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Babcock & Wilcox Company (BW)
NYSE:BW
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Babcock & Wilcox Company (BW) AI Stock Analysis

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BW

Babcock & Wilcox Company

(NYSE:BW)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$7.00
▲(6.38% Upside)
The overall stock score of 54 reflects a mixed outlook for Babcock & Wilcox Company. The most significant factor is the company's poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. However, strong technical indicators suggest bullish momentum, which partially offsets the financial challenges. Valuation concerns persist due to negative earnings. The positive sentiment from the earnings call, while not directly impacting the score due to weight redistribution, highlights potential future growth opportunities.

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 and services for the power and industrial sectors. Founded in 1867, the company specializes in providing advanced technologies and solutions for steam generation, environmental control systems, and renewable energy. BW operates primarily through two segments: Power, which focuses on providing energy solutions for traditional and renewable power generation, and Environmental, which offers systems to control emissions and improve environmental performance for a variety of industries.
How the Company Makes MoneyBabcock & Wilcox generates revenue through several key streams, primarily by delivering engineering, procurement, and construction (EPC) services, as well as selling equipment and technology solutions. The Power segment earns money through contracts for the design and installation of boilers, renewable energy systems, and other power generation technologies, while the Environmental segment focuses on emissions control and waste management solutions. Additionally, BW benefits from long-term service agreements, maintenance contracts, and upgrades for existing systems, which provide a steady income stream. Strategic partnerships with utility companies and government agencies also enhance their market reach and capacity to secure large-scale projects, further contributing to their overall earnings.

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 Price6.58
Price Trends
50DMA
3.93
Positive
100DMA
2.67
Positive
200DMA
1.75
Positive
Market Momentum
MACD
0.92
Negative
RSI
70.48
Negative
STOCH
60.79
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 6.58 is above the 20-day moving average (MA) of 5.02, above the 50-day MA of 3.93, and above the 200-day MA of 1.75, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 70.48 is Negative, neither overbought nor oversold. The STOCH value of 60.79 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
67
Neutral
$50.46M8.20%-1.47%52.65%
66
Neutral
$313.98M22.227.14%4.46%3.36%57.40%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
$274.26M9.058.13%2.67%-3.90%61.80%
54
Neutral
$378.10M-1.90-38.45%-148.99%
37
Underperform
$5.39M-58.13%-80.89%50.95%
35
Underperform
$38.34M-0.13-98.20%93.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BW
Babcock & Wilcox Company
6.58
4.69
248.15%
BWEN
Broadwind Energy
2.84
1.29
83.23%
PKOH
Park-Ohio Holdings
19.04
-12.44
-39.52%
LXFR
Luxfer
11.65
-1.75
-13.06%
CETY
Clean Energy Technologies
1.15
-8.93
-88.59%
BURU
Nuburu
0.21
-0.25
-54.35%

Babcock & Wilcox Company Corporate Events

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.

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.

Business Operations and StrategyPrivate Placements and Financing
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.

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.

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.

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.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
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.

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.

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.

The most recent analyst rating on (BW) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Babcock & Wilcox Regains NYSE Listing Compliance
Positive
Sep 3, 2025

On September 2, 2025, Babcock & Wilcox Enterprises, Inc. announced that it has regained compliance with the New York Stock Exchange’s continued listing standard for minimum average closing share price. This development ensures that B&W’s common stock will continue to be traded on the NYSE, which is crucial for maintaining investor confidence and the company’s market position.

The most recent analyst rating on (BW) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Earnings Call Highlights Growth and Restructuring
Sep 1, 2025

The recent earnings call for Babcock & Wilcox Enterprises highlighted a generally positive sentiment, despite some challenges. The company showcased strong performance in its parts and services sector and successful debt reduction efforts, which have strategically positioned it for future growth. Although there was a slight decline in consolidated revenues and a net loss from continuing operations, the overall outlook remains optimistic, bolstered by an increased backlog and strategic financial restructuring.

Financial DisclosuresPrivate Placements and Financing
Babcock & Wilcox Announces Redemption of Senior Notes
Positive
Aug 28, 2025

On August 28, 2025, Babcock & Wilcox Enterprises, Inc. announced its plan to redeem $70 million of its 8.125% Senior Notes due in 2026. This redemption will occur on October 2, 2025, at a price equal to 100% of the principal amount, plus any accrued and unpaid interest up to that date. The redemption will cease interest accrual on the Notes post-redemption, impacting the company’s financial obligations and potentially improving its debt position.

The most recent analyst rating on (BW) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Private Placements and Financing
Babcock & Wilcox Authorizes Senior Notes Repurchase
Neutral
Aug 27, 2025

On August 21, 2025, Babcock & Wilcox Enterprises, Inc. announced that its Board of Directors authorized the repurchase of the remaining outstanding principal amounts of its 8.125% Senior Notes due 2026 and 6.50% Senior Notes due 2026. This decision allows the company to repurchase the notes through various methods, including open market and privately negotiated transactions. The extent and timing of these repurchases will depend on factors such as market conditions and trading prices, and the authorization does not obligate the company to repurchase a minimum amount of notes.

The most recent analyst rating on (BW) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

Babcock & Wilcox Reports Strong Q2 2025 Results
Aug 12, 2025

Babcock & Wilcox Enterprises, Inc., headquartered in Akron, Ohio, is a prominent provider of energy and environmental products and services for power and industrial markets globally.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Babcock & Wilcox Reports Strong Q2 2025 Revenue Growth
Positive
Aug 11, 2025

On August 11, 2025, Babcock & Wilcox Enterprises reported its second quarter 2025 results, highlighting a significant 31% increase in Global Parts & Services revenues compared to the same period in 2024, driven by rising demand from AI and data centers. Despite a net loss from continuing operations of $6.1 million, the company showed improved financial health through asset sales and debt reduction, alleviating previous concerns about its continuity. The sale of Diamond Power International for $177 million and a 49% increase in backlog underscore B&W’s strengthened market position and positive outlook, supported by its innovative technologies and strategic focus on decarbonization.

The most recent analyst rating on (BW) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Babcock & Wilcox Company stock, see the BW Stock Forecast page.

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: Nov 11, 2025