Baker Hughes reported an 11% rise in adjusted earnings per share to $0.78 for the quarter ended December 31, supported by flat consolidated revenue of $7.39 billion. The Industrial & Energy Technology (IET) segment delivered robust bookings of $4.0 billion and a record year-end backlog of $32.4 billion, with non-LNG equipment comprising approximately 85% of total IET orders. Adjusted EBITDA rose 2% year-over-year to $1.34 billion, while free cash flow jumped 50% sequentially to $1.34 billion. These results reflect sustained momentum in gas technology, power systems and aftermarket services, offsetting continued softness in oilfield services and equipment (OFSE).

Analysts have downgraded Baker Hughes to Sell, citing limited growth prospects in 2026 and a stretched earnings multiple. The company’s guidance implies a 2% revenue decline next year and muted EPS growth, driven by ongoing oil price headwinds and weak upstream capex that constrain OFSE performance. While secular demand for LNG and data center infrastructure underpins IET growth, investors should weigh the risk that modest upside from new markets—such as Venezuela—may not fully offset broader oilfield service challenges.

Baker Hughes sees significant revenue potential in Venezuela as recent regime change actions have reopened discussions on oilfield services and equipment contracts. Management emphasizes that safety protocols for personnel, rigorous operating conditions and legal/regulatory clarity are prerequisites for any expansion. While Venezuela could contribute incremental orders, executives caution that timing remains uncertain and that initial projects are likely to be small scale, offering only modest impact on overall results in the near term.