Oct 28, 2026 earnings call — Chase acquisition and strong IET order momentum
Raised IET full-year order outlook to $21.5 billion to $23.5 billion, citing continued demand and record RPO of $39.4 billion.
Revenue $8.0B (est $7.7B) · EPS $0.70 (est $0.61)
Key quotes
"IET recorded $5.9 billion in of orders, representing a 1.7x book to bill ratio, including $1 billion of LNG equipment awards and $2.2 billion of power systems orders led by strong data center demand."
"Together with the realization of synergies, these improvements give us confidence that Chase EBITDA margins can reach 22% to 23% by the second half of 2028, with further expansion beyond that."
"We are targeting a high single digit CAGR in MAS-related revenue achieving at least $3 billion by 2030."
Analyst Q&A 6
Where the $50B orders come from
Q (Scott Gruber · Citi): Analyst asked which markets and new areas are driving the upsized Horizon 2 IET order target and the breakdown across power, LNG, gas infrastructure and early-stage verticals.
A: Management said orders are broad based. Data centers drove big growth but outside data centers IET orders include LNG, pipelines, upstream gas processing and FPSO, plus rising digital and lifecycle services. They expect power systems and LNG to be the two major contributors to the Horizon 2 orders outlook.
"Outside of data centers, IET orders totaled approximately $13 billion year to date, reflecting the broad strength of the portfolio across LNG, pipelines upstream gas processing, and FPSO." — Lorenzo Simonelli (CEO·CHAIR)
Outlook and cadence for 2027
Q (Arun Jayaram · JPMorgan): Analyst asked for puts and takes on 2027: revenue, margins, book-to-bill, capacity constraints, and segment views given higher RPO and some IET capacity limits.
A: Management expects company book-to-bill to remain above 1x and sees revenue growth and EBITDA margin expansion in 2027, with seasonal Q1 decline then improvement through the year and stronger second half. They gave segment detail: IET organic growth low- to mid-single digits with margins improving as extra turbine/generator capacity contributes; OFSE low- to mid-single digit global upstream growth; Chart normal seasonal step-down then improving toward 22–23% EBITDA in H2 2028.
"Book to bill, we expect it to remain above 1x." — Ahmed Moghal (CFO)
Quality and convertibility of IET backlog
Q (Stephen Gengaro · Stifel): Analyst wanted to know how permitting, capital limits and project timelines affect customer decisions and how to assess IET backlog quality and conversion visibility.
A: Management said power demand for AI is strong and speed of securing reliable power is often the constraint, which favors on-site gas generation and earlier capacity reservations. They evaluate counterparties on technology access, permitting, execution capability and economics, prefer well-capitalized customers, and use contract protections like nonrefundable down payments and cancellation penalties to reduce cancellation risk.
"We evaluate the profile of the counterparty access to critical technology and infrastructure, including GPUs, permitting progress, execution capability, and overall project economics." — Lorenzo Simonelli (CEO·CHAIR)
How Chart will reach higher EBITDA margins
Q (Saurabh Pant · BofA): Analyst asked management to explain drivers behind Chart moving from about 17.5–18% margins in H2 2026 to 22–23% in H2 2028, and whether improvement is linear or back-end weighted.
A: Management said margin progression will not be perfectly linear: improvement through 2027 and a more meaningful step in 2028. The three main drivers are cost synergies (target $125 million annualized by year 3), improved mix as lower-margin projects roll off and LNG volume rises, and operational/commercial gains from the Baker Hughes Business System, with offsets like merit inflation and selective R&D investments.
"So looking beyond the fourth quarter, the path to 22 to 23% EBITDA margins in the second half, we remain confident with additional upside beyond that level over time." — Ahmed Moghal (CFO)
Impact of Middle East on guidance and rebuild opportunity
Q (David Anderson · Barclays): Analyst asked what Middle East activity is embedded in Q4 guidance, how normalization might proceed into 2027, and what rebuild opportunities exist across drilling, completions and IET infrastructure.
A: Management said they take a measured near-term view and assume Q4 Middle East activity broadly returns to Q2 levels; IET impact is limited to logistics and supply chain with a modest revenue headwind in guidance. For 2027 they see normalization pace as a key variable but remain constructive long term: a more stable region could support recovery plus broader rebuilding and infrastructure spending across gas, power and other areas.
"As a result, as we mentioned, our fourth quarter outlook assumes Middle East activity levels will broadly return to second quarter levels." — Lorenzo Simonelli (CEO·CHAIR)
Implementing business system at Chase
Q (James West · Melius): Analyst asked for an update on implementing Baker Hughes business systems into Chase: processes, discipline, accountability, and what to expect over coming quarters.
A: Management said implementation is progressing well with an intense effort: they have baselined processes, set tier 1 and tier 2 KPIs, and put standardized operating reviews in place. They are already using the system to drive integration, operations improvement, capacity unlocking and cost synergies, and plan to embed it more deeply to capture further value.
"The team is going through an intense effort across all facets of the business system." — Ahmed Moghal (CFO)