Baker Hughes : First Quarter 2026 Earnings Call Slides

Published: 2026-04-23 17:28:09 ET BKR

Published on 04/23/2026 at 05:28 pm EDT

‌1Q 2026 Results

The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. It is used only for the benefit of Baker Hughes and may not be distributed, transmitted, reproduced, altered, or used for any purpose without the express written consent of Baker Hughes.

‌2

This presentation (and oral statements made regarding the subjects of this presentation) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (each a "forward-looking statement"). The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "project," "foresee," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "potential," "would," "may," "probable," "likely," and similar expressions, and the negative thereof, are intended to identify forward-looking statements. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. These forward-looking statements are affected by the risk factors described in the Company's annual report on Form 10-K of Baker Hughes Company (the "Company") and those set forth from time to time in other filings with the Securities and Exchange Commission ("SEC").

The documents are available through the Company's website at: https://www.investors.bakerhughes.com or through the SEC's Electronic Data Gathering and Analysis Retrieval system at: https://www.sec.gov. Any forward-looking statements speak only as of the date of this presentation. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law.

The Company presents its financial results in accordance with GAAP; however, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. See the Appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.

Chairman & Chief Executive Officer

‌1 Q 2026 RE SULTS 4

Highlights

Strofig quarterly results

Adjusted EBITDA1 of $1.16 billion, exceeding the guidance range as we effectively managed Middle East disruptions

Record IET orders

Power Systems and LNG drove record IET bookings of $4.9 billion; third consecutive quarter above $4 billion

Cofitifiued margifi expafisiofi

Adjusted EBITDA margin1 expanded 140 bps YoY to 17.6%, driven by significant IET margin increase

Disciplified portfolio mafiagemefit

Announced divestiture of Waygate Technologies, taking 2026

expected gross proceeds to ~$3 billion2 from combined transactions

Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures - see appendix for GAAP to non-GAAP reconciliations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.

Includes ~$1.6B form the divestiture of Waygate Technologies announced in April and the HMH IPO completed in April, $1.15B from the divestiture of

Precision Sensors and Instrumentation closed on Jan. 1, 2026, and $345M from Surface Pressure Control joint venture closed on Jan. 1, 2026.

‌KE Y AW ARDS & TE CHNO LO GY DE VE LO PME NTS 5

Diversified portfolio driving broad-based order momentum

Power Systems

Converted ~1 GW slot reservation agreement into an integrated power order

25 generators to Boom Supersonic, supporting advanced AI data center

4 synchronous condenser systems, enhancing grid stability in Australia

Google Cloud collaboration to develop AI-enabled power optimization solution for data centers

Gas Ififrastructure

3 NovaLT 16-driven gas compression units for a gas pipeline in Argentina

Critical electric motor-driven compression solution, supporting Middle East offshore operations

Main liquefaction and power equipment for QatarEnergy's NFW1 two mega trains

5-year aftermarket services agreement across ~19 Petrobras FPSOs

Efiergy Upstream

Digital & Efiterprise Wide

Petrobras awards for flexible pipe systems and integrated P&A2 solutions in Brazil's offshore fields

Multiple subsea production systems contract with Turkish Petroleum for 5 Black Sea wells

Well construction technology for YPF's

Vaca Muerta shale development

Integrated drilling & completions contract with Gulf Energy for 43 wells in Kenya's South Lokichar Basin

Cordant Asset Heath solutions selected by multiple customers to enhance efficiency and reliability

Expanded Leucipa agreement with a large NOC

Multiyear award from Expand Energy to deploy Leucipa across thousands of

U.S. gas wells

XGS Energy collaboration to advance

subsurface-to-surface engineering for 150 MW geothermal project in New Mexico

Diverse end market exposure underpin continued orders strength

North Field West (NFW).

Plug and Abandonment (P&A).

