Third-quarter highlights
- Orders of
$10.8 billion , including$5.9 billion of IET orders. - RPO of
$46.4 billion , including record IET RPO of$39.4 billion . - Revenue of
$8.0 billion . - Attributable net income of
$411 million . - GAAP diluted EPS of
$0.41 and adjusted diluted EPS* of$0.70 . - Adjusted EBITDA* of
$1 ,415 million. - Cash flows from operating activities of
$1,005 million and free cash flow* of$769 million .
"
"Alongside continued strong operational results, IET achieved its second-largest order quarter, booking
"OFSE delivered another solid quarter, supported by growing momentum across international markets led by a meaningful improvement in the
"Chart delivered a solid first quarter as part of
"Energy security, rising demand for AI and emerging opportunities across growth markets are creating new opportunities across our energy upstream, energy infrastructure and industrial end markets. With a record RPO, robust order pipeline, growing installed base and inflecting energy upstream market,
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
| Three Months Ended | Variance | |||||||||||||
| (in millions except per share amounts) | Sequential | Year-over-year | ||||||||||||
| Orders | $ | 10,764 | $ | 10,501 | $ | 8,207 | 2 | % | 31 | % | ||||
| Revenue | 8,025 | 6,742 | 7,010 | 19 | % | 14 | % | |||||||
| Net income attributable to | 411 | 681 | 609 | (40 | %) | (33 | %) | |||||||
| Adjusted net income attributable to | 695 | 640 | 678 | 8 | % | 2 | % | |||||||
| Adjusted EBITDA* | 1,415 | 1,231 | 1,238 | 15 | % | 14 | % | |||||||
| Diluted earnings per share (EPS) | 0.41 | 0.68 | 0.61 | (40 | %) | (33 | %) | |||||||
| Adjusted diluted EPS* | 0.70 | 0.64 | 0.68 | 8 | % | 2 | % | |||||||
| Cash flow from operating activities | 1,005 | 1,345 | 929 | (25 | %) | 8 | % | |||||||
| Free cash flow* | 769 | 1,109 | 699 | (31 | %) | 10 | % | |||||||
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
Quarter Highlights
Executing our portfolio management strategy
- Completed the previously announced all-cash acquisition of Chart Industries, Inc. ("Chart"), adding complementary capabilities that strengthen Baker Hughes’ portfolio and advance its strategy to deliver more integrated solutions across attractive industrial and energy markets, while increasing its installed base and recurring aftermarket opportunities.
Key awards and technology achievements
Leveraging enterprise-wide capabilities
- Expanded Baker Hughes’ relationship with Venture Global through a major LNG award for the Plaquemines expansion, including IET equipment across four liquefaction blocks comprising eight modules, in addition to Chart cold boxes.
Industrial & Energy Technology
Industrial & Energy Technology (“IET”) delivered broad-based commercial wins across energy and industrial markets, reflecting strong demand for its power generation, compression, digital and lifecycle service capabilities.
- Secured a major integrated power generation order to supply 1.1 gigawatt (GW) of power for a major
U.S . technology company. The orders include 43 NovaLT™ and Frame 5 gas turbine packages, with gearboxes and BRUSH™ Power Generation generators to provide reliable, scalable power for advanced computing infrastructure supporting AI model training, inference, and physical AI workloads. - Venture Global awarded
Baker Hughes a substantial order for the Cloud Connector Pipeline project, including 13 Frame 5/2E gas turbine-driven compression systems to support one of the largest deployments for LNG feed gas transportation inthe United States . - Awarded a major power generation equipment order representing approximately 500 megawatts of power capacity for AI infrastructure development.
Baker Hughes will provide 18 Frame 5 gas turbine generator packages with BRUSH™ Power Generation generators technology to support data center projects for aU.S . energy company. - Received several compressor upgrade awards across the
Middle East andAsia , marking a record quarter for compressor upgrade activity and reflecting continued customer investment in the installed base to improve reliability, performance and equipment longevity. - Secured a significant long-term service agreement from SBM Offshore, covering 27 LM2500 gas turbines across four FPSOs. The agreement combines maintenance services with iCenter™ digital services for remote and condition-based monitoring to enhance equipment reliability and availability.
