Baker Hughes CEO Says Energy Security, AI Demand Are Fueling Growth

Baker Hughes Company (NASDAQ: BKR ) stock rose in premarket trading Monday after the oilfield services company reported second-quarter results that topped Wall Street expectations.

The company reported adjusted earnings of 64 cents per share, beating the consensus estimate of 50 cents.

Revenue came in at $6.74 billion, above analysts’ expectations of $6.52 billion.

CEO Lorenzo Simonelli said demand remains strong across data centers, gas infrastructure and upstream markets, while noting that energy security and increasing power needs are driving investment across both energy and industrial value chains.

The company also highlighted record Industrial & Energy Technology orders, driven by power generation and LNG demand, and raised its long-term order outlook, reinforcing management’s confidence that AI-related power demand and global energy infrastructure spending will continue to fuel growth.

Orders Surge Despite Revenue Decline Revenue declined 2% year over year, primarily due to the divestitures of the Precision Sensors & Instrumentation and Surface Pressure Control businesses.

Orders jumped 49% to $10.5 billion, lifting the company’s total book-to-bill ratio to 1.6x for the quarter.

Remaining performance obligations increased by $4 billion from the prior quarter to $40.1 billion.

Adjusted net income rose 3% year over year to $640 million, while adjusted EBITDA increased to $1.23 billion from $1.21 billion a year earlier.

Cash flow from operating activities totaled $1.35 billion during the quarter.

The board declared a quarterly cash dividend of 23 cents per share, payable Aug.

17 to shareholders of record as of Aug.

7.

Read Also: Kodiak Gas Powers Multi-Year Turbine Push with Baker Hughes IET Drives Growth The Industrial & Energy Technology segment reported revenue of $3.29 billion, unchanged from a year earlier.

Orders in the segment more than doubled to $7.09 billion, driven by strong demand for Gas Technology Equipment and Gas Technology Services.

Backlog reached a record level, increasing 19% year over year.

The Oilfield Services & Equipment segment reported revenue of $3.45 billion, down 5% from a year earlier.

The decline reflected the Surface Pressure Control divestiture and disruptions in the Middle East.

Orders in the segment fell 3% to $3.41 billion due to lower demand for Subsea and Surface Pressure Systems.

OFSE remaining performance obligations were flat sequentially at $3 billion.

IET remaining performance obligations increased by $4 billion sequentially to $37.1 billion, including $15 billion in Gas Technology Equipment and $16.7 billion in Gas Technology Services.

Outlook For the third quarter, Baker Hughes expects revenue between $6.57 billion and $7.17 billion and adjusted EBITDA of $1.115 billion to $1.295 billion.

For fiscal 2026, the company forecast revenue of $26.65 billion to $28.05 billion and adjusted EBITDA of $4.60 billion to $5.10 billion.

The company also raised its full-year Industrial & Energy Technology orders guidance and increased its Horizon 2 IET orders target to more than $45 billion, citing strong demand across Power Systems and liquefied natural gas projects, particularly in power generation.

BKR Price Action: Baker Hughes shares were up 2.36% at $58.60 during premarket trading on Monday, according to Pro data.

Photo via Shutterstock