Baker Hughes (BKR) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 results with adjusted EBITDA of $1.23B, exceeding guidance, and robust free cash flow of $1.1B, driven by strong OFSE execution and resilience in the Middle East.

• Record IET orders of $7.1B, doubling year-over-year, led by Power Systems and gas infrastructure, driving a record IET backlog of $37.1B.

• Completed the Chart Industries acquisition, creating a third reporting segment, expanding capabilities in thermal management, air/gas handling, and carbon capture.

• Raised full-year revenue and EBITDA guidance, reflecting strong order momentum and favorable market trends.

• Announced Waygate Technologies divestiture to support deleveraging.

Financial highlights

• Q2 revenue: $6.7B (down 2% YoY); adjusted EBITDA: $1.23B (+2% YoY); margin: 18.3% (+70bps YoY).

• Adjusted EPS: $0.64 (up 12% YoY); GAAP EPS: $0.68.

• Free cash flow: $1.1B, up 364% YoY; operating cash flow for H1 2026: $1.85B.

• Orders reached $10.5B, up 49% YoY; IET orders: $7.1B (record); RPO at $40.1B, up 18% YoY.

• Net debt to adjusted EBITDA: 0.1x; long-term debt at $15.5B post-acquisition.

Outlook and guidance

• Q3 revenue guidance: $6.87B; adjusted EBITDA: $1.205B.

• Full-year 2026 revenue guidance: $27.35B; adjusted EBITDA: $4.85B.

• FY'26 revenue guidance raised to $26.65B–$28.05B; adjusted EBITDA expected between $4.6B–$5.1B.

• IET full-year orders guidance raised to $17.5B-$19.5B; Horizon 2 (2026–2028) IET orders outlook increased to over $45B.

• Chart segment guidance to be provided in Q3.