Baker Hughes Co - Ordinary Shares - Class A

Q2 results were strong; margin expansion and cash flow beat guidance - Adjusted EBITDA: $1.23B, above the high end of guidance; +2% YoY. - Adjusted EPS: $0.64 (+2% YoY), but dampened by PSI divestiture and formation of the SPC JV (transcript notes these as headwinds). - Adjusted EBITDA margin: 18.3%, +70 bps YoY to a record (strong IT performance offset higher inflationary costs hurting OFSC margin). - Free cash flow: $1.1B (robust collections, including milestone/advanced payments in IET; improved working capital in OFSC).

Orders and backlog momentum: Power + LNG + upgrade cycle drove a standout quarter - Total bookings: $10.5B in Q2. - IET orders: $7.1B, doubled YoY, record, with 2.2x book-to-bill. - RPO: up 19% to $37.1B (all-time high); IET booked $20B+ over the last 4 quarters (more revenue visibility and installed base growth). - Power Systems: $2.6B orders including 2.7 GW generation; major data center-related awards (e.g., NovaLT mobile power, and a Kodiak Gas Services agreement leveraging NovaLT/frame 5/generators). - LNG / GTS upgrades: $1.8B LNG equipment orders (incl. Venture Global liquefaction modules) and record GTS upgrade orders (benefiting from Cheniere-related equipment and fleet-wide gas turbine enhancements).

Full-year 2026 outlook improved slightly; Q3 guidance assumes Middle East disruption roughly unchanged - Q3 (company-level guidance, midpoint): - Revenue: $6.87B - Adjusted EBITDA: $1.205B - IET: revenue ~$3.32B, EBITDA ~$660M - OFSC: revenue ~$3.55B, EBITDA ~$625M - Full-year 2026 guidance (raised vs. prior expectations): - Revenue: $27.35B - Adjusted EBITDA: $4.85B - IET orders guidance (raised): $17.5B–$19.5B (second straight year of record orders) - IET revenue guidance: midpoint $13.5B (assumes Waygate divestiture closes by year-end) - OFSC guidance: revenue $13.85B, EBITDA $2.45B (improved) - Key assumption / risk framing: Middle East activity levels assumed broadly unchanged through year-end; any material change could swing results.