Baker Hughes Company Q3 2026 Earnings Recap

Baker Hughes shares fell 7.4% after earnings, despite strong orders, as investors appear to have focused on the limited growth in adjusted EPS and flat year-over-year EBITDA margins rather than the order momentum. The transcript also highlights higher interest expense and significant acquisition-related cash costs, though it does not identify a specific guidance cut.

Key Takeaways

• Adjusted EBITDA was $1.42 billion, with margins of 17.6%—comparable to last year; adjusted EPS was $0.70, up modestly year over year.
• Free cash flow was $769 million, including approximately $200 million of Chart integration, restructuring, and closing-related cash costs.
• Orders were strong: company book-to-bill was 1.3x, while IET recorded $5.9 billion of orders and a record $39.4 billion in remaining performance obligations, up 23% year over year.
• Management raised its full-year orders expectation to $21.5 billion–$23.5 billion and expects IET orders to exceed $50 billion over Horizon 2.
• Chart integration is underway: Baker Hughes reported $70 million of the $325 million cost-synergy target already executed, and expects Chart EBITDA margins to reach 22%–23% by the second half of 2028.