‌MACRO & MARKE T O UTLO O K 6

Heightened geopolitical risk reinforcing energy security

Macro Outlook Market Impact BKR Implications

Middle East cofiflict ifitroduced fiew layer of macro uficertaifity

Developmefits have ificreased ififlatiofiary pressures

Geopolitical risk a structural reality for oil & gas market

Efiergy security ificreasifigly prioritized

Oil & LNG balafices tightefiifig

Heightefied price volatility & risk premiums

Cofitifiued developmefit of lower-carbofi solutiofis

Ificreased focus ofi ififrastructure resiliefice

Higher ifivefitory

requiremefits

'26 NAM & Int'l upstream spefidifig, excluding Middle East, both relatively flat YoY

Post conflict, expect a meaningful increase in remediatiofi afid ifitervefitiofi work in the Middle East

Energy security drives stronger ifivestmefit ifi efiergy ififrastructure & fiew efiergy

Increasingly confident Horizofi 21 IET order target will exceed $40 billiofi

Energy security reinforcing importance

of higher upstream spefidifig lofiger term

1. Horizon 2 represents 2026-2028 IET order target of $40+ billion.

Executive Vice President & Chief Financial Officer

‌F I NANCI AL PE RF O RMANCE 8

1Q 2026 Financial Results

FINANCIALS1

1Q'26

Δ4Q'25

Δ1Q'25

Orders ($M)

8,159

26%

Revenue ($M)

6,587

(11%)

Adjusted EBITDA ($M)

1,158

(13%)

12%

Adjusted EBITDA Margin

17.6%

(50)bps

140bps

Adjusted Diluted EPS ($/share)

0.58

(26%)

13%

Adjusted Effective Tax Rate

23.8%

490bps

(250)bps

FCF ($M)

210

(84%)

(54%)

Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow (FCF), Adjusted Diluted EPS and Adjusted Effective Tax Rate are non-GAAP measures - see appendix for GAAP to non-GAAP reconciliations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.

Excluding Precision Sensors and Instrumentation and Continental Disc Corporation from the year-over-year backlog variance.

Continued orders strength leading to record backlog

+6% YoY revenue, excluding

transactions2

All metrics outperformed guidance midpoint

>75% YoY incremental EBITDA margin

‌CAPI TAL ALLO CATI O N F RAME W O RK 9

Capital allocation framework

PRIORITY

Balafice

Sheet

Techfiology

Ifivestmefit Dividefids Buybacks

Portfolio

Mafiagemefit

1Q'26 STATUS

Net Debt / LTM

Adjusted EBITDA1

R&D Investment2

Dividends3

Share repurchases

Gross proceeds from

transactions4 closed in the quarter

2026 ACTIONS

Focus on balance sheet strength

Completed financing of Chart transaction, issuing $6.5B U.S. bonds & €3B Euro bonds

Continue organic technology investment

Maintain dividend

Continue de-leveraging prioritization ahead of Chart closing

Closed the SPC joint venture & PSI divestiture

Announced Waygate Technologies divestiture

HMH IPO generated cash proceeds

DE-LEVERAGING PHASE TARGETS

Within 24 months post Chart close

Continued R&D Investment across combined portfolio

Committed to growing the dividend over time

Focused on building cash balances

Expected incremental proceeds from divestments5

Net Debt / LTM Adjusted EBITDA are non-GAAP measures - see appendix for GAAP to non-GAAP reconciliations.

R&D investment is net of external funding.

An increase of our quarterly dividend, from $0.21 to $0.23, was announced on Jan. 30, 2025.

Includes $1.15B from the divestiture of Precision Sensors and Instrumentation closed on Jan. 1, 2026, and $345M from Surface Pressure Control joint venture closed on Jan. 1, 2026.

The expected incremental proceeds include Waygate Technologies and HMH proceeds but exclude proceeds from the formation of Surface Pressure Control joint venture and the divestiture of

Precision Sensors and Instrumentation, both closed on Jan. 1, 2026.

