Baker Hughes looks broadly healthy because 2025 revenue was flat at $2770B, while Full-Year 2025 Adjusted EBITDA: $483B, Full-Year 2025 Attributable Net Income: $259B, and Full-Year 2025 Free Cash Flow: $273B held up Q1 2026 Revenue: $660B grew 200%, and Q1 2026 Adjusted EBITDA: $116B rose 1200% year-over-year Liquidity appears supported by cash generation and backlog, but leverage needs monitoring because FMP shows Add Total Debt: $1616B at 2026-03-31 and Debt Growth: 12626%
Financial Health Snapshot
What do Baker Hughes Company's latest financial numbers show?
Strong. The best factor is cash generation and EBITDA support, while the main concern is flat full-year revenue and higher debt.
For Q1 2026 and full-year 2025, Baker Hughes Company looks financially healthy overall. The verdict blends growth, profitability, cash generation, balance-sheet capacity, and capital efficiency, and it fits a company profile like Exploring Baker Hughes Company (BKR) Investor Profile: Who's Buying and Why?.
Free cash flow deserves the first deeper look because it best shows how Baker Hughes Company converts earnings into investor flexibility.
Revenue and Earnings Quality
Is Baker Hughes Company’s growth durable and earnings-backed?
Mixed. Baker Hughes Company shows strong visibility through $3590B year-end 2025 RPO and $3610B Q1 2026 RPO, but the clearest divergence is that Q1 2026 revenue growth did not translate cleanly into operating income growth.
Growth quantity and growth quality are not the same. Investors compare revenue durability with operating income, net income, and EPS across compatible annual periods to see whether sales are turning into real earnings, or just reflecting timing, mix shifts, and project activity that may not repeat at the same rate.
| Measure | Latest Period | Previous Period | Quality Test | Investor Meaning |
|---|---|---|---|---|
| Revenue | $660B, up 200%, Q1 2026 | Q1 2025 revenue not provided | Organic growth is unclear from the supplied data | The jump looks large, but repeatability is harder to judge without the prior comparable base and revenue mix |
| Operating Income | $80900M, Q1 2026, -1660% growth | Q1 2025 operating income not provided | Operating income moved differently from revenue | Weak operating leverage suggests revenue growth did not fully convert into operating profit |
| Net Income | $93000M, Q1 2026, 616% growth | Q1 2025 net income not provided | No verified unusual-item breakdown was provided | Net income improved sharply, but investors still need to compare it with operating income to judge earnings quality |
| Diluted EPS | $0.93, Q1 2026, 568% growth | Q1 2025 diluted EPS not provided | Share-count effect is not specified | Per-share results strengthened, so shareholders received better earnings conversion than revenue alone suggests |
How durable is Baker Hughes Company’s revenue?
The strongest durability signal is the backlog and order base, with $2960B full-year 2025 total orders, $1490B IET orders, and RPO rising from $3590B to $3610B. The biggest limitation is cyclicality from energy capital spending and project timing.
- Demand Quality: Orders and RPO point to recurring visibility, including multi-year work such as Petrobras and Eni, but energy project timing still matters.
- Pricing and Volume: The price-volume split is not provided; Q1 2026 revenue strength cannot be separated into price, volume, or mix from the supplied data.
- Diversification: The January 01, 2026 two-segment structure gives a clearer view of OFSE and IET, and non-LNG equipment orders represented approximately 8500% of total IET orders for a second straight year.
This mix of backlog, contracts, and earnings conversion is the key link to profitability and cash conversion. If you’re using this for a paper or case study, a structured SWOT Analysis, PESTLE Analysis, or Business Model Canvas can help organize the evidence. Mission Statement, Vision, & Core Values (2026) of Baker Hughes Company (BKR)
Profitability and Cash
Are Baker Hughes Company margins and cash conversion improving?
Yes, Baker Hughes Company showed stronger profitability, with adjusted EBITDA and net income rising, but cash conversion was uneven in Q1 2026. Full-year 2025 free cash flow stayed material, yet the quarter’s operating and free cash flow were soft and did not fully mirror the earnings surge.
