Oilfield services company Baker Hughes (BKR) saw its stock climb Monday after reporting second-quarter results that beat Wall Street estimates and highlighted a surge in demand tied to artificial intelligence, liquefied natural gas (LNG) projects, and power generation.

The company reported adjusted earnings of $0.64 per share for the second quarter, well above the $0.50 analysts had expected. Revenue came in at $6.74 billion, ahead of the consensus estimate of $6.52 billion. Adjusted EBITDA hit $1.23 billion, exceeding the high end of the company's own guidance range. Baker Hughes credited strong execution in its Oilfield Services & Equipment (OFSE) business, resilient operations in the Middle East, and improved seasonal demand across global markets.

Adjusted EBITDA margin expanded 70 basis points from a year earlier to a record 18.3%, supported by strong performance in its Industrial & Energy Technology (IET) segment, even as OFSE costs rose.

Management said the rapid expansion of artificial intelligence and data centers is creating a "step change" in global electricity demand, positioning power generation as one of the company's largest long-term growth opportunities.

The company also completed its acquisition of Chart Industries, adding thermal management, air and gas handling, and carbon capture capabilities. Chart will become Baker Hughes' third reporting segment because of its strategic importance. Baker Hughes identified roughly 300 integration initiatives across procurement, operations, systems, and corporate functions. The company expects the acquisition to generate $325 million in annual cost synergies by the third year, including $95 million in the first year and $230 million in the second. Management said the integration will focus on preserving customer relationships, retaining employees, expanding cross-selling opportunities, and improving operational efficiency while strengthening recurring aftermarket and digital revenue.

Baker Hughes booked $1.8 billion in LNG equipment orders during the quarter across three major projects, underscoring continued investment in global LNG infrastructure. The company also secured additional work for Cheniere Energy's Sabine Pass LNG project, including Train 7 equipment, boil-off gas re-liquefaction systems, and gas turbine upgrades. It reported record gas turbine service upgrade orders and expects global LNG capacity to reach nearly 800 million tonnes per annum by 2030 and about 950 million tonnes per annum by 2035.

Separately on Monday, Baker Hughes announced it won a major contract from Venture Global covering six LNG blocks and 12 liquefaction modules. The company also expanded its subsea manufacturing footprint with a new facility in Norway and partnered with Mantle Reach Power to support up to 500 megawatts of geothermal development in North America.

For the third quarter, Baker Hughes expects revenue of $6.57 billion to $7.17 billion and adjusted EBITDA of $1.115 billion to $1.295 billion. The company said the ongoing Middle East conflict is expected to reduce third-quarter IET revenue by 1% to 2% while increasing logistics costs and inflationary pressure across regional operations.

For fiscal 2026, Baker Hughes forecast revenue of $26.65 billion to $28.05 billion and adjusted EBITDA of $4.60 billion to $5.10 billion. The company also raised its full-year IET orders guidance and increased its Horizon 2 IET orders target to more than $45 billion, citing strong demand for power systems and LNG projects, particularly those tied to power generation.

Baker Hughes shares were up 6.17% at $60.78 at the time of publication on Monday.