stockrowWhat it does
Baker Hughes is an energy technology company that sells equipment, services and software to oil and gas operators and other industrial customers. Founded in 1908 and headquartered in Houston, it operates in over 120 countries. Its work ranges from helping customers drill and produce oil and gas to supplying equipment that compresses natural gas or generates power.
The company has two operating segments. Oilfield Services & Equipment supports onshore and offshore oilfield operations throughout an asset’s life, from exploration and drilling through production and eventual decommissioning. Its offerings include drilling tools, well services, production equipment and subsea systems.
Industrial & Energy Technology supplies gas turbines, compressors, pumps and other equipment used in gas infrastructure, liquefied natural gas facilities and industrial plants. It also maintains and upgrades equipment, sells inspection and monitoring technologies, and offers products for applications such as hydrogen, geothermal energy and carbon capture.
Customers include national and independent oil and gas companies, engineering contractors, utilities, data centers and industrial manufacturers. Baker Hughes sells primarily through its own sales force, supported by regional teams. Its products and services can be sold individually or combined in projects that cover equipment supply, installation and subsequent maintenance.
How it makes money
Baker Hughes earns revenue by selling physical equipment and other goods, providing services and licensing digital products. Total revenue was $27.7 billion in 2025; a latest-quarter total is not available here.
Oilfield Services & Equipment generated $14.3 billion in 2025 revenue. It supplies products and services for drilling and completing wells, raising oil and gas to the surface, and operating subsea facilities. Its work can continue through maintenance, intervention and eventual well abandonment. Services and products are generally provided well by well, although some contracts cover multiple wells or extend over several years. Many contracts set prices but do not require the customer to use the company’s offerings.
Industrial & Energy Technology generated $13.4 billion in 2025 revenue. It sells gas turbines, compressors and power-generation equipment, as well as industrial inspection, monitoring and safety products. Its gas technology services business supplies spare parts, maintenance, upgrades and equipment refurbishment throughout customers’ equipment and plant life cycles.
Contracts take several forms, including fixed-fee projects, individual product and service transactions, equipment supply with aftermarket agreements, and software subscriptions or licenses. Long-term project contracts and master service agreements support continuing customer relationships, but some require firm prices and provide limited relief when circumstances change. Late delivery or performance can trigger damages or service credits.
At December 31, 2025, remaining performance obligations were $35.9 billion, including $32.4 billion in Industrial & Energy Technology. These are unfilled orders subject to contractual conditions; the actual amount and timing of revenue can differ from the reported obligations.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Sales of goods | $18.2 billion | 65.7% | 2.28% |
| Sales of services | $9.5 billion | 34.3% | −5.01% |
Customers and how it sells
Oilfield customers include integrated oil and natural gas companies, independent producers, national or state-owned companies, engineering contractors and other oilfield services providers. The company also serves geothermal and other renewable energy businesses.
Industrial & Energy Technology sells to customers across the energy system, including LNG plants, pipelines, storage facilities and engineering contractors. Its industrial customers include utilities, data centers, marine operators, and cement, steel, refinery and petrochemical producers. Other products reach industries such as aerospace, automotive, food and beverage, and pharmaceuticals.
Baker Hughes sells through direct and indirect channels, with its direct sales force as the primary channel. Regional teams work near customers and draw on support from product-line specialists. Customer relationships can span long-term projects and master service agreements, although oilfield contracts do not necessarily oblige customers to purchase products or services.
In 2025, the company generated revenue outside the United States. United States revenue was $7.7 billion, or 27.8%. The company conducts business in over 120 countries. As of December 31, 2025, 16% of gross customer receivables were from customers in the United States and 10% from customers in the United Arab Emirates.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Non-US | $20.0 billion | 72.2% | −2.02% |
| UNITED STATES | $7.7 billion | 27.8% | 4.29% |
Suppliers and costs
Baker Hughes manufactures products using materials and components that include steel alloys, nickel, titanium, electronic components, diamonds, sand and chemical feedstocks. It also uses outside fabricators, machine shops, foundries, contract manufacturers and logistics providers. Essential materials and services are generally available from multiple sources, although the company identifies constrained availability of nickel-based super alloys, tungsten carbide and rare-earth components.
GE Vernova and GE Aerospace are suppliers under long-term commercial arrangements. Baker Hughes also obtains products and services through an aeroderivative joint venture controlled jointly with GE Vernova. It uses those inputs to manufacture and maintain certain end products. A loss or disruption of these relationships could affect its ability to meet customer obligations.
