Baker Hughes Raises 2026 Guidance After Completing $13.6 Billion Acquisition

en.Wedoany.com Reported - On September 9, U.S.-based Baker Hughes updated its fiscal year 2026 guidance, raising its full-year revenue forecast to $28.5 billion–$30.3 billion, up from the previous range of $26.65 billion–$28.05 billion; adjusted EBITDA guidance was raised to $4.875 billion–$5.475 billion, compared with the previous forecast range of $4.6 billion–$5.1 billion. The revision mainly incorporates the consolidation contribution from July 16 onward following Baker Hughes' completion of its acquisition of Chart Industries in July.

Baker Hughes completed its acquisition of Chart Industries on July 16. The deal was initially agreed upon in July 2025, with Baker Hughes acquiring all outstanding common shares of Chart Industries for $210 per share in cash, corresponding to an enterprise value of approximately $13.6 billion. Upon completion of the transaction, Chart Industries became an indirect subsidiary of Baker Hughes and was incorporated into the group structure as its third operating business segment.

Baker Hughes' latest guidance shows that Chart Industries is expected to contribute $1.85 billion–$2.25 billion in revenue from July 16 through the end of 2026, with a midpoint of approximately $2.05 billion; EBITDA is expected to contribute $300 million–$400 million, with a midpoint of approximately $350 million. The company expects Chart Industries' full-year contribution to be significantly concentrated in the fourth quarter, with the fourth quarter expected to generate 55%–65% of its second-half core profit.

Within the two existing business segments, the Oilfield Services & Equipment (OFSE) business maintains its 2026 revenue guidance of $13.5 billion–$14.2 billion, with EBITDA expected at $2.3 billion–$2.55 billion; the Industrial & Energy Technology (IET) business is expected to generate revenue of $13.15 billion–$13.85 billion, with orders expected at $17.5 billion–$19.5 billion and EBITDA expected at $2.6 billion–$2.85 billion. Baker Hughes stated that the third-quarter and full-year guidance for the OFSE and IET segments was not adjusted as a result of this update, and the change in group-level guidance this time mainly stems from the consolidation of Chart Industries.

Chart Industries' business covers cryogenic equipment, gas processing, heat transfer, compression and LNG equipment, with products spanning natural gas liquefaction, storage, transportation, regasification and industrial gases. Following the completion of the acquisition, Baker Hughes has incorporated Chart Industries' related capabilities into its LNG, natural gas infrastructure, data center and industrial energy solutions businesses. Chart Industries has production and engineering operations in China, including Chart Cryogenic Engineering Systems (Changzhou) Co., Ltd.

Baker Hughes expects to achieve approximately $325 million in annualized cost synergies by the third year after the completion of the acquisition. At the time of closing, the company also confirmed that it will continue to advance commercial synergies and business system integration. The financing sources for the $13.6 billion acquisition include the company's existing cash, proceeds from bond issuances and term loans; Baker Hughes had previously set a target of reducing its net leverage ratio to 1.0–1.5x within 24 months after the completion of the transaction.

In terms of the LNG business, Baker Hughes expects the order environment to improve entering 2027. The company stated that the short-term margins of Chart Industries' business are still affected by the pace of LNG equipment deliveries, the speed of order conversion, weak hydrogen demand and the margins of certain first-of-a-kind projects; its latest 2026 guidance assumes that Chart Industries' book-to-bill ratio in the second half of the year will exceed 1 and continue into 2027.