- Signed a significant integrated FPSO equipment order for gas compression and power generation, expanding Baker Hughes’ installed base in a major offshore field. The integrated award includes centrifugal compressors driven by LM2500 aeroderivative gas turbines for medium- and high- pressure gas compression, electric motor-driven centrifugal compressors for low-pressure gas compression, and 4-pole generators driven by LM2500 aeroderivative gas turbines for power generation.
Industrial Solutions secured key Cordant™ wins across the data center, LNG and industrial markets, including a preferred-supplier agreement with an OEM and sensing, protection and asset health awards supporting key customers.- Building on our long-standing relationship with Petrobras,
Baker Hughes will deploy Cordant™ Process Optimization across seven offshore production units to optimize compression operations, improve efficiency, reduce emissions and support production performance. - Secured an order for Masoneilan™ control valves across six reactor units in
Europe . This award strengthens our position in the growing nuclear newbuild market, while expanding our installed base and creating attractive aftermarket opportunities over the life of these assets.
- Signed a multi-year contract with Oil & Gas Development Company (OGDC) to optimize production and recovery across more than 120 wells in Pakistan’s mature oil & gas fields, integrating Baker Hughes’ subsurface expertise, surface production technologies and digital solutions.
- Awarded a substantial subsea systems contract by
Searah North Ganal Limited (2) for the integrated development of the Geng North and Gehem fields inIndonesia .Baker Hughes will supply 17 deepwater horizontal tree systems, associated manifolds and connections, subsea controls and distribution systems, as well as Cordant™ asset protection and condition monitoring solutions. - Secured a significant award from bp to provide integrated offshore production enhancement and stimulation services in the
UK North Sea .Baker Hughes will deploy a vessel-based solution featuring StimFORCE™ technology to support new well development and enhanced recovery from mature fields, optimizing reservoir performance across bp’sNorth Sea fields. - Signed a significant integrated subsea systems award with Eni for the deepwater Cronos gas development offshore
Cyprus , supporting a fast-track approach to safely develop reserves. The scope includes four subsea tree systems, wellheads, manifolds and connections, topside controls and associated services. ? - Received an award from
Kuwait Oil Company (KOC) to provide hybrid Kymera™ drill bits, as well as polycrystalline diamond compact (PDC) and tricone drill bits for drilling applications. - Secured multiple drill bit awards in Türkiye, one of the world’s largest geothermal power markets. The awards include first-time orders from multiple geothermal operators, further strengthening the Company’s position in this important market for always-on energy.
- KOC awarded
Baker Hughes a significant multi-year contract to deploy fit-for-purpose production, digital and AI-enabled solutions, while establishing an in-country research and technology development center to accelerate innovation, optimize upstream production and build local expertise. - Received a significant award to deliver subsea production systems and services for gas field development in
Azerbaijan , inclusive ofAptara trees, wellheads and associated distribution, controls and connections. - Received a significant integrated
Well Construction award from Eni for the Baleine Phase 3 project in Côte d’Ivoire. The scope will include drilling services, digital solutions, drilling fluids, cementing, drill bits, liner hangers and wellbore clean out to support full-field production.
Chart
Following the acquisition, the Chart segment delivered broad-based orders across its diverse customer base, while opening new opportunities across Baker Hughes’ technology portfolio and global commercial network.
- Expanded relationships with three commercial space customers through launch-pad equipment and specialized tank awards, supporting next-generation testing and launch infrastructure.
- Building on its established relationship with Golar LNG,
Baker Hughes will supply two cryogenic cold boxes and two Peter Brotherhood steam turbines for the customer's fourth floating LNG project. Hanwha Engine Co. Ltd. placed additional orders for Howden exhaust gas recirculation blowers, strengthening Howden’s position as a preferred supplier of marine emissions-reduction technology.- Leveraging its leadership in cooling fan technology,
Baker Hughes received an order from Bechtel to supply air coolers for the heat rejection system supporting an expansion train at an existingGulf Coast LNG export facility.
Consolidated Financial Results
Revenue for the quarter was
The Company's total book-to-bill ratio in the third quarter of 2026 was 1.3; the IET book-to-bill ratio was 1.7.
Net income, as determined in accordance with generally accepted accounting principles in
Adjusted net income (a non-GAAP financial measure) for the third quarter of 2026 was
Depreciation and amortization for the third quarter of 2026 was
Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2026 was
The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by the Chart acquisition, higher volume and price, partially offset by reduced productivity benefits and inflation.
