AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 22/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Protected technology, licenses and historical exclusive controls rights identify possible barriers, but their economic importance and superiority over rivals are unestablished. The moat remains uncertain.
durability · — · Continuing licenses and substantial long-term obligations support persistence of business activity, but do not establish how long a competitive advantage can endure.
customer dependency · — · Repeat LNG awards and a services extension demonstrate customer relevance. Material switching friction or dependency is not disclosed, and OFSE contracts often lack purchase obligations.
erosion resilience · — · Product development and productivity efforts are documented, but evidence of defending a structural advantage against rivals through changing conditions is insufficient.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher prices contributed to 2023 earnings growth in both segments, establishing a positive realized outcome. Magnitude and recent continuation are undisclosed, while fixed-price commitments constrain repricing.
retention · 2/4 · The fourth Golar vessel award and Nigeria LNG services extension directly demonstrate repeat demand. Gas Technology Services growth provides indirect support. These selective outcomes do not establish broad retention, particularly given OFSE's limited purchase commitments.
margin resilience · 2/4 · Second-quarter IET EBITDA rose to $678 million from $585 million with broadly flat revenue. First-half OFSE EBITDA declined 10% against a 6% revenue decline; productivity only partially offset inflation, volume and mix effects. Resilience is mixed and does not independently establish pricing power.
contractual freedom · 1/4 · Several contracts require fixed or firm pricing with limited relief. Customers generally retain termination rights, with potentially incomplete termination compensation. These disclosed terms establish constrained bargaining freedom without implying actual cancellations.
Predictability92
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 7.93
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.58
Financial strength—
Missing required inputs: netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 80.01
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 48.54
- Debt / FCF (x)
- 2.40
- Current ratio (x)
- 1.36
- cashInterestPaid
- 294.00
- cashInterestCoverage
- 12.96
Capital allocation—
Missing required inputs: operatingReturn, dilution. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average SBC / revenue (%)
- 0.74
- cashConversionGrade
- 85.61
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · 2025 operating cash generation exceeded net capital spending, and first-half 2026 cash generation improved partly through progress collections. Chart's approximately $13.6 billion enterprise-value commitment required financing and lacks demonstrated investment returns. First-half shares outstanding increased. The overall record is mixed.
incentive alignment · 3/4 · Existing disclosures establish substantial compensation at risk, stockholding requirements and PSU measures linked to cash conversion and relative shareholder returns. May approval confirms adoption of the 2026 plans. Ownership compliance and full vesting outcomes are missing, and qualifying change-in-control termination fixes PSU performance at target.
execution · 2/4 · Cash generation, repeat awards and $259 million of reported savings demonstrate delivery. Margin targets were missed, safety measures deteriorated and OFSE earnings declined. September-reported early Chart synergies are progress rather than achievement of the three-year target. Assessment includes indirect operating evidence and issuer-reported achievements.
governance · 2/4 · Audit oversight, an independent Finance Committee, specified lead independent director duties and CEO exclusion from his compensation discussions establish governance mechanisms. Combined chair and CEO roles concentrate authority; disclosed structures do not establish exceptional oversight effectiveness.
Evidence
Baker Hughes maintains a globally distributed intellectual property portfolio, with protection in numerous jurisdictions through thousands of patent applications, issued patents, copyrights, and trade secrets.
Business / intellectual property portfolio · Filed 05/02/2026
("GE HealthCare") (NASDAQ: GEHC). In particular, Baker Hughes has: i) an intellectual property cross-license agreement with GE Aerospace, GE Vernova, and GE HealthCare that allows all parties to have continued rights to commercially utilize certain intellectual property of the other pursuant to the terms of the agreement, ii) a heavy duty gas turbine distribution and supply agreement that licenses certain intellectual property of GE Vernova to Baker Hughes, and iii) a second amended and restated supply and technology development agreement with GE Vernova, GE Aerospace, and the aeroderivative joint venture ("Aero JV") which governs the supply of certain aeroderivative technology to us and regulates intellectual property licenses amongst the parties where relevant.
