NASDAQEnergyOil & Gas Equipment & ServicesSnapshot 2026-08-31
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Create your account →Broken: Recent financial performance freshly dropped to the bottom half of its industry.
Baker Hughes is winning big contracts, boosting orders and margins. IET backlog hit $33.1 billion with a 1.5x book-to-bill ratio. Profit margins aim to expand to 20%. The company beat EPS estimates twice recently.
The company is still fragile and loss-making. Market is selling off sharply, reflecting risks. EU scrutiny may hurt acquisition synergies. Revenue growth is slow at about 2%.
The price is about 15% below our fair value near $63. Analysts expect 2.4% revenue growth. Our fair value is 14% below the Street median, reflecting cautious optimism.
Breaks if: EU scrutiny blocks acquisition or synergies fail to materialize by FY26 end
Breaks if: full-year orders decline or fail to grow by 5% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the energy sector. BKR's recent performance has shown signs of weakness, but the company is working on key priorities that could drive future growth.
The current valuation suggests that the market sees BKR as relatively cheap compared to its peers, with expectations that are slightly below average. However, the market also factors in the company's fragile execution quality and the challenges within the sector.
BKR's fundamentals may improve if management successfully integrates the recent acquisition of Chart Industries and continues to expand margins and backlog. However, there is a moderate risk of missing expectations, which could negatively impact sentiment.
The thesis hinges on BKR's ability to maintain credibility by avoiding negative guidance revisions and on the performance of sector leaders, which could influence overall market sentiment. Additionally, inflation trends could provide a favorable backdrop for the energy sector.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports increased full-year orders and backlog. Analysts expect more recurring revenue from a new order for gas turbines. This aligns with the company's strategy for higher margin revenue streams.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: IET margin falls below 15% in FY26
Over the next 1 to 3 years, BKR's performance will depend on management execution and sector dynamics. Not investment advice.
