Dear fellow shareholders,

As I reflect upon 2025, the year stands out as one of Baker Hughes' most transformative since the company formed in 2017 – marked by record financial performance and meaningful progress in our evolution to become a leading industrialized energy solutions company. With this momentum, 2026 has the potential to be even more significant.

We delivered an outstanding year in 2025, highlighted by record performance across the company. Adjusted EBITDA margins* rose to a record 17.4%, with adjusted EBITDA* reaching $4.83 billion. Free cash flow* increased 21% year-over-year, totaling $2.73 billion. This accomplishment was driven by strong performance in Industrial & Energy Technology (IET), resilient margins in Oilfield Services & Equipment (OFSE), and consistent execution across the company. Notably, IET secured $14.9 billion in orders and closed the year with record backlog exceeding $32.4 billion. These results demonstrate Baker Hughes' commitment to delivering value for customers and shareholders, while affirming the strength of our Business System execution.

The year further validated our customers' continued confidence in our ability to help them deliver essential LNG and natural gas which we continue to view as a key destination fuel for sustainable, secure and affordable energy. In 2025, LNG demand rose by approximately 7%, and we anticipate this demand will surge by at least 75% by 2040. Similarly, global natural gas consumption is projected to grow by approximately 20% by 2040. This strong growth in natural gas demand is fueling increased investment in gas and power infrastructure, which we expect to account for an increasing share of our $40-plus billion IET order target during Horizon Two.

I am also proud of the collective work to continue building a stronger, more durable Baker Hughes that reaches new customers and markets in innovative ways. In 2025, the rapid rise of data centers provided an exciting opportunity to showcase our differentiated power systems capabilities to new partners: We went from no data center orders in 2024 to $1 billion in 2025. This achievement reinforces our confidence in achieving $3 billion of data center-related orders from 2025 to 2027 – doubling our previous estimate. Baker Hughes remains committed to delivering innovative solutions to support rising energy demand, driven in part by the rapid adoption of artificial intelligence, while ensuring that we continue to enable the decarbonization of industry.

By integrating complementary surface and subsurface OFSE technologies with our broad IET portfolio, we are also unlocking growing synergy opportunities across field management, offshore production, geothermal, and carbon capture and storage. This progress was evident in our record New Energy bookings for 2025, which reached $2 billion - well above our $1.4 to $1.6 billion target. Looking ahead, we are targeting $2.4 to $2.6 billion of New Energy orders in 2026.

I was particularly pleased with our advancements in geothermal, a source of energy as old as the planet and yet still in the early stages of development in many regions. In the fall, we announced a contract to design and deliver equipment for five Organic Rankine Cycle (ORC) power plants for a U.S. project that will generate 300 megawatts (MW) of clean, reliable power, complementing the OFSE subsurface drilling and production technologies award for this same project. Together, these wins demonstrate the growing relevance of our integrated portfolio in providing scalable, low-carbon energy solutions.

Our continued success – including a substantial award to supply aeroderivative gas turbines for mobile power generation across various oil & gas sectors such as upstream, refining, and petrochemical – demonstrates our strong position to capitalize on a powerful and enduring growth opportunity in global power generation. Through our power systems solutions portfolio, we sit squarely at the intersection of these megatrends. Our strategy is deliberately built around fuel flexibility, digital integration, and portfolio expansion, allowing us to deliver full-lifecycle power solutions to customers across diverse industries.

As part of our portfolio management strategy, we advanced several strategic transactions last year: the formation of a joint venture with Cactus Wellhead for our Surface Pressure Control business; the sale of Precision Sensors & Instrumentation; and the acquisition of Continental Disc Corporation. Additionally, we announced our intent to acquire Chart Industries, which will further strengthen our diversified position, expanding our capabilities across process technologies, thermal management and lifecycle services.

These portfolio actions continue to position Baker Hughes as an industrialized energy solutions company, ready to deliver the radical new outcomes required to sustain the growth in demand for energy.

Just over three years ago, we revealed our three time horizon strategy to simplify and strengthen Baker Hughes to best deliver for our customers and shareholders – and above all, deliver resources to a world requiring more energy with every passing year. 2025 capped Horizon One and delivered significant proof points that our strategy is strong and the correct course for the company. We are excited about and look forward to the closure of the Chart transaction as we continue to position our portfolio to capture market tailwinds in power generation and LNG, and benefit from long-term, structural shifts in energy demand.

2025 should be remembered for the substantial progress made in driving operational improvements, advancing our portfolio, and delivering leading shareholder returns. With a stronger portfolio, improved execution, and exposure to durable industrial and energy growth trends, we are confident in our strategy and committed to continue creating long-term value for shareholders.

I am excited to see what 2026 brings for Baker Hughes, and I thank you for your continued support.

Sincerely,

Lorenzo Simonelli
Chairman, President, and Chief Executive Officer