# Baker Hughes (BKR.US)

Canonical: https://gigainvestors.com/s/BKR

Analysis as of: 2026-10-16T07:26:58.202Z. Financial observations: FY2014–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $54.40 per share; close as of 2026-10-15.

Estimated value: low $39.88 per share, central $43.09 per share, high $47.35 per share. Buy at or below the central value $43.09 per share. Valuation as of 2026-10-16T07:26:58.202Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 4

- Operating margin variation: 0.65×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.02×

- FY2018: 0.03×

- FY2019: 0.05×

- FY2020: 0.03×

- FY2021: 0.06×

- FY2022: 0.09×

- FY2023: 0.09×

- FY2024: 0.12×

- FY2025: 0.13×

- LTM to Jun 2026: 0.13×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.4%

- ROIC, second-lowest year: 2.9%

- Typical minus recent gross margin: -1.9 pp

- Typical gross margin (annual median): 21.4%

- Recent gross margin (lower of latest and 3-year median): 23.3%

- Years with nonpositive capital: 1

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: 2.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.9%

- FY2017: -1.0%

- FY2018: >100%

- FY2019: 15.1%

- FY2020: 5.1%

- FY2021: 7.2%

- FY2022: 9.7%

- FY2023: 18.4%

- FY2024: 23.1%

- FY2025: 21.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.11×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $7.5B

- Net income, five-year total: $6.7B

- Return on incremental invested capital: 1299.7%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -5.7 pp

- Working capital / revenue, final three-year average: 27.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.52×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 0.97×

- LTM to Jun 2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.9% vs 21.7%

- Per-share earnings: -0.14 to 2.60 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.5%

- Ordinary dilution, 5-year annual growth: 6.8%

- Market cap gain: $17B

- Cumulative retained earnings: -$9.8B

- Diluted shares, 10-year annual growth: 8.5%

- Diluted shares, 5-year annual growth: 6.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $2.75

- Per-share value, starting three-year median: -$0.14

- Per-share value, ending three-year median: $2.60

- Buybacks concentrated in cheaper years (correlation): -0.48

- Average buyback yield: 4.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $18B

- Cumulative net income, 10 years: -$2.7B

- ROIC, first three-year median: 2.9%

- ROIC, last three-year median: 21.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.59

- FY2017: -$0.14

- FY2018: $0.42

- FY2019: $0.20

- FY2020: -$13.86

- FY2021: -$0.24

- FY2022: -$0.60

- FY2023: $1.92

- FY2024: $2.98

- FY2025: $2.60

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.54×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.0%

- FY2017: 1.3%

- FY2018: -3.0%

- FY2019: -3.7%

- FY2020: -29.6%

- FY2021: -7.3%

- FY2022: -7.3%

- FY2023: -3.0%

- FY2024: -0.9%

- FY2025: -3.0%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 22% since Apr 2026 · "Baker Hughes Posts Record Backlog as LNG and Power Orders Lift 2025 Results" (finance.yahoo.com, Jan 2026) · sales +0%

Story as of 2026-10-16T09:58:24.470Z; price observation 2026-10-15.

Price needs cash profits to grow 5.4% a year for ten years

- 2025-04-23: Baker Hughes forecasts drop in producer spending as tariffs pinch demand ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/baker-hughes-forecasts-drop-producer-155231317.html))

- 2025-07-29: Baker Hughes bets on LNG, data center demand with $13.6 billion Chart Industries deal ([finance.yahoo.com](https://finance.yahoo.com/news/baker-hughes-buy-chart-industries-104448910.html))

- 2026-01-26: Baker Hughes Q4 Earnings Beat Estimates on IET Segment Performance ([finance.yahoo.com](https://finance.yahoo.com/news/baker-hughes-q4-earnings-beat-121000011.html))

- 2026-02-15: Baker Hughes Expands Into AI Data Center Power And Modular LNG Opportunities ([finance.yahoo.com](https://finance.yahoo.com/news/baker-hughes-expands-ai-data-200515348.html))

- 2026-04-24: Baker Hughes Q1 Revenue Beats Estimates by $260 Million as LNG Orders Surge ([finance.yahoo.com](https://finance.yahoo.com/sectors/energy/articles/baker-hughes-q1-revenue-beats-173000454.html))

- 2026-09-30: Baker Hughes Middle East, Gas Tech Strength Offset Weaker GTLS Outlook, UBS Says ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/baker-hughes-middle-east-gas-184515063.html))

### Sales · FY2025–2026

sales +0%; source https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm; observed 2026-02-05.

