Financial Data and Key Metrics Changes - Baker Hughes Company has nearly doubled EBITDA over the past five years, supported by the faster-growing Industrial & Energy Technology (IET) segment, which is expected to account for 48% of total revenues this year [6][8] - The company has achieved almost 600 basis points of margin expansion since the start of its transformation [6][10] - Baker Hughes is targeting total company margins of 20% by 2028, an increase of nearly 300 basis points from the 2025 implied guidance [17][19] Business Line Data and Key Metrics Changes - The Oilfield Services & Equipment (OFSE) segment has seen a margin increase of more than 300 basis points during Horizon One, reflecting simplification of the operating structure and solid commercial success [10][11] - IET margins are expected to be above 18% in 2025, also more than 300 basis points higher since the start of Horizon One [10][11] - The company has booked over $40 billion of IET orders, including $3.8 billion in new energy [8][18] Market Data and Key Metrics Changes - Over 70% of OFSE revenue is generated internationally, with offshore contributing approximately 40% of segment revenue [4][5] - The company is positioned to benefit from secular growth markets such as LNG, gas infrastructure, data centers, hydrogen, geothermal, and clean power [5][6] Company Strategy and Development Direction - The Free Horizon Strategy aims to transform Baker Hughes into a differentiated energy and industrial technology company, focusing on sustained growth and durable earnings [2][3] - Horizon Two (2026-2028) will focus on scaling profitability, deepening the industrial footprint, and leveraging AI and digital technologies [8][9] - The recent acquisition of Chart Industries is expected to accelerate strategic progress and enhance capabilities across energy and industrial applications [3][20] Management's Comments on Operating Environment and Future Outlook - Management believes that the demand for LNG and gas infrastructure will continue to grow, providing a positive outlook for the company's order visibility [26] - The company is confident in achieving at least $325 million in cost synergies from the integration of Chart Industries [22][28] - The advent of AI is seen as a game-changer, driving productivity and energy consumption, reinforcing the belief that natural gas will play a central role in the energy mix [24] Other Important Information - Baker Hughes has generated more than $2.5 billion in cash proceeds from strategic actions since the merger in 2017 [16] - The company is targeting to raise at least $1 billion from non-core asset sales to achieve leverage targets [19] Q&A Session Summary Question: What are the components of the $40 billion IET orders over the next three years? - Management indicated that there are several end markets with growth potential, including LNG, data centers, and gas infrastructure, which support the confidence in achieving the $40 billion target [25][26] Question: How did the company achieve a 40% increase in capacity in GTE with the same footprint? - The increase was attributed to the application of the Baker Hughes Business System, which has allowed for greater efficiency and productivity without significant capital expenditure [27] Question: Is improving efficiency at Chart Industries a key driver for the acquisition? - Yes, management sees significant opportunities to enhance margin outlook at Chart through the application of the Baker Hughes Business System [28]

Financial Data and Key Metrics Changes - Baker Hughes has nearly doubled EBITDA over the past five years, with a margin expansion of almost 600 basis points [6][8] - The company expects IET margins to be above 18% in 2025, reflecting a more than 300 basis point increase since the start of Horizon One [10][17] - Total Baker Hughes Company margins are targeted to reach 20% by 2028, an increase of nearly 300 basis points from the 2025 implied guidance [17] Business Line Data and Key Metrics Changes - The IET segment is expected to account for 48% of total revenues this year, indicating a significant shift towards this segment [6][8] - OFSE revenue is generated internationally, with over 70% coming from outside the U.S., and offshore contributing approximately 40% of segment revenue [4][6] - IET gas technology equipment margins have increased by more than 9 percentage points since the start of Horizon One [11] Market Data and Key Metrics Changes - The company sees positive tailwinds in several end markets, including LNG, gas infrastructure, and distributed power solutions, which are expected to drive growth [25] - The demand for LNG is anticipated to continue growing into the 2030s, supported by increasing energy requirements [25] - The company aims to generate at least $40 billion in IET orders over the next three years, reflecting strong visibility in its technology portfolio [18] Company Strategy and Development Direction - Baker Hughes is focused on transforming into a differentiated energy and industrial technology company, with a strategic vision outlined