Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the condensed consolidated financial statements and the related notes included in Item 1 thereto, as well as our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Annual Report"). Baker Hughes Company ("Baker Hughes," "the Company," "we," "us," or "our") is an energy technology company with a broad and diversified portfolio of technologies and services that span the energy and industrial value chain. We conduct business in more than 120 countries and employ approximately 54,000 employees. We operate through our two business segments: Oilfield Services & Equipment ("OFSE") and Industrial & Energy Technology ("IET"). We sell products and services primarily in the global oil and gas markets, within the upstream, midstream and downstream segments, as well as broader industrial and new energy markets. EXECUTIVE SUMMARY Market Conditions During the second quarter of 2026, continued disruptions in the Middle East contributed to tighter oil and liquefied natural gas (“LNG”) market balances and higher inflationary costs. We believe that macroeconomic uncertainty, resulting from disruptions across key energy corridors, including the Strait of Hormuz, has now become a structural feature of oil and gas markets, increasing the focus on energy security and the reliability of affordable supply. As global energy demand continues to rise, these dynamics underscore the importance of sustained investment across the upstream sector. Looking ahead, oil market fundamentals are likely to be supported by a supply-constrained market and the need to replenish depleted strategic inventories. As the dynamic geopolitical environment continues to create uncertainty, we expect to see a decline in upstream spending in the Middle East this year, while spending in North American and other international markets is expected to remain broadly unchanged compared to 2025, absent further downside pressure in oil prices. Additionally, ongoing supply constraints through the Strait of Hormuz and broader disruptions across the Middle East are expected to create incremental risk across the business, with potential impacts on customer spending patterns, project timing, and supply chain visibility. Over the longer term, heightened geopolitical risk may contribute to higher mid-cycle oil prices necessary to incentivize incremental global supply. As a result, we see continued upstream investment as necessary to sustain production growth and meet rising global demand. We also expect a continued increase in operating expenditure-driven investment as operators focus on optimizing recovery and extending the life of producing assets. We believe natural gas’s reliability, scalability, and dispatchability position it as an important long‑term energy source with the potential to support lower‑emissions outcomes across the energy system. The global natural gas outlook continues to be supported by increasing demand for LNG and ongoing natural gas development activity. A renewed focus on energy security reinforces these fundamentals, which are underpinned by long‑term energy demand growth driven by population growth, rising living standards, and accelerating electrification. Financial Results and Key Company Initiatives In the second quarter of 2026, the Company generated revenues of $6.7 billion, a decrease of $0.2 billion, or 2%, compared to the second quarter of 2025. IET revenue remained flat year-over-year, driven by an increase of $79 million or 11% in Gas Technology Services ("GTS"), an increase of $61 million or 13% in Industrial Products ("IP"), and an increase in Climate Technology Solutions ("CTS") of $49 million or 31%, offset by a decrease of $100 million or 6% in Gas Technology Equipment ("GTE"), and a decrease of $91 million or 33% in Industrial Solutions ("IS") reflective of the Precision Sensors & Instrumentation ("PSI") disposition. OFSE revenue decreased $0.2 billion, or 5% year-over-year led by the Surface Pressure Control ("SPC") disposition and a decline in international revenue. Net income was $0.7 billion, which remained flat compared to the second quarter of 2025, driven by reduced income tax expense, improved performance in Segment EBITDA, and the change in fair value of equity securities, offset by increases in depreciation and amortization, transaction related costs, working capital adjustments related to business dispositions, interest expense, and restructuring. On July 16, 2026, we completed our previously announced acquisition of Chart Industries, Inc. ("Chart"), for Baker Hughes Company 2026 Second Quarter Form 10-Q | 27 $210 per share, representing an enterprise value of approximately $13.6 billion (the "Chart acquisition") as discussed in "Note 19. Business Acquisitions, Dispositions, and Businesses Held for