BKR Stock Forecast & Price Target

Baker Hughes is poised for growth in its oilfield services and equipment (OFSE) and industrial and energy technology (IET) segments, driven by increased industry utilization and higher service demand, which are expected to lead to improved revenues and expanded margins. The firm's operational focus on global markets, particularly outside North America, positions it to capitalize on rising commodity prices that could enhance exploration and production spending, bolstering its financial outlook. Additionally, anticipated improvements in service pricing and fixed cost absorption present key catalysts that could further strengthen Baker Hughes's financial performance.

Baker Hughes has experienced a downward revision in its financial projections, with the 2Q25 oilfield services and equipment (OFSE) EBITDA estimate decreased by 3% to $669 million, negatively impacting the overall EBITDA estimate, which has been adjusted down by 1% to $1,185 million. The company anticipates that revenues and margins for both the industrial and energy technology (IET) and OFSE segments will fall short of expectations due to insufficient activity levels and lower utilization affecting fixed cost absorption. There are several risks influencing the negative outlook, including reduced industry activity, potential underperformance of capital invested in energy transition, increased regulatory pressures, and challenges associated with foreign operations and contract pricing.