Business / intellectual property licenses and turbine supply agreements · Filed 05/02/2026
While the above agreements have been amended from time to time, these agreements remain in place.
Business / continuing license agreements · Filed 05/02/2026
We remain committed to investing in our products and services to maintain our leadership position across our offerings, including $600 million R&D spend and being granted more than 1,400 patents worldwide in 2025.
Business / 2025 R&D spending and patent grants · Filed 05/02/2026
•Strengthened its position in floating LNG through a significant award from Golar to supply four PGT25 gas turbine-driven refrigerant compressor trains for a 3.5 MTPA floating LNG facility, marking the fourth Golar vessel to utilize Baker Hughes liquefaction solutions.
Quarter highlights / fourth Golar vessel award · Filed 27/07/2026
OFSE competitors include SLB, Halliburton, NOV, Weatherford, and TechnipFMC.
Business / named OFSE competitors · Filed 05/02/2026
Our ability to defend, maintain or increase prices for our products and services is in part dependent on the industry's capacity relative to customer demand, on our ability to differentiate the value delivered by our products and services from our competitors' products and services and to provide innovative and competitive products and services to meet our client's evolving needs with respect to new energy areas.
Risk factors / pricing dependent on capacity, demand and differentiation · Filed 05/02/2026
Although we have long-term contractual frameworks in place with both GE Vernova and GE Aerospace, if either GE Vernova or GE Aerospace were to discontinue or reduce their business with the Company, fail to perform their obligations under existing contracts (such as our long-term supply agreement for heavy-duty gas turbines, the Second Amended and Restated Supply and Technology Development Agreement or the related intellectual property agreements with GE Aerospace) or experience disruptions, our business, financial condition, results of operations and cash flows may be adversely affected.
Risk factors / GE supplier and technology agreement dependencies · Filed 05/02/2026
Patents
We own a large number of patents and have pending a substantial number of patent applications covering various
Halliburton business / patent portfolio; comparison limited to disclosed capability · Filed 06/02/2026
•Extended a significant, multi-year services agreement with Nigeria LNG to enhance the reliability and efficiency of the project's critical Train 7 turbomachinery equipment.
Quarter highlights / Nigeria LNG services agreement extension · Filed 27/07/2026
We benefit from stable relationships with many customers based on long-term project contracts and master service agreements.
Business / long-term customer relationships · Filed 05/02/2026
As of June 30, 2026, RPO totaled $40.1 billion, of which OFSE totaled $3.0 billion and IET totaled $37.1 billion.
MD&A / June 2026 remaining performance obligations by segment · Filed 27/07/2026
While OFSE may have contracts that include multiple well projects and that may extend over a multi-year period, its services and products are generally provided on a well-by-well basis.
Business / OFSE well-by-well provision · Filed 05/02/2026
Most contracts cover pricing of the products and services, along with various limitations on liability, but do not necessarily establish an obligation to use OFSE products and services.
Business / OFSE contracts without purchase obligations · Filed 05/02/2026
Our contracts with customers generally may be terminated by the customer for convenience, default, or extended force majeure (which could include inability to perform due to a pandemic or as a result of civil unrest or armed conflicts).
Risk factors / customer termination rights · Filed 05/02/2026
Termination for convenience may require the payment of an early termination fee by the customer, but the early termination fee may not fully compensate us for the loss of the contract.
Risk factors / limited termination compensation · Filed 05/02/2026
Several of those contracts require us to commit to fixed or firm pricing against customer technical specifications, often with limited relief for changes in circumstances.
Business / fixed or firm pricing with limited relief · Filed 05/02/2026
The increase in income before tax was driven by higher volume and price in both segments and structural cost-out initiatives, positive effect from the change in fair value on certain equity securities, and lower restructuring and impairment charges.