‌I NDUSTRI AL & E NE RGY TE CHNO LO GY ( I E T) SE GME NT RE SULTS

IET: Strong operational execution drives

record orders and EBITDA margin

Fifiaficials1

1Q'26

Δ4Q'25

Δ1Q'25

Orders ($M)

4,887

21%

54%

Revenue ($M)

3,350

(12)%

14%

EBITDA ($M)

678

(11)%

35%

EBITDA Margin

20.2%

30bps

310bps

1 Q' 26 IET HIGHLIGHTS

Revenue & EBITDA

Above guidance midpoint

1.5x

Book-to-bill

Record IET orders

Continued strong momentum across Power Systems and gas infrastructure

Strofig revefiue growth

Mid-teens YoY growth led by strong Gas Tech Services performance, supported by continued execution of aeroderivative backlog

Robust EBITDA improvemefit

35% YoY growth led by strength in Gas Tech Equipment and Climate Tech Solutions

Sigfiificafit EBITDA margifi1 expafisiofi Cordant and Gas Tech Equipment drove robust YoY segment margin expansion, supported by strong backlog pricing and

disciplined execution

$33.1B

Record RPO2

+34% YoY

GTS revenue

EBITDA Margin is defined as EBITDA divided by revenue.

RPO = Remaining Performance Obligations.

‌O I LF I E LD SE RVI CE S & E QUI PME NT ( O F SE ) SE GME NT RE SULTS

OFSE: Strong execution drives margin

resilience

Fifiaficials1

1Q'26

Δ4Q'25

Δ1Q'25

Orders ($M)

3,272

(15)%

Revenue ($M)

3,237

(9)%

(7)%

EBITDA ($M)

565

(13)%

(9)%

EBITDA Margin

17.4%

(70)bps

(40)bps

1 Q' 26 OFSE HIGHLIGHTS

Revenue & EBITDA

Above guidance midpoint

1.1x

SSPS2 book-to-bill

Normal Ifiterfiatiofial seasofiality Excluding Middle East, OFS Int'l revenue declined mid-single digits, as Mexico & Argentina strength offset declines

elsewhere

Moderate NAM declifie

Sequential OFS NAM revenue decline driven by lower NAM land activity, partially offset by growth in offshore

Resiliefit SSPS performafice

Excluding SPC, SSPS revenue was flat QoQ as subsea services seasonal declines offset growth in flexible pipe systems

Durable EBITDA margifi

More resilient sequential margin performance despite seasonality and Middle East disruptions, supported by favorable offshore product mix and FX

+90bps YoY

SSPS EBITDA margin

Middle East impact

~2% of 4Q'25 OFSE revenue

EBITDA margin is defined as EBITDA divided by revenue.

Subsea and Surface Pressure Systems (SSPS).

‌GUI DANCE F RAME W O RK 12

FY'26 Guidafice

BKR

Low Range

Midpoint

High Range

REVENUE ($M)

6,250

6,500

6,750

ADJUSTED EBITDA1 ($M)

1,040

1,130

1,220

OFSE

REVENUE ($M)

3,050

3,200

3,350

EBITDA ($M)

490

540

590

IET

REVENUE ($M)

3,200

3,300

3,400

EBITDA ($M)

630

670

710

BKR

Low Range

Midpoint

High Range

REVENUE ($M)

26,200

27,250

28,300

ADJUSTED EBITDA1 ($M)

4,550

4,850

5,150

OFSE

REVENUE ($M)

13,200

13,750

14,300

EBITDA ($M)

2,325

2,475

2,625

IET

ORDERS ($M)

13,500

14,500

15,500

REVENUE ($M)

13,000

13,500

14,000

EBITDA ($M)

2,550

2,700

2,850

2Q'26 and FY'26 Guidance

KEY ASSUMPTIONS

Middle East disruptiofis cofitifiue through the end of June, without further escalation

Conflict resolved at the end of 2Q, with Strait of Hormuz fully operational during all 2H'26

No significant secofidary impacts

OFSE

Middle East revefiue ifi April similar to March levels, holding April levels through 2Q

Measured 2H'26 recovery in the Middle East

Middle East margifi impacted by higher costs and lower absorption

IET

Potential mifior delays to plafified LNG maifitefiafice

in GTS

No sigfiificafit delays for GTE project executiofi for Middle East backlog

Modest impacts related to logistics, ififlatiofi afid

supply chaifi

Guidafice Assumptiofis

2Q'26 Guidafice

OTHER

CORPORATE COSTS ($M)

