Baker Hughes reported strong third quarter results, characterized by a significant earnings beat and record-breaking order momentum. Total orders reached $10.8 billion, fueled by massive demand for power generation equipment for AI data centers and LNG infrastructure. The company successfully integrated Chart Industries, which contributed $888 million in revenue during its first partial quarter, while maintaining a healthy segment EBITDA margin of 17.6%.
Key Highlights
- Record total backlog (RPO) reached $46.4 billion, including a record $39.4 billion in the Industrial & Energy Technology (IET) segment.
- IET segment orders surged 42% year-over-year to $5.9 billion, including a 1.1 GW integrated power generation award for a major U.S. technology company.
- Free cash flow for the quarter was $769 million, representing roughly 54% conversion of adjusted EBITDA, exceeding the previously lowered annual target range.
- Oilfield Services & Equipment (OFSE) revenue grew 6% sequentially to $3.66 billion, supported by international growth, particularly in the Middle East and Sub-Saharan Africa.