Baker Hughes booked $10.5 billion of orders in the second quarter of 2026, up 49% from a year earlier and 29% from the first quarter, the company said July 26. Revenue reached $6.7 billion, down 2% from a year ago, while attributable net income fell 3% year over year to $681 million.
Orders surge on industrial and power demand
Almost all of the order growth came from Industrial & Energy Technology (IET), the segment that builds gas turbines, compressors and power generation equipment. IET orders doubled year over year to $7.1 billion, and the segment's backlog of remaining performance obligations (RPO) climbed 19% to a record $37.1 billion. Baker Hughes said the strength came from strong demand across its Power Systems and LNG businesses, with the most momentum in power generation equipment, and it raised its full-year IET order guidance as a result. Its outlook for IET orders across 2026 through 2028, the period it calls Horizon 2, now tops $45 billion. Simonelli called it "another exceptional quarter of orders."
| Metric | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Orders | $10,501M | $8,159M | $7,032M |
| Revenue | $6,742M | $6,587M | $6,910M |
| Net income | $681M | $930M | $701M |
| Adjusted EBITDA | $1,231M | $1,158M | $1,212M |
| Diluted EPS | $0.68 | $0.93 | $0.71 |
| Free cash flow | $1,109M | $210M | $239M |
Cash generation improved sharply. Cash flow from operating activities rose to $1,345 million from $510 million a year earlier, and free cash flow climbed to $1,109 million from $239 million.
Chart deal closes, Waygate heads out the door
Baker Hughes completed its all-cash purchase of Chart Industries (NYSE: GTLS) in July, adding thermal management, air and gas handling, compression and lifecycle service technology to its portfolio. Simonelli called the deal "a major milestone in our evolution." The company also agreed to sell Waygate Technologies to Hexagon for about $1.45 billion in cash, before customary closing adjustments, as part of its broader portfolio moves this quarter.
LNG and power awards fill the backlog
Venture Global awarded Baker Hughes a contract for six LNG blocks, made up of 12 liquefaction modules built around the company's centrifugal compressor technology. Cheniere Energy and Bechtel ordered liquefaction equipment for Sabine Pass Train 7, along with a boil-off gas re-liquefaction unit and turbine upgrades across the facility, together supporting about 6 MTPA of added LNG production capacity. Golar ordered four gas turbine-driven compressor trains for a 3.5 MTPA floating LNG facility, the fourth Golar vessel to use Baker Hughes' liquefaction equipment, and Nigeria LNG extended a multi-year service agreement covering its Train 7 turbomachinery.
On the power side, Dynamis Power Solutions ordered 76 NovaLT16 gas turbines, about 1.3 gigawatts of capacity, for mobile power units serving data centers and oil and gas sites in North America. Kodiak Gas Services signed a multi-year agreement for an initial 1 gigawatt of generation capacity, with a framework that could grow to 1.8 gigawatts over time.
Middle East activity offsets uncertainty
In the Middle East, Baker Hughes won an order for nine electric motor-driven compressor trains to support gas injection, gas lift and boosting on a mature offshore field. Saipem Nasser Saeed Al-Hajri Contracting Company, a joint venture between Saipem and NSH in Saudi Arabia, won an order for five electric motor-driven centrifugal compressor trains for work on Aramco's Uthmaniyah gas wells, following a novation agreement with Aramco. A novation agreement transfers one party's contract obligations to another party. Baker Hughes also expanded its Cordant asset-monitoring software business through new agreements with Sinopec, Petrobras and KNPC.
The oilfield services and equipment (OFSE) segment topped the high end of its adjusted EBITDA guidance, helped by higher activity and product shipments late in the quarter in the Middle East, plus steady performance in North America land and Latin America. Simonelli said the results held up "despite higher inflationary costs."
For context, the U.S. rig count stood at 562 as of June 15, 2026, according to Baker Hughes' own weekly count, while WTI crude traded at $84.65 a barrel and Henry Hub gas at $3.06 per MMBtu that same day, per EIA data.
Management said it expects to hit the midpoint of full-year guidance while continuing to manage what it called "ongoing Middle East challenges."
