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
QuarterlyIQ Insights · BKR
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within energy on a research-validated quality screen. As of 2026-09-04.
The screen ranks BKR against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Energy names rated neutral grew net income 57% of the time over the next year (vs 56% for the rest of the cohort, n=2314).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Finalize the acquisition of Chart Industries to enhance Industrial & Energy Technology segment and expand market reach in LNG, data centers, and decarbonization.
Stated as a priority in 3 quarters from 2025-Q2 through 2026-Q2. The acquisition of Chart Industries was announced in 2025-Q2 and completed by 2026-Q2, enhancing Baker Hughes' Industrial & Energy Technology segment with a $4.2B revenue and $1.0B EBITDA business. Management emphasizes this as a major milestone and growth driver, and the transaction closed as planned, indicating delivery on this priority.
“The successful closing of the Chart acquisition marks a major milestone in our evolution as a leading industrialized energy solutions company.”
“Announced intent to acquire Chart Industries, a significant step to enrich portfolio and enhance value delivered to customers.”
“Baker Hughes announced intent to acquire Chart Industries for $13.6 billion to accelerate energy and industrial technology strategy.”
Continue to grow Industrial & Energy Technology segment margins to 20% through productivity, pricing, and portfolio management.
Stated as a priority in 6 of last 6 quarters. IET segment EBITDA margin improved from 17.1% in 2025-Q1 to 20.6% in 2026-Q2, showing steady progress toward the 20% target. Management consistently projects margin expansion, and the financials confirm delivering trajectory with margin gains over the period.
“IET segment EBITDA margin was 20.6%, up 0.3 points sequentially and 2.8 points year-over-year.”
Grow full-year orders and backlog, particularly in Industrial & Energy Technology, supported by LNG, power systems, and new energy markets.
Stated as a priority in 6 of last 6 quarters. IET orders increased from $3.2 billion in 2025-Q1 to $7.1 billion in 2026-Q2, with backlog rising from $30.4 billion to $37.1 billion. Management raised full-year IET order guidance to over $45 billion, reflecting delivering growth and backlog expansion consistent with stated goals.
“IET delivered record bookings doubling year-over-year to $7.1 billion and backlog increasing 19% to a new all-time high.”
Sustain cost discipline and productivity improvements to support margin expansion and offset inflationary pressures.
Stated as a priority in 6 of last 6 quarters. Management consistently attributes margin and EBITDA improvements to productivity and cost-out initiatives. Financials show adjusted EBITDA growth and margin expansion despite inflation and volume pressures, indicating delivering progress on cost discipline and productivity.
“Adjusted EBITDA up 6% sequentially driven by productivity, price, and cost-out initiatives.”
Drive double-digit EPS accretion in the first full year after closing the Chart acquisition through growth, margin expansion, and cash flow improvements.
Stated as a priority in 2 quarters in 2025. Management projects double-digit EPS accretion in the first full year after the Chart acquisition closes. While EPS data post-close is not yet available, the acquisition completed in 2026-Q2 and management's guidance indicates this priority is on track but not yet measurable in reported EPS.
“Acquisition expected to deliver strong earnings accretion and returns, contributing to improved growth and margin profile.”
Over the trailing year it converted 1.31x of net income into operating cash flow. Historically, Energy names rated fragile grew net income 36% of the time over the next year (vs 47% for the rest of the cohort, n=996).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
17 material management or governance events in the past 24 months, led by M&A activity. Historically, Energy names rated volatile grew net income 53% of the time over the next year (vs 58% for the rest of the cohort, n=640).
Not investment advice. As of 2026-09-04.
“IET expanding margins to our 20% target and OFSE remaining relatively flat.”
“IET EBITDA margin was 20.0%, up 1.1 points sequentially and 1.6 points year-over-year.”
“IET EBITDA margin was 18.8%, up 1 point sequentially and 0.9 points year-over-year.”
“IET EBITDA margin was 17.8%, up 0.4 points sequentially and 2.2 points year-over-year.”
“IET EBITDA margin was 17.1%, down 1.2 points sequentially and up 2.4 points year-over-year.”
“Orders of $4.9 billion in IET, book-to-bill of 1.5x, and record backlog of $33.1 billion.”
“IET orders of $4.0 billion, record full-year total of $14.9 billion, and backlog of $32.4 billion.”
“IET orders of $4.1 billion, backlog of $32.1 billion, book-to-bill ratio of 1.2.”
“IET orders of $3.2 billion, backlog of $30.4 billion.”
“IET orders of $3.2 billion, backlog of $30.4 billion.”
“Year-over-year increase in adjusted EBITDA driven by productivity, price, cost-out initiatives, and FX.”
“Year-over-year increase in adjusted EBITDA driven by productivity, cost out initiatives, price, and FX.”
“Adjusted EBITDA increase driven by structural cost-out initiatives and productivity.”
“Productivity and structural cost-out initiatives contributed to margin improvements.”
“Productivity and structural cost-out initiatives partially offset lower volume and inflation.”
“Transaction expected to be immediately accretive to growth, margins and cash flow, with double-digit EPS accretion in first full year after close.”