The year-over-year increase in adjusted net income and adjusted EBITDA was primarily driven by the Chart acquisition, price, higher volume, and cost-out initiatives, partially offset by reduced productivity benefits, change in business mix, and inflation.
Other Financial Items
Remaining Performance Obligations ("RPO") in the third quarter of 2026 ended at
Income tax expense in the third quarter of 2026 was
Other (income) expense, net in the third quarter of 2026 was
GAAP diluted earnings per share was
Cash flow from operating activities was
Capital expenditures, net of proceeds from disposal of assets, were
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Segment results | Sequential | Year-over-year | ||||||||||||
| Orders | $ | 4,047 | $ | 3,413 | $ | 4,068 | 19 | % | (1 | %) | ||||
| Revenue | $ | 3,660 | $ | 3,451 | $ | 3,636 | 6 | % | 1 | % | ||||
| EBITDA | $ | 659 | $ | 605 | $ | 671 | 9 | % | (2 | %) | ||||
| EBITDA margin | 18.1 | % | 17.5 | % | 18.5 | % | 0.5pts | -0.4pts | ||||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Revenue by Product Line | Sequential | Year-over-year | ||||||||||||
| $ | 958 | $ | 899 | $ | 954 | 7 | % | — | % | |||||
| Completions, Intervention, and Measurements | 1,008 | 944 | 945 | 7 | % | 7 | % | |||||||
| Production Solutions | 983 | 930 | 966 | 6 | % | 2 | % | |||||||
| Subsea & Surface Pressure Systems | 711 | 678 | 771 | 5 | % | (8 | %) | |||||||
| Total Revenue | $ | 3,660 | $ | 3,451 | $ | 3,636 | 6 | % | 1 | % | ||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Revenue by | Sequential | Year-over-year | ||||||||||||
| $ | 955 | $ | 933 | $ | 980 | 2 | % | (3 | %) | |||||
| 674 | 732 | 603 | (8 | %) | 12 | % | ||||||||
| 770 | 568 | 599 | 35 | % | 29 | % | ||||||||
| 1,261 | 1,218 | 1,454 | 3 | % | (13 | %) | ||||||||
| Total Revenue | $ | 3,660 | $ | 3,451 | $ | 3,636 | 6 | % | 1 | % | ||||
| $ | 955 | $ | 933 | $ | 980 | 2 | % | (3 | %) | |||||
| International | $ | 2,705 | $ | 2,518 | $ | 2,656 | 7 | % | 2 | % | ||||
EBITDA excludes depreciation and amortization of
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
OFSE orders of
OFSE revenue of
Segment EBITDA for the third quarter of 2026 was
Industrial & Energy Technology
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Segment results | Sequential | Year-over-year | ||||||||||||
| Orders | $ | 5,886 | $ | 7,088 | $ | 4,139 | (17 | %) | 42 | % | ||||
| Revenue | $ | 3,477 | $ | 3,291 | $ | 3,374 | 6 | % | 3 | % | ||||
| EBITDA | $ | 685 | $ | 678 | $ | 635 | 1 | % | 8 | % | ||||
| EBITDA margin | 19.7 | % | 20.6 | % | 18.8 | % | -0.9pts | 0.9pts | ||||||
| (in millions) | Three Months Ended | Variance | ||||||||||||
| Orders by Product Line | Sequential | Year-over-year | ||||||||||||
| Gas Technology Equipment | $ | 3,120 | $ | 4,913 | $ | 2,174 | (36 | %) | 43 | % | ||||
| Gas Technology Services | 1,127 | 1,314 | 896 | (14 | %) | 26 | % | |||||||
| Total Gas Technology | 4,247 | 6,227 | 3,070 | (32 | %) | 38 | % | |||||||
| Industrial Products | 591 | 533 | 481 | 11 | % | 23 | % | |||||||
| 244 | 274 | 336 | (11 | %) | (28 | %) | ||||||||
| Total Industrial Technology | 835 | 807 | 817 | 3 | % | 2 | % | |||||||
| Climate Technology Solutions | 804 | 54 | 253 | F | F | |||||||||
| Total Orders | $ | 5,886 | $ | 7,088 | $ | 4,139 | (17 | %) | 42 | % | ||||
| (in millions) | Three Months Ended | Variance | |||||||||||||||
| Revenue by Product Line | Sequential | Year-over-year | |||||||||||||||
| Gas Technology Equipment | $ | 1,576 | $ | 1,524 | $ | 1,687 | 3 | % | (7 | %) | |||||||
| Gas Technology Services | 897 | 831 | 803 | 8 | % | 12 | % | ||||||||||
| Total Gas Technology | 2,473 | 2,355 | 2,490 | 5 | % | (1 | %) | ||||||||||
| Industrial Products | 537 | 549 | 511 | (2 | %) | 5 | % | ||||||||||
| 205 | 182 | 288 | 13 | % | (29 | %) | |||||||||||
