Baker Hughes (BKR) Barclays 40th Annual Energy-Power Conference summary

Strategic transformation and market positioning

• The company has evolved to focus on interconnected energy and industrial markets, now deriving about 60% of revenue from infrastructure and industrial sectors.

• Positioned at the center of energy convergence, enabling both current and future energy systems across a $400B+ addressable market.

• The acquisition of Chart Industries expands the addressable market and strengthens the technology portfolio in heat transfer, cryogenics, and carbon capture.

• Integration with Chart Industries accelerates growth in high-potential markets such as data centers, LNG, industrial gases, and geothermal.

• Exposure to high-growth end markets is projected to increase the addressable opportunity by nearly 60%, from $36 billion to $57 billion by 2030.

Portfolio strength and financial performance

• Durable growth and expanding margins are supported by a resilient Oilfield Services & Equipment (OFSE) segment and record Industrial & Energy Technology (IET) margins.

• OFSE margins have improved by over 600 basis points since 2017, and IET delivered record EBITDA margins of 18.5% in 2025, with expectations to exceed 20% in 2026.

• The company targets 20% adjusted EBITDA margins by 2028, excluding Chart Industries, and expects more than $45 billion of IET orders through the Horizon Two period.

• FY'26 guidance projects revenue of $28.5B–$30.3B and adjusted EBITDA of $4.88B–$5.48B, with FCF conversion of 40–45%.

• Chart Industries is expected to contribute $1.85–$2.25 billion in revenue and $300–$400 million in EBITDA from the close date through year-end, with margins around 17%.

Integration and synergy realization

• Integration efforts focus on operational enhancements, cost synergies, and commercial synergies, with a proven business system being applied to Chart Industries.

• Cost synergies are expected to reach $325 million annually by year three, mainly through SG&A optimization, supply chain efficiency, and facility optimization.

• Chart Industries' EBITDA margin is targeted to expand from 17% in the second half of 2026 to 22–23% by the second half of 2028, driven by cost synergies, operational enhancements, and commercial opportunities.

• Commercial synergies include cross-selling, integrated solutions, and accelerated aftermarket revenue, especially in Middle East, Latin America, and Asia.

• The integration is supported by dedicated teams, clear governance, and established performance management frameworks.