Approx. 80

D&A ($M)

Approx. 340

OTHER

CORPORATE COSTS ($M)

Approx. 325

D&A ($M)

Approx. 1,350

FCF Conversion1,2(%)

Approach 50%

Adjusted Effective Tax Rate1(%)

22% - 26%

Full-year guidance range unchanged; company revenue & Adjusted EBITDA slightly below midpoint

Adjusted EBITDA, Free Cash Flow (FCF) and Adjusted Effective Tax Rate are non-GAAP measures - see appendix for GAAP to non-GAAP reconciliations. Management cannot reliably predict or estimate, without unreasonable effort, the impact and timing on future operating results arising from items excluded from Adjusted EBITDA. We therefore do not present a guidance range or reconciliation to the nearest GAAP financial measure.

FCF Conversion is defined as FCF divided by Adjusted EBITDA and excludes interest expense and other cash costs associated with the closing of the pending Chart acquisition.

Chairman & Chief Executive Officer

‌STRATE GI C PO SI TI O NI NG 14

Executing our strategy to transform Baker Hughes

CONNECTING ENERGY SOURCES

WITH INDUSTRIAL OUTCOMES

UNIQUELY POSITIONED AT THE INTERSECTION

OF ENERGY AND INDUSTRIAL MARKETS

Trafisformifig into a leading industrialized energy

solutions company

Deliverifig differentiated solutions across upstream, energy infrastructure, and industrial end markets

Efihaficifig capabilities across the full energy value

chain, spanning from molecule to electron

Expafidifig comprehensive lifecycle and advanced digital solutions for industrialized energy applications

Positioning Baker Hughes as a leading industrialized energy solutions company

‌Appendix

‌APPE NDI X 16

Results by Reporting Segment

Oilfield Services & Equipment

(in millions)

Three Months Ended

Variance

Segment results

March 31,

2026

December 31,

2025

March 31,

2025

Sequential

Year-over-

year

Orders

$ 3,272

$ 3,862

$ 3,281

(15%)

Revenue

$ 3,237

$ 3,572

$ 3,499

(9%)

(7%)

EBITDA*

$ 565

$ 647

$ 623

(13%)

(9%)

EBITDA margin*

17.4%

18.1%

17.8%

-0.7pts

-0.4pts

Revenue by Product Line

March 31,

2026

December 31,

2025

March 31,

2025

Sequential

Year-over-

year

Well Construction

$ 843

$ 880

$ 892

(4%)

(5%)

Completions, Intervention and Measurements

883

944

925

(6%)

(5%)

Production Solutions

898

973

899

(8%)

Subsea & Surface Pressure Systems

613

775

782

(21%)

(22%)

Total Revenue

$ 3,237

$ 3,572

$ 3,499

(9%)

(7%)

Revenue by Geographic Region

March 31,

2026

December 31,

2025

March 31,

2025

Sequential

Year-over-

year

North America

$ 927

$ 943

$ 922

(2%)

Latin America

600

613

568

(2%)

Europe/CIS/Sub-Saharan Africa

558

624

580

(10%)

(4%)

Middle East/Asia

1,152

1,392

1,429

(17%)

(19%)

Total Revenue

$ 3,237

$ 3,572

$ 3,499

(9%)

(7%)

North America

$ 927

$ 943

$ 922

(2%)

International

$ 2,310

$ 2,629

$ 2,577

(12%)

(10%)

*EBITDA is defined as segment income plus depreciation and amortization. EBITDA margin is defined as EBITDA divided by revenue. Note: certain columns and rows may not add up due to the use of rounded numbers.