| Total Industrial Technology | 742 | 731 | 799 | 2 | % | (7 | %) | ||||||||||
| Climate Technology Solutions | 262 | 205 | 84 | 28 | % | F | |||||||||||
| Total Revenue | $ | 3,477 | $ | 3,291 | $ | 3,374 | 6 | % | 3 | % | |||||||
EBITDA excludes depreciation and amortization of
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
IET orders of
IET revenue of
Segment EBITDA for the quarter was
Chart
| (in millions) | Three Months Ended | ||
| Segment results | |||
| Orders | $ | 831 | |
| Revenue | $ | 888 | |
| EBITDA | $ | 156 | |
| EBITDA margin | 17.6 | % | |
| (in millions) | Three Months Ended | ||
| Orders by Product Line | |||
| Original Equipment | $ | 587 | |
| Aftermarket | 244 | ||
| Total Orders | 831 | ||
| (in millions) | Three Months Ended | ||
| Revenue by Product Line | |||
| Original Equipment | $ | 623 | |
| Aftermarket | 265 | ||
| Total Revenue | $ | 888 | |
EBITDA excludes depreciation and amortization of $170 million for the three months ended
"F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
On
Since the acquisition, Chart received orders of
Reconciliation of GAAP to non-GAAP Financial Measures
Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to
Table 1a. Reconciliation of Net Income Attributable to
| Three Months Ended | |||||||||
| (in millions) | |||||||||
| Net income attributable to | $ | 411 | $ | 681 | $ | 609 | |||
| Net income attributable to noncontrolling interests | 11 | 1 | 8 | ||||||
| Provision for income taxes | 97 | 210 | 204 | ||||||
| Interest expense, net | 177 | 66 | 56 | ||||||
| Depreciation & amortization | 505 | 333 | 282 | ||||||
| Restructuring | 28 | 11 | — | ||||||
| Gain on business dispositions (1) | — | 24 | — | ||||||
| Change in fair value of equity securities (1) | (6 | ) | (125 | ) | 8 | ||||
| Transaction related costs (1) | 158 | 30 | 47 | ||||||
| Inventory step-up charges | 25 | — | — | ||||||
| Other charges and credits (1) | 9 | — | 24 | ||||||
| Adjusted EBITDA (non-GAAP) | 1,415 | 1,231 | 1,238 | ||||||
| Corporate costs | 79 | 82 | 76 | ||||||
| Other (income) / expense not allocated to segments | 6 | (30 | ) | (8 | ) | ||||
| Total Segment EBITDA (non-GAAP) | $ | 1,500 | $ | 1,283 | $ | 1,306 | |||
| OFSE | 659 | 605 | 671 | ||||||
| IET | 685 | 678 | 635 | ||||||
| Chart | 156 | — | — | ||||||
| (1) | The gain on business dispositions, change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the condensed consolidated statements of income (loss). |
Table 1a reconciles net income attributable to
Table 1b. Reconciliation of Net Income Attributable to
| Three Months Ended | |||||||||
| (in millions, except per share amounts) | |||||||||
| Net income attributable to | $ | 411 | $ | 681 | $ | 609 | |||
| Restructuring | 28 | 11 | — | ||||||
| Gain on business dispositions | — | 24 | — | ||||||
| Change in fair value of equity securities | (6 | ) | (125 | ) | 8 | ||||
| Transaction related costs | 158 | 30 | 54 | ||||||
| Amortization of Chart intangible assets | 143 | — | — | ||||||
| Inventory step-up charges | 25 | — | — | ||||||
| Other adjustments | 17 | — | 24 | ||||||
| Tax adjustments | (81 | ) | 19 | (17 | ) | ||||
| Total adjustments, net of income tax | 284 | (41 | ) | 69 | |||||
| Adjustments attributable to | 284 | (41 | ) | 69 | |||||
| Adjusted net income attributable to | $ | 695 | $ | 640 | $ | 678 | |||
| Denominator: | |||||||||
| Weighted-average shares of Class A common stock outstanding diluted | 998 | 997 | 992 | ||||||
| Earnings per share - diluted (GAAP) | $ | 0.41 | $ | 0.68 | $ | 0.61 | |||
| Total adjustments per share, net of income tax | 0.29 | (0.04 | ) | 0.07 | |||||
| Adjusted earnings per share - diluted (non-GAAP) | $ | 0.70 | $ | 0.64 | $ | 0.68 | |||
Table 1b reconciles net income attributable to
Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow
