Baker Hughes delivered a solid first quarter of 2026, reporting higher revenue, surging orders in its industrial segment, and record backlog levels, even as geopolitical disruptions weighed on parts of its operations.

 

The company posted orders of $8.2 billion, including $4.9 billion in Industrial & Energy Technology (IET), while total revenue reached $6.6 billion, up 2% year-over-year. Net income attributable to Baker Hughes rose sharply to $930 million, compared with $402 million a year earlier.

 

“Our exceptional first-quarter performance highlights the strength of our portfolio. Despite significant disruptions in the Middle East, our teams executed at a high level and delivered results that exceeded our guidance range. 

 

"Although we recognize this achievement, we continue to prioritize the safety and wellbeing of our employees and their families in the region,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

 

The company’s IET division was the standout performer, posting record orders of $4.9 billion, the third consecutive quarter above $4 billion. The segment also achieved a book-to-bill ratio of 1.5x, pushing backlog to a record $33.1 billion.

 

“In IET, we delivered another outstanding quarter, with record orders of $4.9 billion, marking the third consecutive quarter above $4 billion. This performance reflects the diversity and versatility of the IET portfolio and the growing strength across energy infrastructure, as highlighted by $1.4 billion in Power Systems orders and further progress in LNG, gas infrastructure and CCS. IET also reported a book-to-bill of 1.5x for the quarter, resulting in record backlog of $33.1 billion.”

 

Adjusted EBITDA climbed 12% year-over-year to $1.16 billion, while adjusted diluted EPS came in at $0.58. However, cash flow softened, with operating cash flow at $500 million and free cash flow at $210 million, both down significantly from the prior quarter.

 

“The Baker Hughes Business System is strengthening our operating results, supporting disciplined execution, and positioning us for continued growth, higher margins, and stronger free cash flow. Both OFSE and IET delivered strong results amid Middle East disruptions, underscoring the versatility and durability of the portfolios.”

 

The company continued reshaping its portfolio, generating approximately $3 billion in expected gross proceeds from divestitures in 2026, including the announced sale of Waygate Technologies and completed transactions during the quarter.

 

“We also continue to advance our portfolio management strategy, including the recently announced divestiture of Waygate Technologies, which combined with the two transactions that closed in the quarter, is expected to generate gross proceeds of approximately $3 billion in 2026, further strengthening our balance sheet.”

 

Looking ahead, Baker Hughes said its outlook remains steady despite regional instability.

 

“Looking ahead, our outlook for the business fundamentals remains unchanged, excluding the ongoing impacts in the Middle East. While the conflict presents near-term challenges, it is further reinforcing energy security as a priority, which is expected to support structural growth in upstream and global energy infrastructure spending. 

 

"Ultimately, we remain confident in our strategy and our ability to deliver long-term value for shareholders,” concluded Simonelli.

 

On a segment basis, Industrial & Energy Technology drove growth with revenue up 14% year-over-year, while Oilfield Services & Equipment saw declines due to divestitures and Middle East disruptions.

 

Overall, Baker Hughes closed the quarter with $36.1 billion in remaining performance obligations, reinforcing long-term visibility even as near-term cash generation fluctuated.

 

Despite volatility, the company signalled resilience—anchored by record industrial demand, strong execution, and a growing backlog that continues to define its energy transition and infrastructure strategy.