Baker Hughes Raises 2026 Revenue and EBITDA Forecasts After Chart Acquisition

Baker Hughes raised its full-year 2026 revenue and adjusted EBITDA forecasts after adding Chart Industries to its financial outlook following the July 16 acquisition close. The energy technology company now expects revenue of $28.5 billion to $30.3 billion and adjusted EBITDA of $4.875 billion to $5.475 billion, according to its September 9 investor update tied to the Barclays Energy-Power Conference.

The new company-wide ranges are above Baker Hughes’ prior outlook of $26.65 billion to $28.05 billion in revenue and $4.6 billion to $5.1 billion in adjusted EBITDA. The important distinction is that Baker Hughes did not raise the 2026 outlook for its existing Oilfield Services & Equipment, or OFSE, and Industrial & Energy Technology, or IET, segments. Management said both remain on track with their previous full-year ranges, so the higher consolidated forecast largely reflects the addition of Chart for the period after the acquisition closed.

Chart adds $1.85 billion to $2.25 billion of 2026 revenue

Baker Hughes expects Chart to contribute $1.85 billion to $2.25 billion of revenue in 2026, with a midpoint of $2.05 billion. That maps exactly to the increase in Baker Hughes’ consolidated revenue range: the low end rises by $1.85 billion from the previous outlook, the high end rises by $2.25 billion, and the midpoint increases by $2.05 billion to $29.4 billion. The arithmetic makes clear that the revenue revision is primarily an acquisition-driven change rather than a fresh upward reset for the legacy businesses.

Chart is also expected to contribute $300 million to $400 million of adjusted EBITDA from the July 16 closing date through year-end. Baker Hughes’ new adjusted EBITDA midpoint is $5.175 billion, compared with $4.85 billion under the previous range. Management continues to guide OFSE to 2026 revenue of $13.5 billion to $14.2 billion and EBITDA of $2.3 billion to $2.55 billion, while IET revenue remains forecast at $13.15 billion to $13.85 billion with EBITDA of $2.6 billion to $2.85 billion.

The timing of Chart’s contribution will not be even across the remaining months of the year. Baker Hughes said Chart’s 2026 results are expected to be weighted toward the fourth quarter. Its second-half assumptions reflect LNG project timing, order-conversion dynamics, softer hydrogen demand and margin pressure from first-of-a-kind projects, while management expects Chart’s book-to-bill ratio to stay above 1 in the second half and carry order momentum into 2027.

Cash generation is another area where the acquisition changes the consolidated outlook. Baker Hughes now expects free cash flow conversion of 40% to 45% for 2026, with the measure defined as free cash flow divided by adjusted EBITDA. The company said the range reflects additional interest expense and other acquisition and post-close costs. That makes the higher EBITDA forecast only one part of the financial picture as Baker Hughes absorbs financing and implementation expenses during the first months of ownership.

Baker Hughes targets a higher Chart margin by 2028

The near-term Chart contribution is below the profitability level Baker Hughes is targeting over the next two years. Its September materials point to an adjusted EBITDA margin of roughly 17% for Chart at the midpoint of the second-half 2026 outlook, followed by a target of 22% to 23% by the second half of 2028. Reaching that range would depend on cost savings, stronger execution and a more favorable mix across Chart’s equipment and service businesses.

Baker Hughes has previously set a goal of $325 million in annualized cost synergies by the third year after the acquisition. The company said in its latest presentation that actions representing about $35 million of cost savings had already been executed since the close. Those savings do not all appear immediately in reported earnings, but they provide an early measure of the work management is using to support the longer-term margin target.

Order visibility will also matter. After aligning Chart’s accounting policies with Baker Hughes, management expects Chart’s remaining performance obligations to be about $3.6 billion at the end of the third quarter. That backlog measure will give investors a clearer starting point for assessing how quickly Chart converts orders into revenue inside Baker Hughes and whether the expected second-half book-to-bill performance carries into next year.

The margin plan comes with execution risk because some of the pressures identified by management are tied to project timing rather than costs that can simply be removed. LNG awards can shift between periods, hydrogen demand remains soft, and early-stage projects can carry lower margins before engineering and production become more standardized. Baker Hughes therefore has to improve Chart’s cost structure while preserving the order base that underpins the revenue opportunity.

Chart is now Baker Hughes’ third reporting segment

Baker Hughes completed the acquisition of Chart on July 16, with Chart becoming an indirect subsidiary and a new reporting segment. The company said Chart generated $4.3 billion of revenue in fiscal 2025 and serves customers in more than 50 countries. Its businesses add air and gas handling, thermal management and lifecycle-service capabilities across gas infrastructure and industrial markets that include nuclear power, data centers, carbon capture, geothermal and other energy applications.

The acquisition also changes the scale and mix of Baker Hughes beyond its two legacy segments. Before Chart was included in the forecast, Baker Hughes reported second-quarter revenue of about $6.7 billion and adjusted EBITDA of $1.231 billion. IET booked a record $7.1 billion of orders in the quarter, and Baker Hughes reported total remaining performance obligations of $40.1 billion, including $37.1 billion in IET. Those figures show that the existing portfolio entered the second half with a large backlog even though management has left the full-year OFSE and IET guidance ranges unchanged.

The next quarterly report will be the first Baker Hughes financial statement to include Chart results for the post-close period. Investors will be able to compare the actual contribution with the new $1.85 billion to $2.25 billion 2026 revenue range, the $300 million to $400 million adjusted EBITDA expectation and the company’s estimate of roughly $3.6 billion in Chart remaining performance obligations at the end of the third quarter. Those figures will provide the first reported test of how the acquired business is tracking against the assumptions now embedded in Baker Hughes’ higher 2026 outlook.