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Baker Hughes shares surge on record orders, but warns on 2026 spend
The company reported 64 cents per share and said oil and gas producers will reduce annual spending modestly, citing caution amid U.S. and Iran tensions.
Baker Hughes beat second-quarter profit expectations and posted record orders, sending its shares up more than 6%, according to Yahoo Finance using LSEG data. Earnings per share came in at 64 cents, versus 50 cents expected by analysts. Orders increased 49% year over year to a record $10.5 billion, including $7.1 billion for its industrial and energy technology, or IET, segment.
The company also said backlog rose 19% to an all-time high, with remaining contracted work at $40.1 billion. It attributed growth to demand beyond traditional oilfield services, highlighting LNG, power generation, and data centers as part of CEO Lorenzo Simonelli’s strategy for a so called demand decade for energy.
While the results looked strong, Baker Hughes warned annual global spending by oil and gas producers will decline modestly this year. Yahoo Finance reported that weaker spending in Europe and the Middle East is expected to be offset by growth in Latin America, offshore Africa, and North America, but ongoing U.S. and Iran conflict is making producers more cautious.
Baker Hughes pointed to a major LNG-related win, saying it landed an order from Venture Global to manufacture 12 LNG trains for its proposed CP2 expansion. It also forecast that the Middle East conflict could cut IET segment revenue by 1% to 2%, with its third-quarter IET revenue guidance of $3.17 billion to $3.47 billion falling short of analysts’ $3.79 billion expectation, and it flagged rising logistics and inflation costs from regional disruptions.