Sale." The Chart acquisition was funded through an offering of senior notes in March 2026, along with other borrowings, as discussed in "Note 8. Debt," and cash on hand. In the second quarter of 2026, we returned $228 million to shareholders through dividends. Outlook Our business is exposed to a number of macro factors, which influence our outlook and expectations given the current macroeconomic uncertainty and continued volatile conditions in the industry. All of our outlook expectations are purely based on the market as we see it today and are subject to changing conditions in the industry. •OFSE outlook: We expect to see an improvement in global upstream spending through the remainder of the year across both international and North American markets, absent further downside pressure in oil prices. •IET outlook: We see sustained strength in LNG and gas infrastructure, as well as increasing opportunities to leverage our versatile portfolio to enhance IET's position across industrial and distributed power markets, with a growing emphasis on data centers. We also expect to see continued growth in new energy solutions specifically focused around reducing carbon emissions for the energy and broader industrial sectors. These include hydrogen; geothermal; carbon capture, utilization and storage; energy storage; clean power; and emissions abatement solutions. Continued signs of tightness in the aeroderivative supply chain, including extended lead times, will remain a factor to monitor and manage operationally. Overall, we believe our portfolio is uniquely positioned to compete across the energy and industrial value chains and deliver integrated, high-impact solutions for our customers. Over time, we believe global energy demand will continue to rise, supported by durable, secular macroeconomic trends, with hydrocarbons continuing to play a fundamental role in meeting the world's energy needs. As such, we remain focused on delivering innovative, lower-emission, and cost-effective solutions that drive meaningful improvements in operational and financial performance for our customers. Sustainability We believe we have an important role to play in society as an industry leader and partner. We view the area of sustainability as a lever to transform the performance of our Company. In 2019, we made a commitment to reduce Scope 1 and 2 carbon dioxide equivalent emissions from our operations by 50% by 2030 and achieve net-zero emissions by 2050. We continue to make progress on emissions reductions and reported in our 2025 Corporate Sustainability Report a 36.9% reduction in our Scope 1 and 2 carbon dioxide equivalent emissions as compared to our 2019 base year, alongside a 45.8% intensity reduction. Key initiatives supporting these results include facility consolidation, increased use of renewable electricity, infrastructure upgrades, and electrification of our vehicle fleet. BUSINESS ENVIRONMENT The following discussion and analysis summarizes the significant factors affecting our results of operations, financial condition, and liquidity position as of and for the three and six months ended June 30, 2026 and 2025, and should be read in conjunction with our condensed consolidated financial statements and related notes. Our revenue is predominantly generated from the sale of products and services to major, national, and independent oil and natural gas companies worldwide, and is dependent on spending by our customers for oil and natural gas exploration, field development, and production. This spending is driven by a number of factors, including our customers' forecasts of future energy demand and supply, their access to resources to develop and produce oil and natural gas, their ability to fund their capital programs, the impact of new government regulations, and their expectations for oil and natural gas prices as a key driver of their cash flows. Baker Hughes Company 2026 Second Quarter Form 10-Q | 28 Oil and Natural Gas Prices In North America, customer spending is influenced by the price of oil and gas as indicated by the Cushing, OK West Texas Intermediate ("WTI") crude oil spot price and the Henry Hub natural gas spot price. Outside of North America, customer spending is influenced by Brent crude oil prices. Oil and natural gas prices are summarized in the table below as averages of the daily closing prices during each of the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Brent oil prices ($/Bbl) (1) $ 102.63 $ 68.07 $ 91.50 $ 72.03 WTI oil prices ($/Bbl) (2) 95.65 64.57 84.29 68.12 Natural gas prices ($/mmBtu) (3) 2.95 3.19 3.81 3.66 (1)Energy Information Administration ("EIA") Europe Brent ("Brent") Spot Price per Barrel (2)EIA WTI Spot Price per Barrel (3)EIA Henry Hub Natural Gas Spot Price per million British Thermal Unit Rig Count Rig counts