Baker Hughes Exceeds Q2 Guidance Amid Strong IET Orders and Free Cash Flow
Baker Hughes (NASDAQ:BKR) reported second-quarter results that exceeded its guidance, driven by strong performance in the Industrial & Energy Technology segment. The company achieved $1.23 billion in adjusted EBITDA with an 18.3% margin, up from a year ago, and generated $1.1 billion in free cash flow despite disruptions in the Middle East. Record orders of $7.1 billion were reported for IET, fueled by data center power systems and LNG projects. Total company backlog rose to $37.1 billion, with management projecting Horizon Two orders exceeding $45 billion. Full-year revenue guidance was raised to approximately $27.35 billion in revenue and $4.85 billion in adjusted EBITDA. The acquisition of Chart Industries is expected to yield $325 million annually in cost synergies by the third year, while Baker Hughes continues expanding its gas turbine capacity for power systems with potential annual revenues reaching nearly $5 billion.
Topics: acquisition ebitda energy free_cash_flow oilfield_services