Baker Hughes Co
Baker Hughes is an energy technology company that sells equipment, software, and services across the oil and gas, LNG, power, and industrial value chain. Its business is split between Oilfield Services & Equipment, which supports drilling, completions, production, and decommissioning, and Industrial & Energy Technology, which supplies turbomachinery, gas technology, and climate-related solutions. The company has a long operating history and works in more than 120 countries, with a direct sales model supported by regional teams and product-line centers of excellence. In recent years it has also pushed into lower-carbon and digital opportunities such as geothermal, CCUS, hydrogen, clean power, and AI-enabled industrial applications, including data-center-related power demand.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueProducts and services for drilling, well construction, completions, production, intervention, and subsea/surface pressure systems.
Turbomachinery and equipment used in LNG, gas processing, compression, and power applications.
Lifecycle services, maintenance, and aftermarket support for installed gas and power equipment.
Lower-carbon and energy-transition solutions including clean power, CCUS, geothermal, and hydrogen-related offerings.
Software, analytics, and AI-enabled tools that improve asset performance, efficiency, and operational decision-making.
Products
Reported · share of revenue- Products65.7 %
- Services34.3 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Baker Hughes sells primarily to major, national, and independent oil and natural gas companies that fund exploration, field development, and production activity. These customers buy its equipment and services to improve well performance, extend asset life, reduce downtime, and lower operating costs across the upstream and midstream value chain. The company also serves LNG, power generation, utilities, chemical, and broader industrial customers that need turbomachinery, gas handling, and climate technology. Demand is closely tied to customer capital budgets, commodity prices, and the pace of investment in energy infrastructure, so spending can shift quickly with market conditions. A growing subset of customers is buying digital, AI, and lower-carbon solutions to improve efficiency and support decarbonization goals.
Buy drilling, completions, intervention, production, and subsea equipment/services to develop and maintain wells.
Procure integrated oilfield technologies and long-cycle service support for large-scale field development and production.
Buy gas technology equipment and services for liquefaction, compression, and gas handling assets.
Purchase turbomachinery, climate technology, and efficiency solutions for power generation and industrial processes.
Buy geothermal, CCUS, hydrogen, and clean power solutions to support lower-carbon projects.
Strategy
Baker Hughes is positioning itself as a broader energy technology platform rather than a pure oilfield-services company. Its strategy centers on improving operating efficiency, modernizing how the business runs, and using that structure to expand margins while preserving flexibility in capital allocation. At the same time, it is investing in growth areas such as LNG, power, digital/AI, geothermal, CCUS, hydrogen, and clean power, which can diversify demand away from only upstream oil activity. The company also emphasizes commercial synergy between OFSE and IET, using its global footprint and product breadth to cross-sell into adjacent energy and industrial markets. This mix is intended to make the business more resilient across commodity cycles while keeping exposure to long-duration infrastructure spending.
Lower-cost operations and better execution support profitability in a cyclical market.
These markets provide more durable demand than short-cycle upstream spending and broaden the customer base.
Digital tools can improve customer productivity and open incremental demand in data centers and industrial operations.
New energy offerings can diversify revenue and align with decarbonization spending.
Geography
2025Baker Hughes operates globally in more than 120 countries, so its revenue base is diversified across international oil and gas basins and industrial markets. Management specifically highlighted international revenue as larger than North America in OFSE, with Europe/CIS/Sub-Saharan Africa, Latin America, and the Middle East/Asia all influencing performance. North America remains important, but activity there is more exposed to WTI and Henry Hub-driven spending cycles and has recently been softer in OFSE. The company’s regional sales model and local teams matter because customer relationships, service execution, and supply-chain support are highly localized in energy markets. This global footprint also exposes the business to sanctions, trade policy, geopolitical conflict, and foreign-currency volatility.
Share of the revenue the company reports by geography.
Risks
The company is highly exposed to oil and gas spending cycles, so weaker commodity prices or lower upstream capital budgets can quickly reduce demand for equipment and services. Its global footprint also creates geopolitical and sanctions risk, including disruption from Russia-Ukraine, Middle East instability, Venezuela, trade policy changes, and supply-chain interruptions. Competition is intense across most product lines, which can pressure pricing, contract terms, and the return on technology investments. Baker Hughes also faces execution risk as it expands into digital, AI, and new energy markets, where commercial adoption and returns may take time to prove out. In addition, long-term service contracts, foreign-currency volatility, and potential asset impairments can amplify earnings volatility when market conditions change.
- Geopolitical and sanctions exposureImpact: HighLikelihood: High
Operations across many countries can be disrupted by sanctions, embargoes, regional conflict, and political instability.
Exposure - Commodity-price-driven demand volatilityImpact: HighLikelihood: Medium
Customer spending depends on oil and natural gas prices and E&P budgets, which can fall quickly in weak markets.
Exposure: Upstream oilfield services and North America activity
- Competitive pricing pressureImpact: MediumLikelihood: Medium
The company operates in highly competitive product lines, which can limit pricing power and contract terms.
Exposure: All major product lines
- Execution risk in new energy and digital growth areasImpact: MediumLikelihood: Medium
Investments in AI, geothermal, CCUS, hydrogen, and clean power may not generate expected returns or adoption.
Exposure: IET and strategic growth initiatives
Accounting
Judgemental itemsRevenue is recognized over time using estimated margins and billable events, so changes in assumptions affect reported sales and profit.
Impact: Can materially affect timing of revenue and margin recognition in IET
A deterioration in market conditions or segment outlook could require impairment charges.
Impact: Could reduce reported earnings and equity
Recognition depends on expected future profitability and tax credit utilization.
Impact: Can change tax expense and net income
Tax audits across multiple jurisdictions may lead to additional liabilities or settlements.
Impact: Can affect tax rate and cash taxes
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Last updated: 24/09/2026