MD&A / realized 2023 price contribution in both segments · Filed 05/02/2024
Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA
Three Months Ended
(in millions)
June 30, 2026
March 31, 2026
June 30, 2025
Net income attributable to Baker Hughes (GAAP)
$
681
$
930
$
701
Net income attributable to noncontrolling interests
1
8
10
Provision for income taxes
210
336
256
Interest expense, net
66
86
54
Depreciation & amortization
333
354
293
Restructuring
11
37
—
Inventory impairment
—
2
—
Gain (loss) on business dispositions (1)
24
(721)
—
Change in fair value of equity securities (1)
(125)
50
(119)
Transaction related costs (1)
30
28
—
Other charges and credits (1)
48
17
Adjusted EBITDA (non-GAAP)
1,231
1,158
1,212
Corporate costs
82
74
78
Other (income) / expense not allocated to segments
(30)
11
(28)
Total Segment EBITDA (non-GAAP)
$
1,283
$
1,243
$
1,262
OFSE
605
565
677
IET
678
678
585
(1)The gain on business dispositions, change in fair value of equity securities, transaction related costs, and other charges and credits are reported in "Other (income) expense, net" on the condensed consolidated statements of income (loss).
Results / quarterly segment EBITDA and GAAP reconciliation · Filed 27/07/2026
IET revenue remained flat year-over-year, driven by an increase of $79 million or 11% in Gas Technology Services ("GTS"), an increase of $61 million or 13% in Industrial Products ("IP"), and an increase in Climate Technology Solutions ("CTS") of $49 million or 31%, offset by a decrease of $100 million or 6% in Gas Technology Equipment ("GTE"), and a decrease of $91 million or 33% in Industrial Solutions ("IS") reflective of the Precision Sensors & Instrumentation ("PSI") disposition.
MD&A / second-quarter IET revenue and services growth · Filed 27/07/2026
Baker Hughes Company 2026 Second Quarter Form 10-Q | 33 Segment Revenues and Segment EBITDA Oilfield Services & Equipment Six Months Ended June 30, $ Change 2026 2025 Revenue Well Construction $ 1,742 $ 1,812 $ (70) Completions, Intervention, and Measurements 1,827 1,861 (34) Production Solutions 1,828 1,867 (39) Subsea & Surface Pressure Systems 1,291 1,576 (285) Total $ 6,688 $ 7,116 $ (428) Cost of goods and services sold $ 5,540 $ 5,710 $ (170) Research and development costs 114 126 (12) Selling, general and administrative 409 440 (31) Other income (1) (1) — Less: Depreciation and amortization (544) (459) (85) Segment EBITDA $ 1,170 $ 1,300 $ (130) OFSE revenue of $6,688 million decreased $428 million, or 6%, in the first six months of 2026 compared to the first six months of 2025, driven by the SPC disposition and disruptions in the Middle East.
MD&A / first-half OFSE revenue and EBITDA · Filed 27/07/2026
The reduction of EBITDA in the first six months of 2026, after taking into consideration the disposal of SPC was a result of inflation, lower volume, change in business mix, partially offset by cost-out initiatives, overall productivity, and FX.
MD&A / inflation, volume, mix and productivity effects · Filed 27/07/2026
Weighted-average shares of Class A common stock outstanding diluted
1,001
Adjusted earnings per share—diluted (non-GAAP)
$ 2.60
$ 2.35
A-1
The reconciliation of net cash flows from operating activities (GAAP) to free cash flow (non-GAAP) for the years ended December 31, 2025 and 2024 is as follows:
Year Ended December 31
(in millions)
Net cash flows from operating activities (GAAP)
$ 3,810
$ 3,332
Add: cash used for capital expenditures, net of proceeds from disposal of assets
(1,078
(1,075
Free cash flow (non-GAAP)
$ 2,732
$ 2,257
Certain columns may not sum up due to the use of rounded numbers.
