Baker Hughes reported a 33% decline in third-quarter net profit, even as orders surged 31% and its backlog reached a record $46.4 billion, supported by strong demand for LNG infrastructure, power generation equipment, and industrial energy technology.
The Houston-based energy technology company posted net income attributable to shareholders of $411 million for the third quarter of 2026, down from $609 million a year earlier. Diluted earnings per share fell to $0.41 from $0.61.
However, adjusted earnings presented a stronger picture. Adjusted net income increased 2% year-over-year to $695 million, while adjusted earnings per share rose to $0.70 from $0.68. Adjusted EBITDA climbed 14% to $1.42 billion.
Revenue increased 14% year-over-year to $8.03 billion, primarily benefiting from the acquisition of Chart Industries, which Baker Hughes completed in July.
Orders jumped 31% to $10.76 billion, compared with $8.21 billion in the same period last year. Remaining performance obligations, a measure of contracted future business, increased by $6.4 billion sequentially to $46.4 billion.
The company’s Industrial & Energy Technology (IET) division was a major growth driver, securing $5.89 billion in orders, up 42% year-over-year. The division’s backlog reached a record $39.4 billion, reflecting continued investment in natural gas infrastructure, LNG projects, and power generation.
Demand from artificial intelligence infrastructure emerged as an important growth area. Baker Hughes secured an order to provide 1.1 gigawatts of power generation equipment for a major U.S. technology company, alongside another award representing approximately 500 megawatts for AI-related data center developments.
The company also expanded its relationship with Venture Global through equipment orders supporting the Plaquemines LNG expansion and the Cloud Connector Pipeline project.
Baker Hughes raised its full-year IET order guidance and increased its longer-term Horizon 2 IET order outlook to more than $50 billion.
Meanwhile, the Oilfield Services & Equipment (OFSE) division generated $3.66 billion in revenue, up 1% year-over-year, while segment EBITDA declined 2% to $659 million.
The division benefited from stronger international activity, particularly in Europe, sub-Saharan Africa, and Latin America, although Middle East and Asia revenue remained below year-earlier levels.
New contracts included subsea development awards in Indonesia and Cyprus, offshore production services in the UK North Sea, and production optimization projects in Pakistan and Kuwait.
Chart Industries, acquired on July 16, contributed $888 million in revenue and $156 million in segment EBITDA during its first reporting period under Baker Hughes. Its integration also expands the company’s capabilities in LNG equipment, cryogenic technology, and industrial cooling.
Despite the decline in reported earnings, Baker Hughes generated $1.01 billion in operating cash flow and $769 million in free cash flow, with the latter increasing 10% year-over-year.
The results underscore Baker Hughes’ increasing exposure to natural gas infrastructure and industrial power markets as the company diversifies beyond traditional oilfield services. Growing demand for LNG capacity, data center electricity, and equipment upgrades is providing additional opportunities alongside its established upstream oil and gas business.
By Charles Kennedy for Oilprice.com
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
