quality undiscovered gems that currently sit off most investors' radar but still show solid metrics. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BKR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance outperformance was driven by disciplined execution in Oilfield Services & Equipment (OFSE) and a record-breaking quarter for Industrial & Energy Technology (IET) orders. The company is pivoting toward a higher-value industrialized energy solutions model, leveraging the convergence of energy and industrial demand across data centers, space, and mining. IET orders doubled year-over-year to $7.1 billion, fueled by a step-change in electricity demand from AI infrastructure and hyperscaler investment. Management attributes margin expansion to favorable backlog pricing and the implementation of the Baker Hughes business system, which offset inflationary pressures. The Middle East remains a fluid environment; while logistical constraints exist, the company maintained resilience through higher product revenue and proactive supply chain management. Strategic positioning in gas infrastructure is reinforced by the belief that energy security and supply diversification will sustain long-term LNG demand toward 950 MTPA by 2035. Management raised the Horizon 2 IET orders target to over $45 billion, reflecting sustained demand for power generation and gas infrastructure. Capacity for gas turbines and generators is being expanded through 2029 to support an estimated $5 billion annual Power Systems revenue opportunity. The acquisition of Chart is expected to deliver $325 million in annualized cost synergies by year 3, with $95 million targeted in the first year. Full-year 2026 guidance assumes Middle East activity remains broadly stable, with IET facing a 1% to 2% revenue headwind due to regional disruptions. De-leveraging is a priority following the Chart close, with a target to return to 1 to 1.5x net leverage within 24 months using free cash flow and divestiture proceeds. Chart will operate as a third reporting segment to preserve its commercial focus while highlighting its contribution to the broader portfolio. The Waygate divestiture is expected to close at year-end, which is factored into the maintained IET revenue guidance. Management flagged potential risks from foreign exchange rates, trade policy, and the pace of aeroderivative supply chain recovery. The formation of the SPC joint venture and the PSI divestiture acted as modest headwinds to year-over-year revenue comparisons. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The $5 billion revenue capacity represents a 3 to 4x increase over 2025 levels, with gas turbines making up roughly half the mix. CapEx for this expansion is described as disciplined and phased through 2028, targeting paybacks below 2 years by leveraging existing facilities. The first incremental capacity is expected to come online in the first half of 2027, with revenue following 6 to 12 months later. Data centers are the most immediate opportunity, combining Baker Hughes' power generation with Chart's thermal management and cooling solutions. Management identified 'underappreciated' long-term value in space, geothermal, and mining markets where Chart has established relationships. Aftermarket services represent a significant upside by increasing attachment rates across Chart's installed base using Baker Hughes' global network. Strength was broad-based; even excluding $2.2 billion in data center orders, IET would have matched its previous quarterly record. LNG equipment orders year-to-date have already exceeded the full year 2025 total. Pricing dynamics remain constructive, which management expects will provide a favorable tailwind for IET margins in 2027 and beyond.

Baker Hughes Company BKR reported second-quarter 2026 adjusted earnings of 64 cents per share, up 2% year over year. The figure beat the Zacks Consensus Estimate of 51 cents by 25.5%. Revenues of $6.74 billion surpassed the consensus mark of $6.49 billion by 3.9%. However, the figure declined 2% from the year-ago quarter. Better-than-expected quarterly results reflected strong OFSE execution, firm IET profitability and record order momentum. EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote Remaining performance obligations, a measure of contracted future work, reached $40.06 billion, up 18% year over year. The increase reflected a record Industrial & Energy Technology (“IET”) backlog, which rose to $37.09 billion and an increased Oilfield Services & Equipment (“OFSE”) backlog, up 10% year over year. Orders across all business segments totaled $10.5 billion, up 49% from $7.03 billion recorded a year ago, driven by record order intake from the IET business segment. Notably, IET orders nearly doubled from the prior-year period, supported by continued momentum in Gas Technology Equipment and Gas Technology Services. The company posted a total book-to-bill ratio of 1.6, indicating that orders exceeded current-quarter revenues. Industrial & Energy Technology revenues were $3.29 billion, flat year over year. Lower Gas Technology Equipment and Industrial Solutions revenues, including the effect of the PSI disposition, affected segment results in the quarter, offset by growth across the other product lines. Segment EBITDA increased 16% from the year-ago quarter to $678 million. The EBITDA margin expanded 280 basis points to 20.6%, driven by pricing, productivity, cost-out initiatives and favorable foreign exchange