Baker Hughes Company

Baker Hughes Company is an American energy technology company that provides products, services, and digital solutions spanning the energy and industrial value chain — from oilfield drilling and completions to gas turbines, LNG infrastructure, and power systems for data centres — generating $27.7 billion in revenue in fiscal 2025. The company operates through two segments, Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET), and is in the process of acquiring Chart Industries to deepen its cryogenic and thermal process capabilities.

This is a story about a company that spent its first five years absorbing a difficult merger and writing down over $16 billion in goodwill, and its next three proving the model could earn. Having grown IET segment EBITDA from $1.5 billion in FY2023 to $2.5 billion in FY2025 — and rung up record IET orders of $14.9 billion in FY2025 followed by $4.9 billion in Q1 2026 alone — Baker Hughes now faces a different problem: whether the growth engine can scale fast enough to offset the drag from a cyclical oilfield services business, and whether the capital allocation that accompanies that scaling — headlined by the Chart acquisition and a series of divestitures — creates or destroys value. The file turns on a single question: as Baker Hughes repositions itself as an "industrialised energy solutions" company, does the IET franchise deserve a higher multiple than the market currently affords the consolidated entity?

The Middle East conflict that disrupted the Strait of Hormuz in early 2026 adds a live stress test: suppressing OFSE activity in the region while simultaneously strengthening the strategic case for the very LNG and power infrastructure investments that IET supplies. That tension — between near-term earnings disruption and long-term demand tailwinds — defines the current moment.