**Strong Financial Performance**: Baker Hughes reported a record quarterly EBITDA of approximately $1.21 billion, reflecting a 23% year-over-year increase. EBITDA margins improved to 17.5%, the highest since 2017, with both the Industrial and Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments demonstrating strong margin expansion, particularly in gas technology services which are expected to grow significantly due to increased LNG installations.
**Robust Order Book**: Total company orders reached $6.7 billion, with IET contributing $2.9 billion, marking the eighth consecutive quarter of orders at or above this level. The company expects to exceed the high end of its $800 million to $1 billion order guidance for new energy, and anticipates further growth in gas infrastructure projects, underlining the underlying demand for its service offerings.
**Positive Outlook for Margins**: Baker Hughes is firmly targeting a 20% EBITDA margin for IET by 2026, driven by continued productivity improvements, higher-margin backlog conversion, and cost efficiencies. The company has already achieved significant margin improvements this year, with IET EBITDA margins increasing 2.9 percentage points year-over-year to 17.9%.