Baker Hughes reported flat year-over-year revenue of $7.39 billion for the fourth quarter, with adjusted earnings rising 11% to $0.78 per share versus $0.70 a year earlier. Orders for the quarter reached $7.9 billion, including $4.0 billion in IET orders, driving record remaining performance obligations (RPO) of $35.9 billion, up from $33.7 billion a year ago. Net income attributable to the company was $876 million, while adjusted EBITDA climbed 2% to $1.34 billion. For full-year 2025, revenue held at $27.7 billion, orders totaled $29.6 billion with a record $14.9 billion in IET, and free cash flow reached a record $2.73 billion.

The Industrial & Energy Technology business delivered $4.0 billion of fourth-quarter bookings and achieved a year-end backlog of $32.4 billion, representing book-to-bill above 1x. Non-LNG equipment made up approximately 85% of full-year IET orders, underscoring portfolio diversity. Key awards included liquefaction equipment for multiple U.S. LNG trains, six LM9000 aeroderivative gas turbines for Commonwealth LNG, over 40 BRUSH™ generators totaling 7 GW for utility-scale power, and delivery of compression solutions for Kazakhstan’s Tengiz Gas Separation Complex. Digital wins featured Cordant™ asset health and performance agreements across energy and industrial customers.

Baker Hughes identified a material revenue opportunity in Venezuela, conditioned on ensuring employee safety and establishing clear legal and regulatory frameworks. Management highlighted that the nation’s oil and gas infrastructure rebuild could generate high-margin service contracts, particularly in well intervention and production optimization. The company is conducting on-site assessments and engaging with local authorities to secure operating permits that meet international standards, with potential initial contract awards expected in the second half of 2026.

Analysts have downgraded Baker Hughes to Sell, citing a stretched earnings multiple above 20x and limited revenue growth projected for 2026. Guidance implies a 2% decline in top-line and muted EPS gains, reflecting continued headwinds in the Oilfield Services & Equipment segment due to weak upstream capital expenditure. While IET is expected to sustain mid-single-digit adjusted EBITDA expansion, any delay in LNG project sanctions or further oil price volatility could pressure OFSE margins and overall valuation.