BKR Stock Forecast & Price Target

Baker Hughes has undergone a reorganization, positioning itself to benefit from rising revenues and expanding margins in its two segments: oilfield services and equipment (OFSE) and industrial and energy technology (IET). The company's revenue growth is anticipated to be driven by higher industry utilization, increased demand for services, and favorable pricing conditions, particularly as global commodity prices improve. Additionally, potential consolidation in the industry could enhance competitive dynamics, leading to better pricing and higher fixed cost absorption, further strengthening Baker Hughes's financial outlook.

Baker Hughes's financial outlook is negatively impacted by slower international oilfield services and equipment (OFSE) activity, which has led to a revised EBITDA estimate for 2Q25, reduced by 3% to $669 million, causing a total EBITDA estimate drop of 1% to $1,185 million. The company's revenues and margins from both its industrial and energy technology (IET) and OFSE segments are anticipated to fall short of expectations due to lower utilization and activity levels, which result in decreased fixed cost absorption. Additional risks, including capital inefficiencies in energy transition investments, increased regulatory pressures, and potential customer consolidation, further underscore the challenges facing Baker Hughes's financial performance.