BKR 10-K & 10-Q changes, risk factors and insider trading

We continue to invest in new technologies, equipment, and facilities and to expand our capabilities and technology portfolio to meet the challenges of a net-zero future. These efforts include expanding into new energy areas such as geothermal and carbon capture, utilization and storage,CCUS, strengthening our digital architecture and addressing key energy market themes. Our ability to defend, maintain or increase prices for our products and services is in part dependent on the industry's capacity relative to customer demand, on our ability to differentiate the value delivered by our products and services from our competitors' products and services and to provide innovative and competitive products and services to meet our client's evolving needs with respect to new energy areas. Managing development of competitive technology and new product introductions on a forecasted schedule and at a forecasted cost can impact our financial results. If we are unable to continue to develop and produce competitive and innovative technology or deliver it to our clients in a timely and cost-competitive manner in Baker Hughes Company 2024 Form 10-K | 14 response to changes in the market, customer requirements, competitive pressures, or as a result of the energy transition to lower carbon emitting technology, or if competing technology accelerates the obsolescence of any of our products or services, any competitive advantage that we may hold, and in turn, our business, financial condition, results of operations and cash flows could be materially and adversely affected.

The potential slowdown and shift in the energy transition risks posed by moving to a lower carbon economy could have an adverse effect on the demand for our clean energy technologies and services.

There is increasedongoing focus by governments and our customers, investors and other stakeholders on climate change, sustainability, and energy transition matters. TransitioningHowever, the pace and direction of the transition to a lower-carbonlower- Baker Hughes Company 2025 Form 10-K | 16 carbon economy willhas likelybecome requireincreasingly extensive policy, legal, technology,uncertain and marketvariable changes.across different regions and markets. Recent developments indicate a potential slowdown in energy transition efforts, with sustained or increased demand for traditional oil and gas in certain markets.

Our manufacturing operations are dependent on having sufficient raw materials, component parts and manufacturing capacity, including labor, available to meet our manufacturing plans on a timely basis, at a reasonable cost while minimizing inventories. Additional disruptions within our supply chain resulting from factors including, but not limited to, pandemic,sanctions, tariffs, conflict, inflation, risinghigh interest rates, severe weather and natural disasters, and shortages in labor supply, have had and may continue to have an impact on our business and reputation. Many of the raw materials essential to our business require the use of rail, storage, and trucking services to transport the materials to our job sites. These services, particularly during times of high demand, may cause delays in the arrival of or otherwise constrain our supply of raw materials. These constraints could have a material adverse effect on our business and consolidated results of operations. In addition, price increases imposed by our vendors for raw materials and transportation providers used in our business, and the inability to pass these increases through to our customers, could have a material adverse effect on our business and consolidated results of operations. As a result of these or any other factors, our ability to execute our operations on a timely basis, including our ability to meet our manufacturing plans Baker Hughes Company 2024 Form 10-K | 15 and revenue goals, control costs, and avoid shortages or over-supply of raw materials and component parts, could be adversely affected.

The partial or complete loss of GE Vernova or GE Aerospace as suppliers, as well as contracts with our aeroderivative joint venture (the "Aero JV") with GE VernovaVernova, may adversely affect our business, financial condition, results of operations and cash flows.

The implementation of ourany plan to restructure our corporate organization and operating segments may not achieve the results we anticipate, which could adversely affect our business.

From time to timetime, the Companywe will embark upon restructuring activities, whether in response to business operating cycles or for more significant programs of strategic significance (for exampleexample, the corporate realignment in 2022 which resulted in a focus on our two operating segments). Restructuring activities may be more costly than anticipated, and could lead to the diversion of management's attention from other business priorities. As a result of these or any other factors, we may not realize the anticipated benefits associated with the restructuring plan. There can be no assurance that the restructuring plan will materially increase our profitability. Even if the restructuring plan generates the benefits that we have anticipated, there may be other unforeseeable and unintended factors or consequences that occur as a result of the restructuring, which could adversely affect our business.

Geopolitical and terrorism threats continue to grow in a number of key countries where we currently or may in the future do business. Geopolitical and terrorism threats, including armed conflict among countries, hashave had and could in the future leadled to, among other things, a loss of our investment in the country, adverse impact to our employees, and impairment of our or our customers' ability to conduct operations.

