Description

Baker Hughes’ $7.1 Billion Order Surge — Is Wall Street Missing Its AI Power Opportunity?

The Baker Hughes Company reported second quarter results characterized by a combination of strong demand, operational execution, and challenges stemming from geopolitical disruptions. The company delivered adjusted EBITDA of $1.23 billion, exceeding the high end of guidance, and adjusted earnings per share of $0.64, reflecting modest year-over-year growth despite divestitures. The adjusted EBITDA margin expanded by 70 basis points to a record 18.3%, driven mainly by Industrial Energy Technology (IET) segment performance offsetting margin pressures in Oilfield Services and Equipment (OFSE) due to inflation and Middle East disruptions. The company generated free cash flow of $1.1 billion, aided by favorable collections and working capital improvements. Baker Hughes’ IET segment posted exceptional results with orders doubling year-over-year to $7.1 billion, resulting in a 2.2x book-to-bill ratio and a record $37.1 billion backlog.