Baker Hughes: Exceeded Expectations
The oil and gas industry benefited significantly from geopolitical events in the last quarter. This is one reason why Baker Hughes exceeded analysts’ forecasts in the past quarter. Adjusted earnings per share came in at USD 0.64, compared to the USD 0.49 that had been anticipated. Revenue also came in higher at USD 6.7 billion than the projected USD 6.51 to USD 6.52 billion. The company also reported an increase in its adjusted EBITDA margin to 18.3%. Free cash flow for the past quarter was USD 1.1 billion.
The company’s total order intake amounted to USD 10.5 billion, representing a 49% increase compared to the same period last year. The total order backlog thus grew to USD 40.1 billion. The Industrial and Energy Technologies segment played a major role in this development, receiving orders worth USD 7.1 billion on its own. In addition, the company completed the acquisition of plant manufacturer Chart Industries in July 2026.
Various analysts have differing views on the company’s current situation. Piper Sandler raised its price target for the share to USD 73 and maintained its “Overweight” rating. The firm cited the high level of order intake in the technology division as the reason for this decision. UBS, on the other hand, lowered its price target from USD 73 to USD 71 and confirmed its neutral rating on the stock due to a lack of planning certainty in the gas technology equipment sector. Nevertheless, UBS also highlighted the positive aspects of the past quarter, particularly the fact that the company exceeded expectations for operating income for the 14th consecutive time.
Zefiro Methane: Euphoric Analyst Comments
Analysts at GBC AG see significant upside potential for Zefiro Methane. In their initial report, they assign a “Buy” rating with a price target of CAD 2.12. Based on the current price of approximately CAD 0.61, this corresponds to a price potential of around 250%. The financial experts cite the multi-billion-dollar remediation market for decommissioned oil and gas wells, the operational turnaround, and additional growth opportunities from the expansion of energy infrastructure for AI data centers as key drivers of the share price.
Zefiro Methane specializes in the identification, surveying, and permanent plugging of abandoned and orphaned oil and gas wells in the US. Together with its subsidiaries, the company covers nearly the entire value chain, from planning and methane measurement to reclamation. In addition, the generation of high-value CO₂ credits opens up an additional, high-margin revenue stream.
The target market is enormous. There are approximately two million improperly sealed wells in the US. The remediation of these wells alone is estimated to be worth around USD 280 billion, while additional undocumented wells significantly increase this potential even further. At the same time, the boom in the construction of AI data centers and new energy infrastructure is creating additional business opportunities. Over the next five years, US energy utilities are expected to invest approximately USD 1.4 trillion in expanding power grids. Before new power plants, transmission lines, or data centers can be built, old well sites must often be remediated.
Zefiro has achieved initial success in this area. For example, by remediating nine boreholes in Pennsylvania, the company enabled the conversion of a coal-fired power plant into a gas-fired power plant for hyperscale data centers. In Louisiana, an infrastructure project worth USD 5 million was even completed three weeks ahead of schedule. At the same time, the core business is also growing, with new government contracts in Ohio and additional projects running through 2029.
With expansion into 13 US states to date, the acquisition of additional drilling rigs, and a potential resumption of the carbon credit business, Zefiro has several growth drivers that support analysts’ positive outlook.
Innio: Loss vs. Strong Order Book
Energy specialist Innio also delivered impressive second-quarter results, at least in terms of some key metrics. Between April and June, revenue rose significantly year-over-year to just under USD 938 million. The value of new orders also grew strongly, reaching the USD 2.3 billion mark. In total, Innio now has a backlog of orders worth USD 6.6 billion to fulfill. Despite the increase in revenue, the company reported a loss of approximately USD 17 million during this period. This was due to high one-time costs incurred as a result of the company’s recent initial public offering.
Management has provided a specific estimate for the full year 2026 and expects total revenue of between USD 3.8 billion and USD 3.9 billion. Adjusted operating profit is projected to reach between USD 720 million and USD 740 million by the end of the year. Financial experts view this business development positively. To fulfill the large number of orders, the company is currently expanding its production facilities.
The reason for the expansion is a major order that Innio signed in the second quarter. An operator of large data centers has ordered systems with a total capacity of 1.1 GW. To fulfill this order, Innio will build more than 200 Jenbacher J624 gas engines.
These engines will be shipped to the United States. Their purpose is to supply the data centers with electricity directly on-site and independently of the general power grid. A reliable power source is of great importance to the customer, as modern computer systems for artificial intelligence applications have high energy requirements. The handover of the engines to the buyer will not take place all at once but will be carried out in several phases. This order ensures Innio secure and predictable revenue over the coming years.
The energy demands of the AI revolution present enormous opportunities for companies across the entire value chain. Baker Hughes is impressing with record orders and strong operational performance, while Zefiro Methane is tapping into a multi-billion-dollar future market by remediating abandoned and orphaned wells and is also benefiting from the expansion of energy infrastructure for data centers. Innio, for its part, enjoys high visibility thanks to its well-filled order books and could benefit sustainably from the boom in decentralized power generation.
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