Certain geopolitical conflicts, such as between Russia and UkraineUkraine, and betweeninstability, Israelsuch as in the Middle East and Hamas,the current political situation in Venezuela, have had and may continue to have the effect of heightening many other risks disclosed in our public filings, any of which could materially and adversely affect our business and results of operations. Such risks include, but are not limited to, adverse effects on regional and global macroeconomic conditions; increased volatility in the price and demand of oil and natural gas, increased exposure to cyber-attacks; limitations in our ability to implement and execute our business strategy; risks to employees and contractors that we have in the region; disruptions in global supply chains; exposure to foreign currency fluctuations; potential nationalizations and assets seizures; constraints or disruption in the capital markets and our sources of liquidity; our potential inability to service our remaining performance obligations and potential contractual breaches and litigation. Any such risks may require us to record asset impairments and experience adverse operating impacts which could have a material adverse effect on our financial condition, results of operations and cash flows.

The products that we manufacture and the services that we provide are complex, and the failure of our equipment to operate properly or to meet specifications may greatly increase our customers' costs. In addition, many of these products are used in inherently hazardous industries,environments such asacross the energy and industrial sectors, including onshore and offshore oilfieldoil business.and gas fields, LNG facilities, and other high-pressure or high-temperature applications. These hazards include blowouts, explosions, unplanned or uncontrolled releases, nuclear-related events, fires, collisions, capsizings, and severe weather conditions. We may incur substantial liabilities or losses as a result of these hazards. Our insurance and contractual indemnity protection may not be sufficient or effective to protect us under all circumstances or against all risks. The occurrence of a significant event, against which we were not fully insured or indemnified or the failure of a customer to meet its indemnification obligations to us, could materially and adversely affect our results of operations and financial condition.

Seasonal and weather conditions, including severe weather associated with climate change,conditions could adversely affect demand for our services and operations.

Variation from normal weather patterns, such as cooler or warmer summers and winters, can have a significant impact on demand for our services and operations. Adverse weather conditions, such as hurricanes in the Gulf of Mexico or extreme winter conditions in Canada or the North Sea, may interrupt or curtail our operations, or our customers' operations, cause supply disruptions and result in a loss of revenue and damage to our equipment and facilities, which may or may not be insured. Further, the physical risks of climate change can include extreme variability in weather patterns such as increased frequency and severity of significant weather events (e.g. flooding, Baker Hughes Company 2024 Form 10-K | 17 hurricanes and tropical storms), natural hazards (e.g., increased wildfire risk), rising mean temperature and sea levels, and long-term changes in precipitation patterns (e.g. drought, desertification, or poor water quality). Such effects have the potential to affect business continuity and operating results, particularly at facilities in coastal areas or areas prone to chronic water scarcity, and could disrupt our operations or those of our customers or suppliers, including through direct damage to physical assets and indirect impacts from supply chain disruption and market volatility. Repercussions of severe or unseasonable weather conditions, including as a result of climate change,conditions may include evacuation of personnel and curtailment of services, weather-related damage to offshore drilling rigs resulting in suspension of operations, weather-related damage to our facilities and project work sites, inability to deliver materials to job sites in accordance with contract schedules, decreases in demand for oil and natural gas during unseasonably warm winters, increased insurance premiums and deductibles or a decrease in the availability of coverage in areas subject to severe weather events, and loss of productivity. As a result of the above repercussions or any others, demand for our services and operations may be adversely affected.

We may choose to enter into integrated or turnkey contracts with our customers that require us to provide services and equipment outside of our core business. Providing services on an integrated or turnkey basis may also subject us to additional risks, such as costs associated with unexpected delays or difficulties in drilling operations, project management interface risk, and risks associated with subcontracting and consortium arrangements.arrangements, and risks associated with production solutions or guarantees. These integrated or turnkey contracts may be fixed price contracts that do not allow us to recover for cost over-runs unless they are directly caused by the customer.

Our products are used in deepwater, and other harsh environments, and severe service applications. Our contracts with customers and customer requests for bids typically set forth detailed specifications or technical requirements for our products and services, which may also include extensive testing requirements. In addition, scrutiny of the offshore drilling industry and LNG industry has resulted in more stringent technical specifications for our products and more comprehensive testing requirements for our products to ensure compliance with such specifications. We cannot provide assurance that our products, including products supplied through joint ventures,ventures or by third parties, will be able to satisfy the specifications necessary in all scenarios or under all operating conditions, nor that we will be able to perform the full-scale testing required to prove that the product specifications are satisfied in future Baker Hughes Company 2024 Form 10-K | 18 contract bids or under existing contracts, or that the costs of modifications to our products to satisfy the specifications and testing will not adversely affect our results of operations.

Our financial condition, results of operations and cash flows could be materially adversely affected if our customers terminate some of our contracts, and we are unable to secure new contracts on a timely basis and on substantially similar terms, if payments due under our contracts are suspended for an extended period of time, or if a number of our contracts are renegotiated. Our RPO isare comprised of unfulfilled customer orders for products and product services (expected life of contract sales for product services). The actual amount and timing of revenues earned may be substantially different than the reported RPO. The total dollar amount of the Company's RPO as of December 31, 20242025 was $33.1$35.9 billion.

