Baker Hughes Power Trip: 10 Key Takeaways from JPM Investor Tour of Core IET Manufacturing Facilities in Italy

Research evidence excerpt

Baker Hughes Power Trip: 10 Key Takeaways from JPM Investor Tour of Core IET Manufacturing Facilities in Italy

f data Q3 0.68 0.53 0.68

center awards in 2025-27, but we see upside to this forecast as the company booked Q4 0.78 0.63 0.77

$1.4bn of Power Systems orders in 1Q26. IET management noted a continuation FY 2.54 2.22 2.62

of strong order momentum in 2Q26, which not only expands the install base, but Style Exposure

supports a growing recurring revenue stream from high margin Gas Tech Service

activity.

In 2025, 85% of IET orders were sourced from non-LNG equipment including

power systems, gas infrastructure and new energy. Despite a record year for U.S.

LNG FIDs in 2025, we sensed confidence that order momentum could continue in

2026 given recent industry FIDs at CP2 Phase II, Commonwealth LNG, and Delfin

LNG, and several international projects that have momentum (LNG Canada Phase

2, Rovuma LNG in Mozambique, and Argentina LNG sourced from the Vaca

Muerta). With strong order visibility and no available slots until beyond 2028,

BKR is significantly expanding its manufacturing capacity for its NovaLT turbines

by 1H27. BKR did not disclose the upgraded NovaLT unit capacity, but did note

$1.0 to $2.0bn of annual revenue potential, although the increase in capacity will

not impact the company’s IET revenue until 2028 as NovaLT revenue is booked

when product is shipped (10-12 month production cycle times). We also observed

strong order momentum for BRUSH power generation equipment, including

electric motors and synchronous condensers. Despite weaker-than-expected near-

term results from Chart (GTLS), CFO Moghal reiterated BKR’s conviction in the

merits of the transaction, citing Chart’s thermal management expertise, under-