Baker Hughes Company

Second-quarter adjusted EBITDA was $1.23 billion, up 2% year over year, and adjusted diluted EPS was $0.64, up modestly/2% year over year. Adjusted EBITDA margin expanded 70 basis points to a record 18.3%; GAAP diluted EPS was $0.68. Company bookings were $10.5 billion, including record IET orders of $7.1 billion, while IET revenue was $3.3 billion, IET EBITDA was $678 million, and IET margin was 20.6%. OFSC revenue was $3.45 billion, up 7% sequentially, with EBITDA of $605 million and margin of 17.5%. Free cash flow was $1.1 billion. For full year 2026, Baker Hughes now expects revenue of $27.35 billion and adjusted EBITDA of $4.85 billion. Third-quarter guidance is revenue of $6.87 billion and adjusted EBITDA of $1.205 billion. Full-year IET revenue midpoint remains $13.5 billion, IET EBITDA midpoint is now $2.725 billion, OFSC full-year revenue is $13.85 billion, and OFSC EBITDA is $2.45 billion. IET orders guidance was raised to $17.5 billion-$19.5 billion, and management said Horizon 2 IET orders are now expected to exceed $45 billion.

Lorenzo Simonelli framed the quarter as evidence that Baker Hughes’ diversified portfolio is working, saying disciplined execution and strength in IET more than offset anticipated Middle East headwinds. He emphasized that the company is becoming a broader industrialized energy solutions provider, with energy upstream, energy infrastructure and industrial markets increasingly connected through the portfolio. On Chart, he was upbeat about the strategic fit and said it expands recurring aftermarket and digital opportunities while creating a platform for additional growth and value creation.

Ahmed Moghal focused on the financial beat, noting company bookings of $10.5 billion, adjusted EBITDA of $1.23 billion, margin of 18.3%, and free cash flow of $1.1 billion. He highlighted the balance sheet at quarter end with net debt to adjusted EBITDA of 0.1x and said leverage will rise temporarily after Chart but should return to 1x-1.5x within 24 months through free cash flow, synergies, capital discipline and Waygate divestiture proceeds. He also quantified Chart synergies at $325 million annualized by year 3, with $95 million in year 1 and $230 million in year 2.

Analysts pressed on Power Systems capacity expansion, Chart commercial synergies, OFSC second-half drivers, IET order strength, and why full-year guidance did not increase as much as the first-half beat. Management said Power Systems demand supports phased capacity additions through 2028, with paybacks below 2 years and a roughly $5 billion annual revenue opportunity by 2029 at full utilization. On Chart, they pointed to immediate opportunities in data centers and gas infrastructure, plus longer-term upside in space, geothermal and mining; on OFSC and IET, they cited Middle East uncertainty, backlog conversion timing, aeroderivative supply chain progress, FX, trade policy, and working-capital variability.