Babcock & Wilcox Enterprises Reports Second Quarter 2026 Results

Revenue in the second quarter of $319.7 million, a 130% increase compared to the same period of 2025, ahead of consensus street expectations Net Income was $14.3 million in the second quarter, compared to a net loss of $58.5 million in the same period of 2025, ahead of consensus street expectations Earnings per share of $0.07, compared to a loss per share of $0.63 in the second quarter of 2025 Adjusted EBITDA in the second quarter of $21.8 million, a 57% increase compared to the same period of 2025, ahead of consensus street expectations Bookings of $151.0 million in the second quarter, a 38% increase compared to the same period of 2025 Backlog of $2.6 billion in the second quarter, a 533% increase compared to the same period of 2025 Secured an additional 1 gigawatt of steam turbines from Siemens Energy for fast delivery in anticipation of our next data center project Total global pipeline exceeds $14.0 billion Announced authorized share repurchase program of up to $50 million Announced repurchase of remaining $61.8 million of outstanding bonds due December 2026 in August 2026 Q2 2026 Financial Highlights and Outlook Revenue of $319.7 million, compared to revenue of $138.9 million in the second quarter of 2025 Net income of $14.3 million, compared to a net loss of $58.5 million in the second quarter of 2025 Adjusted Net Income, which excludes non-cash warrants and other stock costs, was $9.1 million in the second quarter Earnings per share of $0.07, compared to a loss per share of $0.63 in the second quarter of 2025 Adjusted EBITDA of $21.8 million, compared to adjusted EBITDA of $13.9 million in the second quarter of 2025 Company raises full year 2026 Adjusted EBITDA target range to $80.0 million to $105.0 million AKRON, Ohio--(BUSINESS WIRE)--$BW--Babcock & Wilcox Enterprises, Inc. ("B&W", "Babcock & Wilcox" or the "Company") (NYSE: BW) announced its financial results for the second quarter of 2026. "During the second quarter of 2026, we delivered strong operating results while displaying continued core business momentum, as second quarter revenue, net income and Adjusted EBITDA exceeded Company and consensus street expectations. The growing need for reliable electricity from AI data centers, utilities, industrial customers and expanding economies is accelerating investment in power generation capacity, driving strong demand for our core parts and services, environmental technologies as well as coal and natural gas-fired generation solutions,” commented Kenneth Young, B&W’s Chairman and Chief Executive Officer. "We continue active discussions on other AI data center opportunities and have placed additional orders with Siemens Energy to secure and deliver an additional 1 gigawatt of steam turbines in the next 12 to 15 months to secure speed to markets. This increase in global energy demand positions us for sustained success across our higher-margin Global Parts and Services business and provides B&W with a strong outlook for the second half of 2026 and beyond. Continued execution of our strategic objectives is delivering results, positioning B&W to capitalize on strong global demand for baseload generation and behind-the-meter data center projects." "Additionally, our first data center project with Base Electron is progressing ahead of expectations and on budget, and manufacturing of the boilers and steam turbines and other long-lead-time components are progressing quickly. The permitting process is underway as we work to provide our proven natural gas-fired boilers and related technologies, alongside Siemens Energy steam turbine systems. This progression with Base Electron further demonstrates our ability to rapidly deploy power solutions, which is a key differentiator that enhances our competitive position in pursuing other data center opportunities." "During the second quarter of 2026, our strong financial results included meaningful growth in net income as well as robust development of our bookings and backlog. As our business expands, we continue hiring in our engineering, business and project development organizations as well as increasing availability of qualified skilled welders and electricians. We are continuing to experience positive momentum at B&W, as we continue to convert our global pipeline of identified project opportunities. In July, we announced that our Board of Directors authorized a share repurchase program of up to $50 million, which reflects confidence in our balance sheet and our strategic approach to building shareholder value. In addition, we have raised the upper end of our 2026 Adjusted EBITDA target range to $80.0 million to $105.0 million, reflecting the continued momentum across our business and confidence in additional opportunities ahead. We remain intently focused on our strategic vision and remain optimistic that we will continue to execute on our existing pipeline while maintaining viability for future expansion as we move forward." Q2 2026 Financial Summary Revenues in the second quarter of 2026 were $319.7 million versus revenues of $138.9 million in the second quarter of 2025, primarily driven by an increase in large project volume, including $100.7 million from Base Electron. Operating income in the second quarter of 2026 was $11.8 million, compared to operating income of $7.0 million in the second quarter of 2025. Net income in the second quarter of 2026 was $14.3 million, compared to a net loss of $58.5 million in the second quarter of 2025, driven by the improvement in the operating income results. We benefited from a reduction to interest expense of $6.0 million, change in fair value of customer warrants of $5.9 million and a decrease to tax expense of $5.1 million. Earnings per share in the second quarter of 2026 was $0.07 compared to a loss per share of $0.63 in the second quarter of 2025. Adjusted EBITDA was $21.8 million, an increase compared to $13.9 million in the second quarter of 2025. Reconciliations of the non-GAAP measures of Adjusted EBITDA and adjusted net income (loss) to the most directly comparable GAAP measures are provided in the exhibits to this release. See “Bookings and Backlog” below for important information regarding our calculation and presentation of those metrics. Liquidity and Balance Sheet At June 30, 2026, the Company had secured debt and bonds of $239.8 million, and a cash, cash equivalents and restricted cash balance of $382.8 million. During the quarter B&W announced the repurchase of the remaining $61.8 million of outstanding December 2026 bonds in August 2026. Earnings Call Information B&W plans to host a conference call and webcast on Monday, August 10, 2026 at 5 p.m. ET to discuss the Company's second quarter 2026 results. The listen-only audio of the conference call will be broadcast live via the Internet on B&W’s Investor Relations site. The dial-in number for participants in the U.S. is (833) 461-5787; the dial-in number for participants in Canada is (365) 657-4084; the dial-in number for participants in all other locations is (585) 542-9983. The conference ID for all participants is 808869498. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time. Non-GAAP Financial Measures The Company uses non-GAAP financial measures internally, also referred to in this release as “adjusted” financial measures, to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results and the accompanying reconciliation, the Company believes that its presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting its financial condition and results of operations than GAAP measures alone. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s related financial results prepared in accordance with GAAP. Adjusted EBITDA on a consolidated basis is a non-GAAP metric and is calculated as earnings before interest expense, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, stock-based compensation, restructuring activities, impairments, gains and losses on debt extinguishment, legal and settlement costs, and costs related to financial consulting. In addition, the Company presents consolidated Adjusted EBITDA because it believes it is useful to investors to help facilitate comparisons of the ongoing, operating performance before overhead and other expenses not attributable to the operating performance of the Company. The Company also presents the non-GAAP financial measure of adjusted net income, which excludes $(5.2) million of non-cash warrants and other stock-related costs, as management believes it is a useful measure for investors to accurately reflect the impact of recent stock price growth on costs related to customer warrants and stock-based compensation. This release also presents certain targets for the Company's Adjusted EBITDA in the future; these targets are not intended as guidance regarding how the Company believes the business will perform. The Company is unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation, including business transition costs. Bookings and Backlog Bookings and backlog are our measures of remaining performance obligations under our sales contracts. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies. We generally include expected revenue from contracts in our backlog when we receive written confirmation from our customers authorizing the performance of work and committing the customers to payment for work performed. Backlog may not be indicative of future operating results, and contracts in our backlog may be canceled, modified or otherwise altered by customers. Backlog can vary significantly from period to period, particularly when large new-build projects or operations and maintenance contracts are booked because they may be fulfilled over multiple years. Because we operate globally, our backlog is also affected by changes in foreign currencies each period. We do not include orders of our unconsolidated joint ventures in backlog. Bookings represent changes to the backlog. Bookings include additions from booking new business, subtractions from customer cancellations or modifications, changes in estimates of liquidated damages that affect selling price and revaluation of backlog denominated in foreign currency. We believe comparing bookings on a quarterly basis or for periods less than one year is less meaningful than for longer periods and that shorter-term changes in bookings may not necessarily indicate a material trend. Pipeline Pipeline represents our uncontracted, potential opportunities, which have been identified and are in active discussions, that could reach a decision to proceed over the next 36 months. Pipeline is an internal metric monitored by management to understand the anticipated growth of our Company and our estimated future revenue, which may increase or decrease from time to time. We cannot guarantee that our pipeline will result in actual revenue in the originally anticipated period or at all. Pipeline may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our pipeline fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity. Impacts of Market Conditions Management continues to adapt to macroeconomic conditions, including the impacts from inflation, changing interest rates and foreign exchange rate volatility, current and potential tariff actions, geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East), and global shipping and supply chain disruptions that continued to have an impact across 2026. In certain instances, these situations have resulted in cost increases and delays or disruptions that have had, and could continue to have, an adverse impact on our ability to meet customers’ demands. Additionally, an increase in power demand has caused a shortfall in skilled labor, such as welders and electricians. These labor constraints increase construction costs and affected productivity. To the extent these conditions persist, they may adversely impact future project execution and operating results. We continue to actively monitor the impact of these market conditions on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. The duration and scope of these conditions cannot be predicted, and therefore, any anticipated negative financial impact on our operating results cannot be reasonably estimate. Forward-Looking StatementsRead the full story here

Babcock & Wilcox Enterprises Reports Second Quarter 2026 Results

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