Baker Hughes Cuts 2026 Free Cash Flow Conversion Target to 40%-45% on Chart Industries Integration Costs

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โดย Reuters·

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Baker Hughes CEO Lorenzo Simonelli said at the Barclays conference that integration costs and weaker margins from the Chart Industries acquisition will weigh on near-term financial performance, sending shares down 6.5% in the afternoon session. Simonelli explained that integration expenses alongside initial margins of approximately 17% for Chart Industries are expected to pressure the company's cash flow and operating profitability. As a result, Baker Hughes reduced its expected 2026 free cash flow conversion target to 40% to 45%. Free cash flow conversion measures how effectively a company turns its earnings into cash, which is critical for funding shareholder returns, debt reduction, and business investments. Investors responded with concern over the expected margin dilution and lower cash conversion during the deal's integration period.