Baker Hughes has signed a strategic technology solutions and equity agreement with Hydrostor, a leader in long-duration energy storage, to integrate its compression, expander, motor and generator technologies into Hydrostor’s advanced compressed air energy storage (A-CAES) platform. Under the deal announced at the 2026 Baker Hughes Annual Meeting in Florence, the company will supply up to 1.4 GW of equipment for Hydrostor’s flagship projects in the U.S. and Australia, marking an expansion of a relationship that began in 2019 and positioning Baker Hughes as a key technology partner in global grid resilience efforts.

For the full year 2025, Baker Hughes reported a record adjusted EBITDA of $4.83 billion, surpassing the prior high by over 10%, and achieved annual free cash flow of $2.7 billion, a new company benchmark. In the fourth quarter, adjusted EBITDA reached $1.34 billion, ahead of guidance midpoints, while free cash flow for the period was $1.3 billion. The strong cash generation enabled debt reduction and enhanced liquidity, underpinning reinvestment in growth projects and shareholder returns.

Baker Hughes ended 2025 with a backlog of $32.4 billion and a book-to-bill ratio above 1, reflecting sustained demand across its portfolios. The Power Systems segment recorded orders of $2.5 billion for the year, including $1 billion tied to data center applications, while the Industrial & Energy Technology (IET) segment secured a record $14.9 billion in orders. These figures highlight the company’s ability to capture large-scale opportunities in LNG, renewables integration and electrification markets.

Analysts at Barclays maintained an Overweight rating on Baker Hughes following the Q4 results, raising their twelve-month price target by approximately 4% to reflect improved earnings visibility and growth in non-oilfield segments. Conversely, a recent downgrade to Sell from a major independent strategist cited a stretched valuation multiple above 20x forward earnings and modest revenue growth guidance for 2026, with only limited upside from emerging markets such as Venezuela. Investors will be watching how Baker Hughes balances reinvestment in high-growth areas against capital discipline throughout the coming year.