Cash conversion efficiency remains inconsistent, evidenced by an OCF/NI ratio that dropped to 0.54 in 2026Q1, reflecting a sharp contraction in free cash flow margins to 7.6%.
| Cash from Operations | 3.6B | 3.81B | 3.33B | 3.06B | 1.89B | 2.37B | 1.3B | 2.13B | 1.76B | -799M | 262M | 1.28B |
| Operating CF Margin % | - | 13.74% | 11.97% | 12.01% | 8.92% | 11.58% | 6.3% | 8.92% | 7.7% | -4.65% | 1.97% | 7.65% |
| Operating CF Growth % | 48.72% | 14.35% | 8.82% | 62.18% | -20.47% | 82.06% | -38.66% | 20.66% | 320.53% | -404.96% | -79.48% | - |
| Net Income | 3.12B | 2.62B | 3.01B | 1.97B | -578M | 336M | 951M | 94M | 195M | -396M | 403M | -606M |
| Depreciation & Amortization | 1.26B | 1.19B | 1.14B | 1.09B | 1.06B | 1.1B | 1.32B | 1.42B | 1.49B | 1.1B | 550M | 530M |
| Stock-Based Compensation | 198M | 203M | 202M | 197M | 207M | 205M | 210M | 187M | 0 | 37M | 0 | 0 |
| Deferred Taxes | -425M | -702M | -671M | -59M | 105M | 133M | 160M | 51M | -249M | -333M | 39M | -96M |
| Other Non-Cash Items | -3.42B | 103M | -290M | -561M | 971M | -19M | -1.78B | -61M | 56M | -9M | -91M | 204M |
| Working Capital Changes | 1.1B | 394M | -53M | 428M | 122M | 614M | 443M | 437M | 274M | -1.2B | -639M | 1.25B |
| Change in Receivables | -642M | 358M | -159M | -986M | -625M | -126M | 680M | -583M | -204M | -1.19B | 278M | 469M |
| Change in Inventory | 185M | 79M | -102M | -461M | -885M | 170M | -80M | -200M | -339M | 418M | 345M | 442M |
| Change in Payables | 98M | 11M | 91M | 61M | 605M | 246M | -711M | 249M | 794M | 303M | -256M | -450M |
| Cash from Investing | -696M | -2.04B | -1.02B | -817M | -1.56B | -463M | -618M | -1.04B | -578M | -4.12B | -472M | -466M |
| Capital Expenditures | 0 | 0 | -1.28B | -1.22B | -772M | -541M | -787M | -976M | -995M | -665M | -424M | -607M |
| CapEx % of Revenue | 0% | 4.59% | 4.59% | 4.8% | 3.65% | 2.64% | 3.8% | 4.09% | 4.35% | 3.87% | 3.2% | 3.64% |
| Acquisitions | -830M | -830M | 0 | -8M | -845M | -109M | 161M | -99M | -89M | -3.35B | -1M | 95M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 134M | -1.22B | 170M | 43M | 53M | 187M | 8M | 30M | 506M | -113M | -47M | 46M |
| Cash from Financing | 8.54B | -1.48B | -1.53B | -2.03B | -1.59B | -2.14B | 225M | -1.53B | -4.36B | 10.92B | -102M | -515M |
| Debt Issued (Net) | 0 | 0 | -143M | -651M | -28M | -936M | 991M | -587M | -1.06B | 3.09B | -156M | -45M |
| Equity Issued (Net) | -196M | -384M | -484M | -538M | -828M | -434M | 0 | -250M | -2.49B | -477M | 0 | 0 |
| Dividends Paid | -909M | -910M | -836M | -786M | -726M | -592M | -488M | -395M | -315M | -155M | 0 | -297M |
| Share Repurchases | -196M | -384M | -484M | -538M | -828M | -434M | 0 | -250M | -2.49B | -477M | 0 | 0 |
| Other Financing | 9.65B | -188M | -64M | -53M | -10M | -181M | -278M | -302M | -502M | 8.46B | 54M | -289M |
| Net Change in Cash | 11.49B | 351M | 718M | 158M | -1.36B | -279M | 883M | -474M | -3.31B | 6.05B | -451M | 42M |
| Free Cash Flow | 2.63B | 2.54B | 2.05B | 1.84B | 1.12B | 1.83B | 517M | 1.15B | 767M | -1.46B | -162M | 670M |
| FCF Margin % | 9.43% | 9.15% | 7.38% | 7.21% | 5.28% | 8.94% | 2.5% | 4.82% | 3.35% | -8.52% | -1.22% | 4.01% |
| FCF Growth % | 30.67% | 23.52% | 11.75% | 64.7% | -39.12% | 254.55% | -55.04% | 49.93% | 152.39% | -803.7% | -124.18% | - |
| FCF per Share | 2.64 | 2.55 | 2.05 | 1.81 | 1.13 | 2.22 | 0.77 | 2.06 | 1.77 | -3.43 | -0.38 | 1.56 |
| FCF Conversion (FCF/Net Income) | 0.84x | 1.47x | 1.12x | 1.58x | -3.14x | -10.84x | -0.13x | 16.61x | 9.04x | 13.10x | 1.03x | -2.11x |
| Interest Paid | 244M | 294M | 298M | 309M | 291M | 305M | 289M | 285M | 301M | 109M | 55M | 52M |
| Taxes Paid | 949M | 1.16B | 1.04B | 595M | 498M | 314M | 441M | 438M | 424M | 230M | 317M | 264M |
LNG project timing volatility
Based on reported financial data, the OCF/NI ratio has fluctuated significantly, reaching a low of 0.54 in 2026Q1, which suggests that reported net income is not consistently translating into actual cash generation for the company's industrial and energy technology operations.
The persistent gap between net income and operating cash flow indicates that accrual-based accounting, likely driven by percentage-of-completion revenue recognition, may be masking underlying cash volatility. Investors should monitor whether this divergence reflects legitimate long-cycle project accounting or a structural inability to convert earnings into liquidity.
As reported in recent filings, Baker Hughes experienced a sharp contraction in FCF margins to 7.6% in 2026Q1, down from the 17.4% peak observed in 2025Q4, highlighting the inherent instability in cash flow generation across its dual-segment business model.
The erratic nature of free cash flow suggests that the company's transition toward long-cycle industrial technology has not yet smoothed out the cyclicality of its cash profile. This inconsistency warrants further investigation into whether project-based milestones are creating lumpy cash inflows that complicate short-term performance assessment.
According to quarterly cash flow statements, working capital changes have been highly erratic, swinging from a $982 million inflow in 2025Q4 to a neutral position in 2026Q1, which underscores the company's sensitivity to project-related inventory and receivable cycles.
These significant fluctuations in working capital suggest that the company's cash position is heavily dependent on the timing of large-scale equipment deliveries and customer payment schedules. Such volatility makes it difficult to rely on quarterly cash flow as a stable indicator of operational health.
Based on historical cash flow data, Baker Hughes has maintained a consistent dividend payout of approximately $228 million per quarter, even as free cash flow generation has shown significant variance, suggesting a management priority on shareholder returns despite operational cash flow instability.
The commitment to dividends appears to be a strategic anchor for the company, though the lack of share repurchases in recent quarters may indicate a more cautious approach to capital allocation. Investors should monitor if this dividend policy remains sustainable if the current volatility in operating cash flow persists.
Quick answers to the most common questions about buying BKR stock.
Baker Hughes Company (BKR) generated $3.81B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Baker Hughes Company (BKR) generated $2.54B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Baker Hughes Company (BKR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Baker Hughes Company (BKR) returned $910.0M to shareholders via cash dividends and spent $384.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.