Does Commonwealth LNG Contract Expand Baker Hughes’ (BKR) Lower‑Carbon Earnings Mix Or Just Its Backlog?

• In December 2025, Technip Energies announced it had issued Baker Hughes a Full Notice To Proceed to supply six LM9000-based refrigerant turbo compressor trains and related liquefaction equipment for Commonwealth LNG’s planned 9.5 million tonnes per annum export facility in Cameron, Louisiana.
• This major LNG equipment award reinforces Baker Hughes’ role in lower-carbon gas infrastructure and adds to the visibility of its energy technology backlog.
• We’ll now explore how securing this large Commonwealth LNG liquefaction contract could influence Baker Hughes’ investment narrative and future earnings mix.

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Baker Hughes Investment Narrative Recap

To own Baker Hughes, you need to believe its shift toward LNG, lower carbon gas infrastructure and energy technology can offset cyclical oilfield exposure and policy risk. The Commonwealth LNG liquefaction award strengthens the Industrial & Energy Technology backlog, but by itself does not meaningfully change the key near term swing factors: execution on the large order book and the impact of trade, cost and pricing pressures on margins.

The upcoming Q4 2025 results on 25 January 2026 are the most relevant near term event in this context, as analysts expect Industrial & Energy Technology to offset weaker Oilfield Services & Equipment margins. How Baker Hughes talks about LNG related orders like Commonwealth, and the mix shift in its backlog, will help investors judge whether the company is really becoming less dependent on volatile upstream spending.

Yet against this constructive LNG story, investors still need to watch the risk that faster policy shifts toward renewables and electrification could...

Read the full narrative on Baker Hughes (it's free!)

Baker Hughes' narrative projects $29.1 billion revenue and $2.9 billion earnings by 2028. This requires 1.8% yearly revenue growth and a $0.1 billion earnings decrease from $3.0 billion today.

Uncover how Baker Hughes' forecasts yield a $53.14 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see Baker Hughes’ fair value between US$50.00 and about US$54.55, highlighting a tight but varied set of expectations. You can weigh these views against the company’s growing LNG and energy technology backlog, which may matter a lot if long term demand for gas infrastructure and data center power solutions changes direction.

Explore 4 other fair value estimates on Baker Hughes - why the stock might be worth just $50.00!

Build Your Own Baker Hughes Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Baker Hughes research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Baker Hughes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baker Hughes' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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