in its Free Horizon Strategy [2][8] - The company plans to leverage AI and digital technologies to drive efficiency and enhance customer solutions [8][17] - The acquisition of Chart Industries is expected to accelerate strategic progress and broaden exposure across core growth markets [3][20] Management's Comments on Operating Environment and Future Outlook - Management believes that Baker Hughes is in its strongest position since the merger nearly a decade ago, with significant operational improvements achieved [22][23] - The company is confident in the role of natural gas in the future energy mix, particularly in emerging economies [23] - Management expressed optimism about the potential for margin expansion and revenue growth following the Chart acquisition [20][23] Other Important Information - The Baker Hughes Business System has been instrumental in driving productivity and efficiency, supporting margin improvement across segments [11][12] - The company has generated over $2.5 billion in cash proceeds from strategic actions since the merger in 2017 [16] - Baker Hughes aims to raise at least $1 billion from non-core asset sales to achieve leverage targets [19] Q&A Session Summary Question: Can you elaborate on the $40 billion in orders expected over the next three years? - Management indicated that several end markets, including LNG and data centers, are expected to see growth, contributing to the confidence in achieving the $40 billion target [25] Question: How did the company achieve a 40% increase in capacity in GTE with the same footprint? - The increase was attributed to the application of the Baker Hughes Business System, which has allowed for greater efficiency and productivity without significant capital expenditure [27] Question: Is improving efficiency at Chart Industries a key driver for the acquisition? - Yes, management sees significant opportunities to enhance margin outlook at Chart by applying the Baker Hughes Business System, which will help in achieving operational consistency and predictability [28]

Financial Data and Key Metrics Changes - Baker Hughes has nearly doubled EBITDA over the past five years, with a margin expansion of almost 600 basis points [6][8] - The company is targeting total margins of 20% by 2028, an increase of nearly 300 basis points from the 2025 implied guidance [17][19] - IET segment is expected to account for 48% of total revenues in 2025, with IET margins projected to be above 18% [6][10] Business Line Data and Key Metrics Changes - OFSE revenue is generated over 70% internationally, with offshore contributing approximately 40% of segment revenue [4] - IET margins have expanded despite a less favorable mix, with gas technology equipment margins up more than 9 percentage points since the start of Horizon One [10][11] - The deployment of the Baker Hughes Business System has driven more than a 13 percentage point improvement in SSPS margin since 2022 [11] Market Data and Key Metrics Changes - The company sees positive tailwinds in LNG, gas infrastructure, and distributed power solutions, contributing to the confidence in achieving $40 billion of IET orders over the next three years [18][25] - The demand for data centers is increasing, which is expected to drive growth in distributed power generation [25] Company Strategy and Development Direction - The Free Horizon Strategy aims to transform Baker Hughes into a differentiated energy and industrial technology company, focusing on sustained growth and durable earnings [2][3] - Horizon Two (2026-2028) will focus on scaling profitability and deepening the industrial footprint, with a goal of achieving 20% IET margins by 2026 [8][17] - The Chart Industries acquisition is expected to accelerate strategic progress and broaden exposure across core structural growth markets [15][20] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of AI and digital technologies in driving efficiency and enhancing customer outcomes [8][22] - The company is confident in the growth of natural gas in the energy mix and sees significant opportunities from the Chart acquisition [23] Other Important Information - Baker Hughes has generated over $2.5 billion in cash proceeds from strategic actions since the merger in 2017 [16] - The company aims to raise at least $1 billion from non-core asset sales to achieve leverage targets [19] Q&A Session Summary Question: Understanding the $40 billion IET orders over the next three years - Management highlighted that several end markets, including LNG and data centers, are expected to see growth, providing confidence in the $40 billion target [25] Question: Capacity increase in GTE with the same footprint - Management explained that the increase is due to the application of the Baker Hughes Business System, which allows for greater efficiency without significant CapEx [27] Question: Efficiency expectations from the Chart acquisition - Management confirmed that improving margin outlook at Chart is a key driver for the acquisition, leveraging the Baker Hughes Business System for operational consistency [28]