"Our exceptional first-quarter performance highlights the strength of our portfolio and the momentum we are building as we progress through Horizon 2(1). Despite significant disruptions in the Middle East, our teams executed at a high level and delivered results that exceeded our guidance range. Although we recognize this achievement, we continue to prioritize the safety and wellbeing of our employees and their families in the region," said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.
"In IET, we delivered another outstanding quarter, with record orders of $4.9 billion, marking the third consecutive quarter above $4 billion. This performance reflects the diversity and versatility of the IET portfolio and the growing strength across energy infrastructure, as highlighted by $1.4 billion in Power Systems orders and further progress in LNG, gas infrastructure and CCS. IET also reported a book-to-bill of 1.5x for the quarter, resulting in record backlog of $33.1 billion."
"The Baker Hughes Business System is strengthening our operating results, supporting disciplined execution, and positioning us for continued growth, higher margins, and stronger free cash flow. Both OFSE and IET delivered strong results amid Middle East disruptions, underscoring the versatility and durability of the portfolios."
"We also continue to advance our portfolio management strategy, including the recently announced divestiture of Waygate Technologies, which combined with the two transactions that closed in the quarter, is expected to generate gross proceeds of approximately $3 billion in 2026, further strengthening our balance sheet."
"Looking ahead, our outlook for the business fundamentals remains unchanged, excluding the ongoing impacts in the Middle East. While the conflict presents near-term challenges, it is further reinforcing energy security as a priority, which is expected to support structural growth in upstream and global energy infrastructure spending. Ultimately, we remain confident in our strategy and our ability to deliver long-term value for shareholders," concluded Simonelli.
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
_____________________
(1) Horizon 2 represents 2026-2028.
Three Months Ended
Variance
(in millions except per share amounts)
March 31, 2026
December 31, 2025
March 31, 2025
Sequential
Year-over-year
Orders
$
8,159
$
7,886
$
6,459
3%
26%
Revenue
6,587
7,386
6,427
(11%)
2%
Net income attributable to Baker Hughes
930
876
402
6%
F
Adjusted net income attributable to Baker Hughes*
573
772
509
(26%)
12%
Adjusted EBITDA*
1,158
1,337
1,037
(13%)
12%
Diluted earnings per share (EPS)
0.93
0.88
0.40
6%
F
Adjusted diluted EPS*
0.58
0.78
0.51
(26%)
13%
Cash flow from operating activities
500
1,662
709
(70%)
(29%)
Free cash flow*
210
1,341
454
(84%)
(54%)
* Non-GAAP measure. See reconciliations in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers."F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
Quarter Highlights
Executing our portfolio management strategy
Closed the previously announced joint venture with a subsidiary of Cactus, Inc., in which Baker Hughes contributed its surface pressure control product line, strengthening the Company's balance sheet and liquidity with $344.5 million of proceeds before customary closing adjustments, while retaining a 35% ownership stake.
Completed the previously announced sale of the Precision Sensors & Instrumentation (PSI) product line to Crane Company, with proceeds of $1.15 billion before customary closing adjustments.
The Baker Hughes minority-owned drilling equipment company, HMH, completed its IPO in April 2026, raising approximately $200 million.
In April, announced sale of Waygate Technologies business to Hexagon in an all-cash transaction for approximately $1.45 billion, before customary closing adjustments.
Key awards and technology achievements
Leveraging enterprise-wide capabilities
Entered into a strategic collaboration with XGS Energy and received an initial engineering award to advance its planned 150-megawatt geothermal project in New Mexico. The companies will initially partner on the subsurface exploration and the integrated surface engineering phases to derisk operations and establish a strong technical foundation for the utility-scale deployment of XGS's geothermal technology. The project will support the delivery of clean, baseload power to the Public Service Company of New Mexico's grid in support of Meta's data center operations.
Industrial & Energy Technology
Industrial & Energy Technology ("IET") secured important awards and agreements across diverse end markets and capabilities.
Converted a fourth-quarter 2025 slot reservation agreement to a major integrated solution award for a critical infrastructure project in North America. The scope includes engineering services, 60 NovaLT™ gas turbines, and 60 BRUSH™ Power Generation electric generators, as well as gears technology and long-term support services. Once delivered, the solutions will provide up to 1 gigawatt (GW) of reliable, efficient power.
Following an initial contract in the fourth quarter of 2025, Baker Hughes received a second contract for engineering and design to integrate its technology into Hydrostor's advanced compressed air energy storage system in the U.S. This award is part of a previously announced collaboration that includes up to 1.4 GW of potential Baker Hughes equipment orders for Hydrostor's flagship projects in the U.S. and Australia.
Secured an order from Hitachi Energy to supply synchronous condenser systems for grid stability in Australia. The scope includes the design, manufacturing, installation and commissioning of four synchronous condensers, delivering system reliability and resiliency as critical grids become more reliant on intermittent power.
Received an award from Boom Supersonic for electric generators that will deliver 1.21 gigawatts of highly efficient and reliable power generation capacity for an advanced artificial intelligence ("AI") data center. The award includes 25 BRUSH™ Power Generation generators, along with Automatic Voltage Regulators (AVRs) and cubicles, to be paired with Boom's gas turbines.
