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Babcock & Wilcox Company (BW)
NYSE:BW

Babcock & Wilcox Company (BW) AI Stock Analysis

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BW

Babcock & Wilcox Company

(NYSE:BW)

45Neutral
Babcock & Wilcox's overall stock score reflects substantial financial challenges, notably negative net income and high leverage. Despite some positive developments in earnings and strategic initiatives, technical indicators and valuation metrics indicate ongoing risk and limited investor appeal.

Babcock & Wilcox Company (BW) vs. S&P 500 (SPY)

Babcock & Wilcox Company Business Overview & Revenue Model

Company DescriptionBabcock & Wilcox Company (BW) is a leading global provider of energy and environmental technologies and services for power and industrial markets. The company specializes in the design, engineering, manufacturing, and service of advanced and sustainable clean energy solutions. BW's core offerings include renewable energy systems, environmental and emissions control technologies, and aftermarket support services to enhance efficiency and safety in energy generation and industrial processes.
How the Company Makes MoneyBabcock & Wilcox Company generates revenue through multiple streams, primarily from the sale of its technology, products, and services in the energy and environmental sectors. A significant portion of its income comes from contracts to supply clean energy systems, including waste-to-energy, biomass, and solar energy solutions. Additionally, the company provides comprehensive aftermarket services, such as maintenance, retrofitting, and parts supply, which create a steady revenue stream. BW also capitalizes on its expertise in emissions control technologies, offering solutions to reduce pollutants and enhance operational efficiency for industrial clients. Strategic partnerships and long-term contracts with utility companies and industrial firms further bolster its revenue base, ensuring consistent demand for its innovative and sustainable solutions.

Babcock & Wilcox Company Financial Statement Overview

Summary
Babcock & Wilcox is experiencing significant financial distress, characterized by negative net income, high financial leverage, and poor cash flow performance. The company needs to address its profitability and liquidity challenges to stabilize its financial position.
Income Statement
45
Neutral
Babcock & Wilcox has shown volatility in revenue with a sharp decline from 2023 to 2024 alongside persistent negative net income. Gross profit margin is relatively strong at 100% in 2024 due to the unique accounting treatment, but net profit margin remains negative, highlighting ongoing profitability challenges.
Balance Sheet
30
Negative
The company faces substantial financial leverage with a negative stockholders' equity, resulting in an undefined debt-to-equity ratio. This indicates financial instability. Return on equity cannot be assessed due to negative equity, and the equity ratio is negative, suggesting high liabilities relative to assets.
Cash Flow
35
Negative
Cash flow analysis reveals negative operating and free cash flow trends, indicating liquidity issues. Free cash flow has deteriorated significantly from 2023 to 2024, and the operating cash flow to net income ratio is negative, reflecting cash management challenges.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
717.33M999.35M889.80M723.40M566.30M
Gross Profit
177.03M224.09M185.60M179.60M165.80M
EBIT
25.08M19.90M29.10M57.50M11.90M
EBITDA
2.06M-267.00K57.56M91.20M77.45M
Net Income Common Stockholders
-59.91M-197.21M-26.60M30.89M-12.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.40M65.30M76.70M224.90M57.30M
Total Assets
726.99M775.70M942.70M913.30M591.80M
Total Debt
537.93M436.34M411.90M402.80M388.30M
Net Debt
514.53M371.04M335.20M177.90M331.00M
Total Liabilities
1.01B976.05M944.80M854.70M930.10M
Stockholders Equity
-283.17M-200.96M-2.60M33.10M-339.40M
Cash FlowFree Cash Flow
-129.94M-52.07M-43.80M-117.90M-49.00M
Operating Cash Flow
-118.73M-42.27M-30.60M-111.20M-40.80M
Investing Cash Flow
109.96M-7.94M-68.70M-33.50M2.20M
Financing Cash Flow
69.73M8.56M-11.16M302.80M44.10M

Babcock & Wilcox Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.79
Price Trends
50DMA
0.61
Positive
100DMA
1.01
Negative
200DMA
1.40
Negative
Market Momentum
MACD
0.06
Negative
RSI
67.36
Neutral
STOCH
86.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BW, the sentiment is Neutral. The current price of 0.79 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.61, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BW.

