Baker Hughes (BKR) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with adjusted EBITDA of $1.16B, up 12% year-over-year, surpassing guidance despite Middle East disruptions.

• Record IET orders at $4.9B, third consecutive quarter above $4B, driving 14% revenue growth and 35% EBITDA growth in the segment.

• Major divestitures and joint ventures, including Waygate, PSI, and SPC JV, expected to generate ~$3B in 2026 proceeds.

• Pending $13.6B Chart Industries acquisition, funded by $6.5B in USD and €3B in Euro notes issued in Q1 2026.

• Maintained strong business fundamentals and confidence in long-term strategy, with continued focus on portfolio optimization and technology investment.

Financial highlights

• Orders reached $8.16B, up 26% year-over-year; revenue was $6.6B, up 2% year-over-year.

• Adjusted EBITDA margin expanded 140 bps year-over-year to 17.6%.

• Net income was $938M, up from $409M year-over-year; GAAP diluted EPS was $0.93, adjusted EPS $0.58.

• Free cash flow was $210M; cash and cash equivalents at $14.8B as of March 31, 2026.

• Paid $0.23 per share dividend, totaling $228M in Q1 2026.

Outlook and guidance

• FY 2026 revenue guidance: $26.2B–$28.3B; adjusted EBITDA: $4.55B–$5.15B.

• Q2 2026 guidance: revenue $6.25B–$6.75B, adjusted EBITDA $1.04B–$1.22B.

• IET Q2 EBITDA expected at $670M; OFSE Q2 EBITDA projected at $540M.

• Middle East disruptions expected through June, with recovery in 2H 2026; full-year results expected slightly below midpoint if conflict persists.

• Company focused on sustainability, targeting net-zero emissions by 2050.