Baker Hughes Co. 2026 Q1 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2026. Baker Hughes Co. is an energy technology company operating through two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). The company operates in over 120 countries with approximately 53,000 employees.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $6,587 million | $6,427 million |
| Net Income (Attributable to BKR) | $930 million | $402 million |
| Diluted EPS | $0.93 | $0.40 |
| Segment EBITDA | $1,243 million | $1,124 million |
| Operating Cash Flow | $500 million | $709 million |
| Cash and Cash Equivalents | $14,764 million | $3,277 million (end of period) |
| Total Debt | $16,164 million | $6,087 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 2% year-over-year. The IET segment drove growth with a 14% increase, while OFSE revenue declined 7% due to business dispositions and international market weakness.
- Profitability Surge: Net income more than doubled, primarily driven by a $721 million gain on business dispositions (sale of Precision Sensors & Instrumentation and Surface Pressure Control JV) and a $50 million gain from changes in fair value of equity securities.
- Liquidity Expansion: Cash and cash equivalents surged from $3.7 billion to $14.8 billion. This increase was fueled by $9.9 billion in proceeds from new long-term debt issuances and $1.4 billion in proceeds from asset dispositions.
- Debt Structure: Total debt increased significantly as the company issued $6.5 billion in USD notes and €3.0 billion in Euro notes to finance the pending acquisition of Chart Industries, Inc.
Outlook, Commentary, and Risks
- Chart Acquisition: The company expects to close the $13.6 billion acquisition of Chart Industries in Q2 2026, subject to regulatory approvals. Proceeds from the recent debt offering are earmarked for this transaction.
- Market Outlook: Management anticipates improved global upstream spending outside the Middle East, offset by near-term weakness in the Middle East due to geopolitical disruptions. IET outlook remains strong, driven by LNG and gas infrastructure demand.
- Restructuring: The company recorded $37 million in restructuring charges in Q1 2026, primarily employee-related termination expenses.
- Risks: Key risks include geopolitical instability affecting energy corridors, potential delays in the Chart acquisition, and the impact of oil and gas price volatility on customer spending.
Investor Verification Checklist
- Verify the closing timeline and regulatory status of the Chart Industries acquisition.
- Confirm the sustainability of Segment EBITDA growth excluding the one-time gains from business dispositions ($721 million).
- Monitor the utilization of the $14.8 billion cash balance and the impact of the new debt load on future interest expenses.
- Assess the impact of the Surface Pressure Control and Precision Sensors dispositions on future OFSE and IET revenue baselines.
- Review the Remaining Performance Obligations (RPO) of $36.1 billion to gauge future revenue visibility.