How Investors May Respond To Baker Hughes (BKR) Securing Multi-Billion Dollar Energy Technology Contracts

• Baker Hughes recently announced major contract wins, including supplying advanced subsea systems for Turkey's Sakarya Gas Field Phase 3, main liquefaction equipment for the Rio Grande LNG Facility expansion in Texas, and collaborating on a large geothermal power project in California.
• These multi-billion dollar projects underscore growing demand for Baker Hughes’ technology in both traditional and renewable energy sectors worldwide.
• We'll explore how securing large-scale technology contracts in LNG, geothermal, and subsea production could impact Baker Hughes' long-term investment narrative.

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Baker Hughes Investment Narrative Recap

To own Baker Hughes stock, you have to believe that the company’s ability to win large-scale, technology-driven contracts across both traditional and renewable energy markets can help offset slowing upstream oil and gas spending. The recent series of multi-billion dollar contract awards shows momentum behind this theme, but the impact on the most important short-term catalyst, growth in LNG and natural gas projects, appears material, as these wins support backlog and earnings durability. However, the biggest near-term risk remains heightened supply chain and pricing pressure tied to tariffs and material costs.

Among these new announcements, the Rio Grande LNG Facility contract in Texas stands out as most relevant to this catalyst. By supplying advanced turbines and compressors for Train 4, Baker Hughes is reinforcing its position in high-efficiency, lower-emissions gas infrastructure, which could forge greater market resilience as LNG demand evolves.

At the same time, investors should be aware that supply chain or materials cost inflation could affect margins if...

Read the full narrative on Baker Hughes (it's free!)

Baker Hughes is expected to generate $29.1 billion in revenue and $2.9 billion in earnings by 2028. This outlook reflects a 1.8% annual revenue growth rate and a $0.1 billion decrease in earnings from the current $3.0 billion.

Uncover how Baker Hughes' forecasts yield a $50.55 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Fair value estimates from five Simply Wall St Community members span US$47 to US$57.84, highlighting a wide spread of market views. With contract wins fueling backlog growth, you can see why opinions on future margin strength across the sector differ so widely, review the range of perspectives to see how your own outlook compares.

Explore 5 other fair value estimates on Baker Hughes - why the stock might be worth as much as 24% more than the current price!

Build Your Own Baker Hughes Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Baker Hughes research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Baker Hughes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baker Hughes' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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