Baker Hughes

Evidence of pricing power is clearest in IET, where specialized turbomachinery and service contracts allow balanced price increases and resilient margins, supported by limited qualified suppliers. Q3 2025 highlighted strong IET orders and backlog growth despite a softer OFSE backdrop.

OFSE pricing is more competitive and cyclical, limiting consolidated pricing power. We see latent upside as IET mix grows and service share rises, but we remain conservative given cycle exposure and tariff headwinds flagged earlier in 2025.