Babcock & Wilcox Company (BW) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.92
• Revenue Growth: -38.45%
• EPS Growth: -148.99%
• Country: US
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 111,100,100
• 10 Day Avg. Volume: 1,631,722
• 30 Day Avg. Volume: 2,504,250
• PEG Ratio: 0.45
• Price to Book (P/B): -5.08
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -7.80
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 8.95
• Enterprise Value/Ebitda: 31.17
• 1Y Price Target: $9.50
• Price Target Upside: -9.61% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $11.00 ▲(4.66% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back most by weak financial performance (negative equity and persistent negative operating/free cash flow). This is partially offset by a strong earnings-call outlook (improving profitability metrics, expanding backlog, and upbeat 2026 EBITDA guidance) and a moderately constructive technical setup, while valuation support is limited due to ongoing losses and no stated common dividend yield.

Positive Factors

Large AI data‑center projects & backlog expansion

Securing a multi‑billion-dollar design‑build with Applied Digital and lifting backlog to ~$2.8B materially deepens multi‑year revenue visibility. Large, long‑duration projects create steady execution work, spare‑parts and services follow‑on demand and reduce near‑term revenue volatility.

Improving EBITDA and 2026 guidance

Sustained adjusted EBITDA improvement and explicit 2026 EBITDA guidance indicate operational leverage returning. Higher recurring margins across parts, services and project execution support margin sustainability and provide a clearer path to rebuild equity and free cash generation over the medium term.

Stronger liquidity posture and debt reduction

Meaningful debt paydowns plus a credit amendment extending maturity to 2028 and increased availability ease near‑term refinancing risk. Longer maturities and improved lender flexibility support execution of large projects and reduce the immediacy of liquidity pressures while management executes deleveraging.

Negative Factors

Persistent negative equity

Negative equity reflects cumulative losses and constrains financial flexibility; it distorts leverage metrics and increases insolvency risk. Until retained earnings rebuild, the company remains vulnerable to adverse swings, limiting strategic options like acquisitions or major capital spending.

Chronic operating and free cash burn

Consistent negative operating and free cash flow forces reliance on asset sales, equity raises or debt to fund operations. Even with EBITDA improvement, persistent cash burn reduces flexibility for capex, working capital and pension obligations, raising execution risk on large projects.

Choppy revenue and recurring losses

Irregular revenue trends and repeated net losses show the company has not yet established consistent earnings power. This undermines credibility of sustained profitability, complicates recovery of equity, and heightens sensitivity to project timing or contract execution setbacks.

Babcock & Wilcox Company Business Overview & Revenue Model

Company Description

Babcock & Wilcox Enterprises, Inc., together with its subsidiaries, provides energy and emissions control solutions to a range of industrial, electrical utility, municipal, and other customers worldwide. It operates through three segments: Babcock & Wilcox Renewable; Babcock & Wilcox Environmental; and Babcock & Wilcox Thermal. The Babcock & Wilcox Renewable segment offers technologies for waste-to-energy, solar construction and installation, and biomass energy systems, as well as black liquor systems for the pulp and paper industry. This segment provides technologies support solutions for diverting waste from landfills to use for power generation and replacing fossil fuels while recovering metals and reducing emissions. The Babcock & Wilcox Environmental segment offers a range of emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications. This segment provides systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control. The Babcock & Wilcox Thermal segment offers steam generation equipment; aftermarket parts; and construction, maintenance, and field services for plants in the power generation, oil and gas, and industrial sectors. This segment has an installed equipment for utilities and general industrial applications, including refining, petrochemical, food processing, metals, and others. The company was founded in 1867 and is headquartered in Akron, Ohio.

How the Company Makes Money

B&W makes money primarily by selling engineered equipment, technology solutions, and related services to utilities and industrial customers. Key revenue streams generally include: (1) Projects and equipment sales—revenue from designing, engineering, manufacturing, and installing steam generation/boiler systems and other power or environmental equipment, typically recognized based on contract terms and project progress; (2) Aftermarket and service revenue—higher-frequency, recurring revenue from maintenance, inspections, field services, component replacements, parts, and performance upgrades for customer plants and for B&W’s installed base; (3) Environmental and emissions-control solutions—revenue from supplying and servicing systems intended to reduce or manage pollutants (e.g., retrofits and compliance-related upgrades), often driven by regulatory requirements and plant modernization needs. Factors that commonly influence earnings include the size and activity level of the installed base, timing and execution of large project contracts, customer capital spending cycles, and demand for compliance and reliability upgrades. Specific significant partnerships contributing to earnings: null.