Baker Hughes Company’s reported profit quality looks stronger at the EBITDA and net income layers than at the quarterly cash layer. Gross profit, operating income, and pre-tax income were positive in Q1 2026, while full-year free cash flow stayed solid; for a broader investor read, see Exploring Baker Hughes Company (BKR) Investor Profile: Who's Buying and Why?.
| Measure | Latest Period | Previous Period | Verified Driver | Investor Meaning |
|---|---|---|---|---|
| Gross Margin | Not supplied for Q1 2026 | Not supplied for the prior comparable period | Gross profit was $150B in Q1 2026, but revenue was not supplied. | Product economics cannot be confirmed from the supplied data alone. |
| Operating Margin | Not supplied for Q1 2026 | Not supplied for the prior comparable period | Operating income was $80900M in Q1 2026, helped by record IET performance, cost discipline in OFSE, and portfolio reshaping. | Scale and mix appear to support efficiency, but a true margin trend is not verifiable here. |
| Net Margin | Not supplied for Q1 2026 | Not supplied for the prior comparable period | Income before tax was $127B, income tax expense was $33600M, and interest expense was $8600M with net interest income at -$8600M. | Final profitability was positive, but the supplied data do not support a full margin calculation. |
| Operating Cash Flow | $21000M in Q1 2026 | Not supplied for the previous comparable period | Operating cash flow growth was -6992%, showing a sharp quarter-to-quarter slowdown. | Accounting earnings were not fully matched by quarterly cash generation. |
| Free Cash Flow | $21000M in Q1 2026 | $273B for full-year 2025 | Free cash flow was lower in the quarter, while the annual figure was supported by business mix and portfolio reshaping. | Cash remained available, but quarterly reinvestment and working-capital effects weakened conversion. |
What most affects Baker Hughes Company cash conversion?
The biggest verified driver is quarter-to-quarter operating volatility: Q1 2026 operating cash flow and free cash flow both fell sharply even as adjusted EBITDA and net income improved.
- Main Driver: Quarterly cash conversion looks temporary and volatile, while full-year 2025 free cash flow suggests the underlying business still throws off cash.
- Evidence Gap: The supplied data do not show the working-capital or capex split behind the weaker quarter.
- Metric to Monitor: Track operating cash flow growth and free cash flow in the next quarter.
Liquidity Check
Can Baker Hughes fund operations and obligations comfortably?
Mixed. Baker Hughes has a strong protection layer from cash and a large backlog, but the main financing concern is rapid debt growth alongside limited maturity detail, which makes refinancing risk harder to judge.
Baker Hughes should be judged on more than cash alone. Working capital, asset quality, debt service, solvency, liquidity, and refinancing all matter together, especially when reported balance-sheet movement is sharp and future funding needs may change after the pending Baker Hughes Company (BKR): History, Ownership, Mission, How It Works & Makes Money context.
| Area | Latest Evidence | Assessment | Investor Meaning |
|---|---|---|---|
| Cash and Working Capital | FMP Enterprise Values at 2026-03-31 show Minus Cash And Cash Equivalents: $1476B and Add Total Debt: $1616B; 2025-12-31 showed $372B cash and $714B debt. Q1 2026 Receivables Growth: 083%, Inventory Growth: -174%. | Mixed | Near-term flexibility looks workable, but the size of the reported balance-sheet shift means investors should watch whether operations absorb cash or support it. |
| Total and Net Debt | Q1 2026 Debt Growth: 12626%. Latest supplied debt is $1616B versus $714B at 2025-12-31. | Mixed | Leverage appears to be moving higher, which can support growth but also reduces financial flexibility. |
| Debt Service and Refinancing | Q1 2026 Interest Expense: $8600M; Net Interest Income: -$8600M. No maturity schedule was supplied. Pending Chart Industries acquisition for $21000 per share in cash is still under regulatory review. | Mixed | Debt service is visible, but refinancing pressure cannot be fully sized without maturity detail, and the acquisition could reshape funding needs. |
| Asset Quality | Q1 2026 Asset Growth: 2450%; Book Valueper Share Growth: 232%. Year-End 2025 RPO: $3590B; Q1 2026 RPO: $3610B. | Mixed | Asset growth and rising RPO support business visibility, but the pace of change makes quality and persistence worth monitoring. |
| Liabilities and Equity | Latest verified total liabilities and shareholders' equity were not supplied. The balance-sheet picture is still shaped by debt growth, cash balances, and backlog visibility. | Mixed | Without full equity data, investors should focus on whether obligations stay covered while investment spending and deal activity continue. |
Which Baker Hughes balance-sheet risk matters most right now?
Refinancing risk matters most, because debt grew sharply and no maturity schedule was supplied. Cash and RPO help, but they do not remove uncertainty around future funding structure.
- Current Exposure: Latest supplied debt is $1616B versus $714B at 2025-12-31, with no maturity schedule provided.
- Protection: Cash and cash equivalents plus RPO of $3610B provide funding visibility.
- Warning Signal: Watch whether debt growth stays elevated and whether the Chart Industries deal changes financing needs.
Capital Efficiency
Is Baker Hughes Company using capital efficiently?
Capital efficiency looks Mixed. Baker Hughes Company is returning cash and continuing dividends, but complete ROIC, ROE, and ROA data are not supplied, so internal cash coverage for all reinvestment needs cannot be confirmed from the provided figures alone.
