Baker Hughes Q2: Record IET Orders, Raised Guidance, and Chart Deal Closed
BKR sits 41% above its 52-week low of $41.96.
Summary
Baker Hughes posted Q2 2026 results with record IET orders, an earnings beat, and raised guidance, while closing the Chart acquisition and announcing the Waygate sale.
Key Events · Earnings and Guidance · BKR
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Record IET Orders Drive 49% Order Growth
Total orders reached $10.5 billion, up 49% year-over-year, with IET orders doubling to a record $7.1 billion. IET backlog hit an all-time high of $37.1 billion.
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Earnings Beat and Strong Cash Flow
Adjusted diluted EPS of $0.64 exceeded the $0.50 consensus. Free cash flow was $1.109 billion, up from $239 million a year ago.
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Full-Year IET Guidance Raised
Management increased its full-year IET order guidance and raised the Horizon 2 (2026–2028) IET orders outlook to more than $45 billion, citing broadening demand and capacity expansion.
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Chart Acquisition Closed, Waygate Sale Announced
The $13.6 billion acquisition of Chart Industries was completed in July, enhancing thermal management and compression capabilities. The company also announced the sale of Waygate Technologies for approximately $1.45 billion.
Analysis · BKR · Energy & Transportation
A standout quarter saw orders surge 49% year-over-year to $10.5 billion, fueled by record Industrial & Energy Technology (IET) bookings of $7.1 billion. Adjusted EPS of $0.64 crushed the $0.50 consensus, while free cash flow reached $1.1 billion. Reflecting confidence in sustained demand from LNG, data centers, and gas infrastructure, management raised full-year IET order guidance and boosted the 2026–2028 IET orders outlook to more than $45 billion. The period also marked the closing of the $13.6 billion Chart Industries acquisition and the announced $1.45 billion sale of Waygate Technologies, reshaping the portfolio toward higher-growth industrial energy markets. These results reinforce the company's strategic pivot and operational momentum, though the stock's reaction will hinge on how much of this strength was already priced in after a series of positive news flow.
At the time of this filing, BKR was trading at $58.96 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $56.8B. The 52-week trading range was $41.96 to $70.41. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.