Lorenzo Simonelli on business model transformation
From $BKR Baker Hughes Q3 2024 Earnings Conference Call · · EARNMOAR
“Baker Hughes is becoming less cyclical and is demonstrating the capability to generate more durable earnings and free cash flow across cycles given our balanced portfolio, significant reoccurring IET service revenue, and improved cost structure in addition to the company's untapped market opportunities.”
On , Lorenzo Simonelli, Chairman, President & Chief Executive Officer at Baker Hughes Co, spoke about business model transformation during $BKR Baker Hughes Q3 2024 Earnings Conference Call on EARNMOAR.
About Lorenzo Simonelli
During Baker Hughes' fourth quarter and full year 2025 earnings call on January 26, 2026, Lorenzo Simonelli discussed the company's outlook and strategic positioning. He stated that industry estimates suggest AI infrastructure spending totaled more than $500 billion in 2025 and is expected to approach a trillion dollars annually in the late 2020s, creating an opportunity for Baker Hughes as data center build-out increases demand for behind-the-meter power solutions. Simonelli said the company now expects to book approximately $3 billion of data center-related orders between 2025 and 2027. He also expressed a belief that global power demand is entering a multi-year cycle, with demand expected to double to approximately 60,000 terawatt hours by 2040, and that gas-fired power generation will play a significant role in this expansion. Simonelli commented on the oil field services sector, stating that a further reduction in idle OPEC+ supply, alongside more constructive oil supply and demand balances, is required before a broader inflection in activity emerges, which he described as likely a 2027 catalyst. He noted that the company's portfolio actions are positioning Baker Hughes to evolve into a stronger, more industrialized energy solutions company, underpinned by an increasingly opex-levered business mix and a differentiated life cycle portfolio.