Baker Hughes Company Class A (BKR)

Baker Hughes Co.'s stock price has underperformed the S&P 500 Index by -10.74% in the past six months, but has increased by 10.58% over the past year. Key events include stronger-than-expected Q1 2025 earnings driven by LNG orders, acquisitions like Continental Disc Corporation, and contract awards from Equinor. Management has expressed caution regarding global economic uncertainty and geopolitical risks, which could lead to weaker oil demand and decelerated spending, particularly in North America. OPEC's production curtailment decisions can also affect upstream companies' plans.

Baker Hughes experiences negative seasonality in the first quarter, leading to decreased revenues and operating income in both OFSE and IET segments due to seasonal declines in international activities and a slow start in US onshore markets. The company anticipates sustained LNG demand in international markets to support long-term development plans. Demand is influenced by petroleum industry expenditures, crude oil and natural gas prices, drilling activity, OPEC policies, and adverse weather conditions.

Baker Hughes Co. is a global energy technology company providing technologies and services across the energy and industrial value chain. It operates through two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). The OFSE segment offers products and services for onshore and offshore oilfield operations throughout a well's lifecycle. The IET segment provides technology solutions and services for mechanical-drive, compression, and power-generation applications across the energy industry, including lower carbon solutions.

Baker Hughes has a significant global presence, operating in over 120 countries with facilities in regions including Australia, Brazil, Singapore, Malaysia, India, Dubai, Saudi Arabia, Italy, Germany, Norway, the United Kingdom, and the United States. Approximately 77% of its revenue is generated outside the US, with North America accounting for about 27% and the Middle East/Asia for approximately 38%.

Baker Hughes maintains a strong brand reputation by emphasizing innovation, sustainability, and safety. The company is committed to the energy transition, investing in technologies like hydrogen and CCUS, and aims to achieve net-zero emissions by 2050, already reducing Scope 1 and 2 GHG emissions by 28.3% from 2019. Baker Hughes invests significantly in R&D to improve efficiency, reliability, and sustainability, with strong financial performance and a commitment to safety, achieving 206 "Perfect HSE Days" in 2024.

As of early 2025, Baker Hughes is primarily owned by institutional investors, holding 93.24% of the company's shares, while individual investors hold 0.16% and insiders own 0.70%. Major institutional owners include Vanguard Group Inc., JPMorgan Chase & Co., BlackRock, Inc., State Street Corp, Dodge & Cox, Capital World Investors, Capital Research Global Investors, Geode Capital Management LLC, Fmr LLC, and Artisan Partners Limited Partnership.