Baker Hughes (BKR)
NASDAQEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
$63.50-0.22%
Close 2026-09-04 · 1-day change
NASDAQEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
Broken: Recent financial performance freshly dropped to the bottom half of its industry.
Baker Hughes is winning big contracts, boosting orders and margins. IET backlog hit $33.1 billion with a 1.5x book-to-bill ratio. Profit margins aim to expand to 20%. The company beat EPS estimates twice recently.
The company is still fragile and loss-making. Market is selling off sharply, reflecting risks. EU scrutiny may hurt acquisition synergies. Revenue growth is slow at about 2%.
The price is about 15% below our fair value near $63. Analysts expect 2.4% revenue growth. Our fair value is 14% below the Street median, reflecting cautious optimism.
Breaks if: EU scrutiny blocks acquisition or synergies fail to materialize by FY26 end
Breaks if: full-year orders decline or fail to grow by 5% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the energy sector. BKR has faced challenges with execution quality and management volatility, which has led to a weakened thesis state despite some positive recent developments.
The market seems to reflect a valuation that is cheap compared to peers, but it also factors in the company's fragile execution and a turbulent sector backdrop. The expectations gap indicates that the market is not overly optimistic about BKR's near-term performance.
Management has made progress in expanding margins and increasing orders, which could support future growth. However, the company's recent financial performance has shifted to the lower half of its industry, indicating potential challenges ahead.
The long-term thesis hinges on management's ability to maintain execution quality and navigate sector dynamics. Key factors include the performance of sector bellwethers and the potential impact of inflation on the energy market.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. Recent financial performance dropped from the top half to the bottom half of its industry. This change reflects a decline in the company's standing. Analysts expect more recurring revenue from a new order for gas turbines, which could support margins. However, the overall reason to own the stock has weakened.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: IET margin falls below 15% in FY26
Overall, BKR's outlook is uncertain, with a need for improved execution and sector support. Not investment advice.