- FY2017: $17B 

- FY2018: $23B 

- FY2019: $24B 

- FY2020: $21B 

- FY2021: $21B 

- FY2022: $21B 

- FY2023: $26B 

- FY2024: $28B 

- FY2025: $28B 

- FY2026: $28B 

### Gross margin · FY2025

gross margin 23.6%; source https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm; observed 2026-02-05.

- FY2016: 23.7% 

- FY2017: 17.7% 

- FY2018: 17.4% 

- FY2019: 18.6% 

- FY2020: 18.0% 

- FY2021: 22.1% 

- FY2022: 23.4% 

- FY2023: 20.6% 

- FY2024: 23.3% 

- FY2025: 23.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas equipment & services; annual sales are USD 27.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm (filed 2026-02-05); FY2025: revenue 27733000000; grossProfit 6544000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 20.6% to 23.6% during 2023–25; it earns 12.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2023: grossProfit / revenue = 20.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2024: grossProfit / revenue = 23.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm (filed 2026-02-05); FY2025: grossProfit / revenue = 23.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); 10-year return on capital observations [[2016,0.029260244286840032],[2017,-0.009916025811013878],[2018,1.2835211267605633],[2019,0.15136600173460538],[2020,0.05096284918882596],[2021,0.07249893571732652],[2022,0.09723761279088175],[2023,0.18380136442963668],[2024,0.23121033729295618],[2025,0.21694540583708238]]; median 0.12430180726274356. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 384 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2016: growth capex 0; upkeep 424000000; owner earnings 380000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2017: growth capex 0; upkeep 665000000; owner earnings 377000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2018: growth capex 0; upkeep 995000000; owner earnings 686000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2019: growth capex 0; upkeep 976000000; owner earnings 570000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2021: growth capex 0; upkeep 541000000; owner earnings 345000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2023: growth capex 50000000; upkeep 1087000000; owner earnings 1943000000. Growth capex / owner earnings = 0.02573340195573855.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); FY2024: growth capex 142000000; upkeep 1136000000; owner earnings 2979000000. Growth capex / owner earnings = 0.04766700234978181.

- Source: https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm (filed 2026-02-05); FY2025: growth capex 0; upkeep 1273000000; owner earnings 2503000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Dividend observations: [[2016,293000000],[2017,155000000],[2018,315000000],[2019,395000000],[2020,744000000],[2021,749000000],[2022,743000000],[2023,786000000],[2024,836000000],[2025,910000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm (filed 2026-02-05); FY2025: cash repurchases 384000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BKR.US SharesStats.PercentInsiders = 0.151 percentage points; cache date 2026-10-16.

### What could break it

"Our contracts may be terminated early in certain circumstances." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm (filed 2026-02-05); Our contracts may be terminated early in certain circumstances.

### What the price says

The price assumes cash profits grow 5.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-05); Ten-year compound average after fade. Initial solved rate 0.06377184276627379. Price 54.4; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.5558086560364466 → FY2025 2.5181086519114686. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $55.40 per share