are an important business barometer for the drilling industry and its suppliers. When drilling rigs are active or operating, they consume products and services produced by the oil service industry. Therefore, rig counts may act as a leading indicator of market activity and reflect the relative strength of energy prices; however, these counts should not be solely relied on as other specific and pervasive conditions may exist that affect overall energy prices and market activity. Rig counts are compiled weekly for the U.S. and Canada and monthly for all international rigs. Published international rig counts do not include rigs drilling in certain locations, such as onshore China, because this information is not readily available. The rig counts are summarized in the table below as averages for each of the periods indicated based on our published rig counts on our website at www.bakerhughes.com. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % Change 2026 2025 % Change North America 704 699 1 % 726 751 (3) % International 1,056 897 18 % 1,070 900 19 % Worldwide 1,760 1,596 10 % 1,796 1,651 9 % RESULTS OF OPERATIONS The discussions below relating to significant line items from our condensed consolidated statements of income are based on available information and represent our analysis of significant changes or events that impact the comparability of reported amounts. Where appropriate, we have identified specific events and changes that affect comparability or trends and, where reasonably practicable, have quantified the impact of such items. In addition, the discussions below for revenue and cost of revenue are on a total basis as the business drivers for product sales and services are similar. All dollar amounts in tabulations in this section are in millions of dollars, unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers. Our condensed consolidated statements of income display sales and costs of sales in accordance with the Securities and Exchange Commission ("SEC") regulations under which "goods" are required to include all sales of tangible products and "services" must include all other sales, including other service activities. For the amounts Baker Hughes Company 2026 Second Quarter Form 10-Q | 29 shown below, we distinguish between "equipment" and "product services," where product services refer to sales under product services agreements, including sales of both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance, and repairs), which are an important part of our operations. We refer to "product services" simply as "services" within Management's Discussion and Analysis of Financial Condition and Results of Operations. Our results of operations are evaluated by our chief operating decision maker, who is the Company's Chief Executive Officer, on a consolidated basis as well as at the segment level. The performance of each segment is evaluated based on segment Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA"), which is defined as income (loss) before income taxes and before the following: net interest expense, costs associated with significant restructuring programs, depreciation and amortization, and unallocated corporate costs and other income (expense). In evaluating Company and segment performance, we primarily use the following: Volume: Volume is defined as the increase or decrease in products and/or services sold period-over-period excluding the impact of foreign exchange ("FX") and price. The volume impact on profit is calculated by multiplying the prior period profit rate by the change in revenue volume between the current and prior period. Price: Price is defined as the change in sales price for a comparable product or service period-over-period and is calculated as the period-over-period change in sales prices of comparable products and services. Business Mix: Business mix is defined as period-over-period change in sales mix within segments. Cost out initiatives: Programs and initiatives that are focused on cost reduction, including restructuring programs. FX: FX measures the translational foreign exchange impact, or the translation impact of the period-over-period change on sales and costs directly attributable to change in the FX rate compared to the U.S. dollar. FX impact is calculated by multiplying the functional currency amounts (revenue or profit) with the period-over-period FX rate variance, using the average exchange rate for the respective period. This also includes the period-over-period variance of transactional foreign exchange, aside from those foreign currency devaluations that are reported separately for business evaluation purposes. (Inflation)/Deflation: (Inflation)/deflation is defined as the increase or decrease in direct and indirect costs of the same type for an equal amount of volume. It