‌APPE NDI X 17

Results by Reporting Segment

Industrial & Energy Technology

(in millions)

Three Months Ended

Variance

Segment results

March 31,

2026

December 31,

2025

March 31,

2025

Sequential

Year-over-year

Orders

$ 4,887

$ 4,024

$ 3,178

21%

54%

Revenue

$ 3,350

$ 3,814

$ 2,928

(12%)

14%

EBITDA*

$ 678

$ 761

$ 501

(11%)

35%

EBITDA margin*

20.2%

20.0%

17.1%

0.3pts

3.1pts

Orders by Product Line

March 31,

2026

December 31,

2025

March 31,

2025

Sequential

Year-over-year

Gas Technology Equipment

$ 1,824

$ 1,785

$ 1,335

37%

Gas Technology Services

973

974

913

Total Gas Technology

2,797

2,759

2,248

24%

Industrial Products

604

603

501

21%

Industrial Solutions

229

352

281

(35%)

(19%)

Total Industrial Technology

833

955

782

(13%)

Climate Technology Solutions

1,257

310

148

Total Orders

$ 4,887

$ 4,024

$ 3,178

21%

54%

Revenue by Product Line

March 31,

2026

December 31,

2025

March 31,

2025

Sequential

Year-over-year

Gas Technology Equipment

$ 1,665

$ 1,852

$ 1,456

(10%)

14%

Gas Technology Services

791

881

592

(10%)

34%

Total Gas Technology

2,456

2,733

2,047

(10%)

20%

Industrial Products

491

547

445

(10%)

10%

Industrial Solutions

185

304

258

(39%)

(28%)

Total Industrial Technology

676

851

703

(21%)

(4%)

Climate Technology Solutions

218

229

178

(4%)

23%

Total Revenue

$ 3,350

$ 3,814

$ 2,928

(12%)

14%

Note: "F" is used in the above table when variance is above 100%. Additionally, "U" is used when variance is below (100)%.

‌APPE NDI X

Orders by Reporting Segment

Orders by Reporting Segment ($ in millions)

Total Oilfield Services & Equipment

FY 2023

1Q 2024

2Q 2024

3Q 2024

4Q 2024

FY 2024

1Q 2025

2Q 2025

3Q 2025

4Q 2025

FY 2025

1Q 2026

Oilfield Services & Equipment

16,344

3,624

4,068

3,807

3,740

15,240

3,281

3,503

4,068

3,862

14,714

3,272

Industrial & Energy Technology

Gas Technology Equipment

7,367

1,230

1,493

1,088

1,865

5,675

1,335

781

2,174

1,785

6,075

1,824

Gas Technology Services

3,004

692

769

778

902

3,141

913

986

896

974

3,769

973

Total Gas Technology

10,372

1,922

2,261

1,866

2,767

8,816

2,248

1,767

3,070

2,759

9,844

2,797

Industrial Products

2,069

546

524

494

515

2,079

501

513

481

603

2,097

604

Industrial Solutions

1,085

257

281

293

320

1,151

281

327

336

352

1,296

229

Controls

Total Industrial Technology

3,220

803

805

787

835

3,230

782

839

817

955

3,393

833

Climate Technology Solutions

586

193

392

215

154

954

148

923

253

310

1,634

1,257

Total Industrial & Energy Technology

14,178

2,918

3,458

2,868

3,756

13,000

3,178

3,530

4,139

4,024

14,871

4,887

Total Orders

30,522

6,542

7,526

6,676

7,496

28,240

6,459

7,032

8,207

7,886

29,585

8,159

‌APPE NDI X 19

OFSE & IET Reporting Segment Revenues

Consolidated Revenue by Reporting Segment and Product Line ($ in millions)