movements. The positives were partly offset by lower volume and inflation. Oilfield Services & Equipment revenues fell 5% year over year to $3.45 billion, mainly due to the SPC divestment and Middle East disruptions. North America revenues increased 1%, while International revenues declined 6% year over year. OFSE EBITDA declined 11% to $605 million, while the margin contracted 120 basis points to 17.5%. Sequentially, however, revenues and EBITDA each rose 7%, driven by higher volume, pricing, cost actions and foreign exchange. Adjusted EBITDA increased 2% year over year to $1.23 billion. The adjusted EBITDA margin improved 70 basis points to 18.3%, with company-wide results exceeding the midpoint of management's guidance. Operating cash flow was $1.35 billion compared with $510 million in the corresponding period of 2025. Free cash flow in the second quarter totaled $1.11 billion compared with $239 million a year earlier. Net capital expenditures were $236 million, including $135 million for OFSE and $85 million for IET. BKR ended June with cash and cash equivalents of $15.73 billion. Long-term debt stood at $15.48 billion at the end of the second quarter, reflecting the financing associated with the all-cash Chart Industries acquisition. The company paid $228 million in dividends during the second quarter and made no share repurchases. Management remains focused on deleveraging after the Chart closing and targets net debt to adjusted EBITDA of 1x-1.5x within 24 months. The company completed the Chart acquisition, adding thermal management, air and gas handling, compression and lifecycle-service capabilities. Baker Hughes expects Chart to become a third reporting segment beginning in the third quarter of 2026. Management expects run-rate cost synergies of $95 million in year one, $230 million in year two and $325 million in year three. The integration plan also targets commercial benefits from a larger installed base, expanded aftermarket reach and broader digital penetration. For the third quarter of 2026, Baker Hughes expects revenues of $6.57-$7.17 billion and adjusted EBITDA of $1.12-$1.30 billion. OFSE revenues are projected at $3.40-$3.70 billion, while IET revenues are forecast at $3.17-$3.47 billion. For 2026, the company now expects revenues of $26.65-$28.05 billion and adjusted EBITDA of $4.6-$5.1 billion. IET order guidance was raised to $17.5-$19.5 billion, and the Horizon 2 IET order target increased to more than $45 billion for 2026-2028. The outlook excludes guidance for the Chart segment. It assumes that Middle East activity remains broadly consistent through year-end and that logistics inflation and supply-chain challenges remain in line with recent trends. BKR currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy sector are Par Pacific Holdings PARR, Valero Energy VLO and FuelCell Energy FCEL. While Par Pacific sports a Zacks Rank #1 (Strong Buy), Valero Energy and FuelCell Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks Rank #1 stocks here. Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products. Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions. FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baker Hughes Company (BKR) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Baker Hughes Company? Here are five stocks we like better. Baker Hughes exceeded second-quarter guidance, reporting $1.23 billion in adjusted EBITDA, $0.64 in adjusted EPS, an 18.3% adjusted EBITDA margin and $1.1 billion in free cash flow despite Middle East disruptions. Industrial & Energy Technology orders reached a record $7.1 billion, driven by data center power systems and LNG projects. Backlog rose 19% to $37.1 billion, while management expects Horizon Two orders to exceed $45 billion. Full-year guidance was raised to approximately $27.35 billion in revenue and $4.85 billion in adjusted EBITDA. The company also completed its Chart Industries acquisition, targeting $325 million in annual cost synergies by the third year. 3 Energy Stocks Racing to Fix AI's Power Problem Baker Hughes (NASDAQ:BKR) reported second-quarter results that exceeded its guidance range, supported by record orders in its Industrial & Energy Technology segment and stronger-than-expected performance in its Oilfield Services & Equipment business despite disruptions in the Middle East. Chairman and CEO Lorenzo Simonelli said adjusted EBITDA totaled $1.23 billion, above the high end of the company’s guidance, while adjusted earnings per share reached $0.64, up modestly from a year earlier. Adjusted EBITDA margin expanded 70 basis points year over year to a record 18.3%, and free cash flow was $1.1 billion. → MarketBeat Week in Review – 07/20- 07/24 The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to Sell “We delivered another strong quarter as disciplined execution and the strength of our diversified portfolio more than offset anticipated headwinds in the Middle East,” Simonelli said. Total company bookings were $10.5 billion in the quarter, including a record $7.1 billion in IET orders, which doubled from a year earlier. The segment’s book-to-bill ratio was 2.2 times, and remaining performance obligations rose 19% to a record $37.1 billion. