Baker Hughes delivered a robust Q4 2025 and an exceptional full-year 2025, underpinned by a record IET order book and meaningful margin expansion-driven by the Baker Hughes Business System. Total company orders surged to $7.9 billion in the quarter, with Industrial & Energy Technology (IET) alone contributing $4.0 billion, helping to lift full-year IET orders to a record $14.9 billion and a book-to-bill ratio of 1.1x. EBITDA rose 2% YoY to $1.34 billion in Q4, and the company posted an adjusted EBITDA margin of 18.1%, marking the first time the company exceeded 18%. IET margins expanded 160 bps YoY to 20% in Q4, while OFSE margins declined modestly to 18.1% on a sequential basis, yet achieved 18.3% for the full year, reflecting continued cost discipline amid macro headwinds in Oilfield Services & Equipment. Net income of $876 million and diluted EPS of $0.88 (GAAP) in Q4 aligned with a strong cash generation profile: free cash flow of $1.34 billion in the quarter and $2.7 billion for the full year, with a free cash flow conversion of 57%. The balance sheet remains solid (cash $3.7B; net debt to adjusted EBITDA 0.5x; liquidity $6.7B). Net debt reductions and portfolio actions featured prominently, including PSI sale and the formation of the Surface Pressure Control JV with Cactus, contributing roughly $1.5B gross cash proceeds. Management reaffirmed a multi-year growth trajectory centered on IET, New Energy, and power systems (NovaLT, BRUSH, and the Chart acquisition). 2026 guidance contemplates revenue of ~$27.25B and adjusted EBITDA of ~$4.85B, with IET orders of $13.5–$15.5B and IET revenue of about $13.5B, targeting a 20% company-wide EBITDA margin by 2028. We view the 2026 outlook as achievable given backlog visibility, ongoing productivity improvements, and portfolio synergies, though execution risks exist around the Chart integration, tariff headwinds, and macro softness in OFSE. The investment thesis remains constructive, premised on durable cash flow, a diversified revenue mix, and a scalable power systems platform benefiting from secular demand drivers in data centers, LNG, and New Energy.