Key Highlights

  • Orders were $10.8 billion, up 31% year over year, for a book-to-bill ratio of 1.3.
  • Adjusted diluted EPS was $0.70, up 2% from $0.68, while GAAP EPS fell to $0.41 from $0.61.
  • Revenue was $8.0 billion, up 14%, and adjusted EBITDA was $1,415 million, up 14%.
  • Remaining performance obligations reached a record $46.4 billion, up $6.4 billion sequentially.
  • Free cash flow was $769 million, up 10% from a year earlier.

Baker Hughes Earnings: Why Did Record Backlog Overshadow a Lower GAAP Profit?

Baker Hughes (NASDAQ:BKR) reported third-quarter results on Tuesday, October 27, 2026. Adjusted diluted EPS was $0.70, up 2% from $0.68, while GAAP diluted EPS fell to $0.41 from $0.61 and net income attributable to the company fell 33% to $411 million. As screened, the estimate was $0.61 and the surprise 14%.

Revenue was $8,025 million, up 14% year over year and 19% sequentially, mostly from the Chart acquisition. Adjusted EBITDA was $1,415 million, up 14% year over year and 15% sequentially, a margin of about 17.6% as calculated. Orders of $10,764 million rose 31%, and remaining performance obligations (RPO) reached a record $46.4 billion.

The gap between GAAP and adjusted EPS is $0.29 per share, mainly $158 million of transaction costs and $143 million of Chart intangible amortization.

Baker Hughes Segments: Where Did the Orders Come From?

Industrial and Energy Technology (IET) orders were $5,886 million, up 42% year over year, its second-largest order quarter, for a book-to-bill ratio of 1.7. IET revenue was $3,477 million, up 3%, and segment EBITDA was $685 million, up 8%, a 19.7% margin. IET RPO was a record $39.4 billion.

Management attributed the demand to data centers, space, LNG and gas infrastructure, including a 1.1 gigawatt power award for a major U.S. technology company covering 43 turbine packages.

Oilfield Services and Equipment orders were $4,047 million, down 1% year over year. Revenue was $3,660 million, up 1%, and segment EBITDA was $659 million, an 18.1% margin. Management cited growing international momentum, led by a meaningful improvement in the Middle East.

Baker Hughes and Chart: What Did the Acquisition Add?

The all-cash Chart deal closed on July 16, 2026, so the quarter includes about two and a half months. Chart contributed orders of $831 million, revenue of $888 million and segment EBITDA of $156 million at a 17.6% margin. Management said integration is progressing at a strong pace.

Interest expense rose to $177 million from $56 million. Cash was $4.1 billion and total debt about $18.3 billion, implying net debt near $14.2 billion as calculated, against roughly $2.4 billion at the end of 2025.

Baker Hughes Cash and Outlook: What Did Management Guide?

Operating cash flow was $1,005 million, free cash flow $769 million and net capital expenditure $236 million. No shares were repurchased in the first nine months, and the dividend was $0.23 per Class A share.

The release gave no fourth-quarter or full-year revenue, EBITDA or EPS guidance. It did raise full-year IET order guidance and its Horizon 2 IET order outlook for 2026 to 2028 to $50 billion plus, without stating a new full-year figure. Tariffs appear only in risk factors, with no quantified impact.

Baker Hughes Next Steps: What Should Be Watched After the Orders Surge?

Attention turns to conversion of the $46.4 billion RPO into revenue, Chart synergy progress and the pace of deleveraging from roughly $14.2 billion of net debt. The next checkpoints are the full-year IET order figure behind the $50 billion plus outlook and whether Middle East improvement carries OFSE margins above 18.1%.