olivLaw · US equity research
Babcock & Wilcox Enterprises, Inc. BW
Heating Equipment, Except Electric & Warm Air Furnaces · SIC 3433 · Vertical: Fabricated metal products (SIC 34xx)
Babcock & Wilcox Enterprises provides energy technologies and emissions control solutions, from steam generation systems and aftermarket parts to new power generation projects. The company is now in a phase of strong growth, supported by electricity demand from AI data centers, with revenue of 319.7 million USD in the second quarter of 2026.
At the close of 04 Nov 2026, Babcock & Wilcox Enterprises, Inc. (BW) stock was 3.69 USD (−12.77% on the day), with market capitalisation 549.7 m USD, beta 3.04, 52-week range 3.69–21.85 USD. Latest reported quarter (Q2 2026): revenue of 319.7 m USD (+130.3% YoY), net income of 14.3 m USD, diluted EPS 0.07 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 26.6
- oversold (≤ 30)
- Bollinger (20, 2)
- 3.69 – 5.47
- below the lower band · %B -0.00 · band width 38.8%
- SMA 50 / 200
- 5.90 / 11.42
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.57 / -0.60
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −34.6% | −1.1% | −33.5 pp | — |
| 3 months | −61.2% | −0.5% | −60.8 pp | — |
| 6 months | −76.3% | +4.4% | −80.7 pp | — |
| Year to date | −41.8% | +12.3% | −54.1 pp | — |
| 1 year | −1.3% | +13.5% | −14.9 pp | +17.0% |
| 3 years | +44.7% | +76.4% | −31.7 pp | +49.4% |
| 5 years | −50.8% | +63.7% | −114.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 152.6 m | 136.1 m | 148.6 m | 138.9 m | 149.0 m | 138.8 m | 214.4 m | 319.7 m |
| Cost of revenue | 116.5 m | 108.8 m | 120.8 m | 97.4 m | 111.9 m | 105.9 m | 171.0 m | 273.1 m |
| SG&A | 33.3 m | 26.1 m | 28.3 m | 33.3 m | 29.8 m | 26.7 m | 44.4 m | 33.7 m |
| Operating income | 1.6 m | -4.4 m | -1.8 m | 7.0 m | 6.5 m | 5.9 m | -1.7 m | 11.8 m |
| Depreciation & amortisation | 2.8 m | 3.0 m | 2.5 m | 2.1 m | 2.9 m | 2.4 m | 2.5 m | 2.5 m ≈ |
| Interest expense | 10.1 m | 12.1 m | 11.0 m | 11.0 m | 8.5 m | 7.0 m | 4.4 m | 5.0 m |
| Pre-tax income | -8.4 m | -50.5 m | -13.7 m | -3.4 m | -1.3 m | -9.0 m | -75.5 m | 13.2 m |
| Income tax | -508.0 k | 10.2 m | 1.9 m | 4.0 m | 1.0 m | 1.4 m | 4.2 m | -1.1 m |
| Net income | -5.3 m | -63.2 m | -22.0 m | -58.5 m | 35.1 m | 9.2 m | -76.9 m | 14.3 m |
| Diluted EPS | -0.10 | -0.67 ≈ | -0.26 | -0.63 | 0.30 | 0.08 ≈ | -0.60 | 0.07 |
| Operating cash flow | -69.5 m ≈ | -22.5 m | -8.5 m | -25.3 m ≈ | -32.1 m ≈ | -3.0 m | 17.8 m | -17.4 m ≈ |
| Capex | 2.2 m ≈ | 1.1 m | 4.3 m | 2.7 m ≈ | 5.5 m ≈ | 4.2 m | 7.1 m | 6.6 m ≈ |
| Share repurchases | 258.0 k ≈ | 62.0 k | — | — | 386.0 k ≈ | 0 | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.1 bn | 859.1 m | 566.3 m | 710.9 m | 609.4 m | 587.4 m | 581.0 m | 587.7 m |
| Revenue YoY | −20.8% | −19.1% | −34.1% | +25.5% | −14.3% | −3.6% | −1.1% | +1.1% |
| Net income | -725.3 m | -122.0 m | -10.3 m | 30.9 m | -22.9 m | -197.2 m | -59.9 m | -36.2 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | −174.0% | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | -3.87 | -0.21 | 0.26 | -0.43 | -2.38 | -0.82 | -0.48 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | −265.4% | unavailable | unavailable | unavailable |
| net % | -68.3% | -14.2% | -1.8% | 4.3% | -3.8% | -33.6% | -10.3% | -6.2% |