is calculated as the year-over-year change in cost (i.e. price paid) of direct material, compensation and benefits, and overhead costs. Productivity: Productivity is measured by the remaining variance in profit, after adjusting for the period-over-period impact of volume, price, business mix, FX, and (inflation)/deflation. Baker Hughes Company 2026 Second Quarter Form 10-Q | 30 Orders and Remaining Performance Obligations Summarized orders information for our segments are shown in the following table. Three Months Ended June 30, $ Change Six Months Ended June 30, $ Change 2026 2025 2026 2025 Orders: Oilfield Services & Equipment $ 3,413 $ 3,503 $ (90) $ 6,684 $ 6,784 $ (100) Gas Technology Equipment 4,913 781 4,132 6,736 2,116 4,620 Gas Technology Services 1,314 986 328 2,288 1,899 389 Total Gas Technology 6,227 1,767 4,460 9,024 4,015 5,009 Industrial Products 533 513 20 1,137 1,013 124 Industrial Solutions 274 327 (53) 503 608 (105) Total Industrial Technology 807 839 (32) 1,640 1,621 19 Climate Technology Solutions 54 923 (869) 1,312 1,071 241 Industrial & Energy Technology 7,088 3,530 3,558 11,976 6,708 5,268 Total $ 10,501 $ 7,032 $ 3,469 $ 18,660 $ 13,492 $ 5,168 Remaining Performance Obligations ("RPO") relate to the aggregate amount of the transaction prices allocated to the unsatisfied (or partially unsatisfied) performance obligations. As of June 30, 2026, RPO totaled $40.1 billion, of which OFSE totaled $3.0 billion and IET totaled $37.1 billion. Second Quarter of 2026 Compared to the Second Quarter of 2025 Revenue decreased $0.2 billion, or 2%, to $6.7 billion. OFSE revenue decreased $0.2 billion, or 5%, and IET revenue was flat compared to the second quarter of 2025. Selling, general and administrative costs increased $2 million to $569 million. Research and development costs decreased $18 million, or 11%, to $143 million. Other income decreased $30 million, primarily reflecting working capital adjustments of $24 million related to business dispositions. Net interest expense in the second quarter of 2026 was $66 million, which includes interest income of $130 million offset by interest expense of $196 million. Net interest expense increased $12 million compared to the second quarter of 2025, primarily driven by increased interest expense as a result of the senior notes offering in March 2026. We recorded income tax expense in the second quarter of 2026 and 2025 of $210 million and $256 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate in both periods is primarily related to income generated in jurisdictions with tax rates higher than in the U.S. and losses with no tax benefit due to valuation allowances. Net income remained flat at $0.7 billion compared to the second quarter of 2025. Baker Hughes Company 2026 Second Quarter Form 10-Q | 31 Segment Revenues and Segment EBITDA Oilfield Services & Equipment Three Months Ended June 30, $ Change 2026 2025 Revenue Well Construction $ 899 $ 921 $ (22) Completions, Intervention, and Measurements 944 935 9 Production Solutions 930 968 (38) Subsea & Surface Pressure Systems 678 793 (115) Total $ 3,451 $ 3,617 $ (166) Cost of goods and services sold $ 2,849 $ 2,891 $ (42) Research and development costs 60 65 (5) Selling, general and administrative 205 219 (14) Other income (2) (1) (1) Less: Depreciation and amortization (266) (233) (33) Segment EBITDA $ 605 $ 677 $ (72) OFSE revenue of $3,451 million decreased $166 million, or 5%, in the second quarter of 2026 compared to the second quarter of 2025, driven mainly by the impact of the SPC disposition and disruptions in the Middle East, offset by the benefit of FX in Latin America. From a geographical perspective, international revenue was $2,518 million, a decrease of $171 million, or 6%, from the second quarter of 2025, driven by Middle East/Asia and Europe/CIS/Sub-Saharan Africa, partially offset by an increase in Latin America. North America revenue was $933 million in the second quarter of 2026, an increase of $5 million, or 1%, from the second quarter of 2025. OFSE segment EBITDA of $605 million decreased $72 million, or 11%, in the second quarter of 2026 compared to the second quarter of 2025. The reduction of EBITDA in the second quarter of 2026, after taking into consideration the impact of the SPC disposition, was the result of inflation, change in business mix, and lower volume, partially offset by cost-out initiatives, overall productivity, and FX. Baker Hughes Company 2026 Second Quarter Form 10-Q | 32 Industrial & Energy Technology Three Months Ended June 30, $ Change 2026 2025 Revenue Gas Technology Equipment $ 1,524 $ 1,624 $ (100) Gas Technology Services 831 752 79 Total Gas Technology 2,355 2,377 (22) Industrial Products 549 488 61 Industrial Solutions 182 273 (91) Total Industrial Technology 731 761 (30) Climate