| Three Months Ended | |||||||||
| (in millions) | |||||||||
| Net cash flows from operating activities (GAAP) | $ | 1,005 | $ | 1,345 | $ | 929 | |||
| Add: cash used for capital expenditures, net of proceeds from disposal of assets | (236 | ) | (236 | ) | (230 | ) | |||
| Free cash flow (non-GAAP) | $ | 769 | $ | 1,109 | $ | 699 | |||
Table 1c reconciles net cash flows from operating activities, which is the most directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.
| Financial Tables (GAAP) Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue | $ | 8,025 | $ | 7,010 | $ | 21,354 | $ | 20,347 | ||||
| Costs and expenses: | ||||||||||||
| Cost of revenue | 6,097 | 5,309 | 16,343 | 15,556 | ||||||||
| Selling, general and administrative | 732 | 597 | 1,844 | 1,716 | ||||||||
| Research and development costs | 150 | 146 | 427 | 453 | ||||||||
| Restructuring | 28 | — | 78 | — | ||||||||
| Amortization of acquired intangible assets | 165 | 10 | 184 | 35 | ||||||||
| Other (income) expense, net | 157 | 71 | (534 | ) | 77 | |||||||
| Interest expense, net | 177 | 56 | 328 | 161 | ||||||||
| Income before income taxes | 519 | 821 | 2,684 | 2,349 | ||||||||
| Provision for income taxes | (97 | ) | (204 | ) | (642 | ) | (612 | ) | ||||
| Net income | 422 | 617 | 2,042 | 1,737 | ||||||||
| Less: Net income attributable to noncontrolling interests | 11 | 8 | 20 | 25 | ||||||||
| Net income attributable to | $ | 411 | $ | 609 | $ | 2,022 | $ | 1,712 | ||||
| Per share amounts: | ||||||||||||
| Basic income per Class A common stock | $ | 0.41 | $ | 0.62 | $ | 2.04 | $ | 1.73 | ||||
| Diluted income per Class A common stock | $ | 0.41 | $ | 0.61 | $ | 2.03 | $ | 1.72 | ||||
| Weighted average shares: | ||||||||||||
| Class A basic | 993 | 986 | 992 | 988 | ||||||||
| Class A diluted | 998 | 992 | 997 | 994 | ||||||||
| Cash dividend per Class A common stock | $ | 0.23 | $ | 0.23 | $ | 0.69 | $ | 0.69 | ||||
| Condensed Consolidated Statements of Financial Position (Unaudited) | ||||||
| (In millions) | ||||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 4,068 | $ | 3,715 | ||
| Current receivables, net | 7,871 | 6,641 | ||||
| Inventories, net | 5,975 | 4,954 | ||||
| All other current assets | 3,726 | 3,518 | ||||
| Total current assets | 21,640 | 18,828 | ||||
| Property, plant and equipment, less accumulated depreciation | 6,775 | 5,326 | ||||
| 13,897 | 6,068 | |||||
| Other intangible assets, net | 9,773 | 4,097 | ||||
| All other assets | 6,978 | 6,562 | ||||
| Total assets | $ | 59,063 | $ | 40,881 | ||
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts payable | $ | 5,200 | $ | 4,579 | ||
| Short-term debt | 788 | 689 | ||||
| Progress collections and deferred income | 8,037 | 5,904 | ||||
| All other current liabilities | 3,450 | 2,705 | ||||
| Total current liabilities | 17,475 | 13,877 | ||||
| Long-term debt | 17,476 | 5,398 | ||||
| Liabilities for pensions and other postretirement benefits | 978 | 1,066 | ||||
| All other liabilities | 2,573 | 1,530 | ||||
| Equity | 20,561 | 19,010 | ||||
| Total liabilities and equity | $ | 59,063 | $ | 40,881 | ||
| Outstanding | ||||||
| Class A common stock | 993 | 987 | ||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||
| (In millions) | 2026 | 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 422 | $ | 2,042 | $ | 1,737 | |||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||
| Depreciation and amortization | 505 | 1,192 | 861 | ||||||
| Stock-based compensation cost | 57 | 159 | 153 | ||||||
| Change in fair value of equity securities | (6 | ) | (81 | ) | 29 | ||||
| Gain on business dispositions | — | (697 | ) | — | |||||
| Benefit for deferred income taxes | (244 | ) | (186 | ) | (44 | ) | |||
| Working capital | — | 350 | (34 | ) | |||||
| Other operating items, net | 271 | 71 | (554 | ) | |||||
