Baker Hughes reported an 11% increase in adjusted net income for the quarter ended December 31, 2025, with adjusted earnings per share rising to $0.78 from $0.70 a year earlier. Total orders reached $7.9 billion, including $4.0 billion in Industrial & Energy Technology (IET) bookings, driving a record remaining performance obligation (RPO) balance of $35.9 billion. Revenue for the period held steady at $7.4 billion year-over-year. Adjusted EBITDA climbed 2% to $1.34 billion, while cash generated from operations totaled $1.66 billion and free cash flow reached $1.34 billion, reflecting strong working capital management and robust customer prepayments. Demand for gas processing and liquefaction equipment more than offset softer oilfield services volumes, supporting resilient margins in the Oilfield Services & Equipment segment.

For the full year, Baker Hughes achieved orders of $29.6 billion, with record IET orders of $14.9 billion and an RPO backlog of $32.4 billion for that segment. Annual revenue was flat at $27.7 billion, while attributable net income rose to $2.59 billion. Adjusted EBITDA increased 5% to $4.83 billion. The company generated $3.81 billion of operating cash flow and a record $2.73 billion of free cash flow, driven by disciplined cost actions and portfolio optimization. IET’s book-to-bill ratio exceeded 1.0 for the second consecutive year, with non-LNG equipment orders representing roughly 85% of total IET bookings, underscoring end-market diversity.

Chief Executive Officer Lorenzo Simonelli emphasized that Baker Hughes is entering Horizon Two (2026–2028) with a production-oriented portfolio designed to reduce cyclicality and enhance cash flow durability. The company expects IET organic orders to remain at similar robust levels in 2026, supported by continued LNG momentum, stronger FPSO and gas infrastructure awards, and power systems demand. Organic adjusted EBITDA growth is projected in the mid-single-digits, with IET margins advancing toward a 20% target and oilfield services margins holding relatively flat. Recent portfolio actions are positioned to transform Baker Hughes into a more industrialized energy solutions provider, with a differentiated lifecycle offering and improved cash flow resilience.