How Baker Hughes' Major LNG Contract Win with Bechtel Will Impact BKR Investors

Bechtel announced in early November that Baker Hughes will supply primary liquefaction equipment, including two Frame 7 gas turbines and six centrifugal compressors, for Train 5 of NextDecade’s Rio Grande LNG Facility in Texas, under a continuing framework covering multiple LNG trains. This major contract win highlights Baker Hughes’ strengthened position as a technology provider for energy infrastructure projects and continued expansion into LNG and digital monitoring solutions. We'll examine how Baker Hughes’ expanded LNG technology role in the Bechtel-NextDecade contract reshapes its investment narrative and growth outlook.

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Baker Hughes Investment Narrative Recap

To be a Baker Hughes shareholder today, you need to believe in the company's long-term ability to drive growth through LNG, digital, and energy transition solutions despite exposure to oil and gas volatility. The recent Bechtel-NextDecade deal is a clear win for Baker Hughes’ LNG segment and boosts short-term contract momentum, but does not materially change the biggest risks around policy shifts and energy transition competition, or the key catalyst of recurring revenue visibility from its growing order book.

Of Baker Hughes’ recent announcements, the multi-train framework contract with Bechtel for the Rio Grande LNG project stands out as central to ongoing LNG backlog growth and visibility into future service revenues, which helps support the company’s largest catalyst: a robust, recurring revenue stream from large-scale energy projects.

However, investors should also be aware that, in contrast to the upbeat contract news, there are persistent risks if global trade policy shifts or cost inflation challenge...

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

Baker Hughes' outlook anticipates $29.1 billion in revenue and $2.9 billion in earnings by 2028. This reflects 1.8% annual revenue growth and a $0.1 billion decrease in earnings from the current $3.0 billion level.

Uncover how Baker Hughes' forecasts yield a $52.43 fair value, a 10% upside to its current price.

Exploring Other PerspectivesBKR Community Fair Values as at Nov 2025

Four members of the Simply Wall St Community currently estimate Baker Hughes’ fair value from US$50 to US$66.36, signaling broad disagreement over its future. Many participants focus on contract wins and a growing backlog, but your perspective on industry risk and policy change could shape a very different outlook.

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Explore 4 other fair value estimates on Baker Hughes - why the stock might be worth as much as 39% more than the current price!

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 3 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.

Companies discussed in this article include BKR.

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