Babcock & Wilcox Company (BW) AI Stock Analysis

• Market Cap: $883.25M
• Dividend Yield: N/A
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.09
• 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: 0.65
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: -27.46
• 1Y Price Target: $9.00
• Price Target Upside: 9.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $8.00 ▼(-2.68% Downside)

The score balances very weak financial fundamentals (losses, negative equity, and negative cash flows) against strong technical momentum and a constructive earnings outlook driven by rising backlog and optimistic 2026 EBITDA guidance. Valuation remains constrained by ongoing losses and the lack of a stated common dividend yield.

Positive Factors

Backlog Growth

A 56% QoQ backlog increase to $393M provides multi-quarter revenue visibility and supports capacity planning. Durable backlog inflows reduce near-term demand volatility, help smooth utilization, and underpin a sustainable revenue recovery trajectory if project execution remains on schedule.

AI Data Center Contract & Pipeline

Securing a large Applied Digital AI data center project and $3–5B pipeline expands BW's addressable market into high-growth, infrastructure-intensive AI deployments. This leverages core thermal and steam expertise, creates multi-year parts & services annuities, and diversifies revenue beyond legacy power markets.

Improving Adjusted EBITDA and Operating Income

Sharp YoY gains in adjusted EBITDA (+58%) and operating income (+315%) signal operational leverage and improving project margins. If sustained, these dynamics can accelerate cash generation, support deleveraging plans, and justify continued reinvestment into higher-margin service and technology offerings.

Negative Factors

Negative Equity & High Leverage

Negative equity and a debt-to-equity near -2 indicate prior losses have eroded book capital, constraining financial flexibility. This structure increases refinancing and covenant risk, likely necessitating further asset sales, equity raises, or costly financings that can dilute shareholders and limit strategic optionality.

Persistent Negative Cash Flows

Ongoing negative operating and free cash flows, with FCF contraction, undermine the firm's ability to fund capital expenditures and working capital internally. Reliance on external capital increases vulnerability to market conditions and could impede consistent execution on backlog and long-term projects.

Revenue Decline & Negative Margins

A persistent revenue decline alongside deeply negative net and operating margins suggests structural demand or pricing pressure in parts of the business. Until top-line stabilization and margin recovery occur, sustainable profitability and balance sheet repair remain uncertain despite recent operational improvements.

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

Babcock & Wilcox Company is facing significant financial challenges. The income statement shows declining revenues and substantial losses, with a negative net profit margin. The balance sheet is highly leveraged with negative equity, indicating financial instability. Cash flows are negative, although there is some efficiency in free cash flow conversion.

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: 8.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 8.22 is above the 20-day moving average (MA) of 6.07, above the 50-day MA of 5.99, and above the 200-day MA of 2.65, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 73.85 is Negative, neither overbought nor oversold. The STOCH value of 95.25 is Negative, 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	73 Outperform	$382.38M	27.06	7.14%	3.70%	3.36%	57.40%
PKOH	67 Neutral	$322.73M	10.82	8.13%	2.32%	-3.90%	61.80%
BWEN	65 Neutral	$85.15M	17.91	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BW	60 Neutral	$883.25M	-3.96	―	―	-38.45%	-148.99%
CETY	41 Neutral	$3.80M	-0.62	-82.18%	―	-57.40%	52.85%
BURU	35 Underperform	$83.70M	-0.16	―	―	-98.20%	93.77%

Babcock & Wilcox Company Corporate Events

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.