Baker Hughes announced a new 10 MWe steam turbine generator set and ancillary systems for Aalo Atomics’ experimental Aalo‑X nuclear reactor, a contract placed in the fourth quarter of 2025 and scheduled for delivery by the end of 2026. The turbine will power the reactor’s island and is part of a broader partnership that aligns Baker Hughes’ modular turbine technology with Aalo’s goal of using nuclear power for AI data centers.
The order is a significant win in the emerging nuclear‑powered data‑center market, a niche but high‑growth segment that could drive future revenue and margin expansion for Baker Hughes. It underscores the company’s strategy to diversify beyond oilfield services into high‑margin industrial markets such as LNG, data centers, and now nuclear power, and highlights the modular design approach that is attractive to Aalo’s focus on scalable, low‑carbon power solutions for AI workloads.
Aalo Atomics, which has secured over $136 million in funding to date, aims to achieve criticality for the Aalo‑X reactor in 2026. The partnership provides Baker Hughes with a platform to showcase its turbine technology in a cutting‑edge application, while Aalo gains a proven industrial‑grade component that will help it reach its criticality target this year. The financial value of the specific turbine order has not been disclosed.
Baker Hughes’ Q4 2025 earnings beat expectations, with revenue of $7.39 billion versus an estimate of $7.07 billion and an adjusted EPS of $0.78 versus $0.67. The beat was driven by strong performance in the Industrial & Energy Technology (IET) segment, disciplined cost actions, and a record backlog that provided visibility and de‑risks future growth. The company reported a record full‑year adjusted EBITDA of $4.83 billion and a record backlog in IET, supporting its mid‑single‑digit organic EBITDA growth outlook for 2026.
Management highlighted the significance of the win. CEO Lorenzo Simonelli said, "Baker Hughes delivered exceptional performance in 2025. We continued to execute at a high level, delivering another quarter of strong results contributing to a record full‑year Adjusted EBITDA. This achievement demonstrates sustained momentum in the Business System, active portfolio management, and positive performance in IET, which is more than offsetting continued macro‑driven softness in OFSE, where margins remained resilient through disciplined cost actions." Senior Vice President Alessandro Bresciani added, "Small, advanced nuclear facilities have the potential to play a significant role in generating sustainable and reliable power for data centers. We are excited to be collaborating with Aalo on this journey, providing them with an innovative solution that can efficiently address growing data center energy needs." Chief Technology Officer Yasir Arafat noted, "Baker Hughes' steam turbines draw their high efficiency and reliability from decades of development and in‑field experience and will provide us with the proven industrial‑grade components we need to achieve criticality this year. What's more, Baker Hughes' modular design approach mirrors Aalo's focus on creating modular reactors, making it an ideal supplier and collaborator."
The partnership signals Baker Hughes’ continued commitment to expanding its industrial and energy technology portfolio and positions the company to capture a share of the growing nuclear‑powered data‑center market. It also demonstrates the company’s ability to secure high‑profile contracts in emerging technologies, reinforcing investor confidence in its strategic pivot and execution capabilities.
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