Baker Hughes Reports Record 2025 Financials Amid Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Yahoo Finance
- Record Adjusted EBITDA: Baker Hughes achieved an adjusted EBITDA of $4.83 billion in 2025, surpassing guidance midpoint, demonstrating sustained momentum in its business systems despite market challenges.
- Strong Free Cash Flow: The company generated $1.3 billion in free cash flow in Q4, contributing to a record annual free cash flow of $2.7 billion, enhancing financial flexibility and investment capacity.
- Order and Backlog Growth: In 2025, Industrial & Energy Technology (IET) orders totaled $14.9 billion, with a year-end backlog of $32.4 billion, indicating strong order momentum in the market.
- Market Challenges and Outlook: Despite an 8% revenue decline in Oilfield Services and Equipment (OFSE), Baker Hughes anticipates low single-digit declines in global upstream spending in 2026, facing risks from rising tariff costs and geopolitical uncertainties.
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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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Oil Prices Surge Amid Renewed Geopolitical Tensions
- Oil Price Increase: Oil prices surged approximately 1% due to President Trump's escalatory rhetoric towards Iran, with West Texas Intermediate futures nearing $63 per barrel, marking the highest level since late September 2025.
- Brent Crude Rally: Brent crude also advanced to around $68 per barrel, reflecting heightened risk premiums in global crude markets driven by fears of supply disruptions, particularly through critical energy chokepoints like the Strait of Hormuz.
- U.S. Supply Tightness: Supply disruptions from severe winter weather, particularly in the Gulf Coast and inland shale regions, have tightened near-term balances, contributing to a more than 9% increase in WTI crude this month and positioning the market to end a five-month losing streak.
- Weaker Dollar Boosts Oil: The U.S. dollar's decline towards multi-week lows has made dollar-priced commodities cheaper for foreign buyers, further supporting the rise in oil prices.
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