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Babcock & Wilcox Company
(NYSE:BW)
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Rating:48Neutral
Price Target:
$10.00
▲(3.95% Upside)
Action:Reiterated
Date:08/11/26
The score is held down primarily by weak financial performance—especially persistent negative operating/free cash flow and high leverage alongside still-fragile profitability—plus bearish technicals with the stock trading below all key moving averages and negative MACD. Offsetting these, the latest earnings call was meaningfully positive with raised adjusted EBITDA guidance and substantial bookings/backlog and pipeline momentum, which improves the outlook but has not yet resolved the cash-generation and balance-sheet risk highlighted in the financial statements.
Positive Factors
Demand and Backlog Expansion
The substantial pipeline, bookings and backlog provide greater revenue visibility and indicate strong customer demand for BW’s power-generation solutions, particularly in data centers and baseload capacity.
Negative Factors
Persistent Negative Cash Flow
Continued operating and free-cash-flow deficits show that BW is not yet self-funding its operations. Ongoing cash burn may require external financing and could constrain investment or debt reduction during the growth ramp.
Read all positive and negative factors
Positive Factors
Negative Factors
Demand and Backlog Expansion
The substantial pipeline, bookings and backlog provide greater revenue visibility and indicate strong customer demand for BW’s power-generation solutions, particularly in data centers and baseload capacity.
Read all positive factors
Babcock & Wilcox Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting areas of strength and potential growth within the company’s diverse operations.
Shows how much revenue each business segment generates, highlighting areas of strength and potential growth within the company’s diverse operations.
Data provided by:
The Fly
The FlyBabcock & Wilcox Company (BW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend YieldN/A
Average Volume (3M)3.84M
Price to Earnings (P/E)―
Beta (1Y)3.05
Revenue Growth40.37%
EPS Growth55.59%
CountryUS
Employees1,625
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.18
Shares Outstanding148,965,070
10 Day Avg. Volume3,016,222
30 Day Avg. Volume3,841,225
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)-5.08
Price to Sales (P/S)1.14
P/FCF Ratio-7.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$23.00Price Target Upside139.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.13
Revenue Forecast (FY)$933.62M
Babcock & Wilcox Company Business Overview & Revenue Model
Company Description
Babcock & Wilcox Enterprises, Inc., known as BW, operates globally to deliver specialized solutions for energy generation and environmental emissions management through its subsidiaries. The company serves a wide array of international clients, in...
How the Company Makes Money
BW primarily makes money by selling engineered equipment and complete systems, delivering engineering/procurement/construction (EPC) and project execution services, and providing long-term aftermarket services for installed equipment. Key revenue ...
Babcock & Wilcox Company Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call emphasized substantial commercial momentum and strong financial gains: very large increases in revenue, bookings and backlog; a $14+ billion pipeline including 4–6 GW of opportunities; Base Electron execution ahead of plan; BrightLoop progress; and balance-sheet actions including debt repurchase and a share buyback program. Challenges were acknowledged — notably temporary skilled labor shortages that raised costs on a specific project, and a sizable noncash stock-related charge that drove H1 GAAP net loss — but management described concrete mitigation steps and maintained confidence in supply-chain partnerships and hiring/training programs. Given the scale and magnitude of the positive operational and financial developments relative to the contained and addressable challenges, the overall tone is constructive and upbeat.Positive Updates
Strong Quarterly Revenue Growth
Consolidated revenues of $319.7 million in Q2 2026, a 130% increase versus Q2 2025, driven by higher large-project volume and stronger demand for electricity from fossil fuels.
Negative Updates
Skilled Labor Shortages and Higher Direct Costs
U.S. availability of highly skilled labor (e.g., high-pressure welders, electricians) was constrained in Q2, negatively impacting efficiencies and causing higher direct costs on a specific construction project. Management is addressing this through incentives, rehires, delayed retirements and expanded recruiting/training.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Consolidated revenues of $319.7 million in Q2 2026, a 130% increase versus Q2 2025, driven by higher large-project volume and stronger demand for electricity from fossil fuels.