Oilfield Services & Equipment

FY 2023

1Q 2024

2Q 2024

3Q 2024

4Q 2024

FY 2024

1Q 2025

2Q 2025

3Q 2025

4Q 2025

FY 2025

1Q 2026

Well Construction

$ 4,387

$ 1,061

$ 1,090

$ 1,050

$ 943

$ 4,145

$ 892

$ 921

$ 954

$ 880

$ 3,646

$ 843

Completions, Intervention and Measurements

4,170

1,006

1,118

1,009

1,022

4,154

925

935

945

944

3,750

883

Production Solutions

3,854

945

958

983

974

3,860

899

968

966

973

3,806

898

Subsea & Surface Pressure Systems

2,950

771

845

921

932

3,470

782

793

771

775

3,122

613

Total Oilfield Services & Equipment

15,361

3,783

4,011

3,963

3,871

15,628

3,499

3,617

3,636

3,572

14,324

3,237

Industrial & Energy Technology

Gas Technology Equipment

4,232

1,210

1,539

1,281

1,663

5,693

1,456

1,624

1,687

1,852

6,619

1,665

Gas Technology Services

2,600

614

691

697

796

2,797

592

752

803

881

3,028

791

Total Gas Technology

6,832

1,824

2,230

1,978

2,459

8,490

2,047

2,377

2,490

2,733

9,647

2,456

Industrial Products

1,962

462

509

520

548

2,040

445

488

511

547

1,991

491

Industrial Solutions

983

265

262

257

282

1,065

258

273

288

304

1,123

185

Controls

Total Industrial Technology

2,987

727

770

777

830

3,105

703

761

799

851

3,114

676

Climate Technology Solutions

326

128

191

204

605

178

156

229

647

218

Total Industrial & Energy Technology

10,145

2,634

3,128

2,945

3,492

12,201

2,928

3,293

3,374

3,814

13,409

3,350

Total Revenue

$ 25,506

$ 6,418

$ 7,139

$ 6,908

$ 7,364

$ 27,829

$ 6,427

$ 6,910

$ 7,010

$ 7,386

$ 27,733

$ 6,587

Oilfield Services & Equipment Geographic Revenue ($ in millions)

FY 2023

1Q 2024

2Q 2024

3Q 2024

4Q 2024

FY 2024

1Q 2025

2Q 2025

3Q 2025

4Q 2025

FY 2025

1Q 2026

North America

$ 4,116

$ 990

$ 1,023

$ 971

$ 3,955

$ 922

$ 928

$ 980

$ 943

$ 3,773

$ 927

Latin America

2,761

637

663

648

661

2,609

568

639

603

613

2,423

600

Europe/CIS/Sub-Saharan Africa

2,655

750

827

933

740

3,250

580

653

599

624

2,455

558

Middle East/Asia

5,829

1,405

1,498

1,411

1,499

5,814

1,429

1,398

1,454

1,392

5,673

1,152

Oilfield Services & Equipment

$ 15,361

$ 3,783

$ 4,011

$ 3,963

$ 3,871

$ 15,628

$ 3,499

$ 3,617

$ 3,636

$ 3,572

$ 14,324

$ 3,237

North America

$ 4,116

$ 990

$ 1,023

$ 971

$ 3,955

$ 922

$ 928

$ 980

$ 943

$ 3,773

$ 927

International

$ 11,245

$ 2,793

$ 2,988

$ 2,992

$ 2,900

$ 11,673

$ 2,577

$ 2,689

$ 2,656

$ 2,629

$ 10,551

$ 2,310

‌APPE NDI X 20

GAAP to Non-GAAP reconciliations

FY 2023

1Q 2024

2Q 2024

3Q 2024

4Q 2024

FY 2024

1Q 2025

2Q 2025

3Q 2025

4Q 2025

FY 2025

1Q2026

Net cash flow from operating activities (GAAP)

$ 3,062

$ 784

$ 348

$ 1,010

$ 1,189

$ 3,332

$ 709

$ 510

$ 929

$ 1,662

$ 3,810

$ 500

Add: cash used in capital expenditures, net of proceeds from disposal of assets

(1,016)

(282)

(242)

(256)

(295)

(1,075)

(255)

(271)

(230)

(321)

(1,078)

(290)

Free cash flow (Nofi-GAAP)

$ 2,045

$ 502

$ 106

$ 754

$ 894

$ 2,257

$ 454

$ 239

$ 699

$ 1,341

$ 2,732

$ 210

FY 2023

1Q 2024

2Q 2024

3Q 2024

4Q 2024

FY 2024

1Q 2025

2Q 2025

3Q 2025

4Q 2025

FY 2025

1Q 2026

Net income (loss) attributable to Baker Hughes (GAAP)

