Baker Hughes posted a robust Q4 2025, underscored by a record annual adjusted EBITDA and a resilient, diversified portfolio across IET, OFSE, and New Energy. In the quarter, revenue of $7.39 billion and adjusted EBITDA of $1.34 billion culminated in an 18.1% quarterly EBITDA margin, with IET delivering a margin of 20.0% despite macro headwinds in OFSE. For the full year, the company reported meaningful margin expansion (adjusted EBITDA up 90 bps to 17.4%), record IET orders of $14.9 billion (book-to-bill >1x) and an IET backlog of $32.4 billion, signaling durable earnings power and a strong platform for services growth.
Strategic portfolio actions and guidance frame the horizon. Baker Hughes completed strategic portfolio actions in 2025, including the PSI sale and the formation of the Surface Pressure Control JV with Cactus, generating roughly $1.5 billion in gross cash proceeds. The pending Chart acquisition remains a focal point, with integration planning advancing and a stated target of $325 million in cost synergies. The company guided for 2026 revenue of $27.25 billion and adjusted EBITDA of $4.85 billion (midpoint), with free cash flow conversion near 50%. IET is expected to sustain mid-teens to high-teens EBITDA margins and deliver $13.5–$15.5 billion of orders in 2026, keeping the Horizon Two target of >$40 billion in IET orders on track. The year 2026 also features a tighter macro backdrop for OFSE but with continued cost-out discipline and productivity gains to support margins. The company’s balance sheet remains strong: cash of ~$3.7 billion, net debt to adjusted EBITDA of ~0.5x, and liquidity of ~$6.7 billion, positioning Baker Hughes to close Chart and absorb integration costs while pursuing accretive growth. Taken together, Baker Hughes is positioned to benefit from a multiyear power infrastructure cycle, data center demand, LNG expansion, and New Energy opportunities, with a clear path to 20% company adjusted EBITDA margin by 2028.