On this page of StockholderLetter.com we present the latest annual shareholder letter from Baker Hughes Co — ticker symbol BKR. Reading current and past BKR letters to shareholders can bring important insights into the investment thesis.

 •  3/30/2026 Letter Continued (Full PDF)
 •  3/31/2023 BKR Stockholder Letter
 •  4/2/2024 BKR Stockholder Letter
 •  3/31/2025 BKR Stockholder Letter
 •  More "Oil & Gas Equipment & Services" Category Stockholder Letters
 •  BKR Benford's Law Stock Score = 91

BKR Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2
0
2
5

Awards & recognition
Newsweek   s 2026 list
of America   s Greatest
Workplaces for Culture,
Belonging & Community
   Best Energy Workplaces    within
the 2025 ALLY Energy GRIT Awards
One of the Most Honored Companies
in Extel   s 2025 All-America Executive
Survey: No. 1 in Oil Services &
Equipment with top rankings in Best
CEO, CFO, Company Board, and
Investor Relations.
   Best Sustainability Reporting
(Large Cap)    at Governance
Intelligence   s Corporate
Governance Awards
Winner of the
fourth annual NOIA
Environmental,
Social, &
Governance (ESG)
Excellence Award
2025 highlights
PERFORMANCE
$29.6B
in orders
10%
increase in
adjusted EPS*
5%
increase in
adjusted EBITDA*
$2.73B

$1.3B
cash returned
to shareholders
TECHNOLOGY AND INNOVATION
$600M
in research and development
>1,400
$2.0B
29.3%
201
$27.7B
120+
patents granted
worldwide in    25
in New Energy orders
SUSTAINABILITY LEADERSHIP
AA
Rating
by MSCI
reduction in scope
1 & 2 GHG emissions**
HSE Perfect Days
ABOUT BAKER HUGHES
~56,000
employees
in revenue
countries where we conduct business
*Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow are non-GAAP financial measures     see appendix for GAAP to non-GAAP
reconciliations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.
**2024 actual compared to 2019 base year

Dear fellow
shareholders,
Lorenzo Simonelli

As I reflect upon 2025, the year stands out as one of
I am also proud of the collective work to continue building
Baker Hughes    most transformative since the company
a stronger, more durable Baker Hughes that reaches new

customers and markets in innovative ways. In 2025, the
and meaningful progress in our evolution to become

a leading industrialized energy solutions company.
With this momentum, 2026 has the potential to be even

to showcase our differentiated power systems capabilities
to new partners: We went from no data center orders in
2024 to $1 billion in 2025. This achievement reinforces our

We delivered an outstanding year in 2025, highlighted by
orders from 2025 to 2027     doubling our previous estimate.
record performance across the company. Adjusted EBITDA
Baker Hughes remains committed to delivering innovative
margins* rose to a record 17.4%, with adjusted EBITDA*
solutions to support rising energy demand, driven in part by



was driven by strong performance in Industrial & Energy

company. Notably, IET secured $14.9 billion in orders and
These results demonstrate Baker Hughes    commitment to
delivering value for customers and shareholders, while
The year further validated our customers    continued
LNG and natural gas     which we continue to view as a
key destination fuel for sustainable, secure and affordable
and we anticipate this demand will surge by at least 75% by
that we continue to enable the decarbonization of industry.
By integrating complementary surface and subsurface
also unlocking growing synergy opportunities across
carbon capture and storage. This progress was evident in
our record New Energy bookings for 2025, which reached
$2 billion     well above our $1.4 to $1.6 billion target. Looking
ahead, we are targeting $2.4 to $2.6 billion of New Energy
orders in 2026.
I was particularly pleased with our advancements in
geothermal, a source of energy as old as the planet and
yet still in the early stages of development in many regions.
In the fall, we announced a contract to design and deliver





in natural gas demand is fueling increased investment in
subsurface drilling and production technologies award for

this same project. Together, these wins demonstrate the

growing relevance of our integrated portfolio in providing
target during Horizon Two.

*Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow are non-GAAP financial measures     see appendix for GAAP to non-GAAP
reconciliations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.

Our continued success     including a substantial award to supply
aeroderivative gas turbines for mobile power generation across
    demonstrates our strong position to capitalize on a powerful and
enduring growth opportunity in global power generation. Through our
power systems solutions portfolio, we sit squarely at the intersection of

lifecycle power solutions to customers across diverse industries.
As part of our portfolio management strategy, we advanced several
strategic transactions last year: the formation of a joint venture with


management and lifecycle services.
These portfolio actions continue to position Baker Hughes as an
industrialized energy solutions company, ready to deliver the radical
new outcomes required to sustain the growth in demand for energy.
Just over three years ago, we revealed our three time horizon strategy to
simplify and strengthen Baker Hughes to best deliver for our customers
and shareholders     and above all, deliver resources to a world requiring
more energy with every passing year. 2025 capped Horizon One and

portfolio to capture market tailwinds in power generation and LNG, and
2025 should be remembered for the substantial progress made in
driving operational improvements, advancing our portfolio, and
delivering leading shareholder returns. With a stronger portfolio,


for your continued support.

Lorenzo Simonelli

*Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow are non-GAAP financial
measures     see appendix for GAAP to non-GAAP reconciliations. Adjusted EBITDA
margin is defined as Adjusted EBITDA divided by revenue.

Our leadership
Lorenzo Simonelli

BOARD OF DIRECTORS
John G.
Rice
Abdulaziz M.
Al Gudaimi
W. Geoffrey
Beattie
Gregory D.
Brenneman
Cynthia B.
Carroll
Lead Independent
Director
Michael
Dumais
Shirley
Edwards
Ilham
Kadri*
Mohsen
M. Sohi
MANAGEMENT TEAM
Ahmed
Moghal
Amerino
Gatti
Maria Claudia
Borras




& Energy Technology (interim)
Jim
Apostolides
Muzzamil
Khider Ahmed
Georgia
Magno




*Ilham Kadri is a director nominee who is standing for election at the 2026 Annual Meeting of Shareholders.

3/30/2026 Letter Continued (Full PDF)

 

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