| Net cash flows provided by operating activities | 1,005 | 2,850 | 2,148 | ||||||
| Cash flows from investing activities: | |||||||||
| Expenditures for capital assets | (271 | ) | (907 | ) | (896 | ) | |||
| Proceeds from disposal of assets | 35 | 145 | 139 | ||||||
| Net cash paid for acquisitions | (14,150 | ) | (14,150 | ) | (800 | ) | |||
| Proceeds from business dispositions | 69 | 1,450 | — | ||||||
| Other investing items, net | 41 | 60 | (94 | ) | |||||
| Net cash flows used in investing activities | (14,276 | ) | (13,402 | ) | (1,651 | ) | |||
| Cash flows from financing activities: | |||||||||
| Proceeds from issuance of long-term debt | 2,000 | 11,885 | — | ||||||
| Dividends paid | (228 | ) | (684 | ) | (683 | ) | |||
| Repurchase of Class A common stock | — | — | (384 | ) | |||||
| Other financing items, net | (154 | ) | (296 | ) | (157 | ) | |||
| Net cash flows provided by (used in) financing activities | 1,618 | 10,905 | (1,224 | ) | |||||
| Effect of currency exchange rate changes on cash and cash equivalents | (6 | ) | — | 56 | |||||
| (Decrease) increase in cash and cash equivalents | (11,659 | ) | 353 | (671 | ) | ||||
| Cash and cash equivalents, beginning of period | 15,727 | 3,715 | 3,364 | ||||||
| Cash and cash equivalents, end of period | $ | 4,068 | $ | 4,068 | $ | 2,693 | |||
| Supplemental cash flows disclosures: | |||||||||
| Income taxes paid, net of refunds | $ | 288 | $ | 669 | $ | 754 | |||
| Interest paid | $ | 70 | $ | 307 | $ | 197 | |||
Supplemental Financial Information
Supplemental financial information can be found on the Company's website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.
Conference Call and Webcast
The Company has scheduled an investor conference call to discuss management's outlook and the results reported in today's earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on
Forward-Looking Statements
This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a "forward-looking statement"). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal," "guidance," "outlook" or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company's annual report on Form 10-K for the annual period ended December 31, 2025 and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC"). The documents are available through the Company's website at: https://investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.
These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:
- Economic and political conditions - the impact of worldwide economic conditions; the impact of inflation and interest rates; the impact of tariffs, including the potential for significant increases in tariffs and changes in global trade policy that could affect supply chain costs, pricing, and customer demand; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
- Orders and RPO - our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
- Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; LNG supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries ("OPEC") policy and the adherence by OPEC nations to their OPEC production quotas.
- Terrorism and geopolitical risks - war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East and the associated impact to the Strait of Hormuz; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation; expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.
About Baker Hughes:
Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward - making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.
For more information, please contact:
Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
Media Relations
Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com
____________________
(1) Horizon 2 represents 2026-2028.
(2) Searah North Ganal Limited is a subsidiary of Searah Limited, a joint venture between Eni and PETRONAS.