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit SLB’s Tough Quarter Masks a Powerful Long-Term Shift IET booked $2.6 billion in power systems orders, including 2.7 gigawatts of power-generation capacity. Data center-related activity accounted for $2.2 billion of power systems orders, though Simonelli said the segment’s momentum extended beyond data centers into LNG, gas processing, production infrastructure, services and upgrades. Among the quarter’s awards, Baker Hughes received an order from Dynamis for NovaLT gas turbines representing about 1.3 gigawatts of mobile generation capacity for data center and oil-and-gas applications. The company also signed a multiyear strategic agreement with Kodiak Gas Services, beginning with an approximately one-gigawatt award and providing a framework for up to 1.8 gigawatts over time. → 2 Stocks Built to Thrive If Inflation Refuses to Fade In LNG, Baker Hughes booked $1.8 billion of equipment orders across three projects. The awards included equipment for Venture Global, gas turbine-driven refrigerant compressor trains for Golar’s floating LNG facility, and equipment and upgrades supporting Cheniere’s Sabine Pass LNG facility. Simonelli said the company now expects its Horizon Two IET orders to exceed $45 billion. Baker Hughes is also expanding gas turbine and generator capacity, with additional capacity expected to be available by 2029. At full utilization, the company estimates the expansion could support nearly $5 billion in annual power systems revenue opportunity. Chief Financial Officer Ahmed Moghal said the capacity additions will be phased from 2026 through 2028, with the first incremental NovaLT capacity expected in the first half of 2027. He said gas turbine capacity is expected to double from 2026 levels by the end of 2028. IET revenue was $3.3 billion, roughly in line with the prior-year level, while segment EBITDA increased 16% year over year to $678 million. IET EBITDA margin expanded 280 basis points to 20.6%, driven by favorable backlog pricing and operational execution, Moghal said. OFSE revenue was $3.45 billion, up 7% sequentially and above the company’s guidance range. Growth was led by Brazil, Mexico, Asia Pacific and North America land. Middle East product revenue exceeded internal expectations, though the region continued to face logistical constraints and softer services activity. OFSE EBITDA was $605 million, with a 17.5% margin that rose 10 basis points sequentially. Stronger margins in the Subsea and Surface Pressure Systems business offset pressure from Middle East disruptions and inflationary costs in oilfield services. SSPS secured $667 million of orders during the quarter. The company expects global upstream spending to decline modestly in 2026, as growth in Latin America, offshore Africa and North America land is more than offset by lower spending in Europe and the Middle East. Management said customers remain focused on production optimization and mature-asset solutions. Baker Hughes completed its acquisition of Chart Industries earlier in the month. Chart will operate as the company’s third reporting segment, adding thermal management, air and gas handling, and carbon capture capabilities across markets including gas infrastructure, data centers, industrial gases, space and new energy. The company identified nearly 300 integration initiatives and continues to target $325 million in annualized cost synergies by the third year after closing. The targets include $95 million in the first year, $230 million in the second year and $325 million in the third year. Management said initial integration priorities include customer continuity, employee retention, operational performance, early cost-synergy actions and commercial cross-selling. Simonelli highlighted data centers and gas infrastructure as immediate commercial opportunities, while citing geothermal, mining and space as potential longer-term areas for combined offerings. Moghal said leverage will rise temporarily following the acquisition, but the company expects to return to net leverage of 1 to 1.5 times within 24 months. The deleveraging plan is supported by free cash flow, synergy realization, disciplined capital allocation and portfolio actions, including the announced divestiture of Waygate. For the third quarter, Baker Hughes expects company revenue of approximately $6.87 billion and adjusted EBITDA of about $1.205 billion. The outlook assumes Middle East activity remains broadly stable through year-end, with IET continuing to experience a 1% to 2% revenue headwind from regional disruptions. Third-quarter IET: Revenue of approximately $3.32 billion and EBITDA of approximately $660 million. Third-quarter OFSE: Revenue of approximately $3.55 billion and EBITDA of approximately $625 million. Full-year company outlook: Revenue of approximately $27.35 billion and adjusted EBITDA of approximately $4.85 billion. Full-year IET orders: Raised to a range of $17.5 billion to $19.5 billion. Full-year IET: Revenue midpoint maintained at $13.5 billion, while EBITDA midpoint increased to $2.725 billion. Full-year OFSE: Revenue of $13.85 billion and EBITDA of $2.425 billion. Management said a meaningful portion of recent gas technology equipment orders will convert to revenue after 2027 because of longer cycle times. Still, Moghal said the record backlog, favorable pricing and mix of power systems, LNG, services and upgrades provide visibility for profitability in 2027 and beyond. Baker Hughes is an energy technology company that provides a broad portfolio of products, services and digital solutions for the oil and gas and industrial markets. Its offerings span oilfield services and equipment — including drilling, evaluation, completion and production technologies — as well as turbomachinery, compressors and related process equipment used in midstream and downstream operations. The company also supplies aftermarket services, field support and integrated solutions designed to improve asset performance and uptime across the energy value chain. The firm's roots trace back to the merger of Baker International and Hughes Tool Company, and more recently it combined with GE's oil and gas business in 2017 to form Baker Hughes, a GE company (BHGE); subsequent changes in ownership restored Baker Hughes as an independent publicly traded company. