How Baker Hughes Makes Money

Baker Hughes sells engineered equipment and the services that keep it running. In Oilfield Services and Equipment it is paid for jobs and projects: directional drilling, drill bits, completions, pressure pumping, artificial lift, oilfield chemicals and subsea production systems, billed well by well or under multi-year frame agreements with national oil companies and majors. That business generated $14,324M of revenue and $2,618M of segment EBITDA in FY2025. In Industrial and Energy Technology it sells gas turbines, centrifugal compressors, pumps, valves and modular LNG trains, then earns long-dated service revenue on the installed base. Gas Technology Equipment produced $6,619M and Gas Technology Services $3,028M in FY2025, and the two carried $11.6B and $16.1B of contracted backlog respectively at year end. Software and sensing, sold as Cordant and Bently Nevada, attach to that hardware. The equipment orders are lumpy and tied to final investment decisions on LNG and gas infrastructure; the service agreements are the steadier half.

The strategy is to shift weight from short-cycle oilfield work toward equipment and lifecycle services with longer contracts. Management describes the 2026 to 2028 period as Horizon Two and frames the aim as a more industrialised energy solutions company with a production-oriented mix and more durable cash flow. In practice that has meant buying scale in industrial equipment, with Continental Disc in August 2025 for about $540 million and Chart Industries in July 2026 for $13.6 billion, while selling businesses that do not fit, including Precision Sensors and Instrumentation to Crane Company and surface pressure control into a joint venture with a Cactus, Inc. subsidiary, both closed January 1, 2026. Climate Technology Solutions, covering carbon capture, hydrogen, clean power, geothermal and emissions abatement, is the vehicle for new energy orders and produced $647M of revenue in FY2025. Digital is sold as Cordant asset management software, with FY2025 awards from Yara, CNPC Kunlun Digital and Braskem.