Having a concentration of customers in the energy industry may impact our overall exposure to credit risk as our customers may be similarly affected by prolonged changes in economic and industry conditions. Some of our customers may experience extreme financial distress as a result of falling commodity prices and may be forced to seek protection under applicable bankruptcy laws, which may affect our ability to recover any amounts due from such customers. Furthermore, countries that rely heavily upon income from hydrocarbon exports have been and may in the future be negatively and significantly affected by a drop in oil or gas prices, which could affect our ability to collect, timely or at all, from our customers in these countries, particularly national oil companies. Laws in some jurisdictions in which we will operate could make collection difficult or time consuming. We perform ongoing credit evaluations of our customers and do not expect to require collateral in support of our trade receivables. While we maintain reserves for potential credit losses, we cannot assure such reserves will be sufficient to meet write-offs of uncollectible receivables or that our losses from such receivables will be consistent with our expectations. Additionally, in the event of a bankruptcy of any of our customers, we may be treated as an unsecured creditor and may collect substantially less, or none, of the amounts owed to us by such customer.

Our customers' access to capital is dependent on their ability to access the funds necessary to develop economically attractive projects based upon their expectations of future energy prices, required investments, and/or resulting returns. Limited access to external sources of funding has caused and may continue to cause customers to reduce their capital spending plans to levels supported by internally generated cash flow. In addition, a reduction of cash flow resulting from declines in commodity prices, a reduction in borrowing bases under reserve-based credit facilities or the lack of available debt or equity financing may impact the ability of our customers to pay amounts owed to us and could cause us to increase our reserve for credit losses or resulting in us collecting substantially less, or none, of the amounts owed to us by such customer.

We conduct business in more than 120 countries that can be impacted by expected and unexpected changes in the legal and business environments in which we operate. In particular, goods, services, data, finances, people, and technology that cross international borders subjectssubject us to extensive trade laws and regulations. Our import activities are governed by the unique customs laws and regulations in each of the countries where we operate. Pursuant to their laws and regulations, governments may impose economic sanctions against certain countries, persons and entities that may restrict or prohibit transactions involving such countries, persons and entities, which may limit or prevent our conduct of business in certain jurisdictions.

Compliance-related issues could limit our ability to do business in certain countries, impact our earnings and cash flows, bring reputational harm, or result in governmental investigations leading to fines, penalties or other remedial measures. Changes that could impact the legal environment include new legislation, new regulations, new policies, investigations, and legal proceedings andas well as new interpretations of existing legal rules and regulations,regulations: in particular, changes in export control laws or exchange control laws, currency conversion, repatriation of income or capital, additional restrictions on doing business in countries subject to sanctions, and changes in laws in countries where we operate. In addition, changes and uncertainty in the political environments in which our businesses operate, including changes in administration, can have a material effect on the laws, rules, and regulations that affect our operations and liquidity. Government disruptions may also delay or halt the granting and renewal of permits, licenses and other items required by us and our customers to conduct our business. The continued success of our global business and operations depends, in part, on our ability to continue to anticipate and effectively manage these and other political, legal and regulatory risks. Given the highly dynamic nature of these restrictions and the unprecedented nature of these changes in recent years, and the uncertainty in the political landscape and unrest in certain areas of the world, our future success depends on the ability of our organization to react to such changes rapidly and appropriately to assure compliance as we continue to conduct business globally.

Our ability to comply with the FCPA, the U.K. Bribery Act, and various other anti-bribery and anti-corruption laws depends on the success of our ongoing compliance program, including our ability to successfully select, diligence, oversee, and manage our agents, distributorsdistributors, joint venture partners, suppliers, and other third-party business partners, and supervise, train, and retain competent employees. WeThese laws in many cases impose liability not only for the actions of our employees, but also for the improper conduct of third parties acting on our behalf. As a result, any failure by us, or by any of our employees or business partners, to comply with applicable anti-bribery and anti- Baker Hughes Company 2025 Form 10-K | 22 corruption requirements could beexpose subjectus to sanctions and civil and criminal prosecution, fines and penalties, as well as legal expenses and reputational harm inthat thecould eventnegatively of a finding of a violation of any of these laws by us or any ofimpact our employees.relationships with customers, regulators, and other stakeholders.

We are subject to changes in tax laws, rates, treaties, and regulations in the various jurisdictions where we operate, any of which, including in the interpretation thereof, could have a material adverse impact on our tax expense, results of operations and cash flows. Further, the examinations and subsequent tax assessments by various tax authorities could increase the Company'sour tax liabilities. Any changes to tax laws or rates or unfavorable positions taken by tax authorities have and could preclude our ability to fully utilize tax loss carryforwards and tax credits which could increase the amount of valuation allowances required against deferred tax assets and could adversely affect our financial condition, results of operations and cash flows.

In addition, we are subject to changes to the U.S. and foreign country tariffs, international trade agreements and policies. This includes proposed and enacted tariffs by the U.S. and foreign governments. Expansion of trade restrictions, changes to government policies related to tariffs or trade agreements could adversely affect our financial condition, results of operations and cash flows.

The technical complexities of our operations expose us to a wide range of significant health, safety and environmental risks and we are from time to time subject to litigation in the U.S. and in foreign countries, for Baker Hughes Company 2025 Form 10-K | 23 example claims involving services or equipment such as personal injury or loss of life, product failure (including as a result of a cyber-attack) or damage to or destruction of property, employment and labor, customer privacy, or regulatory risks. While we have insurance coverage against operating hazards to the extent deemed prudent by our management and to the extent insurance is available, our insurance may not cover all expenses related to litigation claims arising from our business. Moreover, we may not be able to maintain insurance at levels of risk coverage or policy limits that we deem adequate. We may therefore incur significant expenses defending any such suit or government charge and may be required to pay amounts or otherwise change our operations in ways that could adversely affect our financial condition, results of operations and cash flows.

The tools, techniques, methodologies, programs and components we use to provide our products and services may infringe upon, misappropriate or otherwise violate the intellectual property rights of others or be challenged on that basis. Regardless of the merits, any such claims may result in significant legal and other costs and may distract management from running our core business. If such claims were decided against us, then we could be required to pay damages or develop or adopt non-infringing products or services. Resolving such claims with settlement could also increase our costs, including through royalty payments to acquire licenses, if available, from third parties and through the development of replacement technologies. If a license to resolve a claim were not available, we might not be able to continue providing a particular service or product, which could adversely affect our financial condition, results of operations and cash flows. Such claims could harm our image, trademarks and brands, competitive position, or our ability to expand our operations into other jurisdictions. There could be attendant negative publicity, even if ultimately decided in our favor. In addition, third parties may assert that the intellectual property or our rights therein are invalid or unenforceable. If applicable intellectual property rights were invalidated or deemed unenforceable, then the third-party could permit competing uses of such intellectual property rights which, in turn, could lead to a decline in revenues and sales.

We and our business are subject to extensive domestic and international environmental, health and safety regulations. In addition to environmental, health and safety regulatory compliance obligations, we may face liability arising out of the normal course of business, including alleged personal injury, property damage, and human health risks due to exposure to hazardous substances or operations at our current or former facilities. Additionally, we may be impacted by material changes in environmental, health and safety regulations or subject to substantial liability for environmental impacts caused by our (or our predecessors') operations. Compliance with environmental laws and regulations and associated expenditures, including but not limited to our capital expenditures for environmental control equipment, are forecasted and may be inconsistent based on multiple variables. Our compliance cost forecasts may be substantially different from actual results, which may be affected by factors such as: changes in law that impose new or increased restrictions on air or other emissions, wastewater management, waste disposal, hydraulic fracturing, or wetland and land use practices; changes in standards of enforcement of existing environmental laws and regulations; a change in our share of any remediation costs or other unexpected, adverse Baker Hughes Company 2024 Form 10-K | 21 outcomes with respect to sites where we have been named as a potentially responsible party ("PRP"), or otherwise alleged to be responsible for environmental issues (including Superfund sites, the allocation of PRP liability at other sites, or discovery of additional issues at existing sites), where additional expenditures may be required to comply with environmental legal obligations; and the accidental, unauthorized discharge of hazardous materials.

International, national, and state governments and agencies continue to evaluate and promulgate legislation and regulations that are focused on reducing GHG emissions.emissions and climate related risk. Compliance with GHG emission regulations applicable to our or our customers' operations may have significant implications that could adversely affect our business and operating results in the fossil-fuel sectors.results.

BakerIn Hughesthe remainsfirst committedquarter toof a2025, flexible capital allocation policy that balances returning cash to shareholders and investing in growth opportunities. Wewe increased our quarterly dividend in the first quarter of 2024 by onetwo centcents to $0.21$0.23 per share. For the full year of 2024,2025, we returned a total of $1.3 billion to shareholders in the form of dividends and share repurchases.

Our business is exposed to a number of macro factors, which influence our outlook and expectations given the current macroeconomic uncertainty and continued volatile conditions in the industry. All of our outlook expectations are purely based on the market as we see it today and are subject to changing conditions in the industry.

•IET outlook: We see continuedsustained strength in LNG, Floating Production StorageLNG and Offloading ("FPSO"), gas infrastructure, and new energy, as well as increasing opportunities to leverage our versatile portfolio to enhance IET's position across industrial and distributed power markets.markets, with a growing emphasis on data centers.

We have other businesses in our portfolio that are more correlated with various industrial metrics, including global GDP growth. We also have businesses within our portfolio that are exposedexpect to see continued growth in new energy solutions,solutions specifically focused aroundon reducing carbon emissions offor the energy and broader industry,industrial including:sectors. These include hydrogen; geothermal; CCUS; energy storage; clean power; and emissions abatement solutions. WeContinued expectsigns of tightness in the aeroderivative supply chain, including extended lead times, will remain a factor to seemonitor continuedand growthmanage in these global businesses as new energy solutions become a more prevalent part of the broader energy mix.operationally.

Overall, we believe our portfolio is welluniquely positioned to compete across the energy and industrial value chainchains and deliver comprehensiveintegrated, high-impact solutions for our customers. Over time, we believe theglobal world'senergy demand for energy will continue to rise, andsupported thatby durable, secular macroeconomic trends, with hydrocarbons willcontinuing to play a majorfundamental role in meeting the world's energy needs for the foreseeable future.needs. As such, we remain focused on delivering innovative, low-emission,lower-emission, and cost-effective solutions that deliverdrive stepmeaningful changesimprovements in operatingoperational and economicfinancial performance for our customers.

The following discussion and analysis summarizesummarizes the significant factors affecting our results of operations, financial conditioncondition, and liquidity position as of and for the years ended December 31, 2025, 2024, 2023, and 2022,2023, and should be read in conjunction with our consolidated financial statements and related notes.

Our revenue is predominatelypredominantly generated from the sale of products and services to major, national, and independent oil and natural gas companies worldwide, and is dependent on spending by our customers for oil and natural gas exploration, field developmentdevelopment, and production. This spending is driven by a number of factors, including our customers' forecasts of future energy demand and supply, their access to resources to develop and produce oil and natural gas, their ability to fund their capital programs, the impact of new government regulations, and their expectations for oil and natural gas prices as a key driver of their cash flows.

Outside North America, customer spending is influenced by Brent oil prices. In North America, customer spending is influenced by WTI oil prices and natural gas prices areas measured by the Henry Hub Natural Gas Spot Price.

(1)Energy Information Administration ("EIA") Europe Brent ("Brent") Spot Price per Barrel (2)EIA Cushing, OK West Texas Intermediate ("WTI") spotSpot pricePrice per Barrel (3)EIA Henry Hub Natural Gas Spot Price per million British Thermal Unit Baker Hughes Company 2025 Form 10-K | 36

Rig counts are an important business barometer for the drilling industry and its suppliers. When drilling rigs are active or operating, they consume products and services produced by the oil service industry. Therefore, rig counts may act as a leading indicator of market activity and reflect the relative strength of energy prices; however, these counts should not be solely relied on as other specific and pervasive conditions may exist that affect overall energy prices and market activity.

Rig counts are compiled weekly for the U.S. and Canada and monthly for all international rigs. Published international rig counts do not include rigs drilling in certain locationslocations, such as onshore ChinaChina, because this information is not readily available.

The rig counts are summarized in the table below as averages for each of the periods indicated.indicated based on our published rig counts on our website at www.bakerhughes.com.

The discussions below relating to significant line items from our consolidated statements of income (loss) are based on available information and represent our analysis of significant changes or events that impact the comparability of reported amounts. Where appropriate, we have identified specific events and changes that affect comparability or trends and, where reasonably practicable, have quantified the impact of such items. In addition, the discussions below for revenue and cost of revenue are on a total basis as the business drivers for product sales and services are similar. All dollar amounts in tabulations in this section are in millions of dollars, unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers.

Our consolidated statements of income (loss) displaysdisplay sales and costs of sales in accordance with SEC regulations under which "goods" is required to include all sales of tangible products and "services" must include all other sales, including other service activities. For the amounts shown below, we distinguish between "equipment" and "product services," where product services refer to sales under product services agreements, including sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenancemaintenance, and repairs), which is an important part of our operations. We refer to "product services" simply as "services" within Management's Discussion and Analysis of Financial Condition and Results of Operations.MD&A.

Our results of operations are evaluated by our chief operating decision maker, who is the Company's Chief Executive OfficerOfficer, on a consolidated basis as well as at the segment level. The performance of oureach operating segmentssegment is primarily evaluated based on segment operating income (loss),EBITDA, which is defined as income (loss) before income taxes and before the following: net interest expense, netcosts otherassociated non-operatingwith incomesignificant (loss),restructuring programs, depreciation and amortization, and unallocated corporate expenses, significant restructuring plans, impairmentcosts and other charges,income inventory impairments, and certain gains and losses not allocated to the operating segments.(expense).

Volume: Volume is defined as the increase or decrease in products and/or services sold period-over-period excluding the impact of foreign exchangeFX and price. The volume impact on profit is calculated by multiplying the prior period profit rate by the change in revenue volume between the current and prior period. Volume also includes price, which is defined as the change in sales price for a comparable product or service period-over-period and is calculated as the period-over-period change in sales prices of comparable products and services.

Foreign Exchange ("FX"): FX measures the translational foreign exchange impact, or the translation impact of the period-over-period change on sales and costs directly attributable to change in the foreign exchangeFX rate compared to the U.S. dollar. FX impact is calculated by multiplying the functional currency amounts (revenue or profit) with the period-over-period FX rate variance, using the average exchange rate for the respective period. This also includes the period-over-period variance of transactional foreign exchange, aside from those foreign currency devaluations that are reported separately for business evaluation purposes.

Productivity: Productivity is measured by the remaining variance in profit, after adjusting for the period-over-period impact of volume andvolume, price, foreignbusiness exchange,mix, FX, and (inflation)/deflation as defined above. Improved or lower period-over-period cost productivity is the result of production, schedule and cost efficiencies or inefficiencies, such as cost decreasing or increasing more than volume, or cost increasing or decreasing less than volume, or changes in sales mix among segments. This also includes the period-over-period variance of transactional foreign exchange, aside from those foreign currency devaluations that are reported separately for business evaluation purposes.inefficiencies.

(2)For the years ended December 31, 2025, 2024, 2023 and 2022,2023, total new energy orders incorporates Climate Technology Solutions ("CTS") in IET of $1.0 billion, $0.6 billion, and $0.4 billion, respectively.IET.

Revenue increased $2,323$2.3 million,billion, or 9%, to $27.8 billion. OFSE increased $268$0.3 millionbillion, or 2%, and IET increased $2,055$2.1 million.billion, or 20%.

Selling, general and administrative costcosts decreased $153 million, or 6%, to $2,458 million, and our Corporate costs, which are primarily reported within this financial measure, decreased $17 million, or 5%, to $363 million. These decreases weremillion driven primarily by a continued focus on cost optimization, partially offset by inflationary pressure.

Restructuring, impairment, and otherRestructuring charges were $301$260 million in 2024, primarily related to streamlining of the OFSE operating model. In 2023, restructuring, impairment, and otherrestructuring charges were $323$313 million reflecting costs to align the business with the Company's market outlook.

During the firstsecond quarter of 2026, continued disruptions in the Middle East contributed to tighter oil and liquefied natural gas (“LNG”) market balances and higher commodityinflationary prices.costs.

Looking ahead, oil market fundamentals are likely to be supported by expectationsa of an undersuppliedsupply-constrained market and the need to replenish depleted strategic inventories. As the evolvingdynamic geopolitical environment continues to create uncertainty, we expect to see a significant decline in upstream spending in the Middle East.East this year, while spending in North American and other international markets is expected to remain broadly unchanged compared to 2025, absent further downside pressure in oil prices. Additionally, ongoing supply constraints through the Strait of Hormuz and broader disruptions across the Middle East are expected to becreate broadlyincremental flatrisk year-over-year.across the business, with potential impacts on customer spending patterns, project timing, and supply chain visibility. Over the longer term, heightened geopolitical risk may contribute to higher mid‑cyclemid-cycle oil prices necessary to incentivize incremental global supply. As a result, we see continued upstream investment as necessary to sustain production growth and meet rising global demand. We also expect a continued increase in operating expenditure drivenexpenditure-driven investment as operators focus on optimizing recovery and extending the life of producing assets.

In the firstsecond quarter of 2026, the Company generated revenues of $6.6$6.7 billion, ana increasedecrease of $0.2 billion, or 2%, compared to the firstsecond quarter of 2025. IET revenue increasedremained $0.4flat billion, or 14%,year-over-year, driven by an increase of $199$79 million or 34%11% in Gas Technology Services ("GTS"), andan increase of $210$61 million or 14%13% in Industrial Products ("IP"), and an increase in Climate Technology Solutions ("CTS") of $49 million or 31%, offset by a decrease of $100 million or 6% in Gas Technology Equipment ("GTE"), partially offset byand a declinedecrease of $73$91 million or 28%33% in Industrial Solutions ("IS") reflective of the Precision Sensors & Instrumentation ("PSI") disposition. OFSE revenue decreased $0.3$0.2 billion, or 7%,5% year-over-year led by the Surface Pressure Control ("SPC") disposition and a decline in international revenue. Net income was $0.9$0.7 billion, anwhich increaseremained of $0.5 billion,flat compared to the firstsecond quarter of 2025, withdriven netby gainsreduced onincome saletax from the PSI and SPC dispositions,expense, improved performance in Segment EBITDA, and the change in fair value of equity securities, partially offset by depreciation.increases in depreciation and amortization, transaction related costs, working capital adjustments related to business dispositions, interest expense, and restructuring.

In the firstsecond quarter of 2026, we returned $228 million to shareholders through dividends.

•OFSE outlook: We expect to see an improvement in global upstream spending, outside of the Middle East,spending through the remainder of the year dueacross toboth currentinternational constraintsand onNorth supply,American partiallymarkets, offsetabsent byfurther near-termdownside weaknesspressure in Middleoil East activity.prices.

We also expect to see continued growth in new energy solutions specifically focused around reducing carbon emissions for the energy and broader industrial sectors. These include hydrogen; geothermal; carbon capture, utilization and storage; energy storage; clean power; and emissions abatement solutions. Continued signs of tightness in the aeroderivative supply chain, including extended lead timestimes, will remain a factor to monitor and manage operationally Overall, we believe our portfolio is uniquely positioned to compete across the energy and industrial value chains and deliver integrated, high-impact solutions for our customers. Over time, we believe global energy demand will continue to rise, supported by durable, secular macroeconomic trends, with hydrocarbons continuing to play a fundamental role in meeting the world's energy needs. As such, we remain focused on delivering innovative, lower-emission, and cost-effective solutions that drive meaningful improvements in operational and financial performance for our customers.operationally.

The following discussion and analysis summarizes the significant factors affecting our results of operations, financial condition, and liquidity position as of and for the three and six months ended MarchJune 31,30, 2026 and 2025, and should be read in conjunction with our condensed consolidated financial statements and related notes.

Our revenue is predominantly generated from the sale of products and services to major, national, and independent oil and natural gas companies worldwide, and is dependent on spending by our customers for oil and natural gas exploration, field developmentdevelopment, and production. This spending is driven by a number of factors, including our customers' forecasts of future energy demand and supply, their access to resources to develop and produce oil and natural gas, their ability to fund their capital programs, the impact of new government regulations, and their expectations for oil and natural gas prices as a key driver of their cash flows.

(1)Energy Information Administration ("EIA") Europe Brent ("Brent") Spot Price per Barrel (2)EIA Cushing, OK West Texas Intermediate ("WTI") Spot Price per Barrel (3)EIA Henry Hub Natural Gas Spot Price per million British Thermal Unit

Our condensed consolidated statements of income display sales and costs of sales in accordance with the Securities and Exchange Commission ("SEC") regulations under which "goods" isare required to include all sales of tangible products and "services" must include all other sales, including other service activities. For the amounts Baker Hughes Company 2026 Second Quarter Form 10-Q | 29 shown below, we distinguish between "equipment" and "product services," where product services refer to sales under product services agreements, including sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenancemaintenance, and repairs), which isare an important part of our operations. We refer to "product services" simply as "services" within Management's Discussion and Analysis of Financial Condition and Results of Operations.

Baker Hughes Company 2026 FirstSecond Quarter Form 10-Q | 2830

The Remaining Performance Obligations ("RPO") relate to the aggregate amount of the transaction priceprices allocated to the unsatisfied (or partially unsatisfied) performance obligations. As of MarchJune 31,30, 2026, RPO totaled $36.1$40.1 billion, of which OFSE totaled $3.0 billion,billion and IET totaled $33.1$37.1 billion.

FirstSecond Quarter of 2026 Compared to the FirstSecond Quarter of 2025

Revenue increaseddecreased $0.2 billion, or 2%, to $6.6$6.7 billion. OFSE revenue decreased $0.3$0.2 billion, or 7%,5%, and IET increasedrevenue $0.4was billion,flat orcompared 14%.to the second quarter of 2025.

Selling, general and administrative costs decreasedincreased $15$2 million, or 3%,million to $562$569 million.

Research and development costs decreased $13$18 million, or 9%,11%, to $133$143 million due to timing of project spend.million.

Other income increaseddecreased $728$30 million, primarily reflecting working capital adjustments of $24 million related to gains of $721 million on business dispositions.

Net interest expense incurred in the firstsecond quarter of 2026 was $86$66 million, which includes interest income of $59$130 million offset by interest expense of $145$196 million. Net interest expense increased $35$12 million compared to the firstsecond quarter of 2025, primarily driven by previouslyincreased unamortizedinterest lending fees of $43 million recognizedexpense as a result of the terminationsenior ofnotes theoffering Bridgein Facility during the first quarter ofMarch 2026.

