Baker Hughes Posts Record $4.83B EBITDA, Deepens 1.4GW Hydrostor Partnership
Baker Hughes achieved record full-year adjusted EBITDA of $4.83 billion and free cash flow of $2.7 billion, supported by a $32.4 billion backlog and a book-to-bill ratio above 1. Baker Hughes deepened collaboration with Hydrostor to integrate technology into up to 1.4 GW of compressed air energy storage systems.
1. Strategic Collaboration with Hydrostor to Scale A-CAES Solutions
At the 2026 Baker Hughes Annual Meeting in Florence, Baker Hughes and Hydrostor formalized an expanded strategic technology and equity agreement to integrate Baker Hughes’ compression, expander, motor and generator technologies into Hydrostor’s advanced compressed air energy storage (A-CAES) platform. Under the deal, Baker Hughes will supply up to 1.4 GW of equipment across Hydrostor’s flagship projects in the U.S. and Australia. This collaboration builds on Baker Hughes’ initial investment in Hydrostor in 2019 and is designed to accelerate construction timelines, enhance grid resilience and provide long duration storage capacity to support growing renewable penetration and AI-driven data center loads worldwide.
2. Record Financial Performance Underpins Positive Analyst View
For full-year 2025, Baker Hughes delivered a record adjusted EBITDA of $4.83 billion and generated a record $2.7 billion in free cash flow, driven by strong operational efficiency and disciplined capital allocation. In Q4, adjusted EBITDA reached $1.34 billion, exceeding guidance midpoints, while free cash flow for the quarter hit $1.3 billion. The company closed the year with a backlog of $32.4 billion and a book-to-bill ratio above 1.0, underscoring robust demand for its oilfield services and equipment. Reflecting this momentum, Barclays reaffirmed its Overweight rating and raised its 12-month target by 2 points, citing continued strength across Baker Hughes’ Power Systems and Industrial & Energy Technology segments.
3. Segment Growth Highlights Sustainable Revenue Streams
Baker Hughes’ Power Systems segment achieved $2.5 billion in orders for 2025, including $1 billion tied to data center applications, as customers seek reliable low-carbon solutions. The Industrial & Energy Technology (IET) segment recorded a record $14.9 billion in orders, benefiting from increased demand for integrated automation, digitalization and process optimization services. These results demonstrate the company’s ability to capture opportunities across its diversified portfolio, driving both near-term revenue growth and long-term strategic positioning in cleaner energy and advanced industrial markets.