| Free cash flow | -287.4 m | -180.1 m | -49.0 m | -117.9 m | -43.9 m | -52.1 m | -129.9 m | -85.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 89.5 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- -131.5 m USD
- Total assets
- 662.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.22x
- ROE
- unavailable
- ROA
- -5.2%
- FCF margin
- -14.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 566.3 m | 710.9 m | 609.4 m | 587.4 m | 581.0 m | 587.7 m | SEC (XBRL)· 16 Mar 2026verified |
| Cost of revenue | 400.5 m | 535.8 m | 464.3 m | 466.0 m | 454.3 m | 443.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Gross profit | 165.9 m ≈ | 175.0 m ≈ | 145.1 m ≈ | 121.5 m ≈ | 126.7 m ≈ | 143.9 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Research & development | 4.4 m | 1.6 m | 3.8 m | — | — | — | SEC (XBRL)· 16 Mar 2023verified |
| SG&A | 141.7 m | 151.8 m | 152.7 m | 134.9 m | 124.5 m | 119.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Operating income | -1.7 m | 19.4 m | -1.2 m | -20.1 m | -6.3 m | 20.7 m | SEC (XBRL)· 16 Mar 2026verified |
| Depreciation & amortisation | 16.8 m | 18.3 m | 24.0 m | 21.0 m | 16.7 m | 10.1 m | SEC (XBRL)· 16 Mar 2026verified |
| EBITDA | 15.1 m ≈ | 37.8 m ≈ | 22.8 m ≈ | 931.0 k ≈ | 10.4 m ≈ | 30.9 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Interest expense | 59.8 m | 39.5 m | 39.8 m | 42.6 m | 46.1 m | 37.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Pre-tax income | -3.9 m | 27.3 m | -5.1 m | -103.6 m | -91.5 m | -24.6 m | SEC (XBRL)· 16 Mar 2026verified |
| Income tax | 8.2 m | -2.0 m | 9.1 m | 5.6 m | 12.8 m | 8.3 m | SEC (XBRL)· 16 Mar 2026verified |
| Net income | -10.3 m | 30.9 m | -22.9 m | -197.2 m | -59.9 m | -36.2 m | SEC (XBRL)· 16 Mar 2026verified |
| Diluted EPS | -0.21 | 0.26 | -0.43 | -2.38 | -0.82 | -0.48 | SEC (XBRL)· 16 Mar 2026verified |
| Weighted average diluted shares | 48.7 m | 83.6 m | 88.3 m | 89.0 m | 91.7 m | 105.4 m | SEC (XBRL)· 16 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 57.3 m | 224.9 m | 76.7 m | 65.3 m | 26.9 m | 89.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Receivables | 128.3 m | 132.1 m | 158.4 m | 77.5 m | 91.8 m | 118.4 m | SEC (XBRL)· 16 Mar 2026verified |
| Inventories | 74.4 m | 79.5 m | 102.6 m | 97.6 m | 58.3 m | 60.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Current assets | 396.1 m | 582.4 m | 557.6 m | 497.6 m | 553.5 m | 470.7 m | SEC (XBRL)· 16 Mar 2026verified |
| Property, plant & equipment, net | 56.6 m | 57.1 m | 60.5 m | 47.0 m | 36.3 m | 43.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Goodwill | 47.4 m | 116.5 m | 84.2 m | 54.3 m | 51.4 m | 53.1 m | SEC (XBRL)· 16 Mar 2026verified |
| Intangibles (excl. goodwill) | 23.9 m | 33.2 m | 26.3 m | 22.1 m | 17.6 m | 15.3 m | SEC (XBRL)· 16 Mar 2026verified |
| Total assets | 599.1 m | 913.3 m | 941.7 m | 775.7 m | 727.0 m | 662.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Accounts payable | 73.5 m | 85.9 m | 131.2 m | 83.2 m | 88.3 m | 69.2 m | SEC (XBRL)· 16 Mar 2026verified |
| Short-term debt | 0 | — | — | — | — | — | SEC (XBRL)· 08 Mar 2021verified |
| Long-term debt | 183.3 m | — | — | — | — | — | SEC (XBRL)· 08 Mar 2021verified |