Return analysis should be read with leverage, asset intensity, capital expenditure, working capital, and any outside funding needs. Baker Hughes Company may also be steering capital toward higher-margin technology and energy-transition work, so the real test is whether those projects earn better returns than the cash returned to shareholders.
| Capital Measure | Latest Evidence | Quality Test | Investor Meaning |
|---|---|---|---|
| ROIC | ROIC is unavailable in the supplied data; review it separately in a later model. | Operating margins and capital efficiency cannot be tested directly without the metric. | Investors cannot yet judge whether invested capital is creating operating value. |
| ROE and ROA | ROE and ROA are unavailable in the supplied data; review them separately in a later model. | Leverage and asset-intensity effects cannot be separated from raw earnings data here. | Shareholder return quality and asset efficiency remain unclear without those figures. |
| Maintenance and Growth Investment | Total cash returned to shareholders in fiscal year 2025 was $130B. Q2 2025 shareholder returns were $42300M, including $19600M in share repurchases and $22700M in dividends. The February 17, 2026 quarterly dividend was $023 per share, and total annual dividend payout was $092 per share. Q2 2026 dividend was $023 per share with a May 05, 2026 ex-dividend date. Reinvestment is tied to Google Cloud AI power systems collaboration, Hydrostor CAES engineering work, Horizon Two 2026–2028, the Cactus, Inc joint venture, and the planned Waygate Technologies sale. | The cash return pattern is clear, but the supplied data do not separate maintenance spending from growth spending. | Baker Hughes Company appears willing to fund both shareholder returns and portfolio repositioning, but the return profile depends on whether growth projects earn more than they consume. |
| Internal Funding Capacity | Operating cash flow, free cash flow, working capital, cash reserves, debt, and share issuance are not supplied here. | Internal funding cannot be confirmed, so outside capital dependence is not measurable from this block. | Investors should treat flexibility as partially visible, with leverage and dilution risk still unquantified. |
Are Baker Hughes Company’s returns on capital sustainable?
Sustainability looks Mixed. The strongest support is continuing shareholder distributions and portfolio actions, while returns could weaken if higher-margin technology and energy-transition investments fail to out-earn the capital required to execute them.
- Operating Source: Cash returns plus higher-margin technology and energy-transition initiatives, including Google Cloud AI power systems and Hydrostor CAES work.
- Funding Requirement: The largest verified capital need is continued reinvestment across Horizon Two 2026–2028 and portfolio restructuring.
- Durability Test: Returns would look weaker if future ROIC, ROE, or ROA stay unavailable or if reinvestment cash needs rise faster than operating cash generation.
If you’re using this topic for a paper or case study, a structured SWOT Analysis, PESTLE Analysis, or Business Model Canvas can help you organize the research into clear arguments. For deeper research, see Exploring Baker Hughes Company (BKR) Investor Profile: Who's Buying and Why?
Cash Flow Buffer
How resilient is Baker Hughes Company, and which warning signs matter most?
Resilience is Mixed. The main buffer is ongoing cash generation, with Full-Year 2025 Free Cash Flow: $273B and Q1 2026 Free Cash Flow: $21000M. The most important verified warning sign is the SEC investigation that began in December 2020 over sanctions compliance and internal controls.
Baker Hughes Company can still fund operations and investment if conditions tighten because cash generation remains strong and backlog is large. The link to Baker Hughes Company (BKR): History, Ownership, Mission, How It Works & Makes Money helps explain why the business can absorb stress better than a weaker industrial peer, but legal, deal, and execution issues still matter.
| Pressure | Financial Effect | Existing Protection | Warning Signal |
|---|---|---|---|
| Revenue or Margin Pressure | Lower revenue or margin would reduce operating leverage, earnings, cash flow, and debt capacity, especially if project mix weakens or costs rise faster than pricing. | Recurring demand, a broad end market mix, strong backlog, and focus on OFSE profitability and IET technology growth support stability. | Watch for declining revenue, weaker adjusted EBITDA margin, or softer cash flow. |
| Working-Capital or Investment Pressure | Higher receivables, inventory, capex, or restructuring tied to portfolio changes could absorb cash and reduce free cash flow available for debt service or growth. | Strong liquidity and ongoing internal cash generation help fund investment without depending fully on external capital. | Watch operating cash flow, asset growth, and free cash flow for sustained deterioration. |
| Interest or Refinancing Pressure | More debt or higher rates would pressure interest coverage, free cash flow, and financing flexibility if maturities or borrowing costs worsen. | Cash generation and access to financing offer a cushion, while debt management remains a key priority. | Watch debt level, interest expense, and any tightening in refinancing access. |
Which financial warning signs should investors monitor at Baker Hughes Company?