Annex A / 2025 and 2024 operating cash flow and net capital spending · Filed 30/03/2026
Cash Flows Cash flows provided by (used in) each type of activity were as follows for the six months ended June 30: (In millions) 2026 2025 Operating activities $ 1,845 $ 1,219 Investing activities 874 (596) Financing activities 9,287 (945) Operating Activities Cash flows provided by operating activities were $1,845 million and $1,219 million for the six months ended June 30, 2026 and 2025, respectively.
MD&A / first-half operating cash flow · Filed 27/07/2026
For the six months ended June 30, 2026, net working capital cash generation was $350 million, mainly due to progress collections, partially offset by contract assets build up and inventory increase.
MD&A / working capital and progress collections · Filed 27/07/2026
The Company will acquire all outstanding shares of Chart's common stock for $210 per share in cash, equivalent to a total enterprise value of approximately $13.6 billion.
Acquisitions / Chart transaction consideration and enterprise value · Filed 05/02/2026
The Company used the net proceeds of the Notes Offering and Term Loans to fund a portion of the cash consideration for the acquisition of Chart, which was completed on July 16, 2026.
Debt / financing used for Chart acquisition completed July 16, 2026 · Filed 27/07/2026
Baker Hughes Company 2026 Second Quarter Form 10-Q | 13 Baker Hughes Company Notes to Unaudited Condensed Consolidated Financial Statements The following table presents the changes in the number of shares outstanding (in thousands): Class A Common Stock 2026 2025 Balance at January 1 986,815 989,646 Issue of shares upon vesting of restricted stock units (1) 4,195 4,700 Issue of shares on exercise of stock options (1) 643 82 Issue of shares for employee stock purchase plan 674 770 Repurchase and cancellation of Class A common stock — (9,751) Balance at June 30 992,327 985,447 (1)Share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation.
Equity / first-half share issuance and outstanding shares · Filed 27/07/2026
Approximately 90% of Mr. Simonelli’s target total compensation is performance-based and at risk, while the other NEOs have an average of 80% performance-based and at-risk compensation.
Executive compensation / 2025 target compensation at risk · Filed 30/03/2026
As discussed previously in the CD&A, the Company’s principal compensation policies, which enable the Company to attract and retain strong and experienced executive officers, include: • providing a significant percentage of total compensation that is variable because it is at-risk, and based on predetermined performance criteria; • requiring significant stock holdings to align the interests of executive officers with those of shareholders; • designing competitive total compensation and rewards programs to enhance our ability to attract and retain knowledgeable and experienced executive officers; and • setting compensation and incentive levels that reflect competitive market practices.
Executive compensation / performance criteria and stockholding requirements · Filed 30/03/2026
The FCF conversion metric is measured against the OSX index and TechnipFMC, and the TSR modifier is measured against OSX Index, TechnipFMC and S&P 500 Industrials index (median performing company).
Executive compensation / FCF conversion and relative TSR measures · Filed 30/03/2026
On a termination within 24 months following a change in control, the services restrictions on all PSUs will immediately lapse and the satisfaction of performance conditions will be fixed at target.
Executive compensation / change-in-control termination treatment of PSUs · Filed 30/03/2026
As described in Item 5.07 below, at the 2026 Annual Meeting of Stockholders (the “Annual Meeting”) of Baker Hughes Company (the “Company”) held on May 19, 2026, the Company’s stockholders voted to approve both the Baker Hughes Company 2026 Long-Term Incentive Plan (the “2026 LTIP”) and the Second Amended and Restated Baker Hughes Company Employee Stock Purchase Plan (the “ESPP”), in order to, among other things, enable the Company to continue to attract and retain employees and non-employee directors by providing stock-based and cash-based incentive compensation, promote a pay-for-performance linkage, align the interests of participants with those of the Company’s stockholders, and encourage proprietary interests in the Company by enabling employees to acquire Company shares.