Technology Solutions 205 156 49 Total $ 3,291 $ 3,293 $ (2) Cost of goods and services sold $ 2,311 $ 2,389 $ (78) Research and development costs 83 96 (13) Selling, general and administrative 282 283 (1) Other (income) expense (3) (4) 1 Less: Depreciation and amortization (60) (56) (4) Segment EBITDA $ 678 $ 585 $ 93 IET revenue of $3,291 million for the second quarter of 2026, remained flat year-over-year, with decreases in Gas Technology Equipment and Industrial Solutions driven by the PSI disposition, offset by increases in all other product lines. IET segment EBITDA of $678 million increased $93 million, or 16%, in the second quarter of 2026 compared to the second quarter of 2025. The improved performance in the second quarter of 2026 was driven by price, productivity, cost-out initiatives, and FX, partially offset by lower volume and inflation. The First Six Months of 2026 Compared to the First Six Months of 2025 Revenue was flat at $13.3 billion. OFSE decreased $0.4 billion, or 6%, and IET increased $0.4 billion, or 7%. Selling, general and administrative costs decreased $13 million, or 1%, to $1,131 million, driven primarily by a continued focus on cost optimization. Research and development costs decreased $30 million, or 10%, to $277 million. Other income increased $697 million, primarily related to gains of $697 million on business dispositions. Net interest expense incurred in the first six months of 2026 was $151 million, which includes interest income of $189 million offset by interest expense of $340 million. Net interest expense increased $46 million compared to the first six months of 2025, as a result of the recognition of previously unamortized lending fees related to the Bridge Facility terminated in the first quarter of 2026. In the first six months of 2026 and 2025, the provision for income taxes was $545 million and $408 million, respectively. The difference between the U.S. statutory tax rate of 21% and the effective tax rate in both periods is primarily related to income generated in jurisdictions with tax rates higher than in the U.S. and losses with no tax benefit due to valuation allowances. Net income increased $0.5 billion, or 46%, to $1.6 billion compared to the first six months of 2025. Baker Hughes Company 2026 Second Quarter Form 10-Q | 33 Segment Revenues and Segment EBITDA Oilfield Services & Equipment Six Months Ended June 30, $ Change 2026 2025 Revenue Well Construction $ 1,742 $ 1,812 $ (70) Completions, Intervention, and Measurements 1,827 1,861 (34) Production Solutions 1,828 1,867 (39) Subsea & Surface Pressure Systems 1,291 1,576 (285) Total $ 6,688 $ 7,116 $ (428) Cost of goods and services sold $ 5,540 $ 5,710 $ (170) Research and development costs 114 126 (12) Selling, general and administrative 409 440 (31) Other income (1) (1) — Less: Depreciation and amortization (544) (459) (85) Segment EBITDA $ 1,170 $ 1,300 $ (130) OFSE revenue of $6,688 million decreased $428 million, or 6%, in the first six months of 2026 compared to the first six months of 2025, driven by the SPC disposition and disruptions in the Middle East. From a geographical perspective, international revenue was $4,829 million, a decrease of $438 million, or 8%, from the first six months of 2025 driven by a decrease in Middle East/Asia and Europe/CIS/Sub-Saharan Africa, partially offset by an increase in Latin America. North America revenue was $1,859 million in the first six months of 2026, a increase of $10 million, or 1%, from the first six months of 2025. OFSE segment EBITDA of $1,170 million decreased $130 million, or 10%, in the first six months of 2026 compared to the first six months of 2025. The reduction of EBITDA in the first six months of 2026, after taking into consideration the disposal of SPC was a result of inflation, lower volume, change in business mix, partially offset by cost-out initiatives, overall productivity, and FX. Baker Hughes Company 2026 Second Quarter Form 10-Q | 34 Industrial & Energy Technology Six Months Ended June 30, $ Change 2026 2025 Revenue Gas Technology Equipment $ 3,189 $ 3,080 $ 109 Gas Technology Services 1,622 1,344 278 Total Gas Technology 4,811 4,424 387 Industrial Products 1,040 933 107 Industrial Solutions 367 531 (164) Total Industrial Technology 1,407 1,464 (57) Climate Technology Solutions 423 334 89 Total $ 6,641 $ 6,221 $ 420 Cost of goods and services sold $ 4,692 $ 4,501 $ 192 Research and development costs 163 181 (18) Selling, general and administrative 566 567 (1) Other income (8) (5) (3) Less: Depreciation and amortization (128) (109) (19) Segment EBITDA $ 1,356 $ 1,086 $ 270 IET revenue of $6,641 million increased $420 million, or 7%, in the first six months of 2026 compared to the first six months of 2025, with increases in GTE, GTS, IP, and CTS, partially offset by a decline