Here's Why This Hot Oil and Gas Services Stock Soared in July

Core Viewpoint - Baker Hughes experienced a significant stock increase of 10.1% in July, driven by strong earnings reflecting operational improvements and margin expansion, alongside robust order growth in industrial and energy technology [2] Margin Expansion - Baker Hughes operates in two segments: Industrial and Energy Technology (IET) and Oilfield Services and Equipment (OFSE) [3] - Management aims to increase OFSE EBITDA margin from 16.9% to 20% by 2025 and IET EBITDA margin from 15% to 20% by 2026 [4] - Recent margin performance showed year-over-year and sequential expansion in both segments, with Q2 2023 OFSE margin at 16.4% and IET margin at 14.9% [5] Order Growth - The company reported $7.5 billion in orders for the quarter, surpassing revenue of $7.1 billion, with $3.5 billion in IET orders [6] - Non-LNG orders reached a record of $1.4 billion this quarter, while new energy orders hit a record $445 million, totaling $684 million for the first half of the year [7] Future Outlook - With ongoing margin expansion and strong order growth, Baker Hughes is positioned for a robust 2024, particularly in LNG investments and new energy solutions [8]