Baker Hughes IET Order Path Stretching Beyond the Horizon: Strengthening the Molecule to Electron Narrative

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Baker Hughes IET Order Path Stretching Beyond the Horizon: Strengthening the Molecule to Electron Narrative

J P M O R G A N North America Equity Research

28 May 2026

Baker Hughes Overweight

BKR, BKR US

IET Order Path Stretching Beyond the Horizon: Price (27 May 26):$63.20

Strengthening the Molecule to Electron Narrative

Oil & Gas Exploration & Production

JPM View: BKR continues to keep its foot firmly on the pedal as it accelerates its Arun Jayaram AC

evolution into an industrialized energy solutions provider, a theme that was (1-212) 622-8541

reinforced by CEO Lorenzo Simonelli’s upbeat commentary in a webcast arun.jayaram@jpmchase.com

presentation at a competitor's conference. We believe the company’s three-horizon Sowmya Vemulapalli

strategy remains the guiding framework for this transformation, with Horizon (1-212) 270-4660

Two’s ~$40bn order target now focused on IET solutions and molecule sowmya.vemulapalli@jpmchase.com

management. The company emphasized its favorable positioning at the Jason Kim

intersection of energy and industrial markets, managing a diverse portfolio of (1-212) 622-1408

jason.b.kim@jpmchase.com

molecules beyond hydrocarbons, including natural gas, LNG, nitrogen, oxygen, J.P. Morgan Securities LLC

helium, and hydrogen, and connecting these energy sources to industrial outcomes.

Importantly, this shift is evident in BKR’s pivot toward technologies that span the

full energy value chain, including CCUS, geothermal, and power generation,

rather than simply extraction and production.

Most importantly, the IET business continues to deliver strong growth, with the

majority of orders now coming from areas outside of LNG. CEO Simonelli noted

that less than 15% of recent order intake was related to LNG, while the remainder