Baker Hughes Co (BKR) November 2025 Conference Transcript

just in the environment. And then, you know, for IET specifically, of course, we also have the gas tech equipment backlog conversion. So, you know, just that cadence of that, the aero derivative supply chain progress, and then, of course, the usual stuff that we monitor around FX and trade policy. And then when you convert that to first half, free cash flow was obviously strong. That was driven by some favorable working capital performance by strong customer collections, which, you know, come on the back of that type of order strength, but also milestone payments as we continue to progress on individual projects. So, as we look at the balance of the year, you know, that can create, you know, with working capital movements, some quarter to quarter variability, but still, you know, we remain committed to our overall free cash flow outlook. On 2027, while it's still early and we're not providing formal guidance, but with the backlog sitting at these type of record levels, it gives us good visibility into 2027 and beyond. And as I mentioned in one of the answers, the pace of the backlog conversion will differ, particularly within GTE, where a lot of the orders that we've taken in the first half and overall 2026 are expected to convert after 2027. But what we do see next year is profitability, which is coming through with the way the teams are executing, the favorable pricing, and the high-quality mix that we've got sitting in that backlog between power systems, LNG, and services and upgrades. So it's a great setup with good visibility as we go through. and you know the the revenue cadence will obviously be paced by cycle times and capacity but with with the margin visibility we have into 2027 and beyond uh you know we feel pretty good about where we are at great thanks so much thanks for and thank you that was our last question i'll hand you back to mr lorenzo simonelli chairman and chief executive officer to conclude the call thank you to everyone for taking the time to join our earnings call today, and I look forward to speaking with you all again soon.

Operator, you may now close out the call. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone have a great day.