Baker Hughes Co. (BKR) See Long Term Growth Driven by Diversified OFSE Exposure and Increasing IET Order Growth

Equity Research 3 August 2026 | 8:16PM EDT

Baker Hughes Co. (BKR) See Long-Term Growth Driven by Diversified OFSE Exposure and Increasing IET Order Growth

BKR Price Target: -- Price: $60.81 Upside: -- NOT RATED Neil Mehta On the back of 2Q26 earnings, we remain constructive on BKR’s | Goldman Sachs & Co. LLC long-term outlook, particularly within the IET business as the Alexa Petrick Breno company now expects Horizon 2 IET orders to exceed $45 billion. | Goldman Sachs & Co. LLC With increasing capacity for gas turbines through 2028, we anticipate outer-year growth for the company’s IET business, Caitlin Donohue | Goldman Sachs & Co. LLC particularly within power systems as Behind-the-Meter and data center markets remain robust. As the company closed the acquisition of Chart Industries within the quarter, we look to forward Key Data _____________________________________ Market cap: $60.4bn guide as the company integrates the businesses and anticipates Enterprise value: $60.4bn 3m ADTV: $530.4mn increasing exposure to high-growth end-markets. We also see BKR’s United States diversified exposure to global regions within the company’s OFSE Americas Energy Services

segment as a growth driver over the long-term, as we anticipate GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E exposure to regions such as Latin America and Sub-Saharan Africa Revenue ($ mn) New 27,732.0 27,480.5 28,963.2 30,887.3

as a driver of increasing revenue and expanding EBITDA margins Revenue ($ mn) Old 27,732.0 27,356.7 29,547.7 30,542.9 EBITDA ($ mn) 4,747.0 4,983.0 5,466.4 6,107.4 amid the continued uncertainty around Middle East activity levels. EBIT ($ mn) 3,560.0 3,631.3 4,144.3 4,790.1

As a result, we see the potential for BKR to realize increasing EPS ($) New EPS ($) Old revenue and margins over the medium to long-term. P/E (X) Dividend yield (%) 2.1 1.6 2.1 2.5

Estimate Changes. We are adjusting our 2026/2027/2028 EBITDA Net debt/EBITDA (X) 0.0 0.0 0.0 0.0

estimates by +1%/-2%/+1% to reflect continued activity disruptions 6/26 9/26E 12/26E 3/27E EPS ($) in the Middle East, IET orders and expectations for equipment order Source: Company data, Goldman Sachs Research estimates. conversion for 2027 and 2028. We note our current estimates do See disclosures for details.

not reflect the acquisition of GTLS.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Baker Hughes Co. (BKR)

Baker Hughes Co. (BKR) Balance Sheet ($ mn) _______________________________________ NR Rating since Jul 29, 2025 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 3,715.0 15,726.4 16,160.2 16,716.1 Accounts receivable 6,641.0 7,021.5 6,811.9 7,745.8 Inventory 4,954.0 5,008.8 4,685.1 5,049.7 Ratios & Valuation __________________________________________ Other current assets 3,518.0 3,241.0 3,241.0 3,241.0 12/25 12/26E 12/27E 12/28E Total current assets 18,828.0 30,997.8 30,898.3 32,752.6 P/E (X) Net PP&E 5,326.0 5,492.9 5,438.9 5,486.0 EV/EBITDA (X) Net intangibles 10,165.0 9,563.0 9,563.0 9,563.0 EV/sales (X) 1.5 2.2 2.1 1.9 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) 5.9 3.6 4.2 4.8 Other long-term assets 6,562.0 6,934.0 6,934.0 6,934.0 EV/DACF (X) Total assets 40,881.0 52,987.6 52,834.2 54,735.6 CROCI (%) ROE (%) Accounts payable 4,579.0 4,535.0 3,656.0 4,534.1 Net debt/EBITDA (X) 0.0 0.0 0.0 0.0 Short-term debt Net debt/equity (%) 0.0 0.0 0.0 0.0 Current lease liabilities -- -- -- -- Interest cover (X) Other current liabilities 8,609.0 9,316.0 9,316.0 9,316.0 Inventory days Total current liabilities 13,877.0 14,625.0 13,746.0 14,624.1 Receivable days Long-term debt 5,398.0 15,479.0 15,479.0 15,479.0 Days payable outstanding Non-current lease liabilities…