| Current liabilities | 270.8 m | 253.4 m | 371.5 m | 350.2 m | 406.7 m | 386.7 m | SEC (XBRL)· 16 Mar 2026verified |
| Total liabilities | 930.1 m | 854.6 m | 943.8 m | 976.1 m | 1.0 bn | 794.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Equity | -331.0 m | 58.6 m | -2.1 m | -200.4 m | -283.2 m | -131.5 m | SEC (XBRL)· 16 Mar 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -40.8 m | -111.2 m | -30.6 m | -42.3 m | -118.7 m | -68.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Capex | 8.2 m | 6.7 m | 13.2 m | 9.8 m | 11.2 m | 16.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Free cash flow | -49.0 m ≈ | -117.9 m ≈ | -43.9 m ≈ | -52.1 m ≈ | -129.9 m ≈ | -85.7 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Investing cash flow | 2.2 m | -33.5 m | -68.8 m | -7.9 m | 110.0 m | 197.0 m | SEC (XBRL)· 16 Mar 2026verified |
| Financing cash flow | 44.1 m | 302.8 m | -11.2 m | 8.6 m | 69.7 m | -58.7 m | SEC (XBRL)· 16 Mar 2026verified |
| Share repurchases | 283.0 k | 4.9 m | 2.8 m | 1.4 m | 336.0 k | 386.0 k | SEC (XBRL)· 16 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 39.6% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 549.7 m USD
Key indicators
Coverage and freshness
Score by group
40% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 39.6% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -2.2% | 16 (vs peers) | 16% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -1.2% | 0 (on a fixed band) | 21% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 0.9x | 0 (on a fixed band) | 16% |
| Current ratio · Balance sheet | 1.5x | 54 (on a fixed band) | 11% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -10.6% | 0 (on a fixed band) | 21% |
| Shareholder yield (distributions) · Returns | 1.0% | 14 (on a fixed band) | 16% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet22/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality· partial16/100 · 1/3 factors with a value
- Returns· partial14/100 · 1/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BABCOCK & WILCOX ENTERPRISES, INC (BW). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 587.7 m USD in 2025; YoY growth 1.1%; net margin -2.2%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (score weight coverage: 39.6% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Net margin: -2.2%
- Revenue CAGR 3Y: -1.2%
- Interest coverage: 0.9x
- FCF yield: -10.6%
- Shareholder yield (distributions): 1.0%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Fabricated metal products (SIC 34xx) · same major group (2-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| PHParker-Hannifin Corporation | 114.7 bn | 32.0 | 25.1% | 17.0% | +8.3% | +6% / +110% |
| AXONAxon Enterprise, Inc. | 34.5 bn | 175.8 | 6.2% | 6.2% | +33.5% | −21% / +85% |
| SNASnap-on Inc | 19.0 bn | 19.2 | 17.0% | 19.2% | unavailable | +8% / +34% |
| SWKStanley Black & Decker, Inc. | 17.6 bn | 21.2 | 9.4% | 5.5% | unavailable | +65% / +30% |
| BALLBall Corporation | 17.5 bn | 33.9 | 9.6% | 3.5% | +11.6% | +36% / +22% |
| MASMasco Corporation | 16.7 bn | 18.8 | — | 12.1% | −3.4% | +34% / +43% |
| CCKCrown Holdings, Inc. | 13.5 bn | 17.4 | 26.7% | 5.8% | +4.8% | +29% / +45% |
| CRCrane Company | 11.9 bn | 35.4 | 16.2% | 12.4% | +8.2% | +13% / +95% |
| SSDSimpson Manufacturing Co., Inc. | 8.4 bn | 22.4 | 18.7% | 15.6% | +4.5% | +23% / +23% |