Announced a collaboration with Google Cloud to develop advanced AI-enabled power optimization and sustainability solutions for the global data center sector. The companies will work together to unlock greater value from underutilized industrial and operational data across data center environments using Google Cloud's AI and data analytics services. By combining Baker Hughes' deep domain expertise in turbomachinery and power systems performance with Google Cloud's AI and data analytics services, the collaboration aims to provide enterprise-scale solutions that enhance efficiency, improve reliability, and reduce the cognitive load of data center operators in managing multiple power generation sources.
Baker Hughes will supply gas compression units to San Matias Pipeline S.A. in Argentina, supporting natural gas transportation from Vaca Muerta to the Gulf of San Matias. The order includes three NovaLT™16 gas turbines paired with three centrifugal compressors, iCenter™ remote monitoring and diagnostic digital services, commissioning, and associated spare parts. The award represents the first NovaLT™ technology deployment in South America.
Received a major LNG equipment award for the main refrigerant compressor train and power generation packages across two LNG "mega trains" from QatarEnergy LNG for the North Field West project. The award includes six Frame 9 gas turbines and 12 centrifugal compressors, as well as integrated power solutions utilizing three Frame 6 gas turbines and three BRUSH™ Power Generation generators.
Signed an agreement with ST LNG under which Baker Hughes will supply critical gas compression, power generation equipment, and project development support for the customer's proposed 8.4 million tonnes per annum (MTPA) liquefied natural gas (LNG) export terminal offshore of Matagorda, Texas.
Awarded a significant contract to supply key compression and pumping technologies for a QatarEnergy LNG large‑scale carbon capture and transport facility. The order includes six centrifugal compressor trains driven by variable speed electric motors, designed to capture and transport up to 4.1 million tons of CO₂ annually.
Won a significant order to supply an advanced electric motor‑driven centrifugal compression solution, supporting offshore operations in the Middle East. The scope includes gas injection, wet gas booster and dry gas compression solutions, designed for complex operations with high‑power requirements and demanding operating conditions.
Secured a substantial five-year aftermarket services award from Petrobras to support critical turbomachinery across Brazil's offshore operations and a large refinery. The contract covers maintenance, repair and engineering advisory services for up to 64 aeroderivative gas turbines across approximately 19 FPSOs.
Secured several Industrial Solutions contracts, deploying Cordant™ Asset Health solutions to enhance the reliability of key equipment at an NOC's LNG pre-conditioning facility, as well as at Basin Electric Power Cooperative's Bison Generation station, a nearly 1.5 GW combined cycle power plant in the United States.
Oilfield Services & Equipment
Oilfield Services & Equipment ("OFSE") secured strategic orders and agreements across key product lines and geographies.
Signed a major contract, following open tender, with Petrobras to provide 91 km of flexible pipe systems to support production in Brazil's pre-salt and post-salt fields. The multiyear agreement includes risers and flowlines for oil and gas production and gas injection, along with associated storage, maintenance and installation services with delivery expected to begin in early 2027.
Signed a major contract extension with Petrobras to provide integrated workover plug & abandonment ("P&A") solutions for one of the world's largest offshore P&A projects.
Signed a significant 3-year contract to provide well construction technology for YPF Argentina to support the Vaca Muerta unconventional shale development in the country. YPF will utilize the Lucida RSS technology along with PermaFORCE drill bits to support efficiently drilling longer and deeper wells in a single run.
Signed a substantial multiyear agreement with Marathon Petroleum to become the preferred provider for hydrocarbon treatment products and services at 12 refineries and two renewable fuels facilities across North America.
Awarded a contract to provide subsea production systems, including deepwater horizontal tree systems, manifolds, subsea distribution infrastructure, and subsea and topside control units, in the Black Sea for five wells for Turkish Petroleum, helping to secure natural gas supply for Türkiye.
Gulf Energy E&P BV-Kenya awarded Baker Hughes a significant Integrated Solutions project to drill and complete 43 wells in the South Lokichar basin, marking the Company's first fully integrated project in Sub-Saharan Africa. The scope includes well construction, artificial lift services, completions, intervention and measurement.
Consolidated Financial Results
Revenue for the quarter was $6,587 million, a decrease of $799 million, or 11% sequentially, and up $160 million, or 2% year-over-year. The increase in revenue year-over-year was driven by an increase in IET, partially offset by a decrease in OFSE.
The Company's total book-to-bill ratio in the first quarter of 2026 was 1.2; the IET book-to-bill ratio was 1.5.
Net income, as determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the first quarter of 2026, was $930 million. Net income increased $55 million, or 6% sequentially, and increased $528 million, or 131% year-over-year.
Adjusted net income (a non-GAAP financial measure) for the first quarter of 2026 was $573 million, which excludes adjustments totaling $357 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted net income for the first quarter of 2026 was down $200 million, or 26% sequentially, and up $63 million, or 12% year-over-year.
Depreciation and amortization for the first quarter of 2026 was $354 million.
Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2026 was $1,158 million, which excludes adjustments totaling $556 million. See Table 1a in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures." Adjusted EBITDA for the first quarter was down $179 million, or 13% sequentially, and up $121 million, or 12% year-over-year.
