Baker Hughes is converting LNG, industrial technology, and AI data-center power leadership into an 8% growth, margin-expansion, and valuation-re-rating story.
Overview
Baker Hughes is a global energy-technology provider operating in more than 120 countries, with Oilfield Services & Equipment and Industrial & Energy Technology as its primary segments and Chart Industries becoming a third reporting segment in Q3 2026. Following its full separation from GE in 2023, management is repositioning the company toward higher-margin, less cyclical industrial technology. **The investment case rests on a differentiated moat:** Baker Hughes has estimated 90% share in mechanical-drive LNG turbomachinery, extensive proprietary sensor and digital technology, and long-term service agreements that can lock in aftermarket revenue for 10 to 25 years. Q2 2026 orders surged 49.3% year over year to $10.501 billion, while adjusted EBITDA margin expanded 80 basis points to 18.3%; record remaining performance obligations of $40.06 billion provide visibility. FY 2026 revenue guidance was raised to $27.35 billion and adjusted EBITDA to $4.85 billion, while the 2026–2028 IET order target rose above $45 billion. The $13.6 billion Chart acquisition creates substantial growth and synergy potential but lifted debt and suspended buybacks until mid-2028. At a $61.36 reference price, the report’s base case reaches $110.35 in five years, supported by an 8.0% sales CAGR, 21.5% EBITDA margin, and 19.0x exit P/E.