| VMIValmont Industries, Inc. | 8.1 bn | 15.9 | 30.8% | 12.1% | +0.7% | +2% / +92% |
| ACAArcosa, Inc. | 7.3 bn | 14.9 | 17.9% | 17.9% | +12.2% | +46% / +116% |
| GFFGriffon Corporation | 4.9 bn | 27.4 | 185.4% | 6.5% | −3.9% | +43% / +131% |
| SLGNSilgan Holdings Inc | 4.5 bn | 16.7 | 11.7% | 4.0% | +10.7% | +8% / +2% |
| AZZAZZ Inc. | 4.0 bn | 23.8 | 12.3% | 9.6% | +4.6% | +25% / +169% |
| MTRNMaterion Corporation | 3.9 bn | 38.3 | 10.5% | 4.6% | +6.0% | +53% / +66% |
| MWAMueller Water Products, Inc. | 3.8 bn | 17.0 | 21.7% | 15.0% | +8.7% | −1% / +81% |
| CXTCrane Nxt, Co. | 3.5 bn | 27.3 | 10.5% | 7.1% | +11.4% | +9% / +20% |
| AMBPArdagh Metal Packaging S.A. | 2.8 bn | — | — | 0.2% | +12.0% | +27% / +18% |
| HLIOHelios Technologies, Inc. | 2.2 bn | 31.2 | 7.7% | 8.0% | unavailable | +24% / +74% |
| PRLBProto Labs, Inc. | 1.6 bn | 46.6 | 5.1% | 6.0% | +6.4% | +31% / +84% |
| TRSTrimas Corporation | 1.4 bn | 1.6 | 83.9% | 136.2% | +2.4% | +16% / +54% |
| RGRSturm, Ruger & Company, Inc. | 797.5 m | 49.4 | 5.7% | 2.7% | +1.9% | +66% / +14% |
| SWBISmith & Wesson Brands, Inc. | 649.7 m | 26.5 | 6.6% | 4.4% | +10.4% | +66% / +5% |
| PKOHPark-Ohio Holdings Corp | 630.3 m | 23.1 | 7.0% | 1.6% | −3.4% | +103% / +91% |
| BWBabcock & Wilcox Enterprises, Inc | 549.7 m | — | — | -2.2% | +1.1% | −1% / +45% |
1- and 3-year price returns: for BW from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Babcock & Wilcox Enterprises provides energy technologies and emissions control solutions, from steam generation systems and aftermarket parts to new power generation projects. The company is now in a phase of strong growth, supported by electricity demand from AI data centers, with revenue of 319.7 million USD in the second quarter of 2026.
SWOT
Strengths
- Long experience, an extensive installed base and the ability to deliver complete steam generation systems give the company a recognized competitive advantage 1.
- The project pipeline and significant backlog indicate high visibility of future revenue for the baseload power segment 3.
- Selling non-core assets has simplified the company's structure and reduced debt, improving financial flexibility 13.
Weaknesses
- Fixed-price projects expose the company to cost overruns, and profitability can decline if initial estimates prove wrong 1.
- Dependence on a few large customers and individual projects can amplify quarterly revenue volatility 2.
- The company reported continuing losses in earlier years, indicating a history of fragile financial results 1.
Opportunities
- Rising power demand for data centers could open new contracts for generation projects, including with turbines procured for fast delivery 3.
- Growth in parts and services for the installed base could improve margins, as these activities are described as higher-margin 13.
- Continued share and bond repurchases could strengthen investor confidence if results hold 3.
Threats
Risks
- Refinancing of 2026 bondsmedium
The company must repay or refinance bonds maturing in December 2026, and if it cannot do so on reasonable terms, liquidity could be affected 1.
- Risk of fixed-price contractshigh
Actual costs may exceed initial estimates, and losses on contracts can be significant if delays or price increases occur 1.
