Baker Hughes: 2Q26 Preview: Anticipating a Down the Fairway Print, Albeit with a Few Puts and Takes; IET Order Momentum Remains Robust

Research evidence excerpt

Baker Hughes: 2Q26 Preview: Anticipating a Down the Fairway Print, Albeit with a Few Puts and Takes; IET Order Momentum Remains Robust

ration of renewables. Management cited long-term

projections that global power demand could double by 2040. Data center and AI

infrastructure spend is expected to reach $1.6tn by 2030, which is expected to drive a 80%

increase in gas-fired power and 25 GW of geothermal capacity. The company believes

this market backdrop could support a multi-year growth cycle for power solutions,

positioning BKR to capitalize on this secular growth opportunity given its broad portfolio

in power generation.

• Expanding NovaLT capacity. With strong order visibility and no available slots until

2029, BKR is significantly expanding its manufacturing capacity for its NovaLT turbines

by 1H27. The product offering includes 12 MW and 16 MW solutions, with the latter

model in highest demand, particularly for data centers. BKR notes the NovaLT’s

differentiation is based on superior thermal efficiency, hydrogen capability, and fast start-

up times versus competitors such as Solar’s Titan 130. Since its launch five years ago,

NovaLT has rapidly gained market acceptance, accelerated by data center opportunities,

with BKR’s recent enhancements focusing on further increased power range and reduced

start-up times. BKR has not disclosed the upgraded NovaLT unit capacity, but has noted

$1.0 to $2.0bn of annual revenue potential. Following the significant expansion of

capacity in 1H27, management notes future investments will be aligned with durable

demand and market opportunities under a disciplined approach.

• LNG market outlook remains robust. BKR remains constructive on global LNG

demand. The company still sees positive momentum, with several U.S. and international