Babcock & Wilcox Company (BW) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: N/A
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.10
• Revenue Growth: -38.45%
• EPS Growth: -148.99%
• Country: US
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.06
• Shares Outstanding: 111,100,100
• 10 Day Avg. Volume: 2,288,968
• 30 Day Avg. Volume: 2,990,985
• PEG Ratio: 0.04
• Price to Book (P/B): -0.53
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -1.16
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 10.45
• Enterprise Value/Ebitda: -72.56
• 1Y Price Target: $9.50
• Price Target Upside: -5.66% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $10.00 ▼(-0.70% Downside)

The score is held back primarily by weak financial performance (losses, negative cash flows, and negative equity). This is partially offset by a strong earnings-call outlook (backlog growth, debt-reduction plans, and upbeat 2026 EBITDA guidance) and an uptrending price above major moving averages, though technical indicators are stretched. Valuation remains less supportive given the loss-driven negative P/E and no dividend yield provided.

Positive Factors

Backlog Growth

A >56% QoQ backlog increase to ~$393M gives multi-quarter revenue visibility and supports predictable project scheduling. Durable backlog reduces near-term demand risk, allowing smoother revenue recognition and operational planning as large projects convert to cash over time.

AI Data Center Pipeline

Securing a major AI data center contract and adding $3B–$5B in pipeline diversifies end markets into high-growth infrastructure. This structural move can create recurring engineering and equipment opportunities, expand addressable market, and support longer-term revenue growth beyond legacy power segments.

Debt Reduction & Capital Raise

A defined plan to retire near-term notes combined with recent equity proceeds materially reduces refinancing pressure. Improving maturity profile and bolstering liquidity lowers default and interest-rate risks, enhancing financial flexibility to fund growth and execute strategic contracts over the medium term.

Negative Factors

Negative Equity / High Leverage

Negative equity and extreme leverage signal structural solvency risk and constrain strategic options. Persistent negative book equity increases creditor priority, elevates refinancing risk, and can limit ability to bid on large projects or invest in technology without dilutive financing or asset sales.

Declining Revenue & Losses

Ongoing revenue decline and large negative net margins indicate structural demand or execution challenges. Sustained top-line contraction combined with losses erodes scale economics, undermines margin recovery efforts, and may require continuous restructuring or capital infusions to restore profitability.

Negative Operating Cash Flow

Persistent negative operating and free cash flow forces reliance on external financing to fund operations and capex. That dependence heightens liquidity risk during downturns, can increase financing costs, and may limit the company’s ability to self-fund backlogs or invest in long-term strategic initiatives.

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

Babcock & 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 Financial Statement Overview

Summary

Financial statements indicate material strain: declining TTM revenue (-10.12%), deeply negative net margin (-20.07%) and negative EBIT/EBITDA margins. Balance sheet risk is elevated with negative equity (debt-to-equity -1.996). Cash flow is also negative (operating and free cash flow), despite some relative efficiency vs. net income.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	540.53M	717.33M	727.32M	609.44M	710.87M	566.32M
Gross Profit	144.68M	177.03M	176.70M	145.13M	175.05M	165.85M
EBITDA	-20.84M	2.06M	-2.41M	58.67M	79.15M	56.21M
Net Income	-108.47M	-59.91M	-197.21M	-22.86M	30.89M	-10.32M
Balance Sheet
Total Assets	657.90M	726.99M	775.70M	941.69M	913.26M	599.08M
Cash, Cash Equivalents and Short-Term Investments	189.90M	23.40M	39.86M	76.24M	224.87M	57.34M
Total Debt	463.50M	537.93M	434.23M	410.27M	402.74M	389.23M
Total Liabilities	890.10M	1.01B	976.05M	943.78M	854.64M	930.05M
Stockholders Equity	-232.20M	-283.76M	-200.96M	-2.57M	33.15M	-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 Flow	204.37M	109.96M	-7.94M	-68.80M	-33.54M	2.20M
Financing Cash Flow	-38.48M	69.73M	8.56M	-11.16M	302.81M	44.10M

Babcock & Wilcox Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.07
• 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 Positive. The current price of 10.07 is above the 20-day moving average (MA) of 8.61, above the 50-day MA of 6.93, and above the 200-day MA of 3.23, indicating a bullish trend. The MACD of 1.05 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 71.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BW.

Babcock & Wilcox Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXFR	68 Neutral	$404.56M	28.63	7.14%	3.70%	3.36%	57.40%
PKOH	67 Neutral	$324.96M	10.89	8.13%	2.32%	-3.90%	61.80%
BWEN	65 Neutral	$69.60M	13.65	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BW	51 Neutral	$1.07B	-4.85	―	―	-38.45%	-148.99%
CETY	42 Neutral	$3.97M	-0.61	-82.18%	―	-57.40%	52.85%
BURU	35 Underperform	$91.98M	-0.15	―	―	-98.20%	93.77%

Babcock & Wilcox Company Corporate Events

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.

Babcock & Wilcox Announces Preferred Stock Dividend

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.

The most recent analyst rating on (BW) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Director Henry Bartoli Retires

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.

The most recent analyst rating on (BW) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Highlights Strategic Growth in Energy

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.

The most recent analyst rating on (BW) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Raises $67.5 Million in Equity Offering

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.

The most recent analyst rating on (BW) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Enters $200 Million Sales Agreement

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.

The most recent analyst rating on (BW) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Sells Ash Handling Business for $29M

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.

The most recent analyst rating on (BW) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.