Baker Hughes reported fourth-quarter orders of $7.9 billion, including $4.0 billion for Industrial & Energy Technology (IET), driving a book-to-bill ratio above 1.0. Revenue remained flat year-over-year at $7.4 billion, while adjusted diluted EPS rose 11% to $0.78 from $0.70. Adjusted EBITDA increased 2% to $1.34 billion, and free cash flow climbed 50% year-over-year to $1.34 billion. For full-year 2025, the company achieved record backlog with RPO of $35.9 billion (IET RPO $32.4 billion), orders of $29.6 billion (IET $14.9 billion), adjusted EBITDA of $4.83 billion (up 5%), and free cash flow of $2.73 billion, underscoring strong working-capital management and IET momentum against ongoing oilfield service headwinds.

Industrial & Energy Technology continued to deliver robust growth, securing critical LNG equipment contracts—such as gas turbines for Rio Grande LNG and compressors for Commonwealth LNG—and generating over 85% of its orders from non-LNG markets, reflecting end-market diversity. By contrast, Oilfield Services & Equipment experienced persistent pressure from weak oilfield capex, with OFSE revenues declining sequentially. The segment did win $1 billion in Middle East production-solutions awards, but margins remain under pressure, contributing to a modest outlook for 2026.

Analysts have downgraded Baker Hughes to Sell, citing a stretched valuation north of 20x forward earnings and limited top-line growth—2026 guidance implies a 2% revenue decline and muted EPS expansion. While the company projects mid-single-digit organic adjusted EBITDA growth next year and plans to maintain IET margin expansion toward a 20% target, investors are cautious given continued OFSE softness. Management highlights a significant but measured revenue opportunity in Venezuela—with safety, employee welfare and legal clarity as key prerequisites—but expects only modest upside from that market in the near term.