Read all positive updates
Company Guidance
The company raised full‑year 2026 adjusted EBITDA guidance to a range of $80 million to $105 million and reiterated strong project and financial momentum: a pipeline exceeding $14 billion (including 4–6 GW of opportunities), H1 bookings of $2.7 billion (up >1,058% y/y) and Q2 backlog of $2.6 billion (up 533% y/y); Q2 consolidated revenue was $319.7 million (+130% y/y), Q2 net income was $14.3 million (up $72.8 million y/y) and Q2 adjusted EBITDA was $21.8 million (up $7.9 million y/y), with H1 revenue $534.1 million (vs. $287.5 million a year ago), H1 adjusted EBITDA $37.8 million (vs. $17.9 million) and H1 adjusted net income $14.7 million (ex‑warrant charges); balance sheet and liquidity highlights include $276.8 million total debt at 6/30/26, $382.8 million cash and equivalents, repurchase of $61.8 million of Dec‑2026 bonds and a Board‑authorized $50 million share buyback; project timing/guidance noted Base Electron contributed $131.7 million in H1 and is on budget with construction slated to start early 2027, turbines/boiler deliveries thereafter, an additional 1 GW of Siemens 50‑MW turbines reserved (20 units) with first generator sets in 12–14 months, and the BrightLoop Massillon commercial demonstration expected to be operational in late 2027.Babcock & Wilcox Company Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
28
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 844.14M | 587.68M | 717.33M | 727.32M | 609.44M | 710.87M |
| Gross Profit | 168.53M | 143.85M | 177.03M | 176.70M | 145.13M | 175.05M |
| EBITDA | -30.31M | 26.18M | 2.06M | -2.41M | 58.67M | 79.15M |
| Net Income | -93.01M | -36.16M | -59.91M | -197.21M | -22.86M | 30.89M |
Balance Sheet | ||||||
| Total Assets | 999.60M | 662.90M | 726.99M | 775.70M | 941.69M | 913.26M |
| Cash, Cash Equivalents and Short-Term Investments | 308.63M | 89.50M | 23.40M | 39.86M | 76.24M | 224.87M |
| Total Debt | 304.67M | 368.70M | 537.93M | 434.23M | 410.27M | 402.74M |
| Total Liabilities | 942.23M | 794.50M | 1.01B | 976.05M | 943.78M | 854.64M |
| Stockholders Equity | 57.37M | -131.60M | -283.76M | -200.96M | -2.57M | 33.15M |
Cash Flow | ||||||
| Free Cash Flow | -58.21M | -85.70M | -129.94M | -52.07M | -43.88M | -117.88M |
| Operating Cash Flow | -34.74M | -68.90M | -118.73M | -42.27M | -30.64M | -111.20M |
| Investing Cash Flow | 176.49M | 197.00M | 109.96M | -7.94M | -68.80M | -33.54M |
| Financing Cash Flow | -95.36M | -58.70M | 69.73M | 8.56M | -11.16M | 302.81M |
Babcock & Wilcox Company Technical Analysis
Negative
9.62
Price Trends
11.65
Negative
14.43
Negative
11.47
Negative
Market Momentum
-0.65
Negative
37.89
Neutral
8.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BW, the sentiment is Negative. The current price of 9.62 is above the 20-day moving average (MA) of 9.33, below the 50-day MA of 11.65, and below the 200-day MA of 11.47, indicating a bearish trend. The MACD of -0.65 indicates Negative momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 8.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BW.
Babcock & Wilcox Company Risk Analysis
Babcock & Wilcox Company disclosed 48 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $110.24M | 19.46 | 8.25% | ― | -3.31% | ― | |
65 Neutral | $457.85M | 57.07 | 3.54% | 3.05% | -10.05% | -67.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $669.73M | 22.99 | 7.15% | 1.28% | 2.68% | -20.08% | |
48 Neutral | $1.36B | -9.69 | 77.75% | ― | 40.37% | 55.59% | |
46 Neutral | $11.68M | -0.83 | -109.27% | ― | 89.35% | 7.95% | |
35 Underperform | $16.01M | -0.05 | 227.38% | ― | 9927.65% | 87.32% |
* Industrials Sector Average
BW
Babcock & Wilcox Company
8.43
6.71
390.12%
BWEN
Broadwind Energy
4.51
2.30
104.07%
PKOH
Park-Ohio Holdings
45.29
25.71
131.26%
LXFR
Luxfer
17.12
4.44
34.96%
CETY
Clean Energy Technologies
0.98
-2.60
-72.51%
BURU
Nuburu
0.04
-0.81
-95.17%
Babcock & Wilcox Company Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Babcock & Wilcox posts strong Q2 turnaround, outlook raised
Positive
Aug 10, 2026
On August 10, 2026, Babcock Wilcox reported second quarter 2026 results showing a sharp turnaround, with revenue rising 130% year on year to $319.7 million and net income of $14.3 million versus a $58.5 million loss in the prior-year quarter. Adj...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Babcock & Wilcox Announces New Share Repurchase Program
Positive
Jul 13, 2026
On July 13, 2026, Babcock Wilcox announced that its Board of Directors had authorized a share repurchase program of up to $50 million of the company’s outstanding common stock. The company said it expected to begin repurchases after filing ...
Dividends
Babcock & Wilcox Declares Dividend on Series A Preferred
Positive
Jun 8, 2026
On June 8, 2026, Babcock Wilcox Enterprises, Inc. announced that its board of directors approved a cash dividend of $0.4843750 per share on its outstanding 7.75% Series A Cumulative Perpetual Preferred Stock, with a record date of June 20, 2026 a...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Babcock & Wilcox Shareholders Maintain Existing Governance Structure
Neutral
May 22, 2026
At the May 20, 2026 annual meeting, Babcock Wilcox stockholders considered seven proposals, with 75.95% of voting power represented, underscoring solid shareholder engagement in the company’s governance. A key governance initiative to decla...
Business Operations and StrategyPrivate Placements and Financing
Babcock & Wilcox Completes Public Equity Offering for Growth
Positive
May 18, 2026
Babcock Wilcox Enterprises, Inc. priced an underwritten public offering of 10,810,811 shares of common stock at $18.50 per share on May 15, 2026, targeting gross proceeds of about $200 million before fees. The company subsequently entered an unde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.