Babcock & Wilcox Company Financial Statement Overview

Summary

Financials remain weak: revenue has been choppy, profitability is still negative (losses in four of the last five years), equity is negative (elevated solvency risk), and operating/free cash flow are consistently negative, indicating ongoing cash burn. Debt coming down is a positive, but not enough to offset the stressed balance sheet and weak cash generation.

Income Statement

Revenue has been choppy, declining in 2024 and 2025 after a strong 2023 rebound, and profitability remains the key issue. Net results have been negative in four of the last five years (including a sizable loss in 2023), and 2025 still shows an ~8.7% net loss margin despite modest EBITDA margin (~3.5%). A positive sign is that losses narrowed versus 2023–2024, but the company has not demonstrated consistent earnings power.

Balance Sheet

The balance sheet is stressed by persistent negative equity (2022–2025), which indicates accumulated losses and limits financial flexibility. Debt levels are meaningful, and leverage metrics are distorted by the negative equity position—still, the trend shows debt coming down in 2025 versus 2024, which is constructive. Overall solvency risk remains elevated until equity and profitability are rebuilt.

Cash Flow

Cash generation is weak: operating cash flow has been negative every year shown (2020–2025), and free cash flow is also consistently negative, with further deterioration in 2025 versus 2024. While losses have at times been accompanied by free cash flow that is not worse than net income, the core issue is ongoing cash burn, which increases reliance on external financing or asset actions.

Breakdown	Dec 2025	Mar 2025	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	587.70M	717.33M	727.32M	609.44M	710.87M
Gross Profit	143.90M	177.03M	176.70M	145.13M	175.05M
EBITDA	33.00M	2.06M	-2.41M	58.67M	79.15M
Net Income	-36.10M	-59.91M	-197.21M	-22.86M	30.89M
Balance Sheet
Total Assets	662.90M	726.99M	775.70M	941.69M	913.26M
Cash, Cash Equivalents and Short-Term Investments	89.50M	23.40M	39.86M	76.24M	224.87M
Total Debt	368.70M	537.93M	434.23M	410.27M	402.74M
Total Liabilities	794.50M	1.01B	976.05M	943.78M	854.64M
Stockholders Equity	-131.60M	-283.76M	-200.96M	-2.57M	33.15M
Cash Flow
Free Cash Flow	-85.70M	-129.94M	-52.07M	-43.88M	-117.88M
Operating Cash Flow	-68.90M	-118.73M	-42.27M	-30.64M	-111.20M
Investing Cash Flow	197.00M	109.96M	-7.94M	-68.80M	-33.54M
Financing Cash Flow	-58.70M	69.73M	8.56M	-11.16M	302.81M

Babcock & Wilcox Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.51 is below the 20-day moving average (MA) of 10.65, above the 50-day MA of 9.49, and above the 200-day MA of 4.60, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 69.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BW.

Babcock & Wilcox Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PKOH	60 Neutral	$351.63M	72.24	8.13%	2.32%	-3.90%	61.80%
LXFR	60 Neutral	$309.03M	11.56	13.57%	3.70%	3.36%	57.40%
BW	55 Neutral	$1.17B	-18.51	―	―	-38.45%	-148.99%
BWEN	54 Neutral	$51.05M	12.35	8.34%	―	-1.47%	52.65%
CETY	41 Neutral	$4.38M	-2.28	-82.18%	―	-57.40%	52.85%
BURU	35 Underperform	$27.82M	-0.91	―	―	-98.20%	93.77%

Babcock & Wilcox Company Corporate Events

Babcock & Wilcox Declares Dividend on Series A Preferred

On March 11, 2026, Babcock & Wilcox Enterprises, Inc. declared a cash dividend of $0.4843750 per share on its 7.75% Series A Cumulative Perpetual Preferred Stock, with a record date of March 21, 2026 and payment scheduled for March 31, 2026. The move underscores the company’s continued commitment to meeting its obligations to preferred shareholders and may signal confidence in its ability to maintain preferred distributions despite broader market and industry pressures.

