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Baker Hughes Company (BKR) Stock

Baker Hughes Company Stock Details, Movements and Public Alerts

Baker Hughes (BKR): The $48B Oilfield Services Leader Betting Big on Energy Transition and LNG

When Lorenzo Simonelli split Baker Hughes from GE in 2017 and took the CEO role, he inherited a troubled oilfield services giant plagued by the shale bust, GE's financial woes, and declining North American rig counts. Seven years later, Simonelli has transformed Baker Hughes from a pure-play drilling company into a diversified energy technology leader—60% of revenue now comes from gas technology (LNG turbines, compressors) and industrial solutions (carbon capture, hydrogen, geothermal), with only 40% tied to traditional oilfield services. Revenue grew to $27.6 billion despite a 3% contraction in oilfield equipment sales, while operating margins expanded to 13% as the higher-margin gas tech segment scaled. At $44.90, up 35% from 2024 lows but still 12% below highs, Baker Hughes trades at 16x earnings—a discount to its energy transition potential as global LNG capacity buildouts and carbon capture investments accelerate.

52-Week Range

$50.93 - $33.21

-5.62% from high · +44.75% from low

Avg Daily Volume

6,743,090

20-day average

100-day avg: 6,904,895

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

15.85

Near market average

Forward P/E

17.21

Earnings expected to decline

PEG Ratio

5.22

Potentially overvalued

Price to Book

2.70

EV/EBITDA

10.80

EPS (TTM)

$3.06

Price to Sales

1.73

Beta

0.98

Less volatile than market

How is BKR valued relative to its earnings and growth?
Baker Hughes Company trades at a P/E ratio of 15.85, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.21 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 5.22 indicates a premium valuation even accounting for growth.
What is BKR's risk profile compared to the market?
With a beta of 0.98, Baker Hughes Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.70 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

11.00%

Operating Margin

12.80%

EBITDA

$4.67B

Return on Equity

18.40%

Return on Assets

5.85%

Revenue Growth (YoY)

-3.20%

Earnings Growth (YoY)

22.30%

How profitable and efficient is BKR's business model?
Baker Hughes Company achieves a profit margin of 11.00%, meaning it retains $11.00 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 12.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 18.40% and ROA at 5.85%, the company generates strong returns on invested capital.
What are BKR's recent growth trends?
Baker Hughes Company's revenue declined by 3.20% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 22.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against OIL & GAS EQUIPMENT & SERVICES industry averages for proper context.

Dividend Information

Dividend Per Share

$0.88

Dividend Yield

1.82%

Ex-Dividend Date

Aug 5, 2025

Dividend Date

Aug 15, 2025

What dividend income can investors expect from BKR?
Baker Hughes Company offers a dividend yield of 1.82%, paying $0.88 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 5, 2025.
How reliable is BKR's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Baker Hughes Company pays $0.88 per share in dividends against earnings of $3.06 per share, resulting in a payout ratio of 28.76%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Aug 15, 2025.

Company Size & Market

Market Cap

$47.8B

Revenue (TTM)

$27.61B

Revenue/Share (TTM)

$27.87

Shares Outstanding

985.88M

Book Value/Share

$17.96

Asset Type

Common Stock

What is BKR's market capitalization and position?
Baker Hughes Company has a market capitalization of $47.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 985.88M shares outstanding, the company's ownership is relatively concentrated. As a participant in the OIL & GAS EQUIPMENT & SERVICES industry, it competes with other firms in this sector.
How does BKR's price compare to its book value?
Baker Hughes Company's book value per share is $17.96, while the current stock price is $48.07, resulting in a price-to-book (P/B) ratio of 2.68. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$51.43

6.99% upside potential

Analyst Recommendations

Strong Buy

4

Buy

12

Hold

6

Sell

1

Strong Sell

0

How reliable are analyst predictions for BKR?
23 analysts cover BKR with 70% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $51.43 implies 7.0% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on BKR?
Current analyst recommendations:4 Strong Buy, 12 Buy, 6 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 6, 2025, 06:42 PM

Technical Indicators

RSI (14-day)

57.63

Neutral

50-Day Moving Average

$45.78

5.00% above MA-50

200-Day Moving Average

$41.91

14.70% above MA-200

MACD Line

1.00

MACD Signal

1.18

MACD Histogram

-0.18

Bearish

What does BKR's RSI value tell investors?
The RSI (Relative Strength Index) for BKR is currently 57.63, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret BKR's MACD and moving average crossovers?
MACD analysis shows the MACD line at 1.00 below the signal line at 1.18, with histogram at -0.18. This bearish crossover indicates downward pressure. The 50-day MA ($45.78) is above the 200-day MA ($41.91), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 8, 2025, 12:34 AM