in IS driven by the PSI disposition. IET segment EBITDA of $1,356 million increased $270 million, or 25%, in the first six months of 2026 compared to the first six months of 2025. The improved performance in the first six months of 2026 was driven by price, overall productivity, FX, higher volume, and cost-out initiatives, partially offset by inflation. LIQUIDITY AND CAPITAL RESOURCES Our objective in financing our business is to maintain sufficient liquidity, adequate financial resources, and financial flexibility in order to fund the requirements of our business and pending acquisitions. We continue to maintain solid financial strength and sufficient liquidity. At June 30, 2026, we had cash and cash equivalents of $15.7 billion compared to $3.7 billion at December 31, 2025. As of June 30, 2026, we held approximately $13.5 billion of cash and cash equivalents in the U.S. and approximately $2.3 billion outside the U.S., including $0.9 billion held in Europe and the United Kingdom. As of December 31, 2025, cash and cash equivalents totaled approximately $0.7 billion in the U.S. and approximately $3.0 billion outside the U.S., including $1.5 billion held in Europe and the United Kingdom. A substantial portion of the cash held outside the U.S. at June 30, 2026 has either been reinvested in active non-U.S. business operations or was being held for the Chart acquisition, which was completed on July 16, 2026. If we decide at a later date to repatriate certain cash to the U.S., we may incur other additional taxes that would not be significant to the total tax provision. Baker Hughes Holdings LLC ("BHH LLC"), a wholly owned subsidiary of the Company, has a $3.0 billion committed unsecured revolving credit facility (the "Credit Agreement") with commercial banks maturing in November 2028. The Credit Agreement contains certain representations and warranties, certain affirmative covenants and negative covenants, in each case we consider customary. No related events of default have occurred. The Credit Agreement is fully and unconditionally guaranteed on a senior unsecured basis by Baker Hughes. At June 30, 2026 and December 31, 2025, there were no borrowings under the Credit Agreement. Baker Hughes Company 2026 Second Quarter Form 10-Q | 35 Certain Senior Notes contain covenants that restrict our ability to take certain actions. See "Note 8. Debt" of the Notes to Unaudited Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for further details. At June 30, 2026, we were in compliance with all debt covenants. Our next debt maturity is December 2026. We continuously review our liquidity and capital resources. If market conditions were to change, for instance due to the uncertainty created by geopolitical events, a global pandemic, or a significant decline in oil and gas prices, and our revenue was reduced significantly or operating costs were to increase significantly, our cash flows and liquidity could be negatively impacted. Additionally, it could cause the rating agencies to lower our credit ratings. There are no ratings triggers that would accelerate the maturity of any borrowings under our committed credit facility; however, a downgrade in our credit ratings could increase the cost of borrowings under the credit facility. Should this occur, we could seek alternative sources of funding, including borrowing under the credit facility. During the six months ended June 30, 2026, we disbursed cash to fund a variety of activities including certain working capital needs, capital expenditures, and the payment of dividends. On July 15, 2026, BHH LLC, as borrower, and Baker Hughes Company, as parent guarantor, entered into two separate $1.0 billion, 2-year senior, unsecured term loan agreements (the "Term Loans"). Both Term Loan agreements contain customary representations, warranties, and covenants, and bear interest at a base rate or Secured Overnight Financing Rate ("SOFR") plus applicable margin. Concurrent with the closure of the Chart acquisition, the 2025 delayed draw term loan facility was terminated. See "Note 19. Business Acquisitions, Dispositions, and Businesses Held for Sale" for additional information related to the Chart acquisition and "Note 8. Debt" for additional information on our funding activities. Cash Flows Cash flows provided by (used in) each type of activity were as follows for the six months ended June 30: (In millions) 2026 2025 Operating activities $ 1,845 $ 1,219 Investing activities 874 (596) Financing activities 9,287 (945) Operating Activities Cash flows provided by operating activities were $1,845 million and $1,219 million for the six months ended June 30, 2026 and 2025, respectively. Our largest source of operating cash is payments from customers, of which the largest component is collecting cash related to our sales of