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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)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
$6.50
▲(3.01% Upside)
Babcock & Wilcox's overall stock score reflects significant financial challenges, with declining revenues and high leverage. However, positive technical indicators and strategic initiatives in the AI and energy sectors provide some optimism. The earnings call and corporate events indicate potential for future growth, but the current financial instability remains a major concern.
Positive Factors
Strategic Growth Initiatives
The strategic entry into the AI data center market positions BW for significant growth, leveraging its expertise in energy solutions to tap into a high-demand sector.
Debt Reduction
Effective debt reduction enhances financial stability and flexibility, allowing BW to invest in growth opportunities and improve its balance sheet health.
Carbon Capture Technology
Investment in carbon capture technology aligns with global sustainability trends, potentially expanding BW's market reach and regulatory compliance advantages.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in market competitiveness and demand, which could hinder long-term growth and profitability if not addressed.
High Leverage
High leverage poses a risk to financial stability, limiting BW's ability to invest in growth and increasing vulnerability to economic downturns.
Negative Cash Flow
Negative cash flow challenges BW's ability to fund operations and growth initiatives, potentially leading to liquidity issues if not improved.

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

Babcock & Wilcox Company Business Overview & Revenue Model

Company DescriptionBabcock & Wilcox Company (BW) is a global leader in energy and environmental technologies, primarily focused on delivering advanced solutions for the power generation and industrial sectors. The company operates through several segments, including Renewable, Environmental, and Power Generation, providing a range of products and services such as boiler systems, air pollution control technologies, and energy efficiency solutions. With a strong emphasis on innovation and sustainability, BW aims to support the transition to cleaner energy sources while enhancing operational efficiency for its clients.
How the Company Makes MoneyBabcock & Wilcox generates revenue through multiple streams, primarily from the sale of equipment and systems related to power generation and environmental technologies. Key revenue streams include the design, engineering, and manufacturing of boiler systems, emissions control systems, and renewable energy solutions. Additionally, BW earns income through service contracts that involve the maintenance and upgrading of existing systems. The company benefits from strategic partnerships with major energy producers and utility companies, which not only enhance its market reach but also provide opportunities for long-term contracts and collaborative projects that contribute significantly to its earnings. Market demand for cleaner energy solutions and regulatory requirements for emissions reduction further support BW's revenue potential in a transitioning energy landscape.

Babcock & Wilcox Company Earnings Call Summary

Earnings Call Date:Nov 04, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Apr 06, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance in terms of adjusted EBITDA, operating income, and backlog growth. The company has effectively reduced its debt and secured a major project in the AI data center space, indicating promising future opportunities. Despite a net loss from continuing operations, the overall outlook is positive with significant growth anticipated for 2026.
Q3-2025 Updates
Positive Updates
Significant Increase in Adjusted EBITDA and Operating Income
Adjusted EBITDA was 58% higher compared to the third quarter of 2024, while operating income increased by 315% from the same period in 2024.
Record Backlog Growth
Backlog rose 56% quarter-over-quarter to over $393 million, driven by increased demand for power generation projects.
Successful Debt Reduction Strategy
Through asset dispositions and equity raises, B&W has significantly reduced its debt, including plans to pay down February 2026 notes by the end of 2025.
Major AI Data Center Project
Signed a limited notice to proceed with Applied Digital for a $1.5 billion AI data center project, expected to add $3 billion to $5 billion in pipeline opportunities.
Positive Outlook for 2026
Projected 2026 adjusted EBITDA of $70 million to $85 million, representing 80% growth year-over-year from 2025.
Negative Updates
Net Loss from Continuing Operations
The company reported a loss from continuing operations of $2.3 million in the third quarter of 2025.
Company Guidance
During the Babcock & Wilcox Enterprises Third Quarter 2025 Conference Call, significant improvements were reported in financial performance metrics. Adjusted EBITDA outperformed expectations, increasing by 58% compared to the third quarter of 2024, and operating income rose by 315%. The Global Parts & Services segment achieved record quarterly bookings and revenue, contributing to a 56% quarter-over-quarter rise in backlog, totaling over $393 million. The company also announced plans to pay down February 2026 notes by year-end 2025 and start addressing December 2026 bonds. Looking ahead to 2026, B&W projects core business EBITDA to range between $70 million and $85 million, marking an 80% year-over-year growth from 2025. The company is also entering the AI data center market, announcing a project with Applied Digital valued at over $1.5 billion, expected to add $3 billion to $5 billion in AI data center opportunities to their pipeline.

