Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

It has been about a month since the last earnings report for Baker Hughes (BKR) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Baker Hughes due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.Baker Hughes Q4 ...

Baker Hughes to provide 25 BRUSH™ Power Generation DAX 7 generators to complement Boom’s 42-megawatt Superpower aeroderivative turbinesCombined power equipment will support Boom’s 1.21-gigawatt commitment to Crusoe for critical AI data center infrastructure HOUSTON and LONDON, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Tuesday an award to supply 25 BRUSH™ Power Generation electric generators, along with Automatic Voltage Regulators (AVRs) and cubicl ...

Key Takeaways Nordson's Q1 fiscal 2026 EPS rose 15% to $2.37, beating estimates as revenues grew 8.8% year over year.NDSN's Advanced Technology Solutions sales jumped 23.1%, with organic growth of 20.7% in the quarter.Nordson raised fiscal 2026 guidance, projecting sales of $2.86-$2.96B and EPS of $11-$11.60.Nordson Corporation’s (NDSN) first-quarter fiscal 2026 (ended Jan. 31, 2026) adjusted earnings of $2.37 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line increased 15% year over ...

Financial Performance - Baker Hughes reported strong financial performance for Q4 2025, with adjusted earnings per share of $0.78, exceeding market expectations of $0.67 [2] - Adjusted EBITDA reached $1.337 billion, also above expectations, driven by the industrial and energy technology segment, which generated revenues of $3.814 billion and an EBITDA margin of 20.0% [2] - The company achieved a record order intake of $14.9 billion for the full year 2025, leading to a 2.37% increase in stock price to $60.55 on February 11, 2026 [2] Strategic Initiatives - The company is accelerating its transition towards power systems and data centers to capitalize on the growing global electricity demand [3] - CEO Lorenzo Simonelli highlighted that this strategy aims to address long-term trends driven by electrification, the rise of electric vehicles, and the development of data centers [3] Corporate Developments - On January 7, 2026, Baker Hughes completed the formation of a joint venture with Cactus, integrating its surface pressure control product line [4] - Baker Hughes holds a 35% stake in the joint venture and received approximately $344.5 million in cash, aimed at enhancing capital efficiency and market competitiveness [4] Industry Context - The oil and gas equipment and services sector is supported by a supply risk premium due to geopolitical tensions in the Middle East, with the sector rising by 1.12% on February 11, 2026 [5] - The company's oilfield services and equipment segment maintained resilience through cost optimization, achieving an EBITDA of $647 million, which exceeded expectations [5]

Group 1 - Baker Hughes Company (BKR) has secured an order to supply 10 Frame 5 gas turbines and associated generator technology for U.S. data center projects by Twenty20 Energy, with initial deliveries starting in 2027, capable of generating up to 250 MW of power for sites in Georgia and Texas [1][7] - This transaction signifies a long-term partnership between Baker Hughes and Twenty20 Energy, aimed at providing reliable and cleaner energy to meet the increasing power demands of AI and data centers across the United States [2] - The demand for BKR's gas turbine technology is surging, driven by the expansion of AI, cloud computing, and digital infrastructure, which is expected to enhance cash flows and investor appeal in the future [3] Group 2 - The growing demand for data centers and the global shift towards cleaner energy are anticipated to increase spending on companies supplying power-generation equipment or cleaner fuels for data centers in the coming years [4] - Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX) are highlighted as leading integrated giants involved in producing low-carbon intensity power and renewable fuels to meet the rising demand from data centers [5] - Linde plc (LIN) is recognized for its position as a leading hydrogen supplier, which, along with its involvement in emerging clean fuels and extensive pipeline network, enables reliable hydrogen delivery at scale [6]

Core Insights - Baker Hughes has received an order from Twenty20 Energy for 10 Frame 5 gas turbines and associated generator technology, which will support up to 250 MW of power generation capacity, with initial deliveries scheduled for 2027 [1][6] - This order is part of a strategic agreement aimed at supplying multi-gigawatt power generation equipment to meet the growing demand for AI and digital infrastructure in the U.S. [2] Group 1: Company Overview - Baker Hughes is an energy technology company that provides solutions to energy and industrial customers globally, operating in over 120 countries [4] - Twenty20 Energy focuses on developing and operating large-scale power generation assets to support AI-driven data centers and digital infrastructure, primarily in the U.S. [5] Group 2: Strategic Collaboration - The collaboration between Baker Hughes and Twenty20 Energy aims to deliver resilient and sustainable power solutions to support the increasing demand for digital infrastructure [2] - Both companies express a strong commitment to innovation and long-term value creation through this partnership [3]

Wall Street spent 2025 worshiping algorithms. Early 2026 belongs to oilfield steel. While Big Tech has stalled, the energy complex is sprinting toward its eighth straight green week — a streak not seen in nearly two years.Sector Scoreboard (YTD As Of Feb. 9)Why Drillers Are WinningThis rally isn't about memes or models — it's about contracts. SLB's recent wave of international project awards, longer-cycle offshore work, and higher-margin digital completions have reignited confidence that service providers a ...