products and services, including advance payments or progress collections for work to be performed. The primary use of operating cash is to pay our suppliers, employees, tax authorities, and others for a wide range of goods and services. Cash from operating activities is primarily generated from net income or loss adjusted for certain noncash items (including depreciation, amortization, change in fair value of equity securities, stock-based compensation cost, deferred tax benefit or provision, and the impairment of certain assets). For the six months ended June 30, 2026, net working capital cash generation was $350 million, mainly due to progress collections, partially offset by contract assets build up and inventory increase. For the six months ended June 30, 2025, net working capital cash generation was $98 million, mainly due to accounts receivable collections and contract asset buildup, partially offset by progress collections, accounts payable, and inventory increases. Included in the cash flows from operating activities for the six months ended June 30, 2026 and 2025 were payments of $86 million and $67 million, respectively, made primarily for employee severance as a result of our restructuring activities. Baker Hughes Company 2026 Second Quarter Form 10-Q | 36 Investing Activities Cash flows provided by investing activities were $874 million for the six months ended June 30, 2026 and cash flows used in investing activities were $596 million for the six months ended June 30, 2025. Our principal recurring investing activity is the funding of capital expenditures including property, plant and equipment ("PP&E") and software, to support and generate revenue from operations. Expenditures for capital assets were $636 million and $601 million for the six months ended June 30, 2026 and 2025, respectively, partially offset by cash flows from the disposal of PP&E of $110 million and $74 million for the six months ended June 30, 2026 and 2025, respectively. Proceeds from the disposal of assets were primarily related to OFSE equipment that was lost-in-hole, and PP&E no longer used in operations that was sold throughout the period. During the first quarter of 2026, the Company generated approximately $1.2 billion from the disposition of the Precision Sensors & Instrumentation business, a business within the Industrial Solutions product line of its IET segment, to Crane Company. The Company also received $0.2 billion from the formation of a joint venture with a subsidiary of Cactus, Inc. ("Cactus") whereby the Company contributed the Surface Pressure Control business, a business within the Subsea & Surface Pressure Systems product line of its OFSE segment, in exchange for cash consideration and 35% noncontrolling interest. Financing Activities Cash flows provided by financing activities were $9,287 million for the six months ended June 30, 2026 and cash flows used in financing activities were $945 million for the six months ended June 30, 2025. We maintained a quarterly dividend during the six months ended June 30, 2026 and 2025 of $0.23 per share. We paid dividends of $456 million and $456 million to our Class A shareholders during the six months ended June 30, 2026 and 2025, respectively. We did not repurchase any shares of Class A common stock during the six months ended June 30, 2026. During the six months ended June 30, 2025, we repurchased and canceled 9.8 million shares of Class A common stock for a total of $384 million. On March 11, 2026, we completed an offering of $6.5 billion of U.S. dollar-denominated notes, along with €3.0 billion of Euro-denominated notes. As a result of the completed offering, we terminated the Bridge Facility entered into on July 28, 2025. Cash Requirements We believe cash on hand, cash flows from operating activities, the available revolving credit facility, access to our uncommitted lines of credit, and availability under our existing shelf registrations of debt will provide us with sufficient capital resources and liquidity in the short-term and long-term to manage our working capital needs; meet contractual obligations; fund strategic growth initiatives, capital expenditures, and dividends; repay debt; repurchase our Class A common stock; and support the development of our short-term and long-term operating strategies. Our capital expenditures can be adjusted and managed by us to match market demand and activity levels. Based on current market conditions, capital expenditures in 2026 are expected to be made at a rate that we estimate would equal up to 5% of annual revenue. The expenditures are expected to be used primarily for normal, recurring items necessary to support our business. Based on our current outlook, we anticipate making income tax payments in the range of $0.9 to $1.0 billion in 2026. Other Factors