Baker Hughes: 2Q26 Post Mortem and Model Update: Power Systems Outlook Looks Structural in Nature

研报英文原文证据摘录

Baker Hughes: 2Q26 Post Mortem and Model Update: Power Systems Outlook Looks Structural in Nature

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

28 July 2026

Baker Hughes Overweight

BKR, BKR US

2Q26 Post Mortem and Model Update: Power Systems Price (27 Jul 26):$60.59

Outlook Looks Structural in Nature Price Target (Dec-26):$74.00

JPM View: In recent weeks, we have sensed a bit of a fear factor on the stock given Oil & Gas Exploration & Production

ACthe potential for the looming guide of the recently closed Chart merger to disappoint Arun Jayaram

given weak underlying profitability trends reported by GTLS in 4Q25 and 1Q26, (1-212) 622-8541

respectively. Almost lost in the shuffle was the significant order momentum at IET arun.jayaram@jpmchase.com

across oil & gas, power, and industrial end markets, which led to a record $7.1bn of Sowmya Vemulapalli

inbound IET orders that rose 101% YoY and a whopping 45% higher than the previous (1-212) 270-4660

record inbound order tally of $4.9bn that was booked last quarter. BKR booked $2.6bn sowmya.vemulapalli@jpmchase.com

of Power Systems orders in 2Q26, including $2.2bn for data centers and $1.8bn for Jason Kim

LNG equipment from 3 large projects (Cheniere’s Sabine Pass, Venture Global’s CP2, (1-212) 622-1408

jason.b.kim@jpmchase.com

and Golar floating LNG). In response to the strength in power demand that is seen as J.P. Morgan Securities LLC

durable, BKR plans to further expand its gas turbine and power generation capacity

through 2028, which is expected to support ~$5bn in annual Power Systems revenue

assuming full utilization and drive 3x to 4x top line growth from 2025 levels even Key Changes (FYE Dec)

assuming more conservative utilization assumptions. Management noted how Prev Cur Δ