Babcock & Wilcox Company Financial Statement Overview

Summary
Babcock & Wilcox Company is facing significant financial challenges. The income statement shows declining revenues and profitability issues, with a negative net profit margin of -20.07%. The balance sheet is burdened with high leverage and negative equity, indicating financial instability. Cash flow analysis reveals negative cash flows, although there is some efficiency in free cash flow conversion. Overall, the company needs to address its operational and financial challenges to improve its financial health.
Income Statement
35
Negative
The income statement shows a declining trend in revenue with a negative revenue growth rate of -10.12% in the TTM period. Gross profit margin has slightly improved to 26.76%, but the net profit margin is significantly negative at -20.07%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the company faces profitability issues with declining revenues.
Balance Sheet
30
Negative
The balance sheet reveals a high debt-to-equity ratio of -1.996, indicating a leveraged position with negative equity. The return on equity is negative, reflecting losses. The equity ratio is not favorable due to negative equity, suggesting financial instability. The company is heavily reliant on debt financing, posing a risk to financial health.
Cash Flow
40
Negative
Cash flow analysis shows negative operating and free cash flows, with a free cash flow growth rate of -25.10% in the TTM period. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is above 1, suggesting some efficiency in converting net income to free cash flow despite losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue540.52M717.33M727.32M609.44M710.87M566.32M
Gross Profit144.64M177.03M176.70M145.13M175.05M165.85M
EBITDA-22.12M2.06M-2.41M58.67M79.15M56.21M
Net Income-108.46M-59.91M-197.21M-22.86M30.89M-10.32M
Balance Sheet
Total Assets657.90M726.99M775.70M941.69M913.26M599.08M
Cash, Cash Equivalents and Short-Term Investments189.90M23.40M39.86M76.24M224.87M57.34M
Total Debt463.50M537.93M434.23M410.27M402.74M389.23M
Total Liabilities890.10M1.01B976.05M943.78M854.64M930.05M
Stockholders Equity-232.20M-283.76M-200.96M-2.57M33.15M-332.08M
Cash Flow
Free Cash Flow-102.05M-129.94M-52.07M-43.88M-117.88M-49.00M
Operating Cash Flow-88.38M-118.73M-42.27M-30.64M-111.20M-40.80M
Investing Cash Flow204.37M109.96M-7.94M-68.80M-33.54M2.20M
Financing Cash Flow-38.48M69.73M8.56M-11.16M302.81M44.10M

Babcock & Wilcox Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.31
Price Trends
50DMA
4.86
Positive
100DMA
3.44
Positive
200DMA
2.11
Positive
Market Momentum
MACD
0.34
Positive
RSI
56.26
Neutral
STOCH
58.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BW, the sentiment is Positive. The current price of 6.31 is above the 20-day moving average (MA) of 6.24, above the 50-day MA of 4.86, and above the 200-day MA of 2.11, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 58.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$353.53M25.017.14%3.85%3.36%57.40%
69
Neutral
$50.46M8.20%-1.47%52.65%
67
Neutral
$311.71M10.458.13%2.17%-3.90%61.80%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
56
Neutral
$378.10M-1.90-38.45%-148.99%
41
Neutral
$4.98M-82.18%-57.40%52.85%
35
Underperform
$97.35M-98.20%93.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BW
Babcock & Wilcox Company
6.22
4.36
234.41%
BWEN
Broadwind Energy
3.48
1.69
94.41%
PKOH
Park-Ohio Holdings
23.41
-5.61
-19.33%
LXFR
Luxfer
13.79
0.73
5.59%
CETY
Clean Energy Technologies
1.01
-8.89
-89.80%
BURU
Nuburu
0.22
-0.12
-35.44%

