Baker Hughes 2Q26 Earnings Preview - Measured Middle East Recovery Materializing

Research evidence excerpt

Baker Hughes 2Q26 Earnings Preview - Measured Middle East Recovery Materializing

Global Research

26 June 2026ab

Baker Hughes Equities

United States2Q26 Earnings Preview - Measured Middle East

Recovery Materializing Oil Drilling, Equipment & Services

12-month rating Neutral *

12m price target US$73.002Q Preview

We forecast BKR in the upper end of the 2Q EBITDA guide. While Middle East

headwinds persist, BKR did see some improvements towards the end of the quarter and Price (25 Jun 2026) US$56.94

GTS performance was also strong. Past the quarter, we continue to see BKR's growing RIC: BKR.O BBG: BKR US

Power Systems offering and its NovaLT capacity expansion as clear growth drivers. The

GTLS acquisition and business optimization also remain key 2H26 catalysts. Trading data and key metrics

52-wk range US$69.67-38.06

Key Highlights for BKR's 2Q26 Update Market cap. US$56.2b

2Q26 Estimates. We forecast 2Q26 Adj. EBITDA of $1,142mm, slightly ahead of Shares o/s 987m (COM)

Street's $1,130mm and the guide's midpt. of $1,130mm. We forecast 2Q26 Free float 100%

Adj. EPS of $0.48/sh vs. Street's $0.49/sh. We forecast 2Q26 FCF of $467mm. Avg. daily volume ('000) 8,142

Avg. daily value (m) US$517

Middle East. BKR saw an improvement in the Middle East towards the end of 2Q,

Common s/h equity (12/26E) US$14.4b

driving our OFSE revenue forecast slightly above the guide's midpt, although this

P/BV (12/26E) 3.9x

does come with additional logistical costs. While progress has been made in recent

Net debt to EBITDA (12/26E) 2.2x

weeks towards a permanent cease fire and a re-opening of the Strait,

BKR continues to expect a measured post-conflict activity ramp. EPS (UBS, diluted) (USD)

12/26E

Power. We look for a positive update across BKR's Power Systems unit and

From To % ch Cons.