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Baker Hughes forecasts modest decline in oil‑gas spending for 2026
Baker Hughes said it expects global oil and gas producers to cut annual spending modestly in 2026, with growth in Latin America, offshore Africa and North America offsetting lower spending in Europe and the Middle East. The ongoing U.S.–Iran conflict in the Middle East has dominated energy markets, prompting producers to adopt a more cautious stance.
CEO Lorenzo Simonelli said customers are focused on maximising production from existing assets while preserving flexibility. The company’s shares rose more than 6% after it beat quarterly profit estimates. Industrial and energy‑technology orders doubled year‑over‑year to a record $7.1 billion.
Baker Hughes warned its Industrial Energy Technology (IET) segment would see a 1‑2% revenue hit from the conflict. It forecast third‑quarter IET revenue of $3.17‑$3.47 billion, below analysts’ $3.79 billion expectation. CFO Ahmed Moghal noted modest overall impact but flagged logistics and inflationary pressures, expecting strength in regions outside the Middle East to offset the downside. The firm is also counting on resilient growth areas such as LNG infrastructure, power‑grid upgrades and an expansion of gas‑turbine and generator capacity slated for 2029, which could support roughly $5 billion of annual power‑systems revenue.
Entities
Ahmed Moghal · Baker Hughes · Iran · Lorenzo Simonelli · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Growth is expected in Latin America, offshore Africa and North America, offset by lower spending in Europe and the Middle East. wkzo.com · wsau.com
- [● 3 SOURCES] The IET segment is expected to face a 1‑2% revenue hit from Middle East disruptions. wkzo.com · wsau.com
- [● 3 SOURCES] Industrial and energy technology orders doubled year‑over‑year to a record $7.1 billion. wkzo.com · wsau.com
- [● 3 SOURCES] CEO Lorenzo Simonelli said customers are focused on maximizing production from existing assets while preserving flexibility. wkzo.com · wsau.com
- [● 3 SOURCES] Q3 IET revenue is forecast at $3.17‑$3.47 billion, below analysts’ $3.79 billion expectation. wkzo.com · wsau.com
- [● 3 SOURCES] Baker Hughes shares rose more than 6% after beating quarterly profit estimates. wkzo.com · wsau.com
- [● 3 SOURCES] Baker Hughes will expand gas turbines and generator capacity by 2029, supporting nearly $5 billion of annual power‑systems revenue. wkzo.com · wsau.com
- [● 3 SOURCES] Baker Hughes expects global oil and gas producers' annual spending to decline modestly in 2026. wkzo.com · wsau.com
- [● 3 SOURCES] Baker Hughes forecast Q3 IET revenue between $3.17 billion and $3.47 billion, below analyst expectations of $3.79 billion. wkzo.com · wsau.com
- [● 3 SOURCES] The IET segment is expected to face a 1‑2% revenue hit from Middle East conflict disruptions. wkzo.com · wsau.com
- [● 3 SOURCES] Growth is expected in Latin America, offshore Africa and North America, offsetting lower spending in Europe and the Middle East. wkzo.com · wsau.com
- [● 3 SOURCES] Baker Hughes shares rose more than 6% after the company beat quarterly profit estimates. wkzo.com · wsau.com