$BKR · Baker Hughes Co
Baker Hughes reported Q3 FY2026 results with revenue of $8.025B (+14% YoY), adjusted diluted EPS of $0.70, and adjusted EBITDA of $1.415B (+14% YoY). GAAP net income fell 33% YoY to $411M due to $158M in Chart-related transaction costs and $143M in intangible amortization. Orders hit $10.8B (+31% YoY), driven by $5.9B in IET orders, pushing total RPO to a record $46.4B. The company raised its Horizon 2 IET order outlook to $50B+.
- Orders surged 31% YoY to $10.8B, including $5.9B of IET orders — the segment's second-largest quarter ever.
- GAAP net income fell 33% YoY to $411M, dragged by $158M in transaction costs and $143M in Chart intangible amortization.
- Adjusted EBITDA rose 14% YoY to $1.415B; adjusted diluted EPS of $0.70 beat consensus by $0.02.
- Record IET RPO of $39.4B drove total RPO to $46.4B; full-year IET order guidance raised to $50B+ for Horizon 2.
- Free cash flow was $769M, down 31% sequentially from $1.109B but up 10% YoY from $699M.
Extended-hours trading shows BKR at $58.20, down 1.36% from the regular-session close of $59.00, despite the adjusted EPS beat. The GAAP miss — EPS of $0.41 vs. $0.61 a year ago — and the sharp sequential free cash flow decline likely weigh on the after-hours reaction.
The quarter captures Baker Hughes at an inflection point: record orders and backlog signal durable growth, but the Chart deal's near-term earnings drag and integration risk create a split-screen that investors must weigh.
Baker Hughes' record IET orders and raised guidance underscore the oilfield services sector's pivot toward gas infrastructure, LNG, and data-center power generation. The Chart acquisition directly targets this convergence of energy and industrial markets, mirroring SLB and Halliburton's own diversification pushes beyond traditional upstream.
Chart acquisition integration risk is front and center: $158M in transaction costs and $143M in intangible amortization hit Q3 GAAP results, and the balance sheet now carries $13.9B in goodwill and $9.8B in intangibles — up from $6.1B and $4.1B at year-end 2025, respectively. Any integration missteps or impairment could pressure earnings.