Baker Hughes Co - Class A

Baker Hughes is a leading global provider of liquefied natural gas (LNG) equipment and industrial energy technologies, as well as oilfield services and equipment. Q2 results exceeded expectations, driven by record orders in its industrial & energy technology (IET) segment, supported by continued strength in power systems and LNG. Management also raised its long-term IET order targets, reflecting growing demand for natural gas-powered generation. We continue to believe Baker Hughes is well positioned to benefit from rising natural gas demand. We added to the position during the pullback.

Baker Hughes is a leading global provider of liquefied natural gas (LNG) equipment and industrial energy technologies, as well as oilfield services and equipment. Q2 results exceeded expectations, driven by record orders in its industrial & energy technology (IET) segment, supported by continued strength in power systems and LNG. Management also raised its long-term IET order targets, reflecting growing demand for natural gas-powered generation. We continue to believe Baker Hughes is well positioned to benefit from rising natural gas demand. We added to the position during the pullback.

Baker Hughes is included in the fund's top positions, indicating its significance within the portfolio. However, there is no explicit directional argument made regarding its future performance or valuation in the provided passages.

Baker Hughes (+17.8%) benefited from solid quarterly figures, indicating strong operational performance. The company is positioned well within the energy sector, which is expected to grow as demand for energy solutions increases. The fund's investment philosophy focuses on companies with strong business quality, and Baker Hughes exemplifies this with its robust financials and market presence. The positive quarterly results suggest that Baker Hughes is likely to continue performing well, making it a valuable addition to the portfolio.

Baker Hughes, along with Schlumberger and Halliburton, is benefiting from a significant recovery in global demand after years of reduced upstream investments. The potential redevelopment of Venezuela's dilapidated infrastructure, estimated to cost over USD 100 billion, presents substantial growth opportunities for these technology leaders. The necessary upgrades to maintain global oil production position Baker Hughes strategically for future growth.

Baker Hughes is an energy technology firm well-positioned to capitalize on the rising global demand for natural gas and LNG projects, benefiting from its LNG franchise and critical turbomachinery. The company is improving its margins and cash flow conversion, with EBITDA margins projected to be high teens in 2025 and targeting ~20%+ over the next few years. Additionally, Baker Hughes is accelerating its AI data center power infrastructure buildout, leveraging its NovaLT series gas turbines. The acquisition of Chart Industries enhances its IET strategy, creating a comprehensive offering in high-growth areas. The current valuation is attractive based on accelerating growth opportunities from the company’s IET segment and the associated higher-margin aftermarket services business.

Baker Hughes is a diversified energy technology and equipment company. Despite recent concerns about the downturn in oil prices affecting global upstream activity, the company is experiencing healthy order trends within its Industrial & Energy Technology segment. There is a notable uptick in demand for its power-generation solutions, and we anticipate margin expansion throughout the remainder of the year and beyond. Additionally, Baker Hughes is well-positioned to capitalize on the continued buildout of liquefied natural gas (LNG) infrastructure across the globe, which we believe will drive organic growth in the market.

The increase in natural gas prices also helped bolster the share price of Baker Hughes. We believe that the company is well-positioned to benefit from the ongoing demand for natural gas, especially as it continues to capitalize on strong operational performance. This positions Baker Hughes favorably in the current market environment, where energy demand is expected to remain robust.

The increase in natural gas prices also helped bolster the share price of Baker Hughes. We believe that the company is well-positioned to benefit from the ongoing demand for natural gas, especially as it continues to capitalize on strong operational performance. This positions Baker Hughes favorably in the current market environment, where energy demand is expected to remain robust.