Baker Hughes third-quarter revenue rises 14% to $8.0 billion; net income falls 33%

Baker Hughes (Nasdaq: BKR) reported third-quarter revenue of $8.0 billion, up 14% from a year earlier, while net income attributable to the company fell 33% to $411 million, according to its earnings release filed with the SEC on Tuesday, October 27.

What happened

Revenue for the quarter ended September 30 was $8,025 million, up 19% from the second quarter and 14% from the third quarter of 2025, the company said. It attributed the year-over-year increase mainly to the contribution from the Chart Industries acquisition, which Baker Hughes completed during the quarter.

Chart, now a reporting segment, contributed revenue of $888 million, or about 11% of the total (computed). Excluding that amount, revenue would have been $7,137 million, about 1.8% above the $7,010 million of the year-earlier quarter (computed from the company's figures).

Net income attributable to Baker Hughes was $411 million, or $0.41 a share on a diluted basis, down from $681 million in the second quarter and $609 million a year earlier. Adjusted net income, a non-GAAP measure that excludes $284 million of items, was $695 million, or $0.70 a share, up 2% from a year earlier. The company said other expense of $157 million came primarily from transaction-related costs tied to business disposals and acquisitions.

Adjusted EBITDA, another non-GAAP measure, was $1,415 million, up 14% from a year earlier and 15% from the second quarter. Operating cash flow was $1,005 million and free cash flow was $769 million.

Orders and backlog

Orders totaled $10,764 million, up 31% from a year earlier. In the Industrial & Energy Technology (IET) segment, orders were $5,886 million, up 42% from a year earlier. The company called it IET's second-largest order quarter.

Remaining performance obligations, the value of contracted work not yet recognized as revenue, reached $46.4 billion, up $6.4 billion from the end of June. IET's share was a record $39.4 billion.

Baker Hughes said IET orders included a 1.1-gigawatt integrated power generation order from a major U.S. technology company for computing infrastructure, and an order of about 500 megawatts for data center projects of a U.S. energy company. It also cited a liquefied natural gas (LNG) award from Venture Global for the Plaquemines expansion.

The Oilfield Services & Equipment segment had revenue of $3,660 million, up 1% from a year earlier, and orders of $4,047 million, up 19% from the second quarter. The company said in the release that the segment was "supported by growing momentum across international markets led by a meaningful improvement in the Middle East."

Why it matters

The quarter is the first to include Chart, so comparisons with earlier periods mix acquired and existing businesses. The company said it raised its full-year IET order guidance and its 2026-2028 IET order outlook to "$50 billion plus." The release does not give the previous figures.

Baker Hughes reported adjusted EBITDA of $1,231 million in the second quarter and $1,238 million in the third quarter of 2025, which puts the latest $1,415 million in context. GAAP net income fell even as adjusted earnings rose because the adjustments, which include the transaction costs, were larger than in earlier periods.

What to watch

The company scheduled an investor call for 9:30 a.m. ET on Wednesday, October 28, to discuss the results and management's outlook. The release said the content of the call is not part of the earnings release.