The sequential decrease in adjusted net income and Adjusted EBITDA was primarily driven by lower volume, the PSI and Surface Pressure Control (SPC) dispositions, and change in business mix, partially offset by productivity and cost-out initiatives.
The year-over-year increase in adjusted net income and Adjusted EBITDA was primarily driven by productivity, cost-out initiatives, FX, and price, partially offset by inflation, lower volume, change in business mix, and the PSI and SPC dispositions.
Other Financial Items
Remaining Performance Obligations ("RPO") in the first quarter of 2026 ended at $36.1 billion, an increase of $0.2 billion from the fourth quarter of 2025. OFSE RPO was $3.0 billion, down $0.5 billion sequentially, while IET RPO was $33.1 billion, up $0.7 billion sequentially. Within IET RPO, Gas Technology Equipment and Gas Technology Services were $11.6 billion and $16.0 billion, respectively.
Income tax expense in the first quarter of 2026 was $336 million.
Other (income) expense, net in the first quarter of 2026 was $(588) million, primarily related to $721 million gain on business dispositions, a net loss of $50 million from the change in fair value of equity securities, and transaction related costs of $28 million incurred in connection with business disposals and acquisitions.
GAAP diluted earnings per share was $0.93 for the first quarter of 2026. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.58. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Cash flow from operating activities was $500 million for the first quarter of 2026. Free cash flow (a non-GAAP financial measure) for the quarter was $210 million. A reconciliation from GAAP has been provided in Table 1c in the section titled "Reconciliation of GAAP to non-GAAP Financial Measures."
Capital expenditures, net of proceeds from disposal of assets, were $290 million for the first quarter of 2026, of which $177 million was for OFSE and $100 million was for IET.
Results by Reporting Segment
The following segment discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.
Oilfield Services & Equipment
(in millions)
Three Months Ended
Variance
Segment results
March 31,2026
December 31, 2025
March 31, 2025
Sequential
Year-over-year
Orders
$
3,272
$
3,862
$
3,281
(15
%)
—
%
Revenue
$
3,237
$
3,572
$
3,499
(9
%)
(7
%)
EBITDA
$
565
$
647
$
623
(13
%)
(9
%)
EBITDA margin
17.4
%
18.1
%
17.8
%
-0.7pts
-0.4pts
(in millions)
Three Months Ended
Variance
Revenue by Product Line
March 31, 2026
December 31, 2025
March 31, 2025
Sequential
Year-over-year
Well Construction
$
843
$
880
$
892
(4
%)
(5
%)
Completions, Intervention, and Measurements
883
944
925
(6
%)
(5
%)
Production Solutions
898
973
899
(8
%)
—
%
Subsea & Surface Pressure Systems
613
775
782
(21
%)
(22
%)
Total Revenue
$
3,237
$
3,572
$
3,499
(9
%)
(7
%)
(in millions)
Three Months Ended
Variance
Revenue by Geographic Region
March 31,2026
December 31,2025
March 31,2025
Sequential
Year-over-year
North America
$
927
$
943
$
922
(2
%)
1
%
Latin America
600
613
568
(2
%)
6
%
Europe/CIS/Sub-Saharan Africa
558
624
580
(10
%)
(4
%)
Middle East/Asia
1,152
1,392
1,429
(17
%)
(19
%)
Total Revenue
$
3,237
$
3,572
$
3,499
(9
%)
(7
%)
North America
$
927
$
943
$
922
(2
%)
1
%
International
$
2,310
$
2,629
$
2,577
(12
%)
(10
%)
EBITDA excludes depreciation and amortization of $278 million, $252 million, and $226 million for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. EBITDA margin is defined as EBITDA divided by revenue."F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.
OFSE orders of $3,272 million for the first quarter of 2026 decreased by $(591) million, or 15% sequentially. Subsea and Surface Pressure Systems orders were $650 million, down $(417) million, or 39% sequentially, and up $118 million, or 22% year-over-year.
OFSE revenue of $3,237 million for the first quarter of 2026 was down $336 million, or 9% sequentially, and down $262 million, or 7% year-over-year. Both the sequential and year-on-year declines were primarily driven by the SPC disposition and disruptions in the Middle East.
North America revenue was $927 million, down $17 million, or 2% sequentially. International revenue was $2,310 million, down $319 million, or 12% sequentially, with a decrease in Middle East/Asia, Europe/CIS/Sub-Saharan Africa, and Latin America.
Segment EBITDA for the first quarter of 2026 was $565 million, a decrease of $82 million, or 13% sequentially. The sequential decrease in EBITDA was a result of lower volume, change in mix, and the SPC disposition, partially offset by overall productivity.
Industrial & Energy Technology
(in millions)
Three Months Ended
Variance
Segment results
March 31, 2026
December 31, 2025
March 31, 2025
Sequential
Year-over-year
Orders
$
4,887
$
4,024
$
3,178
21
%
54
%
Revenue
$
3,350
$
3,814
$
2,928
(12
%)
14
%
EBITDA
$
678
$
761
$
501
(11
%)
35
