Q2 2026 Baker Hughes Co Earnings Call Transcript
Key Points
- Baker Hughes Co (BKR) reported a strong second quarter with adjusted EBITDA totaling $1.23 billion, exceeding the high end of their guidance range.
- The company achieved a record $7.1 billion in IET orders, doubling year-over-year, which highlights strong demand across data centers and gas infrastructure markets.
- Baker Hughes Co (BKR) generated robust free cash flow of $1.1 billion during the second quarter.
- The successful acquisition of Chart Industries is expected to enhance Baker Hughes Co (BKR)'s capabilities in thermal management, air and gas handling, and carbon capture.
- The company is expanding its gas turbine and generator capacity, which could support nearly $5 billion in annual Power Systems revenue opportunity by 2029.
- Baker Hughes Co (BKR) faces ongoing disruptions in the Middle East, impacting revenue and creating logistical challenges.
- The company anticipates modest growth in global upstream spending, with declines expected in Europe and the Middle East.
- Inflationary costs have pressured margins, particularly in the OFSE segment.
- The integration of Chart Industries will temporarily increase leverage, although the company plans to return to a 1 to 1.5 times net leverage within 24 months.
- There is uncertainty around project timing and local supply chains due to geopolitical conditions, which could impact future performance.
Good day, ladies and gentlemen, and welcome to the Baker Hughes Company second-quarter earnings call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Chase Mulvehill, Vice President of Investor Relations. Sir, you may begin.
Thank you. Good morning, everyone, and welcome to Baker Hughes second-quarter earnings conference call. Here with me are our Chairman and CEO, Lorenzo Simonelli; and our CFO, Ahmed Moghal.
The earnings release we issued yesterday evening can be found on our website at bakerhughes.com. We will also be using a presentation with our prepared remarks during this webcast, which can be found on our Investor website.
As a reminder, we will provide forward-looking statements during this conference call. These statements are not guarantees of future performance and involve a number of risks and assumptions. Please review our SEC filings and website for the factors
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