Baker Hughes Company

Business description

Baker Hughes (BKR) is a leading energy technology company providing oilfield services and industrial technology. The company is transitioning from a traditional oilfield services provider to an integrated energy technology firm, with a significant focus on Industrial & Energy Technology (IET) for LNG exports and data centers.

Key financials

• EPS (2026E): $2.48
• EPS (2027E): $3.24
• IET Revenue (2025): $13.4B (19% CAGR since 2022)
• IET Revenue (2027E): $15.8B
• Market Cap: ~$53.6B

Competitive moat

BKR's moat is increasingly driven by its Industrial & Energy Technology (IET) segment, which provides critical infrastructure for LNG and data centers. Its higher international exposure compared to peers (only 28% US revenue in 2025) reduces its reliance on the Permian Basin's gas takeaway constraints.

Recent developments

• 2026-06-16: CFRA issued a "Strong Buy" rating with a target price of $82.00.
• Acquisition: Planned acquisition of Chart Industries Inc. (GTLS) for $13.6B in cash, expected to add ~$5.0B in annual IET revenue and expand into metals & mining.
• Strategic Shift: IET segment expected to exceed 50% of total revenues and operating income by 2027.

Investment risks / red flags

• Commodity Volatility: Crude oil and natural gas price relapses could discourage upstream capex.
• Capex Weakness: E&P preference for dividends and buybacks over development spending.
• Execution Risk: Potential delays or synergy shortfalls in the integration of Chart Industries (GTLS).
• Inflation: Rising cost inflation for services in remote locations.

H-Score signals

• TBI multi factor score: 23

Theme exposure

• [[Electrification]] and [[Infrastructure]] via LNG and data center cooling technologies.

Related

[[Industrials]]