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Baker Hughes Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Adjusted EBITDA: $1.23 billion, exceeding guidance range. Adjusted Earnings Per Share (EPS): $0.64, up modestly year-over-year. Adjusted EBITDA Margin: Expanded by 70 basis points to 18.3%. Free Cash Flow: $1.1 billion generated in the second quarter. IET Orders: Record $7.1 billion, doubling year-over-year. Book-to-Bill Ratio: 2.2 times, driving RPO up 19% to $37.1 billion. Power Systems Orders: $2.6 billion, including 2.7 gigawatts of power generation. LNG Equipment Orders: $1.8 billion across three large projects. OFSE Revenue: $3.45 billion, a 7% sequential increase. OFSE EBITDA: $605 million, with a margin of 17.5%. Net Debt to Adjusted EBITDA Ratio: Declined to 0.1 times. Full-Year Revenue Guidance: $27.35 billion. Full-Year Adjusted EBITDA Guidance: $4.85 billion. Is BKR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Baker Hughes Co (NASDAQ:BKR) reported a strong second quarter with adjusted EBITDA totaling $1.23 billion, exceeding the high end of their guidance range. The company achieved a record $7.1 billion in IET orders, doubling year-over-year, which highlights strong demand across data centers and gas infrastructure markets. Baker Hughes Co (NASDAQ:BKR) generated robust free cash flow of $1.1 billion during the second quarter. The successful acquisition of Chart Industries is expected to enhance Baker Hughes Co (NASDAQ:BKR)'s capabilities in thermal management, air and gas handling, and carbon capture. The company is expanding its gas turbine and generator capacity, which could support nearly $5 billion in annual Power Systems revenue opportunity by 2029. Baker Hughes Co (NASDAQ:BKR) faces ongoing disruptions in the Middle East, impacting revenue and creating logistical challenges. The company anticipates modest growth in global upstream spending, with declines expected in Europe and the Middle East. Inflationary costs have pressured margins, particularly in the OFSE segment. The integration of Chart Industries will temporarily increase leverage, although the company plans to return to a 1 to 1.5 times net leverage within 24 months. There is uncertainty around project timing and local supply chains due to geopolitical conditions, which could impact future performance. Q: Can you elaborate on your capacity expansion plans through 2029, particularly the $5 billion Power Systems revenue opportunity? A: Lorenzo Simonelli, CEO, explained that Power Systems is a significant growth opportunity, with expected annualized revenue capacity of $5 billion by 2029, representing a 3 to 4 times increase from last year's $1 billion. The expansion includes gas turbines, steam turbines, and other power management solutions. The investment is phased, with paybacks below two years, leveraging existing infrastructure to keep costs competitive. Q: What are the commercial synergies with Chart Industries now in the portfolio? A: Lorenzo Simonelli highlighted that the acquisition of Chart Industries enhances Baker Hughes' capabilities across power generation, thermal management, and gas processing. Near-term opportunities include data centers and gas infrastructure, with potential in space, geothermal, and mining. The combined portfolio allows for integrated solutions, reducing complexity and improving reliability for customers. Q: Could you discuss the performance of the OFS business this quarter and expectations for the second half? A: Ahmed Moghal, CFO, noted that OFS revenue and EBITDA increased 7% sequentially, driven by strong activity outside the Middle East and better-than-expected product revenue in the region. For the second half, stable Middle East activity, seasonal recovery in North America, and continued improvement in international markets are expected to support growth. Q: What drove the record IET orders this quarter, and what are the associated margin expectations? A: Lorenzo Simonelli stated that the record IET orders were driven by strong demand across data centers, LNG, and gas infrastructure markets. Power Systems orders reached $2.6 billion, with significant contributions from data centers. The orders are expected to support margin expansion due to strong pricing dynamics and disciplined project execution. Q: Can you discuss the outlook for IET in the second half and the strong free cash flow in the first half? A: Ahmed Moghal explained that IET's second-half outlook remains balanced, with uncertainties around Middle East project timing and supply chains. The strong first-half free cash flow was driven by favorable working capital performance and customer collections. The backlog provides good visibility into 2027, with profitability supported by favorable pricing and high-quality mix. For the complete transcript of the earnings call, please refer to the full earnings call transcript.