BKRNasdaq·Oil & Gas Equipment & Services

Baker Hughes Company BKR

Market cap $57.3BP/E 18.2× trailingGross margin 23.6%Reports Thu 22 Oct, after the close

$57.70

+0.41 (+0.72%)live 11:25 ET

52-wk $43.92 – $70.41

Watch

Orin's take

0.55conviction · moderate

Refreshed 24 Sep · take v9. A new filing or a print queues the next refresh.

Get emailed if this changes

Baker Hughes is a hold at $58.03 after a pullback from summer highs improved the setup, but core fundamentals remain mixed. FY2025 operating margin expanded to 12.83% with FCF of $2.54B, yet revenue declined 0.34% and net income fell 13.13% to $2.59B while total debt rose to $7.14B on the Chart acquisition.

At 18.48x earnings the stock trades 12.4% below the peer median, but EV/EBITDA of 12.25x sits 20.1% above peers, and net insider selling of $122.6M over 24 months offsets an eight-quarter EPS beat streak and an expanding power-generation backlog.

What could go wrong

Revenue and earnings erosion. FY2025 revenue fell 0.34% YoY and net income dropped 13.13%; Q2 2026 revenue declined 2.43% YoY, raising concerns about whether the Chart deal and power-gen ramp can reverse the trend before OFS softness deepens.
Chart integration and leverage. Total debt increased to $7.14B at FY2025 from $6.02B in FY2024, tied to the Chart acquisition; failure to realize the targeted $325M in annualized synergies would pressure both margins and the balance sheet.
Persistent insider selling. Over 24 months insiders net sold $122.6M in shares; CEO Simonelli alone sold $10.6M in June 2026, and no cluster buying has emerged despite the pullback below the 200-day MA.
Relative valuation stretched on EV/EBITDA. EV/EBITDA of 12.25x is 20.1% above the peer median of 10.20x and P/S of 2.08x is 16.5% above peers, limiting re-rating upside even as the PE discount provides a partial cushion.

What would change my mind

Chart synergies confirmed. Management quantifies progress toward the $325M annualized cost-synergy target with margin-accretive evidence in TPS or DS segments within the next two reporting cycles.bullish

Revenue returns to growth. Quarterly revenue turns positive YoY for two consecutive quarters, supported by power-generation contract bookings and LNG infrastructure wins like the Venture Global collaboration.bullish

WTI crude sustains below $90. A sustained drop in WTI below $90 would likely reduce North American drilling activity and pressure OFS orders, reversing the current near-$100 tailwind.bearish

Deleveraging stalls. Total debt fails to decline from $7.14B over the next two quarters while FCF growth stalls, signaling integration costs are absorbing cash flow.bearish

Where this comes from: Orin derived_metrics, fiscal year 2025 · Orin derived_metrics and fundamentals, fiscal year 2025 · Orin fundamentals, FY2025 vs FY2024 · Orin peer_relative, as of 2026-09-23. Orin's read on BKR; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

On file

All BKR filings

Form	Filed	What it says	Read
10-Q	27 Jul	Total revenue for the three months ended June 30, 2026, was $6.742 billion, a decrease of 2.4% year-over-year from $6.910 billion.	read
13G/A	27 Jul	—	on file
8-K	27 Jul	Baker Hughes Company announced its second quarter results for the period ended June 30, 2026, via a news release on July 26, 2026.	read
8-K	16 Jul	Baker Hughes Holdings LLC entered into two senior unsecured term loan credit agreements on July 15, 2026, totaling $2.0 billion, to finance its acquisition of Chart.	read
8-K	22 Jun	Baker Hughes Company is in discussions with the European Commission regarding potential commitments to secure clearance for its acquisition of Chart Industries, Inc.	read
8-K	21 May	Baker Hughes filed a Form CO with the European Commission on May 21, 2026, initiating the EC's Phase I review for its acquisition of Chart Industries.	read
8-K	19 May	Shareholders at Baker Hughes’ 19 May 2026 annual meeting approved two equity plans that together reserve 19 million new Class A shares, equal to roughly 1.9% of the 991.8 million shares outstanding.	read
13G/A	12 May	—	on file

Largest holders · 13F Q2 2026

Money flow

Filer	Position	Of fund
Brasada Capital Management	$5.0B	0.9% of fund
Jpmorgan Chase &	$3.9B	0.2% of fund
Vanguard Capital Management	$3.6B	0.1% of fund
State Street	$3.6B	0.1% of fund
Vanguard Portfolio Management	$2.7B	0.1% of fund
Capital World Investors	$2.6B	0.3% of fund

110 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 165 Form 4 filings, net −$122.6M. Of the 50 on hand, 0 were open-market purchases and 13 sales— the rest are grants, option exercises and tax withholding.

Ask Orin about BKR

its filings · its transcripts · its numbers

Orin answers questions about BKR from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.

Start 3 free days →

Where it trades

vs its own 5y · Energy

Metric	Now	Own median	Sector
P/E	18.2×	—	51.1×
EV/EBITDA	12.1×	11.3×	—
P/S	2.05×	1.38×	—
P/B	2.9×	2.2×	—

Its P/E sits above all 5 of the last 5 years (+0.82σ from its own mean).

What the price assumes

9.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $2.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

45 firms · 2026-09-24

Consensus target

$74

$70 – $80 · +29% against today's price

How they rate it

30 buy or overweight
14 hold
1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 20.9× of 4 peers

Company	Market cap	P/E	EV/EBITDA	Gross	Net	ROE
BKRBaker Hughes Company	$57B	18.2×	12.1×	23.6%	11.2%	16%
FANGDiamondback Energy, Inc.	$53B	36.9×	9.2×	44.5%	9.3%	4%
HALHalliburton Company	$27B	17.1×	8.1×	15.1%	7.2%	15%
OKEONEOK, Inc.	$57B	15.7×	11.4×	21.8%	9.3%	16%
SLBSLB N.V.	$76B	24.7×	12.1×	16.5%	8.5%	12%

The median is of the 4 peers listed above and nothing else — check it against the column. This company trades 12.8% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year

FY14 9.1×FY25 17.4×

What its sector has traded at

Energy

FY14 27.3×FY26 19.8×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since

Model	Fair value	Against	Computed
Standard DCF	$60	$63.47 · −6%	2026-06-10
Levered DCF	$67	$63.47 · +5%	2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $57.70

52-week range$44 – $70

Analyst targets$70 – $80

Standard DCF$60 as of 2026-06-10, when it was $63.47

Levered DCF$67 as of 2026-06-10, when it was $63.47

At own 5y-median P/E (14×)$43

At 5y P/E range (-91–18×)$-284 – $56

At sector P/E (51×)$160

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.