Costs include materials, compensation, overhead, transportation and research and development. Baker Hughes invested $600 million in research and development in 2025. It expects some raw-material and component price increases and fulfillment volatility to continue through 2026. The company uses advance planning and supplier agreements to address availability and price pressures, but fixed-price contracts can limit its ability to recover cost overruns.
- Revenue$27.7B
- Cost of revenue−$21.2B
- Research and development−$600.0M
- Selling, general and administrative−$2.4B
- Other operating costs−$215.0M
- Operating income$3.3B
Competitive position
Baker Hughes competes in different markets for each product line. In oilfield services and equipment, its competitors include SLB, Halliburton, NOV, Weatherford and TechnipFMC. In industrial and energy technology, its main competitors include Siemens Energy, Solar, Mitsubishi Heavy Industry, Sulzer, Flowserve and Emerson.
The company identifies technology, product quality, efficiency, reliability and availability as competitive factors in oilfield markets. It also points to service delivery, technical proficiency and pricing. In industrial markets, it emphasizes its range of products, project-management expertise, local presence and partnerships.
Baker Hughes protects technology and other intellectual property through patents, trademarks, trade secrets and agreements. It invests in research and development and was granted more than 1,400 patents worldwide in 2025. The company does not consider any individual patent material to its overall operations.
Our reading: Technical expertise and intellectual property provide competitive support, but their protection is not absolute because the company must keep developing products and competitors can introduce alternatives. Our reading: Installed equipment and aftermarket service relationships can help sustain customer ties, although oilfield contracts often do not require customers to buy and markets remain competitive.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| SLB | Oilfield services and equipment | Medium |
| Halliburton | Oilfield services and equipment | Medium |
| NOV | Oilfield services and equipment | Medium |
| Weatherford | Oilfield services and equipment | Medium |
| TechnipFMC | Oilfield services and equipment | Medium |
| Siemens Energy | Industrial and energy technology | Medium |
| Solar | Industrial and energy technology | Medium |
| Mitsubishi Heavy Industry | Industrial and energy technology | Medium |
Growth opportunities
Baker Hughes is seeking growth in LNG, gas infrastructure, power generation, data centers, industrial manufacturing and oilfield production. Its strategy includes expanding existing offerings as well as investing in hydrogen, carbon capture, geothermal and lower-carbon power solutions.
The company booked $1 billion of orders tied to data center applications in 2025. It expects to book approximately $3 billion of data center-related orders between 2025 and 2027. It also expects continued growth in new energy solutions focused on reducing emissions across energy and industrial sectors.
In oilfield services, Baker Hughes expects soft market conditions through most of 2026 as customers remain cautious about oil prices, with potential for modest improvement later in the year. In its industrial segment, it expects continuing opportunities in LNG, gas infrastructure and distributed power. It also identifies extended lead times in the aeroderivative supply chain as a factor to manage.
The company has agreed to acquire Chart Industries, which makes process technologies and equipment for handling gases and liquids. Baker Hughes expects the transaction to close in the second quarter of 2026, subject to regulatory approvals and other conditions, though timing may change. Its expected funding sources include operating cash flow, asset-sale proceeds and new debt financing.
- $20.5BFY2021
- $21.2BFY2022
- $25.5BFY2023
- $27.8BFY2024
- $27.7BFY2025
Structural risks
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Customer spending and credit: Oil and gas customers’ spending depends on factors including expected energy prices, access to resources and financing. Falling commodity prices can weaken customer finances and make receivables harder to collect.
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Competition and technology: Baker Hughes must deliver reliable and competitive products while developing new technologies on schedule and at manageable cost. Competing technology could make its products or services obsolete.
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Supply and execution: Material shortages, tariffs, supplier disruptions and higher transportation costs can delay manufacturing or increase costs. Disruptions involving GE Vernova, GE Aerospace or the aeroderivative joint venture could affect contractual performance.
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Contract and operating hazards: Fixed-price projects can leave the company responsible for cost overruns. Equipment failures, blowouts, fires and other hazards can cause losses, and insurance or contractual indemnities may not cover every event.
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Energy transition and acquisitions: Demand for lower-carbon technologies may develop more slowly than anticipated. The proposed Chart acquisition also faces regulatory, financing and integration risks; new debt would increase leverage and debt-service requirements.
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Geopolitics: Sanctions, armed conflict and political instability can disrupt operations and supply chains, restrict business in particular countries and make it harder to fulfill customer obligations.
Bottom line
Our reading
Baker Hughes combines oilfield services with equipment and aftermarket support for gas and industrial customers. Our reading: Long-term equipment service relationships and a substantial order book give the business work beyond individual oilfield jobs, but neither removes its exposure to energy customers’ spending or project execution. The proposed Chart acquisition adds another potential source of industrial business alongside financing, regulatory and integration risks.