How Does This Energy Supplier Operate?
Baker Hughes is an energy-focused company that sells equipment, technology, and services used across the energy value chain. Its work spans large, project-driven customer needs alongside ongoing service and support activity. The company operates at global scale, serving a broad set of energy customers rather than a single niche. With a market value around USD 63 billion, it sits among the larger publicly traded names in its space.
Are Margins and Cash Flow Holding Steady?
FundamentalsFor 2025, reported in USD, revenue was about USD 27.7 billion and net income was roughly USD 2.6 billion, with revenue essentially flat year over year at -0.3%. Profitability over the trailing period shows a 23.64% gross margin and a 14.19% operating margin, bringing net profit margin to 11.17%.
On the balance sheet, year-end cash of about USD 3.7 billion stood above total debt of roughly USD 1.4 billion. Depreciation and amortization were around USD 1.2 billion for the year.
Is The Market Pricing Stability Fairly?
DCF / MultiplesAt USD 63.53, the stock sits near the central fair value estimate, with the DCF range running from USD 45.08 in a weaker scenario to USD 63.84 centrally and USD 83.86 in a stronger outcome. Headline pricing also aligns with mid-range multiples, including about 20.23x earnings and 12.59x EV/EBITDA on a trailing basis.
Balance Sheet Offers Support
TakeawayThe balance sheet looks like a real stabilizer here. Cash exceeds debt, which lowers financial strain. For the price to work, profits need to hold up. If margins fade, the valuation support weakens quickly.