The preferred issue remains listed on the New York Stock Exchange under the ticker BW PRA, ensuring liquidity and visibility for investors tracking the income stream tied to this security. The board’s action, executed under the authority of executive vice president and chief financial officer Cameron Frymyer, provides a degree of income predictability for holders of the preferred shares and helps support the company’s credibility in capital markets.

The most recent analyst rating on (BW) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Posts Strong 2025 Earnings, Cuts Debt

On February 26, 2026, Babcock & Wilcox, through The Babcock & Wilcox Company, signed a $2.4 billion definitive design-build agreement with Base Electron, an Applied Digital company, to design and install four 300-megawatt natural gas-fired boilers and steam turbine systems to power an AI data center, converting an earlier limited notice to proceed into a full notice and lifting its backlog to $2.8 billion. On March 4, 2026, the company reported that fourth-quarter 2025 operating income rose to $12.2 million with adjusted EBITDA up 53% year over year, full-year 2025 adjusted EBITDA more than doubled to $43.7 million while losses from continuing operations narrowed sharply, and debt was significantly reduced, positioning B&W to capitalize on surging baseload power demand from data centers and increased coal utilization while it continues to strengthen its balance sheet.

The most recent analyst rating on (BW) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Amends Credit Facility, Extends Maturity

On February 25, 2026, Babcock & Wilcox Enterprises, Inc. and its lenders executed a tenth amendment to their January 18, 2024 credit agreement, increasing borrowing availability tied to inventory and receivables and extending the facility’s maturity to January 18, 2028. The amendment also suspends a PBGC Reserve until at least January 1, 2027, relaxes certain deposit account and foreign currency covenants, and releases BRC Group Holdings, Inc. as a specified guarantor, collectively enhancing the company’s liquidity flexibility while slightly reshaping its guarantor structure and pension-related obligations.

These changes may improve the company’s near- to medium-term financial stability by providing greater access to working capital and a longer debt runway, which could support ongoing operations and strategic initiatives. However, the conditional reinstatement of the PBGC Reserve tied to a $3 million installment due by September 15, 2026 maintains pressure on the company to meet its pension-related commitments while balancing its capital structure and lender expectations.

The most recent analyst rating on (BW) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Adds Akbari to Strengthen Board

On January 21, 2026, Babcock & Wilcox Enterprises, Inc. appointed Dr. Homaira Akbari to its board of directors, effective January 26, 2026, increasing the board to seven members. A seasoned director who has served on more than 25 public and private company boards, including Veolia Group and Banco Santander, and a former member of B&W’s Advisory Board from 2022 through 2025, Dr. Akbari brings extensive international leadership experience in technology, energy and finance, including senior roles at Microsoft, Thales and Liberty Media. B&W’s leadership highlighted her expertise in AI factories and data centers, power generation systems and waste-to-energy technologies as strategically important to advancing the company’s power, carbon capture and environmental solutions offerings, signaling a focus on strengthening its board’s technological and energy-transition capabilities to support both near-term execution and long-term value creation for its customer base and stakeholders.

The most recent analyst rating on (BW) stock is a Buy with a $10.50 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Announces Executive Vice President Departure

On January 8, 2026, Babcock & Wilcox Enterprises, Inc. announced that Executive Vice President, General Counsel and Corporate Secretary John Dziewisz will step down and leave the company after 30 years of service, with his last day set for May 31, 2026. Under a Separation Agreement and Release of Claims, Dziewisz is to receive $500,000 in severance over one year, accelerated vesting of previously awarded restricted stock units and cash retention bonuses, one year of outplacement services, partial COBRA premium support for three months, and eligibility for bonuses and long-term cash incentives earned on 2025 performance, while granting the company a general release of claims and agreeing to a consulting arrangement, signaling an orderly leadership transition in the company’s legal function.

The most recent analyst rating on (BW) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.