Baker Hughes Co. (BKR) shares were ticking up in Wednesday's premarket session, even as the broader market looked a little shaky. Nasdaq futures were off 0.38%, and S&P 500 futures slipped 0.28%. But investors seemed to like what they heard from the energy technology company, which just laid out a fresh fiscal 2026 outlook and longer-term targets following its acquisition of Chart Industries.

The company kept its forecasts for Oilfield Services & Equipment and Industrial & Energy Technology unchanged. Instead, the focus was on how Chart fits into the bigger picture, potentially boosting margins, expanding the addressable market, and adding to long-term earnings power.

Baker Hughes Updates Fiscal 2026 Outlook

Here's the headline number: Baker Hughes now expects fiscal 2026 revenue of $28.5 billion to $30.3 billion. That's a notable jump from the $27.628 billion analysts had been modeling. Adjusted EBITDA is projected at $4.875 billion to $5.475 billion.

Free cash flow conversion is expected to land between 40% and 45%, which reflects the interest, transaction, and integration costs tied to the acquisition.

Chart itself is expected to bring in $1.85 billion to $2.25 billion in revenue and $300 million to $400 million in EBITDA for 2026. That's excluding any results before the July 16 acquisition close. The company notes that Chart's second-half results will likely be weighted toward the fourth quarter, thanks to LNG timing, order conversion, and softer hydrogen demand.

On the demand front, Baker Hughes expects Chart's book-to-bill ratio to stay above 1x in the second half, with that momentum carrying into 2027.

Chart Integration Targets Higher Margins

Management is setting some ambitious margin goals for Chart. The target is an EBITDA margin of 22% to 23% in the second half of 2028, up from roughly 17% in the second half of 2026.

Since closing the deal, Baker Hughes has already realized $35 million in cost synergies. The plan is to hit annualized savings of $95 million in year one, $230 million in year two, and $325 million in year three.

Where's that money coming from? Corporate cost reductions, supply-chain efficiencies, and facility optimization. On the commercial side, the company sees potential in cross-selling, offering broader customer solutions, and growing the aftermarket business.

Acquisition Expands Growth Opportunity

Chart isn't just about cost savings, though. It opens up new markets. Baker Hughes now has more exposure to LNG, industrial gases, mining, power, and data centers.

Here's the big picture: the company estimates its 2030 serviceable addressable market across key growth areas will hit $57 billion with Chart in the fold. That's up 58% from $36 billion without the acquisition.

Baker Hughes is eyeing growth in data centers, geothermal, carbon capture, and gas infrastructure. It also aims to get its leverage down to 1.0 to 1.5 times by the second half of 2028.

Baker Hughes Price Action

As of premarket trading on Wednesday, Baker Hughes shares were up 0.20% at $64.05, according to market data.