Baker Hughes IET Backlog Hits Record $37.1B on LNG and Power Generation Surge

Baker Hughes reported strong second-quarter 2026 financial results on July 26, driven by record-breaking order intake in its Industrial & Energy Technology (IET) segment—the division most directly relevant to turbomachinery, rotating equipment, and gas processing professionals. IET orders reached $7.1 billion for the quarter, more than doubling year-over-year, while the IET remaining performance obligation (RPO) climbed to an all-time high of $37.1 billion.¹

What Drove IET's Record Order Intake?

The surge in IET orders was led by Gas Technology Equipment bookings of $4.913 billion—up more than fivefold year-over-year—and Gas Technology Services orders of $1.314 billion, up 33% year-over-year.¹ The quarter's most significant turbomachinery awards underscore robust demand across LNG infrastructure and distributed power generation.

Among the headline awards, Baker Hughes received a major contract from Venture Global to provide six LNG blocks comprising 12 single mixed-refrigerant (SMR) liquefaction modules, each featuring centrifugal compressor technology alongside cold boxes, air coolers, and integrated control systems. Separately, Cheniere and Bechtel awarded the company liquefaction equipment for Sabine Pass Train 7, a boil-off gas re-liquefaction unit, and fleet-wide gas turbine upgrades—supporting approximately 6 MTPA of additional LNG production capacity. Golar also awarded Baker Hughes a contract to supply four PGT25 gas turbine-driven refrigerant compressor trains for a 3.5 MTPA floating LNG facility, marking the fourth Golar vessel to deploy Baker Hughes liquefaction solutions.¹

On the power generation side, Dynamis Power Solutions placed a major order for 76 NovaLT™16 gas turbines representing approximately 1.3 GW of capacity for hypermobile data center and oil and gas applications. Kodiak Gas Services signed a multi-year strategic agreement anchored by an initial 1 GW award using NovaLT™16, Frame 5, and BRUSH™ generator technologies, with a pathway to 1.8 GW over time.¹

IET Margin and Backlog Implications for the Supply Chain

IET segment EBITDA held at $678 million, flat sequentially but up 16% year-over-year, with EBITDA margin expanding to 20.6% from 17.8% a year earlier. The IET book-to-bill ratio reached 2.2 for the quarter, a figure that signals extended forward visibility for OEM component suppliers, aftermarket service providers, and engineering contractors supporting LNG and gas compression projects.¹

For rotating equipment professionals, the Gas Technology Services RPO of $16.7 billion alongside Gas Technology Equipment RPO of $15.0 billion reflect a long-duration workload in turbomachinery overhaul, upgrade, and lifecycle services—an area that Baker Hughes further reinforced by extending a multi-year services agreement with Nigeria LNG for Train 7 turbomachinery reliability.¹

Compression and Electrification Awards Signal Shifting Technology Mix

Two Middle East compression awards highlight the growing role of electric motor-driven configurations in gas processing. Baker Hughes received an order for nine electric motor-driven compressor trains for gas injection, gas lift, and boosting in a mature offshore field, and a separate contract through Saipem NSH for five electric motor-driven centrifugal compressor trains supporting Aramco's Uthmaniyah conventional gas wells.¹ These awards reflect a broader industry shift toward electrified compression in regions where power infrastructure and emissions targets are converging.

Chart Industries Acquisition Adds Thermal Management and Compression Capabilities

A strategically significant development for the turbomachinery sector is Baker Hughes' completed acquisition of Chart Industries, finalized in July 2026 in an all-cash transaction. Chart expands Baker Hughes' portfolio to include thermal management, air and gas handling, compression, and lifecycle services—technologies that are deeply complementary to existing centrifugal and axial compression offerings. The combined entity is better positioned to serve the full compression and heat-exchange value chain on LNG, hydrogen, and industrial gas projects.¹

Hydrogen-Ready and Maritime Certifications Expand NovaLT™16 Addressable Market

Reflecting the longer-term energy transition trajectory, Baker Hughes secured RINA certification for the fuel-flexible NovaLT™16 for maritime propulsion applications capable of operating on natural gas and up to 100% hydrogen. For turbomachinery engineers tracking dual-fuel and hydrogen combustion development, this certification marks a commercially relevant milestone for hydrogen-capable gas turbine deployment in the marine sector.¹

Company Raises IET Order Guidance

Baker Hughes raised its full-year IET order guidance and increased its three-year (2026–2028) IET orders outlook to more than $45 billion, citing broadening customer demand and expanding pipeline across industrial and energy infrastructure markets. The company also announced it is further expanding manufacturing capacity to support the order momentum.¹

On a consolidated basis, total company revenue was $6.742 billion for Q2 2026, adjusted EBITDA was $1.231 billion, and free cash flow reached $1.109 billion.¹

Reference
Baker Hughes. Baker Hughes Announces Second-Quarter 2026 Results. July 26, 2026. https://www.bakerhughes.com/company/news/baker-hughes-announces-secondquarter-2026-results