Babcock & Wilcox Company Risk Analysis

Babcock & Wilcox Company disclosed 49 risk factors in its most recent earnings report. Babcock & Wilcox Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Babcock & Wilcox Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$4.43B12.015.15%249.50%3.98%-11.60%
CVCVV
55
Neutral
$18.24M-0.26%48.84%98.75%
53
Neutral
$37.66M30.96-1.24%-25.94%-108.22%
50
Neutral
$40.42M-30.59%-44.07%-78.93%
BWBW
45
Neutral
$77.78M29.28%-29.45%39.40%
42
Neutral
$19.50M-109.72%-83.96%29.71%
39
Underperform
$55.95M77.71%1.71%-3.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BW
Babcock & Wilcox Company
0.79
-0.44
-35.77%
BWEN
Broadwind Energy
1.88
-1.55
-45.19%
CVV
CVD Equipment
2.59
-1.81
-41.14%
TPIC
TPI Composites
1.15
-2.80
-70.89%
CETY
Clean Energy Technologies
0.39
-0.89
-69.53%
LASE
Laser Photonics Corp.
2.83
0.67
31.02%

Babcock & Wilcox Company Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 21.54%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong performance in bookings, revenue, and successful debt refinancing efforts, indicating robust demand for the company's technologies. However, there are concerns about potential tariff impacts and a net loss from continuing operations, although the loss has improved compared to the previous year.
Q1-2025 Updates
Positive Updates
Record Q1 Bookings and Backlog Growth
The company reported the highest Q1 bookings revenue, gross profit, and EBITDA in the past decade, with bookings of $167 million, an 11% increase compared to the same period of 2024. The backlog reached $526.8 million, a 47% increase from the first quarter of 2024.
Debt Refinancing Success
Approximately 40% of the company's outstanding bonds have been exchanged into new five-year notes at a discount to par, reducing the debt by $31 million and lowering annual interest expense by $1.1 million.
Revenue and Profit Growth
Consolidated revenues for Q1 2025 were $181.2 million, a 10% increase from Q1 2024. Adjusted EBITDA increased to $14.3 million from $11.3 million in Q1 2024.
Strategic Asset Sale
The sale of Denmark-based waste energy subsidiary assets for $20 million will support debt reduction and the BrightLoop project in Massillon, Ohio.
Negative Updates
Net Loss from Continuing Operations
The company reported a net loss from continuing operations of $7.8 million for Q1 2025, though this was an improvement compared to a $12.8 million loss in Q1 2024.
Potential Tariff Impact
The company is monitoring tariff negotiations closely, as they could impact project timings and business operations in 2025.
Company Guidance
In the Babcock & Wilcox Enterprises first quarter 2025 conference call, the company reported robust metrics, indicating a strong start to the fiscal year. The revenue for the quarter was $181.2 million, marking a 10% increase compared to the same period in 2024, driven by a significant natural gas project and increased construction volume. The net loss from continuing operations improved to $7.8 million from $12.8 million in the previous year. Operating income was $5.9 million, slightly up from $5.7 million in Q1 2024, while adjusted EBITDA rose to $14.3 million from $11.3 million. The company achieved $167 million in bookings, an 11% increase year-over-year, and ended the quarter with a backlog of $526.8 million, a substantial 47% increase compared to the first quarter of 2024. Additionally, Babcock & Wilcox made significant strides in debt restructuring, reducing its debt by exchanging $131.8 million in bonds due in 2026 for $100.8 million in new bonds due in 2030, thereby lowering annual interest expenses by $1.1 million.