Financial Performance - In 2025, the company generated revenues of $27.7 billion, a decrease of $0.1 billion compared to 2024, with IET revenue increasing by $1.2 billion (10%) and OFSE revenue decreasing by $1.3 billion (8%) due to declines across all regions [220]. - Net income for 2025 was $2.6 billion, a decrease of $0.4 billion (13%) compared to 2024, impacted by lower mark-to-market adjustments for equity securities and transaction-related costs [220]. - The average Brent oil price in 2025 was $69.14 per barrel, down from $80.52 in 2024, while WTI oil prices averaged $65.39 per barrel, down from $76.63 [229]. - Rig counts in North America decreased to 738 in 2025 from 787 in 2024, and international rig counts fell to 1,080 from 1,161, indicating a decline in drilling activity [233]. - OFSE segment revenue decreased by $1,304 million, or 8%, to $14,324 million in 2025 compared to 2024, primarily due to reduced oilfield activity and a lower rig count [253]. - IET segment revenue increased by $1,208 million, or 10%, to $13,409 million in 2025 compared to 2024, driven by growth in Gas Technology Equipment and Services [255]. - OFSE segment EBITDA decreased by $263 million, or 9%, to $2,618 million in 2025, attributed to lower volume and inflation, partially offset by cost reduction initiatives [254]. - IET segment EBITDA increased by $432 million, or 21%, to $2,482 million in 2025, driven by higher volume and pricing, despite inflationary pressures [256]. - Cash flows from operating activities increased to $3,810 million in 2025, up from $3,332 million in 2024 [276]. - Capital expenditures for 2025 were $1,273 million, slightly down from $1,278 million in 2024 and $1,224 million in 2023, with cash flows from the disposal of PP&E at $195 million in 2025 [282]. Shareholder Returns - The company returned a total of $1.3 billion to shareholders in 2025 through dividends and share repurchases, with a quarterly dividend increase to $0.23 per share [222]. - The company repurchased 9.8 million shares for $384 million in 2025, compared to 15.2 million shares for $484 million in 2024 and 16.3 million shares for $538 million in 2023 [288]. - Cash flows used in financing activities were $1,482 million in 2025, down from $1,527 million in 2024 and $2,028 million in 2023, with dividends paid of $910 million in 2025 [287]. Acquisitions and Investments - The anticipated acquisition of Chart is expected to close in Q2 2026, pending regulatory reviews, while the acquisition of Continental Disc Corporation was completed in August 2025 [221]. - The company entered into an agreement to acquire Chart's common stock for $210 per share, totaling approximately $13.6 billion in enterprise value [273]. - The company completed the acquisition of CDC for approximately $543 million in 2025 and incurred a termination fee of $258 million related to the acquisition of Chart [283]. - In 2023, the company acquired businesses for a total cash consideration of $301 million and sold businesses for $293 million [284]. Future Outlook - The company anticipates modest declines in global upstream spending in 2026, influenced by geopolitical uncertainties and the need for a reduction in idled OPEC+ production [218]. - The company expects continued growth in new energy solutions focused on reducing carbon emissions, including hydrogen and energy storage technologies [224]. - The company anticipates making income tax payments in the range of $1.0 billion in 2026 [292]. Financial Position and Obligations - Total remaining performance obligations (RPO) as of December 31, 2025, amounted to $35.9 billion, with OFSE contributing $3.5 billion and IET contributing $32.4 billion [245]. - The company maintained cash and cash equivalents of $3.7 billion as of December 31, 2025, compared to $3.4 billion in 2024 [268]. - As of December 31, 2025, the company had purchase obligations of $1,840 million payable within the next twelve months [296]. - Expected cash payments for estimated interest on long-term debt and finance lease obligations are $247 million within the next twelve months and $2,223 million payable thereafter [295]. Research and Development - Research and development costs decreased by $43 million (7%) to $600 million in 2025, reflecting cost management efforts [247]. - Research and development costs decreased by $19 million, or 7%, to $241 million in the OFSE segment in 2025 [253]. Risk Management - The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, which may affect revenue and costs [327]. - The company had outstanding foreign currency forward contracts with notional amounts of $4.0 billion as of December 31, 2025, to hedge against currency fluctuations [333]. - A 1% appreciation or depreciation in the U.S. dollar is estimated to impact pre-tax earnings by less than $15 million [334]. - The company's fixed rate long-term debt totals $5.706 billion, with a weighted average interest rate of 4.08% [330]. - The fair market value of the company's fixed rate long-term debt, excluding finance leases, was $5.4 billion at December 31, 2025 [335]. - The company performs annual impairment tests for goodwill and other long-lived assets, which may involve significant estimates and assumptions [318]. - The company assesses the recoverability of deferred income tax assets based on a rolling three-year period of cumulative pretax losses and other evidence [320]. - The company has $525 million of gross unrecognized tax benefits as of December 31, 2025, excluding interest and penalties [322]. - As of December 31, 2025, the company had interest rate swaps with a notional amount of $500 million, converting part of its $1,350 million fixed rate Senior Notes into a floating rate instrument [328]. - The company has the option to perform a qualitative assessment for goodwill impairment before conducting a quantitative assessment [316].

Core Insights - Baker Hughes has entered into a multiyear preferred provider agreement with Marathon Petroleum, the largest U.S. petroleum refiner, to supply hydrocarbon treatment products and services at refineries across the United States [1][2]. Group 1: Agreement Details - The agreement includes the provision of Baker Hughes' downstream chemical technologies, such as XERIC™ heavy oil demulsifiers, TOPGUARD™ corrosion inhibitors, BIOQUEST™ renewable additives, and digital monitoring tools [2]. - These technologies will be implemented at 12 oil refineries and 2 renewable fuel facilities in the United States, aimed at enhancing operational reliability and environmental compliance while minimizing nonproductive time [2][5]. Group 2: Company Positioning - Baker Hughes is recognized as a leader in downstream chemicals, with over three decades of collaboration with Marathon Petroleum, highlighting the company's innovation, commitment, and expertise in the sector [3]. - The company emphasizes the importance of flexibility, efficiency, reliability, and sustainability in meeting the energy demands of modern industry [3]. Group 3: Company Overview - Baker Hughes is an energy technology company that provides solutions to energy and industrial customers globally, leveraging a century of experience and operating in over 120 countries [4]. - The company's innovative technologies and services aim to advance energy in a safer, cleaner, and more efficient manner for both people and the planet [4].