- 2016-11: $64.33 per share

- 2016-12: $64.97 per share

- 2017-01: $63.08 per share

- 2017-02: $60.28 per share

- 2017-03: $59.82 per share

- 2017-04: $59.37 per share

- 2017-05: $55.15 per share

- 2017-06: $54.51 per share

- 2017-07: $36.89 per share

- 2017-08: $33.90 per share

- 2017-09: $36.62 per share

- 2017-10: $31.43 per share

- 2017-11: $29.73 per share

- 2017-12: $31.64 per share

- 2018-01: $32.15 per share

- 2018-02: $26.40 per share

- 2018-03: $27.77 per share

- 2018-04: $36.11 per share

- 2018-05: $34.59 per share

- 2018-06: $33.03 per share

- 2018-07: $34.58 per share

- 2018-08: $32.97 per share

- 2018-09: $33.83 per share

- 2018-10: $26.69 per share

- 2018-11: $22.82 per share

- 2018-12: $21.50 per share

- 2019-01: $23.57 per share

- 2019-02: $26.38 per share

- 2019-03: $27.72 per share

- 2019-04: $24.02 per share

- 2019-05: $21.41 per share

- 2019-06: $24.63 per share

- 2019-07: $25.39 per share

- 2019-08: $21.69 per share

- 2019-09: $23.20 per share

- 2019-10: $21.40 per share

- 2019-11: $22.42 per share

- 2019-12: $25.63 per share

- 2020-01: $21.66 per share

- 2020-02: $16.09 per share

- 2020-03: $10.50 per share

- 2020-04: $13.95 per share

- 2020-05: $16.51 per share

- 2020-06: $15.39 per share

- 2020-07: $15.49 per share

- 2020-08: $14.28 per share

- 2020-09: $13.29 per share

- 2020-10: $14.77 per share

- 2020-11: $18.72 per share

- 2020-12: $20.85 per share

- 2021-01: $20.09 per share

- 2021-02: $24.48 per share

- 2021-03: $21.61 per share

- 2021-04: $20.08 per share

- 2021-05: $24.40 per share

- 2021-06: $22.87 per share

- 2021-07: $21.24 per share

- 2021-08: $22.78 per share

- 2021-09: $24.73 per share

- 2021-10: $25.08 per share

- 2021-11: $23.34 per share

- 2021-12: $24.06 per share

- 2022-01: $27.44 per share

- 2022-02: $29.38 per share

- 2022-03: $36.41 per share

- 2022-04: $31.02 per share

- 2022-05: $35.98 per share

- 2022-06: $28.87 per share

- 2022-07: $25.69 per share

- 2022-08: $25.26 per share

- 2022-09: $20.96 per share

- 2022-10: $27.66 per share

- 2022-11: $29.02 per share

- 2022-12: $29.53 per share

- 2023-01: $31.74 per share

- 2023-02: $30.60 per share

- 2023-03: $28.86 per share

- 2023-04: $29.24 per share

- 2023-05: $27.25 per share

- 2023-06: $31.61 per share

- 2023-07: $35.79 per share

- 2023-08: $36.19 per share

- 2023-09: $35.32 per share

- 2023-10: $34.42 per share

- 2023-11: $33.75 per share

- 2023-12: $34.18 per share

- 2024-01: $28.50 per share

- 2024-02: $29.59 per share

- 2024-03: $33.50 per share

- 2024-04: $32.62 per share

- 2024-05: $33.48 per share

- 2024-06: $35.17 per share

- 2024-07: $38.72 per share

- 2024-08: $35.17 per share

- 2024-09: $36.15 per share

- 2024-10: $38.08 per share

- 2024-11: $43.95 per share

- 2024-12: $41.02 per share

- 2025-01: $46.18 per share

- 2025-02: $44.59 per share

- 2025-03: $43.95 per share

- 2025-04: $35.40 per share

- 2025-05: $37.05 per share

- 2025-06: $38.34 per share

- 2025-07: $45.05 per share

- 2025-08: $45.40 per share

- 2025-09: $48.72 per share

- 2025-10: $48.41 per share

- 2025-11: $50.20 per share

- 2025-12: $45.54 per share

- 2026-01: $56.04 per share

