Baker Hughes Remains Strong as Analyst Notes Growth in LNG and Power Orders

Baker Hughes Prepares to Announce Q4 and Annual Results

Baker Hughes Company (NASDAQ: BKR) will release its fourth-quarter and full-year financial results on January 25, 2025. Investors are closely monitoring the performance of the company’s Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) divisions.

Analyst Insights and Ratings

Arun Jayaram, an analyst at JP Morgan, has reiterated an Overweight rating on Baker Hughes and set a price target of $53 per share.

Jayaram expects the upcoming earnings call to emphasize the robust results from the IET segment and the steady performance of OFSE, particularly noting significant contract wins in the Middle East during the fourth quarter.

The analyst also anticipates that Baker Hughes will finish 2025 with strong momentum in IET, driven by a favorable product mix and improvements in the aero-derivative supply chain, which should enhance revenues from higher-margin Gas Tech Services.

For the OFSE division, Jayaram projects stable results, with activity in the U.S. Gulf supporting North American operations. However, international markets may experience slight margin pressures, including those related to currency fluctuations.

Quarterly Performance Projections

Jayaram forecasts that IET orders for the quarter will reach $3.6 billion, bringing the full-year total to $14.5 billion—at the upper end of the company’s guidance range of $13.5 billion to $14.5 billion.

The analyst expects the earnings call to highlight Baker Hughes’ broad exposure to the increasing demand for power generation, extending beyond its NovaLT turbines used in data centers.

For the fourth quarter, Jayaram estimates IET revenue at $3.47 billion and EBITDA margins at 19.9%, both slightly above company guidance. IET EBITDA is projected at $692 million, which is 1.8% higher than the guidance midpoint of $680 million.

In addition, the OFSE segment is expected to report EBITDA of $649 million, closely matching the guidance of $650 million. Total EBITDA for the fourth quarter is projected at $1.266 billion, compared to the consensus estimate of $1.259 billion, with free cash flow anticipated at $756 million.

Looking ahead to 2026, Baker Hughes’ guidance includes recent mergers and acquisitions but does not factor in the GTLS merger.

Jayaram projects IET revenue for 2026 at $13.25 billion with EBITDA of $2.67 billion (a 20.2% margin). He expects OFSE revenue to decline by 6.9% year-over-year, with an EBITDA margin of 18%, totaling $4.82 billion, slightly below the consensus estimate of $4.88 billion.

Stock Performance

Recent Price Movement: As of Wednesday’s close, Baker Hughes shares had fallen 0.63% to $49.07, according to Benzinga Pro data.

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Baker Hughes Stock Snapshot