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Babcock & Wilcox Company
(NYSE:BW)
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Rating:51Neutral
Price Target:
$12.00
▼(-34.64% Downside)
Action:Reiterated
Date:06/09/26
The score is held back primarily by weak core financials (ongoing losses, cash burn, and negative equity), despite improving revenue/EBIT trends. The earnings call provides a meaningful offset with unusually strong bookings/backlog/pipeline growth and improving leverage metrics, but technicals remain soft near-term and valuation signals are constrained by negative earnings and no provided dividend yield.
Positive Factors
Large backlog & pipeline
Substantial bookings, backlog and an expanded $14B+ pipeline create multi-year revenue visibility and optionality. Contracted backlog supports future project execution and aftermarket revenue, while the large AI data-center tranche diversifies end markets and raises potential for multi-year, high-capacity projects.
Negative Factors
Negative shareholders' equity
A sustained equity deficit limits financial resilience and heightens refinancing and covenant sensitivity. Negative equity reduces capital-market options, raises creditor focus on covenants, and constrains the company's ability to absorb shocks or fund organic/inorganic growth without dilutive or costly financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Large backlog & pipeline
Substantial bookings, backlog and an expanded $14B+ pipeline create multi-year revenue visibility and optionality. Contracted backlog supports future project execution and aftermarket revenue, while the large AI data-center tranche diversifies end markets and raises potential for multi-year, high-capacity projects.
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
$1.75B
Dividend YieldN/A
Average Volume (3M)3.76M
Price to Earnings (P/E)―
Beta (1Y)3.17
Revenue Growth-3.26%
EPS Growth18.16%
CountryUS
Employees1,900
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-0.88
Shares Outstanding148,839,540
10 Day Avg. Volume2,563,139
30 Day Avg. Volume3,758,096
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 Cap1.22
Enterprise Value/Revenue3.18
Enterprise Value/Gross Profit12.86
Enterprise Value/Ebitda-53.32
Forecast
1Y Price Target
$24.00Price Target Upside30.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.13
Revenue Forecast (FY)$933.63M
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and commercial momentum: revenue (+44%), adjusted EBITDA (+296%), very large bookings and backlog growth, a materially expanded pipeline (>17% to >$14B) and substantial debt reduction with net debt below 1x adjusted EBITDA. Offsetting these positives were a large GAAP net loss driven by $81.8M of noncash stock-related charges, continued modest operating loss, and execution/visibility risks around converting pipeline opportunities and securing manufacturing capacity for multiple large projects. On balance, the positive metrics and balance-sheet improvements materially outweigh the lowlights, though execution and timing remain key monitoring points.Positive Updates
Strong Revenue Growth
Consolidated revenues of $214.4 million in Q1 2026, a 44% increase versus $148.6 million in Q1 2025, driven by large project volume (including $31 million from Base Electron) and elevated demand from utilities, industrials and AI data centers.
Negative Updates
Large GAAP Net Loss
GAAP net loss from continuing operations of $79.6 million in Q1 2026 versus a $15.6 million net loss in Q1 2025. The increase was primarily due to $81.8 million of noncash warrants and stock-related valuation charges recorded in the quarter tied to a significant rise in the company’s stock price.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated revenues of $214.4 million in Q1 2026, a 44% increase versus $148.6 million in Q1 2025, driven by large project volume (including $31 million from Base Electron) and elevated demand from utilities, industrials and AI data centers.