Babcock & Wilcox Company Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Babcock & Wilcox Reports Strong Q1 2025 Results
Positive
May 12, 2025

On May 12, 2025, Babcock & Wilcox Enterprises reported strong first quarter results for 2025, with revenues of $181.2 million and an adjusted EBITDA of $14.3 million, both exceeding expectations. The company announced a significant bond exchange, reducing debt and interest expenses, and highlighted record performance in its Global Parts & Service business. The sale of assets from its Denmark-based subsidiary for $20 million, with $5 million directed towards the Massillon BrightLoop project, underscores its strategic focus on debt reduction and investment in decarbonization and hydrogen generation technologies.

The most recent analyst rating on (BW) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Spark’s Take on BW Stock

According to Spark, TipRanks’ AI Analyst, BW is a Neutral.

Babcock & Wilcox’s overall stock score is notably low due to severe financial challenges, including negative net income, high leverage, and liquidity issues. Despite some positive developments in earnings and strategic initiatives, technical indicators, and valuation metrics indicate ongoing risk and limited investor appeal.

To see Spark’s full report on BW stock, click here.

Private Placements and FinancingBusiness Operations and Strategy
Babcock & Wilcox Announces Note Exchange to Reduce Debt
Positive
May 12, 2025

On May 12, 2025, Babcock & Wilcox Enterprises, Inc. announced it has entered into privately negotiated exchanges with a limited number of noteholders, resulting in approximately $132 million of its outstanding Senior Notes due 2026 being exchanged for about $101 million in newly issued 8.75% Senior Secured Second Lien Notes due 2030. This move aims to reduce the company’s outstanding debt, lower annual interest expenses by $1.1 million, and extend debt maturity to 2030, reflecting a strategic financial restructuring to improve its fiscal health and market positioning.

The most recent analyst rating on (BW) stock is a Buy with a $8.0000 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Spark’s Take on BW Stock

According to Spark, TipRanks’ AI Analyst, BW is a Neutral.

Babcock & Wilcox faces substantial financial challenges, notably negative net income and high leverage. Despite improved revenue and operating metrics, the stock faces downward pressure from technical indicators and valuation concerns. The company’s high debt levels remain a critical risk factor.

To see Spark’s full report on BW stock, click here.

Delistings and Listing ChangesRegulatory Filings and Compliance
Babcock & Wilcox Faces NYSE Non-Compliance Notice
Negative
Apr 10, 2025

On April 4, 2025, Babcock & Wilcox Enterprises, Inc. received a notice from the New York Stock Exchange (NYSE) indicating non-compliance with the minimum average closing price requirement of $1.00 per share over a consecutive 30 trading-day period. The company has six months to regain compliance, during which its stock will continue to be traded on the NYSE with an added “.BC” designation. The notice does not impact the company’s business operations, reporting obligations, or debt obligations.

Spark’s Take on BW Stock

According to Spark, TipRanks’ AI Analyst, BW is a Underperform.

Babcock & Wilcox’s overall score reflects substantial financial challenges, notably negative net income and high leverage. Despite improved revenue and operating metrics, the stock faces downward pressure from technical indicators and valuation concerns. The company’s high debt levels remain a critical risk factor.

To see Spark’s full report on BW stock, click here.

Business Operations and StrategyFinancial Disclosures
Babcock & Wilcox Reports Strong 2024 Financial Performance
Positive
Mar 31, 2025

Babcock & Wilcox reported a strong financial performance for the fourth quarter and full year 2024, with significant increases in revenue, operating income, and bookings. The company has made substantial progress in its BrightLoop hydrogen and carbon capture projects, receiving $10 million in state support and targeting production by 2026. B&W is also focused on debt reduction and restructuring, with ongoing asset sales and negotiations with bondholders. The company anticipates positive cash flow in 2025 and expects continued growth driven by increased demand for its technologies, particularly in the power generation sector.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.