Baker Hughes
Baker Hughes makes turbines, compressors, and subsea equipment for oil, gas, and LNG operators worldwide.
On the record
Checkpoint: Chart Industries integration milestones and EU-mandated divestiture completion
The call
Baker Hughes sells the physical machinery energy and AI infrastructure both need, and near-term oil-price swings matter more to it than any AI model does.
Baker Hughes designs and builds big, expensive machines like turbines and compressors that oil companies, power plants, and other industrial customers need to run. These machines are hard to replace because they last decades, customers depend on the company for parts and service, and building competing equipment requires billions in upfront investment and expertise. The real test is whether its newer business selling power systems for data centers and clean energy grows fast enough to offset the decline in its traditional oil-focused business, and whether it can smoothly integrate the LNG assets it bought from Chart Industries without stumbling on the execution.
Why
01
AI pressure: None apparent. AI is not eating this business, it is a customer: Baker Hughes sells power and cooling gear to data centers via a Google Cloud deal. Could AI do the core job? Unlikely.
02
Bigger players: SLB (Schlumberger). SLB is chasing the same AI-data-center power opportunity with an NVIDIA partnership, competing for the same next-generation deals. Could a giant copy it? No, they are blocked.
03
What protects it. Capital-intensive manufacturing plus decades-long installed equipment base in 120+ countries make customers hard to switch away from.
What would change this call
Chart Industries EU-mandated LNG divestitures complete and synergy target ($325M) progress reported. Shows whether the Chart integration strengthens or strains Baker Hughes' LNG equipment moat.
Baker Hughes IET segment orders/backlog growth vs OFSE segment decline in upcoming quarterly reports. Shows whether energy-transition equipment demand is offsetting oilfield-services cyclical weakness.
Data-center power deals awarded to SLB (with NVIDIA) vs Baker Hughes (with Google Cloud) over next year. Shows which company is gaining ground in the emerging AI-power adjacency market.
Baker Hughes IET segment orders/backlog growth vs OFSE segment decline in upcoming quarterly reports. Shows whether energy-transition equipment demand is offsetting oilfield-services cyclical weakness.
Data-center power deals awarded to SLB (with NVIDIA) vs Baker Hughes (with Google Cloud) over next year. Shows which company is gaining ground in the emerging AI-power adjacency market.
Key numbers
- FY2025 revenue $27.7B, record $35.9B-plus backlog
- Net debt to EBITDA just 0.32x, $17.8B liquidity
- Completed $13.6B Chart Industries acquisition
Named risks
- Middle East conflict and Strait of Hormuz disruption pressuring OFSE revenue through Q2 2026.
- Chart Industries integration execution, including EU-mandated divestitures and $325M synergy target.
- Leadership turnover: CFO and EVP IET both departed within past 18 months.
- Ongoing securities-fraud litigation tied to C3.ai joint venture disclosures.
- Headcount data discrepancies across sources (56K to 67K) obscure true post-merger workforce trend.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| SLB | contesting | Both announced AI data-center power deals at CERAWeek March 2026; SLB expected steeper ~31% profit drop vs BKR's 21% (Jul 2026) |
| Chart Industries (now subsidiary) | gaining on | Baker Hughes acquired Chart for $13.6B, closed July 16, 2026, adding $4.3B FY2025 revenue and LNG dominance flagged by EU |
| Halliburton | contesting | Smaller oilfield services peer at ~$22B revenue vs Baker Hughes $27.7B FY2025 |
Questions people ask
- Is Baker Hughes profitable in 2026?
- Yes. FY2025 revenue was $27.7 billion with record adjusted EBITDA of $4,825 million and record free cash flow of $2.7 billion, as reported January 25, 2026. Q1 2026 adjusted EPS came in at $0.58, beating consensus of $0.49, per company results.
- Could AI replace Baker Hughes?
- No. Baker Hughes' moat is physical manufacturing, engineering IP, and installed-base service contracts for turbines, compressors, subsea systems, and LNG equipment. EU regulators flagged its LNG compressor train dominance during Chart Industries antitrust review in July 2026, market power software cannot replicate.
- Who is Baker Hughes' biggest competitor?
- SLB (formerly Schlumberger) is the largest rival by revenue at roughly $35.9 billion, versus Baker Hughes' $27.7 billion FY2025. Both firms are racing on AI-powered data-center energy, SLB partnered with NVIDIA while Baker Hughes partnered with Google Cloud, both announced at CERAWeek in March 2026.
- Did Baker Hughes complete the Chart Industries acquisition?
- Yes, Baker Hughes closed its $13.6 billion acquisition of Chart Industries on July 16, 2026, after the EU Commission granted conditional approval on July 9, 2026 requiring divestiture of certain Chart LNG-related businesses over antitrust dominance concerns.
- Is Baker Hughes cutting jobs?
- Sources conflict. Company filings show headcount declining to about 56,000 at end of 2025, down from a 2019 peak of 68,000. But Crustdata estimated headcount at roughly 67,447 in June 2026, up 3.7% year over year, partly reflecting the Chart Industries acquisition not yet fully reflected in official filings.
- Is Baker Hughes a safe company to join right now?
- Financially, yes. Baker Hughes held $14.8 billion in cash, $17.8 billion in total liquidity, and a low 0.32x net debt to adjusted EBITDA ratio as of Q1 2026. However, active job postings fell 44% in 2025 versus 2024, and the company faces near-term Middle East conflict headwinds.
Timeline
- 2026-07-20Analysts flag expected 21% YoY profit drop from Hormuz disruption; market cap ~$55.5B
- 2026-07-16Baker Hughes completes $13.6B acquisition of Chart Industries
- 2026-07-09EU Commission conditionally approves Chart deal, mandates LNG asset divestitures
- 2026-07-08Wolfe Research initiates Outperform, $70 target, citing IET exceeding 50% of EBITDA
- 2026-06-24Baker Hughes signs geothermal agreement with Mantle Reach Power (EnCap)
- 2026-03-24Baker Hughes announces AI data-center power partnership with Google Cloud at CERAWeek
- 2026-02-24Baker Hughes secures 1.21 GW generator order with Boom Supersonic for AI data centers
- 2026-01-25FY2025 results: $27.7B revenue, record $4,825M adjusted EBITDA, $2.7B free cash flow
- 2025-05-28Baker Hughes renews C3 AI joint venture through June 2028
Revision history
20 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Baker Hughes Announces Fourth-Quarter and Full-Year 2025 Results (2026-01-25)
- Baker Hughes (BKR) Earnings Date and Reports 2026 (2026-07-13)
- Baker Hughes stock stays supported by robust Q2 2026 results (2026-07-20)
- Baker Hughes Company (BKR) Earnings Dates, Call Summary & Reports (2026-07-14)
- Baker Hughes Completes Acquisition of Chart Industries (2026-07-16)
- Commission approves Baker Hughes' acquisition of Chart Industries, subject to conditions (2026-07-09)
- Baker Hughes Completes Acquisition of Chart Industries (2026-07-16)
- Baker Hughes closes $13.6bn Chart Industries acquisition (2026-07-17)
- Baker Hughes - Headcount, Funding & Open Jobs (2026-06-28)
- gurufocus.com (2026-07-20)
- Baker Hughes Secures 1.21 Gigawatt Generator Order to Power Boom Supersonics AI Data-Center Solution (2026-02-24)
- Baker Hughes Develops AI-Enabled Power Optimization and Sustainability Solutions for Data Centers with Google (2026-03-24)