Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

BKR

Baker Hughes Q1 2026 Revenue Hits $6.587B

Baker Hughes reported first-quarter 2026 revenue of $6.587 billion, up 2% from $6.427 billion a year earlier, but down 11% from $7.386 billion in the fourth quarter of 2025.

Orders rose to $8.159 billion, a 26% increase from $6.459 billion a year ago and 3% above the prior quarter’s $7.886 billion. Industrial & Energy Technology accounted for $4.9 billion of those orders, with the company saying that marked the third straight quarter above $4 billion. The total book-to-bill ratio was 1.2, while IET’s was 1.5.

Remaining performance obligations ended the quarter at a record $36.1 billion, up from $35.9 billion at the end of 2025. IET backlog reached a record $33.1 billion, rising $0.7 billion sequentially. Within that, gas technology equipment backlog was $11.6 billion and gas technology services backlog was $16.0 billion.

Net income attributable to Baker Hughes came in at $930 million, up 6% from $876 million in the fourth quarter and up 131% from $402 million a year earlier. Diluted earnings per share were $0.93, compared with $0.88 in the prior quarter and $0.40 in last year’s first quarter.

Adjusted EBITDA was $1.158 billion, up 12% year over year from $1.037 billion, but down 13% from $1.337 billion sequentially. Adjusted net income was $573 million, up 12% from $509 million a year ago, but down 26% from $772 million in the fourth quarter. Adjusted diluted EPS was $0.58, versus $0.51 a year earlier and $0.78 in the prior quarter.

Cash flow from operating activities fell to $500 million from $1.662 billion in the fourth quarter and from $709 million a year earlier. Free cash flow dropped to $210 million from $1.341 billion sequentially and from $454 million in the first quarter of 2025.

The company also booked $721 million in gains on business dispositions in other income, while transaction-related costs tied to disposals and acquisitions totaled $28 million.

On portfolio moves, Baker Hughes closed its surface pressure control joint venture transaction for $344.5 million of proceeds and sold its precision sensors & instrumentation product line for $1.15 billion. It also said the HMH minority-owned drilling equipment company completed its IPO in April, raising about $200 million, and announced the sale of Waygate Technologies for about $1.45 billion. Combined, the two closed transactions and the Waygate deal are expected to generate gross proceeds of about $3 billion in 2026. As a result of these announcements, the company's shares have moved -0.41% on the market, and are now trading at a price of $62.36. For the full picture, make sure to review Baker Hughes Co's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS