Baker Hughes Expands Growth with Chart Industries Deal, Targeting $45B in IET Orders by 2028

Baker Hughes (BKR) highlighted at Barclays’ September 9, 2026, Energy-Power Conference the strategic benefits of its $1.85 billion–$2.25 billion acquisition of Chart Industries, slated to close mid-July 2026. The deal is expected to add $300 million to $400 million in EBITDA annually through 2026, with margins rising from about 17% in the second half of 2026 to 22%–23% by mid-2028. Chart’s contribution will account for 55%–65% of its segment EBITDA in Q4 2026, while the combined company aims to generate $325 million in annualized cost synergies by Year 3, with roughly three-quarters of those savings coming from Chart operations. Free cash flow conversion is projected at 40%–45% in 2026, down from prior guidance due to higher transaction costs and integration expenses, but the deal is expected to unlock a combined addressable market exceeding $400 billion, expanding from $36 billion to $57 billion by 2030. The enterprise solutions pipeline now stands at $10 billion, with a focus on data center and industrial technology orders, including $4.2 billion in data center-related business secured since 2025 and $600 million over the past two years for Chart alone. Baker Hughes’ industrial and energy technology (IET) segment, which now drives 60% of revenue, delivered record EBITDA margins of 18.5% in 2025 and is projected to exceed 20% in 2026. The backlog for IET reached a record $37 billion at the end of Q2, with $12 billion in orders booked in H1 2026. Chart’s backlog is expected to align with Baker Hughes’ accounting standards at approximately $3.6 billion by Q3, reflecting market stability rather than deterioration. CEO Lorenzo Simonelli emphasized the transformation of Baker Hughes into a leader in interconnected energy and industrial markets, citing operational improvements from its business system framework and a clear path to 20% adjusted EBITDA margins by 2028. The company also set a Horizon Two target of $45 billion in IET orders by 2028, underscoring its long-term growth ambitions. Financial health remains robust, with a return on equity of 16%, a current ratio of 2.09, and trailing EBITDA of $4.84 billion, holding more cash than debt, according to InvestingPro data cited in the presentation.