May 19, 2026 annual meeting / approved incentive and employee stock purchase plans · Filed 19/05/2026
• No fatalities 2025 Assessment: Partially Met Objectives Growth & Transformation • Generate $200M of savings • 2025 New Energy orders of $1.68B • Progression in key metrics for six priorities • EBITDA margin under target despite $259M savings generated • $2.0B New Energy orders • Some progress on key metrics 2025 Assessment: Partially Met Objectives Sustainability & Leadership • Scope 1 / 2 reduction against baseline by 30K MTCO2e • Advancement of work around succession pipeline • 51k MTCO2e • Internal pipeline for key ELT roles and increased efforts around talent identification and development 2025 Assessment: Met Objectives Shareholder Returns • TSR improvement above peer benchmarks • Protect and grow dividend • Broaden investor base as part of Company strategic pillars • TSR in 2025 of +15.5%, positioned 4th out of 18 competitors.
Executive compensation / savings achieved and margin objectives missed · Filed 30/03/2026
45 Table of Contents Executive Compensation The Human Capital and Compensation Committee considered the achievement for the Strategic Blueprint priorities below for 2025 and provided the following assessments on each priority: Performance Component 2025 Performance Expectation Results Safety & Compliance • HSE day, leading & lagging metrics improvement versus 2024 • Zero Workplace caused fatalities • HSE Perfect Days decreased by 5 to 201, permanent impairment increased by 1 to 2, LTIR increased by 0.03 YoY, and TRIR stayed flat.
Executive compensation / safety performance deterioration · Filed 30/03/2026
balancing Year 1 Execution: Define footprint consolidation and production realignment roadmaps Driving margin expansion, earnings growth, and long-term value creation 2 $35M synergies executed since closing A portion of cost synergies will be
September 2026 integration presentation / reported early Chart synergies · Filed 09/09/2026
$325 million in annualized cost synergies within three years.
Chart closing announcement / three-year annualized synergy target · Filed 16/07/2026
Rice Lead Independent Director • reviews the agenda, schedule, and information sent to the directors for Board meetings • works with the Chairman/CEO to propose an annual schedule of major discussion items • leads meetings of the independent directors and regularly meets with the Chairman/CEO for a discussion of matters arising from these meetings • develops and leads the Board evaluation process • develops and leads the Chairman evaluation process • calls additional meetings of the independent directors or the entire Board as deemed appropriate • provides leadership to the Board if circumstances arise in which the role of the Chairman/CEO may be, or may be perceived to be, in conflict • serves as a liaison on Board-related issues between the Chairman/CEO and the independent directors The Board has determined that the current structure, with a combined CEO and Chairman of the Board and a Lead Independent Director, is in the best interests of the Company and our shareholders.
Corporate governance / combined chair and CEO and lead independent director duties · Filed 30/03/2026
Sohi Chairperson The responsibilities of the Audit Committee include: • assisting the Board in overseeing matters relating to the accounting and reporting practices of the Company; • reviewing the adequacy of the Company’s internal controls and other financial controls; • reviewing the quarterly and annual financial statements of the Company; • reviewing the performance of the Company’s internal audit function; • reviewing and pre-approving the current year audit and non-audit services; • overseeing the Company’s compliance programs related to legal and regulatory requirements; • selecting and hiring the Company’s independent registered public accounting firm; and • monitoring and discussing with management the Company’s risk assessment and risk management policies and processes, including risks related to financial reporting, cybersecurity, artificial intelligence, and compliance.
Corporate governance / Audit Committee responsibilities · Filed 30/03/2026
The Board has determined that each member of the Finance Committee is independent.
Corporate governance / Finance Committee independence · Filed 30/03/2026
Our CEO assists the Human Capital and Compensation Committee in reviewing compensation paid to our NEOs but does not participate in discussions regarding his own compensation.
Executive compensation / CEO excluded from own compensation discussions · Filed 30/03/2026
GE will continue to provide Baker Hughes with GE's MarkTM controls products currently in the Nexus Controls portfolio, and we will be the exclusive supplier and service provider of such GE products for our oil and gas customers' control needs.
2023 dispositions / exclusive supply and service rights for specified GE controls products · Filed 05/02/2024
