Is Securing Major LNG Equipment and Service Deals Shifting the Investment Narrative for Baker Hughes (BKR)?

• In August 2025, Commonwealth LNG authorized an order for six Baker Hughes refrigerant turbo compressors and LM9000 gas turbines for its 9.5 Mtpa LNG export facility in Louisiana, and bp awarded Baker Hughes a 90-month service agreement for critical turbomachinery at the Tangguh LNG plant in Indonesia.
• These agreements reinforce Baker Hughes' role as a provider of essential LNG equipment and asset management services for large-scale energy infrastructure worldwide.
• We'll examine how securing large LNG equipment orders and long-term service deals may impact Baker Hughes' investment narrative and future growth drivers.

Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

Baker Hughes Investment Narrative Recap

To be a Baker Hughes shareholder right now, you need confidence in the company’s ability to capture recurring revenue and margin growth from the global shift toward LNG and infrastructure projects, even as oil and gas market volatility remains a challenge. The latest contract wins with Commonwealth LNG and bp provide a short-term boost to backlog and revenue visibility, but do not fully offset the ongoing exposure to cost inflation and sector decarbonization risks that could pressure margins and growth.

The recent US$701 million net income reported for Q2 2025 is especially relevant as it demonstrates that Baker Hughes continues to deliver profit growth amid major contract wins. In this context, the new LNG equipment and service agreements support the company’s stated goal of capturing high-quality, recurring revenue streams, but investors should balance these upside catalysts with awareness of margin headwinds and long-term market transition risk.

However, while the company continues to expand its LNG footprint, investors should not overlook the risk of accelerating policy shifts toward renewables that could ...

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

Baker Hughes is projected to reach $29.1 billion in revenue and $2.9 billion in earnings by 2028. This assumes 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 $50.10 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community place Baker Hughes’ fair value between US$47 and US$58.70 per share, reflecting a broad range of outlooks on future potential. With cost inflation and supply chain tightness a focus after the latest LNG wins, community estimates highlight how opinions can differ, take a closer look at the various perspectives available.

Explore 5 other fair value estimates on Baker Hughes - why the stock might be worth just $47.00!

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.

Ready For A Different Approach?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com