Baker Hughes Company (BKR) | News Based Sentiment Analysis

• On September 12, 2025, Baker Hughes secured a significant contract with Turkish Petroleum (TPAO) and Turkish Petroleum Offshore Technology Centre (TP-OTC) to deliver subsea production systems for Phase 3 of the Sakarya gas field development. This contract, focused on deepwater gas production (6,500-7,200 feet), demonstrates Baker Hughes’ expertise in challenging environments and expands its presence in the growing Turkish energy market.
• Building on existing relationships, Baker Hughes received an order on September 11, 2025, from Bechtel Energy Inc. to supply equipment for Train 4 of NextDecade’s Rio Grande LNG Facility in Texas. This order, including two Frame 7 gas turbines and six centrifugal compressors, will add 6 million tonnes per annum (MTPA) of LNG production capacity and leverages technology already proven in the first three trains.
• Further solidifying its commitment to new energy, Baker Hughes was awarded a contract by Fervo Energy on September 4, 2025, to provide advanced power generation equipment for the Cape Station Phase II geothermal project in Utah. The equipment, including turboexpanders and generators, is projected to produce approximately 300 megawatts of renewable baseload power, showcasing Baker Hughes’ diversification efforts.
• During a presentation at the Barclays Conference on September 3, 2025, CEO Lorenzo Simonelli outlined the company’s “Three Horizon Strategy,” targeting 20% IET margins by 2026 and 20% total margins by 2028 – a nearly 300 basis point increase. The recent Chart acquisition is expected to contribute to these goals, generating at least $325 million in cost synergies.
• Despite positive business developments, insider selling continued to be a point of attention. CEO Lorenzo Simonelli sold 526,568 shares worth approximately $23.39 million on July 23, 2025, reducing his ownership by 44.10%, and over the 30 days prior to September 4, 2025, insiders sold a total of 173.85K shares worth $15.30M.
• Institutional investor activity remained mixed. Strs Ohio took a $60.49 million position as of September 13, 2025, while other institutions like Geneos Wealth Management Inc. and IFM Investors Pty Ltd reduced their holdings. This varied activity suggests differing investor perspectives on the company’s future.
• Analysts generally maintain a positive outlook, with Melius Research initiating coverage with a “Buy” rating and a $60 price target on September 11, 2025. Additionally, 12 analysts recently revised their earnings estimates upward, indicating growing confidence in the company’s performance.
• As of September 12, 2025, Baker Hughes was trading at $46.49 - $46.97, near its 52-week high and up approximately 45% over the past year, with a market capitalization of approximately $46.3 billion. Simply Wall St analysis suggests the company is 8.9% undervalued.

The Investment Story: September was a busy month for Baker Hughes, marked by significant contract wins in both traditional and new energy sectors, coupled with a reaffirmation of ambitious financial targets. While insider selling remains a concern, positive analyst sentiment and a strong stock performance suggest overall investor confidence.

What It Means for Investors: The new contracts, particularly in LNG and geothermal, demonstrate Baker Hughes’ ability to capitalize on the energy transition. The ambitious margin targets, if achieved, could lead to significant value creation. However, investors should continue to monitor insider activity and assess the risks associated with the Chart acquisition.

Looking Ahead: Investors should watch for updates on the Sakarya and Rio Grande LNG projects, progress on the Chart acquisition integration, and continued execution of the “Three Horizon Strategy.” Monitoring the trend in insider selling and institutional ownership will also be crucial.

The Bottom Line: Baker Hughes is strategically positioning itself for growth in a changing energy landscape. The company’s diversified portfolio, ambitious targets, and positive market momentum make it an attractive investment, but investors should remain mindful of potential risks and monitor key developments closely.