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Baker Hughes Company (BKR) Stock Analysis 2025: Complete Investment Guide

From Oilfield Survivor to Energy Transition Player

Baker Hughes' journey from oil industry stalwart to energy transition enabler mirrors the broader energy sector's evolution. Founded in 1907 as a drill bit manufacturer, the company endured boom-bust cycles, mergers with Halliburton (blocked by regulators) and GE (disastrous), before Lorenzo Simonelli charted a new course in 2017. His strategy: pivot from commodity oilfield equipment toward technology-driven industrial solutions where Baker Hughes' expertise in rotating equipment, process systems, and digital analytics creates differentiation. Today, the company's NovaLT gas turbines power LNG export terminals from Qatar to Louisiana, its Compact Carbon Capture technology is deployed at cement plants reducing emissions 90%, and its Cordant digital platform optimizes production for 4,000+ oil/gas wells globally. This diversification shields Baker Hughes from oil price volatility—while Schlumberger and Halliburton cratered during 2020's oil crash, Baker Hughes' gas tech backlog provided earnings stability.

Business Model & Competitive Moat

Baker Hughes operates across three interconnected segments:

  • •Oilfield Services & Equipment (40% of revenue): Drilling tools, completion systems, wellbore intervention—serving ExxonMobil, Saudi Aramco, BP across shale basins, offshore Gulf of Mexico, Middle East; #2 globally behind Schlumberger
  • •Industrial & Energy Technology (45% of revenue): NovaLT/LM gas turbines for LNG plants, compression systems, subsea production systems—30% market share in LNG liquefaction; clients include Shell, Chevron, QatarEnergy
  • •Digital Solutions (15% of revenue): Cordant platform (AI-driven production optimization), Bently Nevada vibration monitoring, Druck pressure sensors—high-margin software/sensors driving operational excellence

Baker Hughes' moat is technical complexity and installed base lock-in. LNG projects require turbines operating continuously for 20+ years—once an operator selects Baker Hughes' NovaLT turbines (capable of 50MW+ output with 40% efficiency), they're committed to Baker Hughes for maintenance, parts, and upgrades worth 2-3x the initial equipment sale. Similarly, oilfield customers using Baker Hughes' AutoTrak rotary steerable drilling systems can't easily switch to competitors mid-project due to wellbore compatibility. The company's $15 billion equipment backlog (mostly LNG projects) provides 2+ years of revenue visibility, cushioning against short-term oil market volatility.

Financial Performance

  • •Revenue: $27.6B trailing (-3.2% YoY as North America oilfield activity declined)
  • •Operating Margin: 12.8%, improving from 11% in 2023 as gas tech segment scaled
  • •Profit Margin: 11%, respectable for cyclical industrial but below pre-2020 levels of 14-15%
  • •EBITDA: $4.68B with strong cash conversion funding $880M dividend and $1B+ buybacks
  • •Return on Equity: 18.4%, solid for capital-intensive energy services model
  • •EPS Growth: $3.06 (+22.3% YoY driven by margin expansion and share count reduction)
  • •Dividend: $0.88 per share (1.82% yield) reinstated 2021 after COVID suspension

The 3% revenue decline masks positive mix shift—oilfield services fell 8% year-over-year as North American rig counts dropped, but industrial & energy technology grew 4% as LNG project deliveries accelerated. The 22% EPS growth despite flat revenue reflects operating leverage: Baker Hughes reduced SG&A expenses 6% while growing gross profit 2%, demonstrating cost discipline. Free cash flow of $2.1 billion (7.6% FCF margin) funded both the dividend and opportunistic buybacks, with net debt declining to $5 billion (1.1x EBITDA)—a fortress balance sheet for energy services.

Growth Catalysts

  • •LNG Golden Age: Global LNG capacity forecast to grow 50% by 2030 (from 450 to 700 million tonnes/year); Baker Hughes targeting $20B+ equipment orders through 2028
  • •Energy Transition Services: Carbon capture, hydrogen compression, geothermal systems collectively growing 25%+ annually; addressing $150B addressable market by 2030
  • •Middle East Upstream Boom: Saudi Arabia, UAE, Iraq increasing oil production 15-20%; Baker Hughes winning contracts for offshore development and gas processing
  • •Digital/AI Upsells: Cordant platform attaching to equipment sales generates recurring 25% margin software revenue; targeting $1B digital revenue by 2026 (from $600M today)
  • •Offshore Revival: Deepwater drilling activity rebounding as easy shale plays deplete; Baker Hughes' subsea trees and wellheads positioned for 10-15% annual growth

