Baker Hughes tops estimates as gas technology pivot offsets oilfield softness

Baker Hughes (NASDAQ:BKR) reported fourth-quarter profits that comfortably cleared analyst hurdles, as the company’s strategic shift toward liquefied natural gas (LNG) and industrial energy technology bore fruit against a volatile backdrop for crude prices.

The oilfield services giant posted net income of $876 million, or 88 cents per share, for the period ended Dec. 31.

Excluding one-time items, adjusted earnings reached 78 cents per share, surpassing the 67-cent average estimate from analysts surveyed by Zacks Investment Research.

Revenue for the quarter rose to $7.39 billion, ahead of the $7.06 billion forecast.

While traditional drilling activity in the U.S. faced headwinds from lower West Texas Intermediate (WTI) spot prices—which averaged roughly $60 per barrel in the final quarter of 2025—Baker Hughes found a powerful offset in its Industrial & Energy Technology (IET) segment.

The unit secured $4 billion in new orders during the quarter, contributing to a record full-year order book of $14.9 billion.

For the full year 2025, Baker Hughes reported total revenue of $27.73 billion along with net profit of $2.59 billion ($2.60 per share)

Additionally, total backlog hit a record $35.9 billion

The company’s performance stood out in a quarter where peers like SLB and Halliburton faced margin pressure from a softening North American land market.

Looking ahead to 2026, the company expects mid-single-digit growth in adjusted EBITDA, driven by its goal to reach 20% operating margins in the IET segment.