Baker Hughes revenue reaches $8.025 billion after 14% year-on-year third-quarter growth
Key Facts
Baker Hughes reported third-quarter results on October 27, posting revenue of $8.025 billion, up 14% year on year and 19% from the second quarter. The company said revenue increased by $1.015 billion year on year and $1.283 billion quarter on quarter. A major part of the annual increase followed its acquisition of Chart, which was completed on July 16. Chart generated revenue of $888 million since joining the company during the quarter. The figures reflect revenue expansion supported by the addition of Chart's business, alongside operating factors the company cited in explaining adjusted earnings growth.
Net income attributable to Baker Hughes was $411 million, down 33% from the third quarter of the previous year. By contrast, adjusted net income rose 2% year on year to $695 million. Adjusted diluted earnings per share were $0.70, compared with $0.68 a year earlier, while diluted earnings per share under generally accepted accounting principles were $0.41. The company said growth in adjusted net income and adjusted EBITDA benefited mainly from the Chart acquisition, improved pricing, higher volume and cost-reduction initiatives. This was partly offset by lower productivity gains, changes in business mix and inflation, according to its disclosure.
The company's adjusted EBITDA margin was 17.6%, which the earnings-call transcript described as broadly in line with its level a year earlier. This ratio presents a different picture from the comparison between operating margins in the earlier draft; the available disclosure reports adjusted EBITDA margin and does not support that comparison or its interpretation. Industrial & Energy Technology segment revenue was $3.477 billion, up 3% year on year. The segment's EBITDA margin reached 19.7%, above 18.8% a year earlier but below 20.6% in the second quarter. The divergence between the annual and quarterly comparisons shows that segment revenue growth did not prevent its margin from declining from the previous quarter.
In Oilfield Services & Equipment, EBITDA margin was 18.1%, compared with 18.5% in the third quarter of last year. Baker Hughes said the segment's quarterly EBITDA increase came from higher volume and pricing. It noted, however, that the impact of those factors was partly offset by lower productivity gains and changes in business mix. This differs from the picture in Industrial & Energy Technology, which recorded a higher margin year on year despite a decline from the second quarter. The results of the two segments highlight uneven performance across the company during the quarter, with one posting an annual margin improvement and the other facing annual pressure.
Quarterly orders were $10.764 billion, up 31% year on year, while remaining performance obligations reached $46.4 billion at quarter-end. That balance included a record $39.4 billion for the Industrial & Energy Technology segment. The figures show the scale of orders booked and remaining obligations, alongside Chart's contribution to quarterly revenue. On liquidity, cash flow from operations was $1.005 billion, up 8% from $929 million a year earlier, but down 25% from the second quarter. Free cash flow was $769 million, compared with $699 million a year earlier, up 10% year on year and down 31% quarter on quarter.
Baker Hughes said it expects a modest improvement in global exploration and production spending for the rest of the year, with conditions improving as 2027 approaches. The company tied this outlook to there being no substantial decline in oil prices or escalation in geopolitical tensions. It also pointed to continued strong demand for liquefied natural gas and gas infrastructure, as well as opportunities in data centers. The earnings and outlook call was scheduled for October 28, 2026, at 9:30 a.m. Eastern time. Baker Hughes shares closed at $54.51 on October 29, after closing at $54.66 on October 28 and $59 on October 27; they also fell 1.5% in after-hours trading on October 27, according to Yahoo Finance, which did not specify a reason for the move.