US LNG Boom and Baker Hughes’ Record 2025 Results

Record Year for Global LNG Trade

Liquefied natural gas trade reached record levels in 2025, as exports exceeded prior industry forecasts and the United States emerged as the leading supplier. U.S. LNG exports were estimated at 111 million metric tonnes (mmt) last year, up 23 mmt from 2024 and far above Qatar’s roughly 20 mmt, according to data firm LSEG. U.S. cargoes accounted for about 25% of global LNG exports, supported by multiple new liquefaction plants coming online.

Venture Global’s Plaquemines facility, which started operations in December 2024, shipped an estimated 16.4 mmt in 2025, making it the country’s second‑largest export plant. Several other U.S. terminals also increased deliveries after years of investment, driving a record monthly export figure of 11.5 mmt in December. Europe absorbed around 9 mmt from the U.S. that month alone as it further reduced gas imports from Russia following sanctions imposed after the 2022 invasion of Ukraine.

Jason Feer, head of business intelligence at shipping firm Poten and Partners, said it was “remarkable” that in nine years the U.S. had gone from zero LNG exports to more than 100 mmt, and argued that the performance validated the U.S. model of selling LNG free on board, pulling gas off the domestic grid and providing reliable supplies.

Looming LNG Supply Growth in 2026

Despite strong recent demand, industry concerns are now shifting toward potential oversupply as more capacity comes online in 2026. The Plaquemines plant is expected to reach full production this year, while Cheniere’s modular facilities are set either to reach full capacity or be expanded. QatarEnergy and ExxonMobil’s Golden Pass LNG project is also due to start production in 2026.

Together, U.S. LNG projects could add about 20 mmt a year of additional export capacity, raising the risk that supply growth could outpace demand as some regions accelerate deployment of renewable energy. At the same time, Europe’s increasing reliance on U.S. LNG has prompted separate worries about over‑dependence, with some estimates suggesting U.S. cargoes could represent up to 80% of European LNG imports by 2030 if trends continue.

Baker Hughes Posts Record 2025 Earnings

Against this backdrop, Baker Hughes reported record full‑year 2025 results on January 25, 2026, highlighting strong performance in its Industrial & Energy Technology (IET) segment. The company delivered record adjusted EBITDA for the year, record IET orders of $14.9 billion, and record free cash flow of $2.7 billion, helped by working capital efficiency and customer down payments.

For the fourth quarter of 2025, Baker Hughes reported revenue of $7.386 billion, flat year over year but up 5% sequentially. Net income attributable to the company was $876 million, down 26% versus the prior‑year quarter, while adjusted net income rose 11% to $772 million. Adjusted EBITDA for the quarter increased 2% year over year to $1.337 billion, with the sequential improvement driven mainly by higher volumes and productivity.

Full‑year 2025 revenue was $27.733 billion, broadly unchanged from 2024, as growth in IET offset lower volumes in Oilfield Services & Equipment (OFSE). Segment EBITDA rose 3% to $5.1 billion, with IET up 21% year over year to $2.482 billion and OFSE down 9% to $2.618 billion amid what management described as macro‑driven softness.

IET Order Backlog and LNG Exposure

Baker Hughes emphasized the strength and diversity of its IET portfolio, which includes liquefaction equipment for LNG, gas technology, industrial products, and climate technology solutions. IET ended 2025 with a record backlog of $32.4 billion and a full‑year book‑to‑bill ratio above 1. For the second consecutive year, non‑LNG equipment orders represented approximately 85% of total IET orders, underscoring the segment’s end‑market breadth.

Fourth‑quarter IET orders were $4.024 billion, up 7% year over year, and revenue rose 9% to $3.814 billion. Gas Technology Equipment revenue increased 11% year over year to $1.852 billion, while Gas Technology Services also grew 11%. IET EBITDA margin expanded to 20% in the quarter, from 18.3% a year earlier, aided by productivity, higher volumes, pricing and foreign‑exchange effects, partly offset by inflation.

During the quarter, IET secured key LNG‑related awards, including gas turbine and refrigerant compressor technology for Train 5 of NextDecade’s Rio Grande LNG facility, six LM9000 gas turbines for Commonwealth LNG, and main refrigerant compressors and power generation equipment tied to Alaska LNG’s gas treatment plant, contingent on final investment decisions. These and other contracts, such as a long‑term service extension with Cheniere and remote monitoring for Rio Grande LNG, highlighted ongoing LNG and gas infrastructure demand.

2026 Outlook and Strategic Positioning

Looking to 2026, Baker Hughes expects IET orders to remain at “robust” levels, supported by continued LNG momentum, a stronger year for floating production, storage and offloading (FPSO) and gas infrastructure awards, and sustained strength in power systems. The company projects similar levels of organic IET orders versus 2025 and anticipates mid‑single‑digit organic adjusted EBITDA growth overall.

Management is targeting IET margin expansion to 20% in 2026, with OFSE margins remaining relatively flat, and described the business mix as increasingly production‑oriented and less cyclical. Baker Hughes also highlighted its “Horizon Two” plan for 2026–2028, under which recent portfolio actions are intended to evolve the company into a more industrialized energy solutions provider with enhanced cash‑flow durability.