Baker Hughes Co. (NASDAQ:BKR) stock rose in Wednesday’s premarket session despite broader market weakness. Nasdaq futures fell 0.38%, while S&P 500 futures declined 0.28%.
Investors digested the company’s updated fiscal 2026 outlook and longer-term targets following the acquisition of Chart Industries.
The company kept its Oilfield Services & Equipment and Industrial & Energy Technology outlooks unchanged. It also outlined how Chart could expand its margins, addressable market, and long-term earnings potential.
Baker Hughes Updates Fiscal 2026 Outlook
Baker Hughes expects fiscal 2026 revenue of $28.5 billion to $30.3 billion versus a $27.628 billion estimate, and adjusted EBITDA of $4.875 billion to $5.475 billion.
Free cash flow conversion is projected at 40% to 45%, reflecting acquisition-related interest, transaction, and integration costs.
Chart is expected to contribute $1.85 billion to $2.25 billion in revenue and $300 million to $400 million in EBITDA for 2026, excluding results before the July 16 acquisition close.
Chart’s second-half results are expected to skew toward the fourth quarter, reflecting LNG timing, order conversion and softer hydrogen demand.
The company expects Chart’s book-to-bill ratio to remain above 1x in the second half, with momentum extending into 2027.
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Chart Integration Targets Higher Margins
Management targets a Chart EBITDA margin of 22% to 23% in the second half of 2028, up from roughly 17% in the second half of 2026.
Baker Hughes has realized $35 million in cost synergies since closing the deal.
It targets annualized savings of $95 million in year one, $230 million in year two, and $325 million in year three.
Savings are expected from corporate cost reductions, supply-chain efficiencies, and facility optimization. Commercial synergies include cross-selling, broader customer solutions, and aftermarket growth.
Acquisition Expands Growth Opportunity
Chart expands the company’s exposure to LNG, industrial gases, mining, power, and data centers.
The company estimates its 2030 serviceable addressable market across key growth areas will reach $57 billion with Chart, up 58% from $36 billion without the acquisition.
Baker Hughes sees growth opportunities in data centers, geothermal, carbon capture, and gas infrastructure. It targets leverage of 1.0 to 1.5 times by the second half of 2028.
Baker Hughes Price Action
BKR Price Action: Baker Hughes shares were up 0.20% at $64.05 during premarket trading on Wednesday, according to Benzinga Pro data.
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