Baker Hughes Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Strong Performance: Baker Hughes reported an adjusted EBITDA of $1.34 billion in Q4, surpassing the midpoint of guidance, contributing to a record full-year adjusted EBITDA of $4.83 billion, reflecting robust performance in industrial and energy technology despite challenges in oilfield services.
- Robust Orders: The company experienced exceptional order momentum in power systems, LNG, and new energy, with IET's backlog reaching $32.4 billion and free cash flow of $2.7 billion, indicating significant growth potential and strategic positioning in emerging markets.
- Future Outlook: Management projects company revenue of $27.25 billion and adjusted EBITDA of $4.85 billion for 2026, with IET orders guided between $13.5 billion and $15.5 billion, demonstrating confidence in future growth prospects.
- Strategic Integration: The CFO noted the completion of $1.5 billion in divestitures and plans to finalize the Chart acquisition in Q2 2026, emphasizing the strategic importance of cost optimization and integration to enhance margins.
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Analyst Views on BKR
Wall Street analysts forecast BKR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKR is 55.17 USD with a low forecast of 52.00 USD and a high forecast of 61.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 56.630
Low
52.00
Averages
55.17
High
61.00
Current: 56.630
Low
52.00
Averages
55.17
High
61.00
About BKR
Baker Hughes Company is an energy technology company with a portfolio of technologies and services that span the energy and industrial value chain. The Company operates in two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). OFSE segment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction; Completions, Intervention, and Measurements; Production Solutions, and Subsea and Surface Pressure Systems. IET segment provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas (LNG) operations, downstream refining and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Baker Hughes Reports Strong Q4 Earnings Exceeding Expectations
- Strong Performance: Baker Hughes reported adjusted earnings of 78 cents per share for Q4, surpassing market expectations of 67 cents, indicating robust profitability.
- Sales Growth: The company's quarterly sales reached $7.386 billion, exceeding the anticipated $7.068 billion, reflecting its competitive position and sustained customer demand.
- Management Confidence: CEO Lorenzo Simonelli highlighted that the company's success stems from an efficient business system and active portfolio management, maintaining resilient margins in OFSE despite macroeconomic pressures.
- Analyst Rating Upgrades: Analysts from BMO and JP Morgan raised Baker Hughes' price targets from $55 and $53 to $65 and $60 respectively, indicating a positive outlook on the company's future performance.
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