Read all positive updates
Company Guidance
Management said it is keeping 2026 guidance unchanged for now but sees upside potential and will reassess in the coming months (with any shortfall simply shifting into 2027); they emphasized the decision reflects visibility into execution and the potential to pull forward manufacturing or construction. The quarter delivered revenues of $214.4M (up 44% y/y), adjusted EBITDA of $16.1M (up 296% y/y), adjusted net income from continuing operations of $2.2M (excludes $81.8M of noncash warrant/SAR charges that drove a GAAP net loss of $79.6M), bookings of $2.5B (up ~1,900% y/y), backlog of $2.7B (up 483% y/y), a pipeline >$14B (up >17% including >$2B of new AI data‑center opportunities and $31M of Base Electron revenue this quarter), total debt of $275.9M (secured debt & senior notes $237.2M), cash and equivalents of $194.8M, net debt of $42.4M (below 1x trailing‑12‑month adjusted EBITDA), an 87% reduction in secured/unsecured bonds in Q1 after $15M of bond payoffs, and an expectation to retire the remaining $69M of December‑2026 bonds this year.Babcock & Wilcox Company Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 668.48M | 587.68M | 717.33M | 727.32M | 609.44M | 710.87M |
| Gross Profit | 165.14M | 143.85M | 177.03M | 176.70M | 145.13M | 175.05M |
| EBITDA | -39.84M | 26.18M | 2.06M | -2.41M | 58.67M | 79.15M |
| Net Income | -128.90M | -36.16M | -59.91M | -197.21M | -22.86M | 30.89M |
Balance Sheet | ||||||
| Total Assets | 757.85M | 662.90M | 726.99M | 775.70M | 941.69M | 913.26M |
| Cash, Cash Equivalents and Short-Term Investments | 166.85M | 89.50M | 23.40M | 39.86M | 76.24M | 224.87M |
| Total Debt | 321.98M | 368.70M | 537.93M | 434.23M | 410.27M | 402.74M |
| Total Liabilities | 929.94M | 794.50M | 1.01B | 976.05M | 943.78M | 854.64M |
| Stockholders Equity | -172.09M | -131.60M | -283.76M | -200.96M | -2.57M | 33.15M |
Cash Flow | ||||||
| Free Cash Flow | -62.23M | -85.70M | -129.94M | -52.07M | -43.88M | -117.88M |
| Operating Cash Flow | -42.63M | -68.90M | -118.73M | -42.27M | -30.64M | -111.20M |
| Investing Cash Flow | 197.37M | 197.00M | 109.96M | -7.94M | -68.80M | -33.54M |
| Financing Cash Flow | -78.60M | -58.70M | 69.73M | 8.56M | -11.16M | 302.81M |
Babcock & Wilcox Company Technical Analysis
Negative
18.36
Price Trends
16.71
Negative
15.01
Negative
10.34
Positive
Market Momentum
-1.14
Positive
30.13
Neutral
6.78
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 18.36 is above the 20-day moving average (MA) of 15.53, above the 50-day MA of 16.71, and above the 200-day MA of 10.34, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 30.13 is Neutral, neither overbought nor oversold. The STOCH value of 6.78 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $107.19M | 20.98 | 7.92% | ― | 9.07% | ― | |
64 Neutral | $462.89M | 78.91 | 2.52% | 3.70% | -7.01% | -72.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $522.65M | 20.51 | 6.50% | 2.32% | -1.78% | -35.06% | |
51 Neutral | $1.75B | -13.27 | 61.01% | ― | -3.26% | 18.16% | |
42 Neutral | $10.52M | -0.60 | -82.18% | ― | -10.85% | 5.17% | |
| ― | $22.41M | -0.03 | 227.38% | ― | 595.90% | 80.30% |
* Industrials Sector Average
BW
Babcock & Wilcox Company
11.74
10.75
1085.86%
BWEN
Broadwind Energy
4.58
2.78
154.44%
PKOH
Park-Ohio Holdings
36.30
18.26
101.26%
LXFR
Luxfer
17.14
5.19
43.38%
CETY
Clean Energy Technologies
0.86
-2.32
-72.89%
BURU
Nuburu
0.13
-1.70
-93.14%
Babcock & Wilcox Company Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Babcock & Wilcox Launches $200 Million Equity Offering
Positive
May 14, 2026
On May 14, 2026, Babcock Wilcox Enterprises announced it had launched an underwritten public offering of $200 million in common stock, with an additional 15% overallotment option for underwriters, under its effective shelf registration. All share...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Babcock & Wilcox Highlights Growth in Energy Technologies
Positive
May 11, 2026
On May 11, 2026, Babcock Wilcox Enterprises, Inc. posted an investor presentation on its website outlining its position as a long-standing provider of advanced energy and environmental technologies and services. The materials emphasize the compan...
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.