Energy technology firm Baker Hughes posted second-quarter financial results on Monday that surpassed Wall Street's revenue and profit estimates, prompting an upward revision of its full-year guidance.
Despite disruptions in the Middle East, the company delivered a solid quarterly performance, driven by a surge in orders and strong project execution.
The report showed Baker Hughes' adjusted earnings per share for the second quarter came in at $0.64, well above the consensus estimate of $0.49. Revenue reached $6.74 billion, also exceeding the anticipated $6.52 billion. Adjusted EBITDA stood at $1.231 billion, with the margin improving to a record 18.3%.
Order intake was a standout highlight for the quarter, with total orders hitting $10.5 billion, a 49% increase year-over-year. The Industrial & Energy Technology segment set a new record with orders of $7.1 billion, doubling the figure from the same period last year. This segment's growth was primarily fueled by robust demand from data centers, liquefied natural gas, and power generation sectors.
Baker Hughes also completed its acquisition of Chart Industries, and the new third business segment is expected to contribute approximately $325 million in annual cost synergies.
In the LNG sector, Baker Hughes secured three significant contracts from Cheniere Energy for the Sabine Pass LNG project. The orders include liquefaction equipment for the Train 7 expansion, a boil-off gas reliquefaction unit, and a plant-wide gas turbine technology upgrade, which is projected to add over 6 million tonnes per year of capacity to the facility.
The Oilfield Services & Equipment segment also performed steadily, posting revenue of $3.45 billion, a sequential increase of 7%. International growth in Brazil, Mexico, and the Asia-Pacific region partially offset the impact from disruptions in the Middle East.
Based on a strong order backlog and market outlook, the company has raised its full-year 2026 revenue guidance to approximately $27.35 billion, and its adjusted EBITDA guidance to $4.85 billion. Baker Hughes remains optimistic about long-term growth, anticipating that its second-tier IET orders will exceed $45 billion.