JP Morgan analyst Arun Jayaram maintained an Overweight rating with a price forecast of $53.

The analyst expects the company to focus on Industrial & Energy Technology’s (IET) strong performance and Oilfield Services & Equipment’s (OFSE) resilience in the conference call, highlighted by key fourth-quarter Middle East contract wins.

The analyst expects the company to close 2025 with strong IET momentum driven by mix, including improvements in the aero-derivative supply chain, boosting higher-margin Gas Tech Services revenues.

Moreover, the analyst projects the OFSE segment to deliver a fairly steady result, with U.S. Gulf activity supporting NAM performance while international markets face slight margin headwinds, including FX.

Quarterly Estimates

The analyst estimates Inbound IET orders at $3.6 billion for the quarter, bringing full-year IET orders to $14.5 billion, versus the full-year guidance range of $13.5 billion to $14.5 billion.

The analyst anticipates the call to highlight BKR’s broad exposure to rising power generation demand beyond its NovaLT turbines for data centers.

Jayaram sees IET revenue of $3.47 billion and EBITDA margins of 19.9%, slightly above guidance ($3.45 billion and 19.7%), with IET EBITDA of $692 million, 1.8% above the guide midpoint of $680 million in the fourth quarter.

Apart from this, the analyst expects OFSE EBITDA of $649 million versus guidance of $650 million, bringing total fourth-quarter EBITDA to $1.266 billion (Street: $1.259 billion) and free cash flow of $756 million.

For 2026, BKR’s guidance incorporates recent M&A but excludes the GTLS merger.

Consequently, the analyst estimates IET revenue of $13.25 billion with $2.67 billion EBITDA (20.2% margin) and OFSE revenue down 6.9% YoY with 18% EBITDA margin, totaling $4.82 billion versus the Street’s $4.88 billion.

BKR Price Action: Baker Hughes shares were down 0.63% at $49.07 at the time of publication on Wednesday, according to Benzinga Pro data.

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