Baker Hughes CoBKR
Baker Hughes Co Debt Disclosure
DEBT
The carrying value of the Company's short-term and long-term debt consists of the following at December 31:
| 2025 | 2024 | |||||||||||||
| Amount | Effective Interest Rate (1) | Amount | Effective Interest Rate (1) | |||||||||||
| Short-term and current portion of long-term debt | ||||||||||||||
2.061% Senior Notes due December 2026 | $ | 599 | 2.4 | % | $ | — | — | % | ||||||
| Other debt | 90 | 4.5 | % | 53 | 4.6 | % | ||||||||
| Total short-term and current portion of long-term debt | 689 | 53 | ||||||||||||
| Long-term debt | ||||||||||||||
2.061% Senior Notes due December 2026 | — | — | % | 599 | 2.4 | % | ||||||||
3.337% Senior Notes due December 2027 | 1,324 | 4.9 | % | 1,302 | 5.4 | % | ||||||||
6.875% Notes due January 2029 (2) | 255 | 4.0 | % | 262 | 3.9 | % | ||||||||
3.138% Senior Notes due November 2029 | 524 | 3.2 | % | 523 | 3.2 | % | ||||||||
4.486% Senior Notes due May 2030 | 498 | 4.6 | % | 498 | 4.6 | % | ||||||||
5.125% Senior Notes due September 2040 (2) | 1,269 | 4.2 | % | 1,275 | 4.2 | % | ||||||||
4.080% Senior Notes due December 2047 | 1,338 | 4.1 | % | 1,338 | 4.1 | % | ||||||||
| Other long-term debt | 190 | 4.0 | % | 173 | 4.2 | % | ||||||||
| Total long-term debt | 5,398 | 5,970 | ||||||||||||
| Total debt | $ | 6,087 | $ | 6,023 | ||||||||||
(1)Effective interest rate is based on the carrying value including issuance costs and interest rate swaps.
(2)Represents long-term fixed rate debt obligations assumed in connection with the acquisition of BHI.
The carrying value of short-term and long-term debt includes issuance costs and changes in fair value of the debt instrument hedged by interest rate swaps. At December 31, 2025 and 2024, these adjustments resulted in a net increase to the carrying value of the Company's debt totaling $102 million and $91 million, respectively. The estimated fair value of total debt at December 31, 2025 and 2024 was $5,628 million and $5,409 million, respectively. For a majority of the Company's debt, the fair value was determined using quoted period-end market prices. Where market prices are not available, the Company estimates fair values based on valuation methodologies using current market interest rate data adjusted for non-performance risk.
Maturities of debt for each of the five years in the period ending December 31, 2030, and in the aggregate thereafter, are listed in the table below:
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | |||||||||||||||
Total debt | $ | 689 | $ | 1,387 | $ | 55 | $ | 821 | $ | 514 | $ | 2,621 | ||||||||
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 considered 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 December 31, 2025 and 2024, there were no borrowings under the Credit Agreement.
On July 28, 2025, BHH LLC entered into a commitment letter providing for a $14.9 billion senior unsecured 364-day bridge facility (the "Bridge Facility") to finance all or a portion of the Chart Industries, Inc. ("Chart") acquisition. On August 15, 2025, BHH LLC, as borrower, and the Company, as parent guarantor, entered into a $2.6 billion senior unsecured delayed-draw term loan facility (the "DDTL"), which reduced the commitments remaining under the Bridge Facility to $12.3 billion. On November 12, 2025, BHH LLC elected to voluntarily reduce the commitments outstanding under the Bridge Facility to $11.0 billion. Of the total available facilities of $13.6 billion, no amounts were drawn under the Bridge Facility or the DDTL as of December 31, 2025. For the year ended December 31, 2025, the Company incurred $61.2 million in debt financing fees, which were capitalized as prepaid expenses in "All other current assets" in the Company's consolidated statements of financial position and will be recognized as interest expense over the term of the facility.
Baker Hughes Co-Obligor, Inc. is a co-obligor, jointly and severally with BHH LLC, of the Company's long-term debt securities. This co-obligor is a 100% owned finance subsidiary of BHH LLC that was incorporated for the sole purpose of serving as a corporate co-obligor of long-term debt securities and has no assets or operations other than those related to its sole purpose. As of December 31, 2025, Baker Hughes Co-Obligor, Inc. is a co-obligor of certain debt securities totaling $5.8 billion.
Certain Senior Notes contain covenants that restrict the Company's ability to take certain actions, including, but not limited to, the creation of certain liens securing debt, the entry into certain sale-leaseback transactions, and engaging in certain merger, consolidation and asset sale transactions in excess of specified limits. At December 31, 2025, the Company was in compliance with all debt covenants.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 4, 2025 | |
| 2023 | Feb 5, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 23, 2018 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.