Did Baker Hughes beat expectations and what drove the quarter?

Management said results exceeded its guidance range. The main driver was the IET segment, which posted record orders, a 1.5x book-to-bill, and 35% year-over-year segment EBITDA growth. OFSE was weaker due to Middle East disruptions and divestitures.

Why did GAAP earnings look so strong compared with adjusted earnings?

GAAP net income of $930 million included a $721 million gain on business dispositions, mostly from the PSI sale. Adjusted net income of $573 million excludes this gain, as well as restructuring costs, transaction costs, and a $155 million tax adjustment.

How is the company's balance sheet changing?

Cash rose to $14.8 billion from $3.7 billion, reflecting roughly $9.9 billion of new long-term debt and $1.4 billion of disposal proceeds. Long-term debt increased to $15.4 billion from $5.4 billion, so leverage is higher even as liquidity has improved.

What is the outlook, and what risks should investors watch?

Management said its outlook for business fundamentals is unchanged, excluding the ongoing Middle East impacts. Key risks include continued disruption in the Middle East, weaker OFSE activity, the sequential decline in adjusted EBITDA, and the higher debt load that accompanies the balance sheet build.

BKR 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Baker Hughes (BKR) reported first-quarter 2026 results that beat its guidance range, with orders of $8.2 billion^a (up 26% year-over-year), revenue of $6.6 billion (up 2% year-over-year), and GAAP diluted EPS of $0.93.

GAAP results were inflated by a $721 million^b gain on business dispositions, and adjusted diluted EPS was $0.58, down 26% sequentially and up 13% year-over-year. Adjusted EBITDA was $1,158 million, up 12% year-over-year but down 13% sequentially, largely because of the divestitures of the PSI and Surface Pressure Control businesses and lower volume. The Industrial & Energy Technology (IET) segment was the clear standout, with record orders of $4.9 billion, a book-to-bill of 1.5x, and record remaining performance obligations (RPO) of $33.1 billion.

Segment EBITDA rose 35% year-over-year to $678 million^c, and Climate Technology Solutions orders jumped to $1.26 billion. The Oilfield Services & Equipment (OFSE) segment was weaker, with revenue down 9% sequentially and 7% year-over-year, driven by disruptions in the Middle East and the SPC divestiture. Management said the business fundamentals outlook is unchanged apart from the ongoing Middle East impacts.

Portfolio management was the other main theme. Cash rose to $14.8 billion^d at quarter-end, reflecting roughly $9.9 billion of new long-term debt issuance alongside $1.38 billion of disposal proceeds, and long-term debt rose to $15.4 billion.

Management expects the Cactus JV, PSI sale, and pending Waygate Technologies divestiture to generate about $3 billion of gross proceeds in 2026. Investors should weigh the stronger balance sheet and IET momentum against the sharp sequential earnings decline, the higher leverage, and continued Middle East exposure.

02—Key points

Key Highlights

Orders of $8.2 billion, up 26% year-over-year, led by record IET orders of $4.9 billion (up 54% year-over-year).
Record IET RPO of $33.1 billion; total company RPO of $36.1 billion.
GAAP diluted EPS of $0.93 was boosted by a $721 million gain on business dispositions; adjusted diluted EPS was $0.58, down 26% sequentially.
Adjusted EBITDA of $1,158 million, up 12% year-over-year but down 13% sequentially, mainly due to divestitures and lower volume.
OFSE revenue fell 9% sequentially and 7% year-over-year, hurt by Middle East disruptions and the SPC divestiture.
Free cash flow of $210 million, down from $454 million a year earlier, while operating cash flow was $500 million.
Portfolio actions, including the Cactus JV, PSI sale, and pending Waygate sale, are expected to generate about $3 billion of gross proceeds in 2026; long-term debt rose to $15.4 billion.

03—Questions

Frequently Asked Questions

Did Baker Hughes beat expectations and what drove the quarter?
Management said results exceeded its guidance range. The main driver was the IET segment, which posted record orders, a 1.5x book-to-bill, and 35% year-over-year segment EBITDA growth. OFSE was weaker due to Middle East disruptions and divestitures.
Why did GAAP earnings look so strong compared with adjusted earnings?
GAAP net income of $930 million included a $721 million gain on business dispositions, mostly from the PSI sale. Adjusted net income of $573 million excludes this gain, as well as restructuring costs, transaction costs, and a $155 million tax adjustment.
How is the company's balance sheet changing?
Cash rose to $14.8 billion from $3.7 billion, reflecting roughly $9.9 billion of new long-term debt and $1.4 billion of disposal proceeds. Long-term debt increased to $15.4 billion from $5.4 billion, so leverage is higher even as liquidity has improved.
What is the outlook, and what risks should investors watch?
Management said its outlook for business fundamentals is unchanged, excluding the ongoing Middle East impacts. Key risks include continued disruption in the Middle East, weaker OFSE activity, the sequential decline in adjusted EBITDA, and the higher debt load that accompanies the balance sheet build.

04—Continue

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