- 2026-02: $65.26 per share

- 2026-03: $61.05 per share

- 2026-04: $69.67 per share

- 2026-05: $63.88 per share

- 2026-06: $55.50 per share

- 2026-07: $60.49 per share

- 2026-08: $63.55 per share

- 2026-09: $54.90 per share

- 2026-10: $56.45 per share

## Annual estimated value (USD per share)

- FY2018: low $22.29 per share, central $24.40 per share, high $27.21 per share

- FY2019: low $13.79 per share, central $15.10 per share, high $16.85 per share

- FY2020: low $11.21 per share, central $12.25 per share, high $13.64 per share

- FY2021: low $8.79 per share, central $9.54 per share, high $10.54 per share

- FY2022: low $5.90 per share, central $6.43 per share, high $7.14 per share

- FY2023: low $6.76 per share, central $7.40 per share, high $8.25 per share

- FY2024: low $7.93 per share, central $8.64 per share, high $9.58 per share

- FY2025: low $27.66 per share, central $30.86 per share, high $35.13 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:32:37.088Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1701605/000170160526000007/bkr-20251231.htm); period 2025-12-31, filed 2026-02-05.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [David Hoeft](https://gigainvestors.com/DAC): 34,854,482 BKR shares; USD 1,934,424,000 reported position value; 1.01% of portfolio; reduce; quarter 2026 Q2.

# BKR — Baker Hughes Co.

Held by 1 investor · USD 1,934,424,000 total · 2026 Q2 · reported price USD 55.50 (split-adjusted).
Page: https://gigainvestors.com/s/BKR

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| David Hoeft (https://gigainvestors.com/DAC) | USD 1,934,424,000 | 1.0% | reduce -2.84% |

## Total held by quarter

- 2017 Q3: USD 1,150,154,368 · 1 holder · USD 36.62
- 2017 Q4: USD 0 · 0 holders
- 2018 Q1: USD 0 · 0 holders
- 2018 Q2: USD 0 · 0 holders
- 2018 Q3: USD 0 · 0 holders
- 2018 Q4: USD 0 · 0 holders
- 2019 Q1: USD 0 · 0 holders
- 2019 Q2: USD 0 · 0 holders
- 2019 Q3: USD 0 · 0 holders
- 2019 Q4: USD 0 · 0 holders
- 2020 Q1: USD 0 · 0 holders
- 2020 Q2: USD 0 · 0 holders
- 2020 Q3: USD 0 · 0 holders
- 2020 Q4: USD 0 · 0 holders
- 2021 Q1: USD 0 · 0 holders
- 2021 Q2: USD 23,793,948 · 1 holder · USD 22.87
- 2021 Q3: USD 28,367,783 · 1 holder · USD 24.73
- 2021 Q4: USD 27,599,226 · 1 holder · USD 24.06
- 2022 Q1: USD 27,508,483 · 1 holder · USD 36.41
- 2022 Q2: USD 23,282,067 · 1 holder · USD 28.87
- 2022 Q3: USD 25,559,253 · 1 holder · USD 20.96
- 2022 Q4: USD 22,588,974 · 1 holder · USD 29.53
- 2023 Q1: USD 63,212,116 · 1 holder · USD 28.86
- 2023 Q2: USD 66,860,935 · 1 holder · USD 31.61
- 2023 Q3: USD 56,112,884 · 1 holder · USD 35.32
- 2023 Q4: USD 54,199,910 · 1 holder · USD 34.18
- 2024 Q1: USD 1,630,051,107 · 2 holders · USD 33.50
- 2024 Q2: USD 1,704,761,365 · 2 holders · USD 35.17
- 2024 Q3: USD 1,727,538,514 · 2 holders · USD 36.15
- 2024 Q4: USD 1,937,659,853 · 2 holders · USD 41.02
- 2025 Q1: USD 1,962,591,425 · 1 holder · USD 43.95
- 2025 Q2: USD 1,709,305,050 · 1 holder · USD 38.34
- 2025 Q3: USD 2,146,285,935 · 1 holder · USD 48.72
- 2025 Q4: USD 1,856,184,807 · 1 holder · USD 45.54
- 2026 Q1: USD 2,189,958,616 · 1 holder · USD 61.05
- 2026 Q2: USD 1,934,424,000 · 1 holder · USD 55.50