Baker Hughes Nets $60M Q1 Hit From $275M Middle East Exposure, Secures 1.21GW and 250MW Orders
JPMorgan estimates Baker Hughes incurred a $60 million Q1 revenue hit from $275 million of monthly Middle East exposure, with 50–60% decremental margins on oilfield services. The company secured a 1.21 GW AI data center generator order, a 250 MW Twenty20 Energy award and maintains a $15.1 billion inbound order guide.
1. Q1 Middle East Disruption
Baker Hughes was exposed to approximately $275 million in Middle East revenue per month, resulting in an estimated $60 million hit to its oilfield services and equipment revenues for Q1 as regional operations were scaled back or suspended.
2. Decremental Margins Pressure
JPMorgan projects decremental margins of 50% to 60% on the impacted oilfield services revenues, driven by high fixed costs and lower utilization in the affected markets.
3. Distributed Power Solutions Orders
The company reinforced its distributed power strategy by booking a 1.21 gigawatt generator order for Crusoe’s AI data centers and a 250 megawatt contract with Twenty20 Energy, highlighting growth outside traditional oilfield services.
4. 2026 Industrial and Energy Technology Orders Guide
Despite regional headwinds, Baker Hughes maintained its full-year industrial and energy technology inbound order guide at $15.1 billion, signaling management confidence in order momentum and the ability to offset localized disruptions.