Baker Hughes Posts $8,025 Million in Revenue as IET Orders Jump 42% in Third Quarter
Key Facts
Baker Hughes reported revenue of $8,025 million in the third quarter on October 27, 2026, up 19% from the second quarter and 14% from the same period a year earlier. The company said the Chart acquisition was the main driver of the annual increase, with results including the acquired business from the deal’s close on July 16 through the end of the quarter on September 30. The Industrial & Energy Technology segment, known as IET, recorded orders of $5,886 million, up 42% year over year. Baker Hughes attributed the strength in orders to climate technology solutions and gas technology equipment and services. The results show a divergence between revenue and industrial order growth and some adjusted profitability measures, which were also affected by business mix and inflation.
IET revenue was $3,477 million, up 3% from the third quarter of 2025, a slower pace than the 42% growth in its orders. The company said strength in climate technology solutions and gas technology equipment and services supported orders, reflecting the breadth of businesses in the segment. Orders for surface pressure control and subsea production systems reached $1,090 million in the third quarter. They rose 63% from the second quarter but remained 8% below their level a year earlier. The comparison shows that the quarterly improvement in this business did not erase its annual decline.
On profitability, Baker Hughes said the annual increases in adjusted net income and adjusted EBITDA were driven mainly by Chart, improved pricing, higher volume and cost reduction initiatives. These factors were partly offset by lower productivity gains, changes in business mix and inflation. Cash flow from operating activities was $1,005 million, while free cash flow was $769 million during the quarter. These figures provide a cash flow perspective alongside revenue and orders in a quarter that included Chart’s business following the acquisition. The company announced the deal’s completion in July, making the new business part of the annual comparison and quarterly results.
Among the notable new orders was a contract from a major U.S. technology company for an advanced computing project; Baker Hughes did not disclose the customer’s name. The power generation order includes capacity of about 1.1 gigawatts, with 34 Frame 5 turbines and nine NovaLT 16 turbines, along with generators and related gear equipment. The solution also includes Chart dry coolers in a closed-loop cooling system to support high-density computing loads. The company said the power generation order was recorded in the third quarter, while the Chart coolers order was recorded in the fourth quarter of 2026. Therefore, not all of the cooling components represent orders recorded in the third-quarter results, and the data center contract was not announced as a reason for quarterly revenue growth.
In conventional energy, Eni awarded the company a contract for subsea production systems and services for the Cronos gas project. Baker Hughes said the integrated, configurable systems will support an accelerated schedule to first gas. The contract comes as orders for surface pressure control and subsea production systems rose quarter over quarter, despite remaining below the prior-year level. The company described the systems’ role in the project in terms of production timing, without specifying the contract’s value in the available announcement. It adds to an order mix spanning gas, power and climate solutions as well as subsea production projects.
Baker Hughes raised its full-year IET orders guidance and increased its forecast for the Horizon 2 period to more than $50 billion. The company tied these expectations to demand from data centers, aerospace, liquefied natural gas and gas infrastructure, alongside capacity expansions. It said these factors support the higher guidance, without specifying a new numerical value for full-year guidance in this announcement. The Horizon 2 outlook concerns future orders for the segment, not revenue generated in the third quarter. The company had scheduled the results announcement for October 27 and a webcast to discuss them for October 28; both dates have passed.
In market trading, Investing.com reported that the stock closed at $59.00 on the day the results were announced, then fell to $55.38 in after-hours trading, a decline of more than 6%, according to a report published on October 28. The report said investors focused on elevated debt following the Chart acquisition, integration costs and questions about margin growth, despite revenue and adjusted profitability exceeding analyst estimates cited by the site. According to EL7, BKR shares closed at $55.23 on October 30. These prices refer to different sessions and times and do not, on their own, establish the reason for the stock’s move. The market reaction places business growth following the acquisition alongside the financing and integration questions cited in the report.