Babcock & Wilcox Company Corporate Events

Dividends
Babcock & Wilcox Announces Preferred Stock Dividend
Positive
Dec 9, 2025

On December 9, 2025, Babcock & Wilcox Enterprises, Inc. announced that its board of directors approved a dividend of $0.4843750 per share for its 7.75% Series A Cumulative Perpetual Preferred Stock, with the record date set for December 19, 2025, and payment scheduled for December 31, 2025. This decision reflects the company’s ongoing commitment to providing shareholder value and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

Executive/Board Changes
Babcock & Wilcox Director Henry Bartoli Retires
Neutral
Nov 21, 2025

On November 21, 2025, Henry E. Bartoli announced his immediate retirement from the Board of Directors of Babcock & Wilcox Enterprises, Inc. for personal reasons, with no disagreements with the company. In conjunction with his retirement, the company terminated his consulting agreement and entered into a retirement agreement, ensuring Mr. Bartoli receives his December consulting fee, an additional payment of $28,000, and accelerated vesting of his restricted stock units.

Business Operations and Strategy
Babcock & Wilcox Highlights Strategic Growth in Energy
Positive
Nov 10, 2025

On November 10, 2025, Babcock & Wilcox Enterprises posted an investor presentation on its website, highlighting its strategic focus on growth and innovation in the energy sector. The company emphasized its commitment to advancing technologies for reducing greenhouse gases and meeting global energy demands. The presentation outlined potential growth opportunities through its extensive installed base and proven technologies, positioning B&W as a key player in the energy industry. The company’s focus on expanding its pipeline and backlog indicates a strong outlook for future revenue and shareholder value.

Private Placements and FinancingBusiness Operations and Strategy
Babcock & Wilcox Raises $67.5 Million in Equity Offering
Positive
Nov 7, 2025

On November 7, 2025, Babcock & Wilcox Enterprises, Inc. announced it had successfully raised $67.5 million through its at-the-market equity offering, with $50 million coming from a single global institutional investor. This capital raise, combined with recent major contract wins, positions the company to capitalize on the growing demand for energy solutions in AI data centers and the global energy transition, enhancing its financial position and strategic growth trajectory.

Private Placements and Financing
Babcock & Wilcox Enters $200 Million Sales Agreement
Neutral
Nov 5, 2025

On November 4, 2025, Babcock & Wilcox Enterprises, Inc. entered into a sales agreement with B. Riley Securities, Inc. and Lake Street Capital Markets, LLC for the sale of up to $200 million in common stock. The shares will be offered over time, with the agents acting as sales agents and receiving a 3% commission on gross proceeds. The actual proceeds will depend on the amount of shares sold, and there is no minimum offering amount required.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Babcock & Wilcox Sells Ash Handling Business for $29M
Positive
Nov 4, 2025

On October 31, 2025, Babcock & Wilcox Enterprises, Inc. completed the sale of its ash handling business, Allen-Sherman-Hoff, to Andritz AG for approximately $29 million. The sale includes a non-compete agreement and positions Babcock & Wilcox as a sales representative for the ASH business. Additionally, the company announced a significant contract with Applied Digital to provide natural gas technology for an AI data center, marking a strategic expansion into the AI sector. The company also reported strong third-quarter financial results, with a 315% increase in operating income and a 56% increase in backlog, driven by growing demand for its services in the energy sector.

Dividends
Babcock & Wilcox Declares Preferred Stock Dividend
Positive
Sep 11, 2025

On September 10, 2025, Babcock & Wilcox Enterprises, Inc. announced that its board of directors approved a dividend of $0.4843750 per share for its 7.75% Series A Cumulative Perpetual Preferred Stock, with a record date of September 20, 2025, and a payment date of September 30, 2025. This decision reflects the company’s commitment to providing returns to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

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.Date of analysis: Dec 10, 2025