The top signals are free cash flow, RPO, and debt level. The SEC case and Chart Industries review are current risks; the negative growth figures in operating cash flow, free cash flow, and debt are deterioration signals to watch, not proof of lasting weakness.
SEC and compliance overhang
The December 2020 SEC investigation raises legal and reputational risk. Baker Hughes Company has cash generation to absorb some pressure, but investors should monitor case progress, control remediation, and any penalty or disclosure impact.
Chart Industries deal and regulatory review
The $21000 per share cash acquisition remained under regulatory review, with expected closing in Q2 2026 pending remaining approvals. This creates timing and execution risk, so monitor closing status, integration planning, and financing flexibility.
Portfolio transition execution risk
Baker Hughes Company is still shaping its two-segment structure, the Cactus, Inc joint venture, and the Waygate Technologies sale. That matters because portfolio change can distract management and affect margins, so watch adjusted EBITDA margin and segment performance.
Balanced cash engine
How should investors rate Baker Hughes Company’s financial health?
Overall rating: Mixed. The strongest factor is cash generation, while the weakest factor is liquidity visibility and regulatory overhang. The most important investment condition is whether Baker Hughes Company can keep converting orders into free cash flow while managing debt and review risk.
| Financial Factor | Rating | Evidence and Investor Meaning |
|---|---|---|
| Revenue and Earnings Quality | Strong | Full-Year 2025 Revenue: $2770B, Q1 2026 Revenue: $660B up 200%, Full-Year 2025 Attributable Net Income: $259B, and Q1 2026 Attributable Net Income: $93000M show durable scale and earnings conversion. |
| Profitability and Cash | Strong | Full-Year 2025 Adjusted EBITDA: $483B, Q1 2026 Adjusted EBITDA: $116B up 1200% year-over-year, and Full-Year 2025 Free Cash Flow: $273B point to strong margins and cash generation. |
| Balance Sheet and Liquidity | Mixed | Minus Cash And Cash Equivalents: $1476B at 2026-03-31 offers liquidity, but Add Total Debt: $1616B and Debt Growth: 12626% limit flexibility and raise refinancing scrutiny. |
| Capital Efficiency | Mixed | Total cash returned to shareholders in fiscal year 2025: $130B supports capital discipline, but missing ROIC, ROE, and ROA makes efficiency harder to judge. |
| Financial Resilience | Mixed | Q1 2026 RPO: $3610B and diversified IET orders help backlog stability, but SEC scrutiny, Chart acquisition review uncertainty, and portfolio-transition execution remain pressure points. |
- What Supports the Thesis: Strong EBITDA, free cash flow, and backlog support earnings quality and funding capacity.
- What Challenges the Thesis: Debt, limited liquidity clarity, and regulatory uncertainty weaken the near-term risk profile.
- What to Monitor: free cash flow, RPO, and adjusted EBITDA margin.
For readers building a paper or case study, the Baker Hughes Company (BKR): History, Ownership, Mission, How It Works & Makes Money page can help connect this scorecard to strategy, forecasts, scenarios, and valuation inputs.
FAQ
What Do Investors Ask About 's Financial Health?
Investors most often ask about the company's revenue quality, profitability, cash generation, debt, liquidity, capital efficiency, and ability to withstand financial pressure.
Does Baker Hughes generate enough cash for dividends?
Baker Hughes generated Full-Year 2025 Free Cash Flow: $273B and returned $130B to shareholders in fiscal year 2025 The company also paid a quarterly dividend of $023 per share in February 2026 Investors should still monitor free cash flow each quarter
How did Q1 cash flow affect financial quality?
Q1 2026 Free Cash Flow: $21000M remained positive, but FMP shows Free Cash Flow Growth: -8724% and Operating Cash Flow Growth: -6992% That does not prove deterioration, but it makes quarterly cash conversion an important follow-up metric
Why does Baker Hughes' adjusted EBITDA matter?
Adjusted EBITDA helps investors compare operating profitability before depreciation, amortization, interest, and taxes Baker Hughes reported Full-Year 2025 Adjusted EBITDA: $483B and Q1 2026 Adjusted EBITDA: $116B, which supports the view that profit quality improved despite modest revenue growth
What makes Baker Hughes resilient during portfolio changes?
Resilience comes from backlog, orders, and cash generation Baker Hughes reported Year-End 2025 Remaining Performance Obligation (RPO): $3590B and Q1 2026 RPO: $3610B, while portfolio moves such as the Cactus, Inc joint venture and Waygate Technologies sale sharpen strategic focus
What debt signals should investors watch now?
FMP shows Add Total Debt: $1616B at 2026-03-31 and Debt Growth: 12626% Investors should not infer a leverage ratio without full balance-sheet detail, but they should watch debt level, interest expense, cash, and free cash flow