Baker Hughes Company Q1 FY2026 earnings call

Lorenzo started by summarizing first quarter results, recent portfolio actions, key awards, and the macro environment. Ahmed then covered consolidated results, chart transaction, segment results, second quarter and full year guidance. Key points include strong IET orders, OFSE resilience, progress in portfolio management, and integration of Chart.

IET: Booked record orders of $4.9 billion, revenue of $3.35 billion, up 14% year-over-year, EBITDA $678 million, up 35% year-over-year, margin 20.2%. OFSE: Revenue $3.24 billion, EBITDA $565 million, margin 17.4%

Second quarter guidance: Company revenue $6.5 billion, adjusted EBITDA $1.13 billion; IET EBITDA $670 million; OFSE EBITDA $540 million, revenue $3.2 billion. Full year guidance: Maintaining revenue and adjusted EBITDA ranges, slightly below midpoint, confident in IET orders exceeding midpoint, OFSE EBITDA depending on Middle East situation

Middle East conflict introducing macro uncertainty, disrupting energy corridors, tightening oil and LNG balances, heightening inflationary pressures, and potential downside risk to global economic growth

Q: Impact of Middle East conflict on infrastructure spend and IET orders.

A: Energy security to drive investment, IET orders to exceed $40 billion target.

Q: 2Q guide for IET and OFSE.

A: IET modest impact from conflict, OFSE significant impact in Middle East with seasonal recovery outside.

Q: Second half outlook for OFSE and IET.

A: OFSE measured ramp in Middle East, IET better linearity.

Q: Power systems orders and data center demand.

A: Power demand growth, behind-the-meter market to $60B by 2030, Nova LT booked out through 2028.

Q: Portfolio optimization.

A: Focus on strategic criteria, exceeded $1B divestment target, focus on Chart integration