The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 60 | 18.2x | 20.8x | Around median | |
Growth | 31 | 1.0% | 6.1% | Bottom tier | |
Quality | 56 | 15.5% | 6.6% | Around median | |
Safety | 72 | 0.3x | 0.7x | Top tier | |
Capital Return | 20 | 1.61% | 2.02% | Bottom tier | |
Momentum | 73 | 61.6% | 4.1% | Top tier | |
Sentiment | 55 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Baker Hughes Company (BKR) is an energy technology and services company operating across the value chain from upstream to energy infrastructure, and its management describes its position as spanning “from molecule to electron.” The company generates its revenue from the OFSE segment, which is tied to upstream oilfield services and equipment and energy, and from the IET segment, which includes energy infrastructure technologies such as Power Systems, LNG, gas compression, aftermarket services, and digital solutions. In the first quarter of 2026, the mix was almost balanced between the two segments: IET revenue was about $3.35 billion, while OFSE revenue was about $3.24 billion, highlighting the company’s shift toward stronger demand in energy infrastructure rather than relying only on traditional drilling activity.
In the latest reported quarter, Baker Hughes recorded revenue of $6.6 billion and net income of $930 million according to EDGAR data, while management reported adjusted EBITDA of $1.16 billion and an adjusted EBITDA margin of 17.6%, up 140 basis points year over year. Diluted EPS under GAAP was about $0.93, and adjusted EPS was $0.58, up 13% from the same quarter of the prior year. The company also generated free cash flow of $210 million, although management noted that the first quarter is usually the seasonally weakest quarter for free cash flow and that some customer payments were delayed.
The standout feature of the quarter was IET strength: segment orders reached a record $4.9 billion, with a book-to-bill ratio of 1.5 times and a record remaining performance obligation, or RPO, of $33.1 billion. By contrast, OFSE remained more exposed to Middle East disruptions, as its revenue fell 9% sequentially to $3.24 billion, and its EBITDA margin declined 70 basis points to 17.4%. For the year, 2025 revenue was about $27.7 billion and net income was $2.6 billion, while trailing twelve-month revenue was $26.9 billion and net income was $2.6 billion.
The text does not include a specific current share price because the price changes continuously, but the average analyst price target is $72 with a “buy” consensus and a target range between $60 and $80. Based on the live price displayed outside this analysis, the stock can be automatically compared with the average target to determine whether it trades at a discount or a premium to it. The P/E ratio is not available in the data, so the valuation reading here appears more dependent on IET growth, the record backlog, and OFSE, Middle East, and regulatory risks related to the Chart deal.
Figures in the text are as of 2026-07-09; the live price is shown at the top of the page.
The most important result was the strength of the IET segment, where orders reached a record $4.9 billion in the first quarter of 2026. IET RPO also reached $33.1 billion with a book-to-bill ratio of 1.5 times, which provides strong future visibility into revenue. At the company level, revenue was $6.6 billion and net income was $930 million according to EDGAR, while adjusted EBITDA was $1.16 billion with a 17.6% margin. These results were achieved despite Middle East disruptions and the effects of the PSI divestiture and the formation of the SPC joint venture.
Investors are focused on IET because it has become a source of higher growth and profitability within the company, as its revenue rose 14% year over year to $3.35 billion in the first quarter. Segment EBITDA rose 35% to $678 million and the margin reached 20.2%, supported by better pricing in the backlog and improved productivity. The segment also recorded $1.4 billion of Power Systems orders and $1.2 billion of LNG equipment orders during the quarter. Management also said IET orders over the last four quarters were $16.6 billion, up 25% from the prior four quarters.
Middle East disruptions affect OFSE more significantly, as management said Middle East revenue in the second quarter may decline by more than 20% sequentially. In the first quarter, the disruptions contributed to an impact of about 2% on OFSE revenue compared with the fourth quarter of 2025, and shipping restrictions also affected some IET revenue. Management assumed in its second-quarter guidance that the situation would continue through the end of June without additional escalation, followed by a full reopening of the Strait of Hormuz after that. By contrast, the company believes the global focus on energy security may support investment in infrastructure, power, gas, and LNG over the medium term.
Automated analysis for informational purposes only — not investment advice.
Baker Hughes expects to close the Chart deal in the second quarter of 2026, while noting that regulatory reviews are still ongoing in some jurisdictions. In March, the company raised $6.5 billion from U.S. bonds and €3 billion from euro bonds, and allocated the proceeds to closing the Chart deal. Management identified 17 operational workstreams for integration, said it identified more than 250 synergy opportunities, and remains confident in achieving the targeted $325 million of cost savings. In recent news, the company submitted concessions to the European Commission to resolve a $13.6 billion acquisition deal, highlighting the importance of the regulatory aspect in the investment story.
Yes, the first-quarter 2026 call points to clear momentum in Power Systems tied to data centers, grid stability, and power management. The company converted a prior reservation agreement into an integrated solutions contract in North America that includes NovaLT16 turbines and BRUSH Power Generation generators and provides up to 1 gigawatt of reliable power to support demand from data centers. It also signed a contract to supply 25 generators from BRUSH Power Generation to Boom Supersonic, and when paired with Boom’s gas turbines they are expected to provide 1.21 gigawatts of generator capacity for data centers. In addition, it announced a collaboration with Google Cloud to develop AI-powered energy optimization and sustainability solutions for data center applications.
The available insider data shows a strong_sell signal, with net selling over three months of $28.7 million. The data recorded no insider purchases, compared with 7 sales, and the latest transaction was on July 1, 2026. This alone does not prove business deterioration, but it represents a negative factor that should be weighed against IET strength and the record backlog. This activity also comes while the company is going through an important phase that includes the Chart deal and divestitures of Waygate Technologies, PSI, SPC, and HMH.