$BKR · Baker Hughes Co
Baker Hughes filed its Q3 FY2026 10-Q, reporting net income attributable to the company of $411M ($0.41 diluted EPS), down 32.5% from $609M ($0.61 diluted EPS) in Q3 2025. Total revenue rose 14.5% YoY to $8.025B, boosted by the July 16, 2026 acquisition of Chart Industries. The Chart deal drove a surge in amortization of acquired intangibles ($165M vs. $10M YoY), interest expense ($177M vs. $56M), and long-term debt ($17.5B vs. $5.4B at year-end 2025).
- Q3 net income attributable to Baker Hughes fell to $411M from $609M YoY, a 32.5% decline.
- Revenue rose 14.5% YoY to $8.025B, driven by the Chart Industries acquisition closed July 16, 2026.
- Amortization of acquired intangibles surged to $165M from $10M YoY, reflecting Chart purchase accounting.
- Interest expense, net tripled to $177M from $56M YoY due to $11.9B in new long-term debt issued.
- Long-term debt ballooned to $17.5B from $5.4B at year-end 2025 to fund the Chart acquisition.
Extended-hours trading shows BKR at $55.16, up 0.91% from the regular-session close of $54.66, suggesting the after-hours market is absorbing the earnings miss without panic — though the 7.36% regular-session drop indicates the market priced in concerns ahead of the filing.
The Chart acquisition is the largest transformative deal in Baker Hughes' recent history, doubling goodwill and tripling long-term debt, with Q3 results revealing the immediate earnings drag from purchase accounting.
The Chart acquisition transforms Baker Hughes into a broader energy-industrial technology player, adding cryogenic and clean-energy equipment. OFSE segment revenue declined 4% YoY, reflecting ongoing softness in legacy oilfield services that peers like SLB and HAL also face.
Integration risk from the $14.15B Chart Industries acquisition is acute — goodwill ballooned to $13.9B from $6.1B, and any impairment would hit earnings directly. The debt load surged to $17.5B long-term, raising refinancing and interest-rate exposure.