Risks & Challenges

  • •Oil Price Crash Risk: If oil falls below $50/barrel, E&P companies slash capex 30-40%, crushing Baker Hughes' oilfield services revenue
  • •LNG Project Delays: Multi-billion LNG facilities subject to permitting, financing, construction delays; slippage pushes revenue recognition 1-2 years
  • •Peer Competition: Schlumberger investing $3B in digital/clean tech; GE Vernova spinning out with competing gas turbines and grid technologies
  • •Energy Transition Uncertainty: If hydrogen/carbon capture fail to scale commercially, Baker Hughes' transition investments become stranded assets
  • •Geopolitical Risk: 40% revenue from Middle East/North Africa exposed to regional conflicts, sanctions, or nationalization

Competitive Landscape

CompanyMarket CapRevenue MixP/E Ratio
Schlumberger (SLB)$73B90% oilfield services14x
Baker Hughes (BKR)$48B40% oilfield, 60% industrial/tech16x
Halliburton (HAL)$31B95% oilfield services11x
TechnipFMC (FTI)$9BSubsea engineering/construction15x

Baker Hughes commands a valuation premium (16x P/E) vs. Halliburton (11x) due to its industrial/energy tech diversification reducing cyclicality. Schlumberger remains the oilfield services leader with superior digital capabilities (SLB Digital platform) but trades at a discount (14x) reflecting slower margin recovery. TechnipFMC focuses purely on subsea systems, offering a targeted offshore play but lacking Baker Hughes' scale and LNG exposure.

Who Is This Stock Suitable For?

Perfect For

  • ✓Energy transition investors seeking exposure to LNG, carbon capture, hydrogen via established industrial
  • ✓Cyclical value investors attracted to 16x P/E for business with $15B backlog visibility and 18% ROE
  • ✓Dividend + buyback seekers with 1.8% yield supplemented by $1B+ annual repurchases
  • ✓LNG bulls betting on global gas infrastructure buildout through 2030 (Qatar, U.S. Gulf Coast, Asia)

Less Suitable For

  • ✗ESG purists uncomfortable with 40% revenue from oil/gas extraction (even if transitioning)
  • ✗Growth investors seeking >10% annual revenue growth (Baker Hughes is mid-single-digit grower)
  • ✗Risk-averse investors uncomfortable with oil price volatility and Middle East geopolitical exposure
  • ✗Dividend yield seekers (1.8% yield below energy sector average of 3-4%)

Investment Thesis

Baker Hughes represents a unique hybrid: traditional energy services company evolving into energy transition infrastructure provider. At 16x earnings, the stock is fairly valued—not cheap like pure-play oilfield peers (Halliburton at 11x), but reasonable for a business with 60% exposure to secular growth markets (LNG, industrial tech) and 40% cyclical energy exposure. Lorenzo Simonelli's transformation from GE castoff to diversified industrial deserves credit—the company exited unprofitable product lines (process solutions sold for $3B), invested $1.5B in clean tech R&D, and grew LNG equipment backlog from $5B to $15B.

The bull case hinges on three pillars: (1) LNG capacity additions driving $20B+ equipment orders through 2028 as Europe/Asia replace Russian pipeline gas; (2) Carbon capture scaling to 100+ commercial projects by 2030, generating $2-3B annual revenue for Baker Hughes' Compact systems; (3) Digital/AI upsells attaching to equipment sales improving margins 200bp. If all three materialize, Baker Hughes could deliver 8-10% revenue growth and 15% EPS growth—justifying 20x P/E and $60+ stock price. The bear case is oil price collapse to $40s (killing oilfield services), LNG project delays, and carbon capture remaining niche. At $44.90, analysts see 15% upside to $51.43—modest but achievable if execution continues.

Conclusion

Buy for diversified energy exposure with 3-5 year horizon. Baker Hughes won't deliver explosive growth, but the combination of 1.8% yield, buybacks, LNG backlog, and energy transition positioning creates a path to 10-15% annual returns. Preferable to pure-play oilfield services peers (SLB, HAL) for risk-adjusted returns given lower cyclicality. Use dollar-cost averaging on weakness below $42 (15x P/E) rather than chasing at current levels.
Bull Case
$62 (38% upside) - LNG boom delivers $25B orders, carbon capture scales to $3B revenue, oil stays $75-85
Base Case
$52 (16% upside) - Steady LNG growth, modest energy transition traction, margins expand to 14%
Bear Case
$35 (22% downside) - Oil crashes below $50, LNG projects delayed 2+ years, transition investments fail to scale

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