We recorded income taxestax expense in the firstsecond quarter of 2026 and 2025 of $336$210 million and $152$256 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate in both periods is primarily related to income generated in jurisdictions with tax rates higher than in the U.S. and losses with no tax benefit due to valuation allowances.

Net income increasedremained $0.5flat billionat to $0.9$0.7 billion compared to the firstsecond quarter of 2025.

Baker Hughes Company 2026 FirstSecond Quarter Form 10-Q | 2931

OFSE revenue of $3,237$3,451 million decreased $262$166 million, or 7%,5%, in the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025, driven mainly by the impact of the SPC disposition and disruptions in the Middle East.East, offset by the benefit of FX in Latin America. From a geographical perspective, international revenue was $2,310$2,518 million, a decrease of $267$171 million, or 10%,6%, from the firstsecond quarter of 2025, driven by Middle East/Asia,Asia and Europe/CIS/Sub-Saharan Africa, partially offset by an increase in Latin America. North America revenue was $927$933 million in the firstsecond quarter of 2026, an increase of $5 millionmillion, or 1%, from the firstsecond quarter of 2025.

OFSE segment EBITDA of $565$605 million decreased $58$72 million, or 9%,11%, in the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025. The reduction of EBITDA in the firstsecond quarter of 20262026, after taking into consideration the impact of the SPC disposition, was athe result of lower volume,inflation, change in business mix, inflation, and thelower SPC disposition,volume, partially offset by cost-out initiatives, overall productivityproductivity, and cost out initiatives.FX.

Baker Hughes Company 2026 FirstSecond Quarter Form 10-Q | 3032

IET revenue of $3,350$3,291 million increased $422 million, or 14%, infor the firstsecond quarter of 20262026, comparedremained toflat the first quarter of 2025,year-over-year, with increasesdecreases in GTEGas Technology Equipment and GTS, partially offset by a decline in Industrial Solutions driven by the PSI disposition.disposition, offset by increases in all other product lines.

IET segment EBITDA of $678 million increased $177$93 million, or 35%,16%, in the firstsecond quarter of 2026 compared to the firstsecond quarter of 2025. The improved performance in the firstsecond quarter of 2026 was driven by FX, price, higherproductivity, volume,cost-out initiatives, and productivity,FX, partially offset by lower volume and inflation.

Our objective in financing our business is to maintain sufficient liquidity, adequate financial resources, and financial flexibility in order to fund the requirements of our business and pending acquisitions. We continue to maintain solid financial strength and sufficient liquidity. At MarchJune 31,30, 2026, we had cash and cash equivalents of $14.8$15.7 billion compared to $3.7 billion at December 31, 2025.

As of MarchJune 31,30, 2026, we held approximately $12.5$13.5 billion of cash and cash equivalents in the U.S. and approximately $2.3 billion outside the U.S., including $1.1$0.9 billion held in Europe and the United Kingdom. As of December 31, 2025, cash and cash equivalents totaled approximately $0.7 billion in the U.S. and approximately $3.0 billion outside the U.S., including $1.5 billion held in Europe and the United Kingdom. A substantial portion of the cash held outside the U.S. at MarchJune 31,30, 2026 has either been reinvested in active non-U.S. business operations or iswas being held for the pending Chart acquisition.acquisition, which was completed on July 16, 2026. If we decide at a later date to repatriate certain cash to the U.S., we may incur other additional taxes that would not be significant to the total tax provision.

Baker Hughes Holdings LLC ("BHH LLC"), a wholly owned subsidiary of the Company, has a $3.0 billion committed unsecured revolving credit facility (the "Credit Agreement") with commercial banks maturing in November 2028. The Credit Agreement contains certain representations and warranties, certain affirmative covenants and negative covenants, in each case we consider customary. No related events of default have occurred. The Credit Agreement is fully and unconditionally guaranteed on a senior unsecured basis by Baker Hughes. At MarchJune 31,30, 2026 and December 31, 2025, there were no borrowings under the Credit Agreement.

Certain Senior Notes contain covenants that restrict our ability to take certain actions. See "Note 8. Debt" of the Notes to Unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for Baker Hughes Company 2026 First Quarter Form 10-Q | 31 further details. At MarchJune 31,30, 2026, we were in compliance with all debt covenants. Our next debt maturity is December 2026.

During the threesix months ended MarchJune 31,30, 2026, we disbursed cash to fund a variety of activities including certain working capital needs, capital expenditures, and the payment of dividends.