$ 1,943

$ 455

$ 579

$ 766

$ 1,179

$ 2,979

$ 402

$ 701

$ 609

$ 876

$ 2,588

$ 930

Net income attributable to noncontrolling interests

Provision (benefit) for income taxes

685

178

243

235

(398)

257

152

256

204

(359)

253

336

Interest expense, net

216

198

222

Depreciation & amortization

1,087

283

278

291

1,136

285

293

282

323

1,184

354

Restructuring

313

258

260

215

Inventory impairment

Gain on dispositions(1)

(721)

Change in fair value of equity securities(1)

(555)

(52)

(19)

(99)

(196)

(367)

140

(119)

103

Transaction related costs(1)

107

Other charges and credits (1)

(8)

(34)

Adjusted EBITDA (Nofi-GAAP)

3,763

943

1,130

1,208

1,310

4,591

1,037

1,212

1,238

1,337

4,825

1,158

Corporate costs

358

340

318

Other (income) / expense not allocated to segments

(28)

(8)

(43)

Total Segmefit EBITDA (Nofi-GAAP)

$ 4,121

$ 1,030

$ 1,213

$ 1,293

$ 1,394

$ 4,931

$ 1,124

$ 1,262

$ 1,306

$ 1,408

$ 5,100

$ 1,243

OFSE

2,595

644

716

765

755

2,881

623

677

671

647

2,618

565

IET

1,527

386

497

528

639

2,050

501

585

635

761

2,482

678

1. The gain on business dispositions, change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the condensed consolidated statements of income (loss) in the Earnings Release.

‌APPE NDI X 21

Additional reconciliations

Effective tax rate reconciliation

1Q 2026

4Q 2025

1Q 2025

Income before income taxes (GAAP)

$ 1,274

$ 528

$ 561

Add: adjustments to income before income taxes

(512)

437

140

Adjusted income before income taxes (Non-GAAP)

$ 762

$ 965

$ 701

Provision for income taxes (GAAP)

$ 336

$ (359)

$ 152

Add: Tax adjustments

(155)

541

Adjusted provision for income taxes (Non-GAAP)

$ 181

$ 182

$ 184

Effective tax rate (GAAP)

26.4 %

(68.0)%

27.1 %

Adjusted effective tax rate (Non-GAAP)

23.8 %

18.9 %

26.3 %

Reconciliation of Income Tax (GAAP) to Adjusted Income Tax (non-GAAP) and Effective Tax Rate (GAAP) to Adjusted Effective Tax Rate (non-GAAP) ($ in millions)

Net Debt to Last Twelve Months (LTM) Adjusted EBITDA

1Q 2026

Short-term debt

$ 753

Long-term debt

15,411

Total debt

16,164

Less: Cash and cash equivalents

14,764

Net Debt

$ 1,400

LTM Adj. EBITDA

$ 4,945

Net debt / LTM Adj. EBITDA

.30x

Note: certain columns and rows may not add up due to the use of rounded numbers.

(in millions, except per share amounts)

1Q 2026

4Q 2025

1Q 2025

Net income attributable to Baker Hughes (GAAP)

$ 930

$ 876

$ 402

Restructuring

215

Inventory impairment

Gain on dispositions

(721)

Change in fair value of equity securities

140

Transaction related costs

Other adjustments

Tax on total adjustments

155

(541)

(32)

Total adjustments, net of income tax

(357)

(104)

108

Less: adjustments attributable to noncontrolling interests

Adjustments attributable to Baker Hughes

(357)

(104)

108

Adjusted net income attributable to Baker Hughes (Non-GAAP)

$ 573

$ 772

$ 509

Denominator:

Weighted-average shares of Class A common stock outstanding diluted

996

994

999

Earnings per share - diluted (GAAP)

$ 0.93

$ 0.88

$ 0.40

Total adjustments per share, net of income tax

(0.35)

(0.10)

0.11

Adjusted earnings per share - diluted (Non-GAAP)

$ 0.58

$ 0.78

$ 0.51

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Disclaimer

Baker Hughes Company published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 21:19 UTC.