Baker Hughes Reports Record Orders and Optimistic 2025 Outlook, Boosts Guidance

Baker Hughes reported record orders in its Industrial Energy Technology division, with a $3.5 billion order volume and a $550 million backlog connected to data centers. The company raised its annual revenue and EBITDA outlook for IET and reinstated full-year guidance for its Oilfield Services and Equipment segment. Baker Hughes executed three strategic transactions to optimize its portfolio and drive long-term shareholder value. The average target price for Baker Hughes stock is $46.85, with an upside of 17.06% from the current price.

Baker Hughes (BKR) has reported a significant surge in orders within its Industrial Energy Technology (IET) division, reaching $3.5 billion in the latest quarter. This substantial order volume has led to a record backlog, driven primarily by over $550 million in orders connected to data centers, despite the absence of large liquefied natural gas (LNG) contracts [1].

The company's optimism is further bolstered by a strong first half and a positive outlook for the remainder of the year. BKR has raised its annual revenue and EBITDA outlook for IET and reinstated full-year guidance for its Oilfield Services and Equipment (OFSE) segment. This strategic move aims to counterbalance weaker sectors by leveraging IET's growth [1].

In addition to its financial outlook, BKR has executed three strategic transactions to optimize its portfolio. These transactions are designed to enhance earnings stability and cash flow, while driving long-term shareholder value. By reallocating capital from non-core units to higher-margin prospects, the company is aligning with its financial goals and strategic direction [1].

Wall Street analysts are optimistic about Baker Hughes' prospects. The average target price for BKR stock is $46.85, with a high estimate of $56.00 and a low estimate of $40.00. This average target implies an upside of 17.06% from the current price of $40.02 [1].

Based on the consensus recommendation from 26 brokerage firms, Baker Hughes Co's (BKR, Financial) average brokerage recommendation is currently 1.9, indicating an "Outperform" status [1]. GuruFocus estimates the GF Value for BKR to be $37.40 in one year, suggesting a downside of 6.55% from the current price of $40.02 [1].

References:
[1] https://www.gurufocus.com/news/2995695/bkr-reports-record-orders-and-optimistic-outlook-for-2025-bkr-stock-news
[2] https://oilprice.com/Latest-Energy-News/World-News/Natural-Gas-Helps-Baker-Hughes-Outperform-Expectations-in-Q2.html
[3] https://investors.bakerhughes.com/news-releases/news-release-details/baker-hughes-company-announces-second-quarter-2025-results