Affecting Liquidity Customer receivables: In line with industry practice, we may bill our customers for services provided in arrears dependent upon contractual terms. In a challenging economic environment, we may experience delays in the payment of our invoices due to customers' lower cash flow from operations or their more limited access to credit markets. While historically there have not been material non-payment events, we attempt to mitigate this risk by working with our customers to restructure their debts or utilizing available trade receivable facilities that enable us to Baker Hughes Company 2026 Second Quarter Form 10-Q | 37 manage collection risk. With regard to our primary customer in Mexico, there have not historically been any material losses due to uncollectable accounts receivable, nor are any such balances currently in dispute. As of June 30, 2026 and December 31, 2025, the Company had credit default swaps ("CDS") with original notional balances totaling $514 million and $775 million, respectively, with third-party financial institutions. The CDS relate to borrowings provided by these financial institutions to our primary customer in Mexico who utilized these borrowings to pay certain of the Company's outstanding receivables. The total notional amount remaining on the issued CDS was $86 million and $287 million as of June 30, 2026 and December 31, 2025, respectively, which will reduce each month through September 2026 as the customer repays the borrowings. As of June 30, 2026, the fair value of these derivative liabilities is not material. A customer's failure or delay in payment could have a material adverse effect on our short-term liquidity and results of operations. Our gross customer receivables were 16% in the U.S. as of June 30, 2026. No other country accounted for more than 10% of our gross customer receivables as of June 30, 2026. International operations: Our cash that is held outside the U.S. is 15% of the total cash balance as of June 30, 2026, including 6% of total cash held in Europe and the United Kingdom. Depending on the jurisdiction or country where this cash is held, we may not be able to use this cash quickly and efficiently due to exchange or cash controls that could make it challenging. As a result, our cash balance may not represent our ability to quickly and efficiently use this cash. Guarantor Financial Information We guarantee various senior unsecured notes and senior unsecured debentures (collectively, the "Debt Securities") outstanding with an aggregate principal amount of $15.7 billion as of June 30, 2026, with maturities ranging from 2026 to 2056. The Debt Securities constitute debt obligations of BHH LLC and Baker Hughes Co-Obligor, Inc., a wholly owned finance subsidiary of BHH LLC (together with BHH LLC, the "Issuers"). The Debt Securities are fully and unconditionally guaranteed on a senior unsecured basis by the Company and rank equally in right of payment with all of the Company's other senior and unsecured debt obligations. However, because these obligations are not secured, they would be effectively subordinated to any existing or future secured indebtedness of Baker Hughes and the Issuers. As permitted under Rule 13-01(a)(4)(vi) of Regulation S-X, we have excluded summarized financial information for the Issuers because the combined assets, liabilities, and results of operations of the Issuers are not materially different than the corresponding amounts in our condensed consolidated financial statements and management believes such summarized financial information would be repetitive and would not provide incremental value to investors. CRITICAL ACCOUNTING ESTIMATES Our critical accounting estimation processes are consistent with those described in Item 7 of Part II, "Management's discussion and analysis of financial condition and results of operations" of our 2025 Annual Report. FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, (each a "forward-looking statement"). All statements, other than historical facts, including statements regarding the presentation of the Company's operations in future reports and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "would," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target," "goal" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, the risk factors identified in the "Risk Factors" section of Part II of Item 1A of Baker Hughes Company 2026 Second Quarter Form 10-Q | 38 this report and Part 1 of Item 1A of our 2025 Annual Report and those set forth from time-to-time in other filings by the Company with the SEC. These documents are available through our website or through the SEC's Electronic Data Gathering and Analysis Retrieval (EDGAR) system at http://www.sec.gov. Any forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.