- Dependence on third parties and subcontractorsmedium
Failures by suppliers or consortium partners can create additional costs and delays, and the company may not fully recover those amounts 1.
- Revenue recognition on percentage of completionmedium
Revisions of cost estimates during projects can lead to sudden reductions in profit, which may affect quarterly results 1.
- Currency exposure and operational disruptionslow
Subsidiaries in Canada and Mexico operate in currencies other than the dollar, and disruptions at plants or suppliers can affect deliveries and costs 1.
Investment thesis
What would need to be true (bull case)
- If demand for data centers and baseload power persists, revenue and backlog growth could continue, and profitability could benefit from a more favorable mix of parts and services 23.
- Improving operating results and a raised adjusted EBITDA target could indicate a transition toward more stable profitability, if project execution stays on track 3.
- Debt reduction and the sale of non-core assets could give the company more financial flexibility for new projects and share repurchases 13.
What would break the thesis
- Revenue growth is concentrated in a few large projects, and a delay or cancellation of one of them could have a significant impact on quarterly results 2.
- Fixed-price contracts and the labor shortage could generate costs above estimates, reducing margins on existing projects 12.
- The company remains exposed to a recent history of losses, and bonds and refinancing risks could limit flexibility if market conditions worsen 1.
What to watch
- Development of backlog and new orders, especially data center projectsQ3 2026
- Achievement of the adjusted EBITDA target range for 20262026
- Completion of the repayment of the December 2026 bonds and the remaining debt structureQ3 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Babcock & Wilcox Enterprises, Inc. (BW) describes its business as an energy technologies provider with nearly 160 years of experience, offering energy and emissions control solutions to industrial, electrical utility and municipal customers 1. The company delivers complete steam generation systems, including package boilers and watertube boilers, as well as technologies for hydrogen and syngas. A key part of the model is its installed base, for which it provides spare parts, construction, maintenance and field services, including for equipment made by other manufacturers 1. Since 2025, the company reports one segment, B&W, after selling several non-core assets 1.
Contracts are generally awarded through competitive bidding and may be fixed-price, cost-plus or other structures, and revenue from large projects is recognized over time based on costs incurred relative to total estimated costs 1. For parts and certain services, revenue is recognized on delivery or performance 1. The company operates manufacturing facilities in Canada, Mexico and the United States 2.
Segments
B&W (the only reported segment)
The company reduced its structure to one reportable segment, B&W, covering steam generation technologies, spare parts, maintenance services and emissions control technologies 1. The segment includes both new power plant projects and service activity for the installed base, and in the second quarter of 2026 large projects dominated the revenue growth 2.
Parts and services for the installed base
The company describes parts and services as more profitable and supported by its global installed base; in 2025, higher parts volume contributed to a better product mix and gross profit 1. Management presents this activity as an important pillar of its long-term growth strategy 3.
Market context
Baseload power demand, rising electricity demand from data centers and economic expansion are described by the company as the main factors supporting investment in generation capacity 23. However, the market remains highly competitive and price sensitive, and customer demand depends on their business cycles, power demand in their territories and environmental requirements of the countries where they operate 1.
The industry is also influenced by climate policies, emissions reduction standards and fuel prices, which can change the capital budgets of power producers 1. The company notes a nationwide shortage of skilled construction labor, which has raised costs and reduced productivity on certain job sites 2.
Trends
- Demand for power from data centerstailwind
The company links the increase in orders and backlog to the growing need for electricity from fossil fuels, driven by artificial intelligence and data centers, and a pilot project with Base Electron is progressing ahead of expectations 23. If this demand persists, it could support growth in large projects for the company.
- Shortage of skilled laborheadwind
A shortage of welders, electricians and other construction specialists has raised execution costs and reduced productivity on some projects, which could affect future operating results if the situation persists 2.
- Debt reduction and portfolio reorganizationmixed
Sales of non-core assets, including Diamond Power and ASH, and bond repayments have reduced debt and interest costs, but the divestiture process can produce occasional losses or gains 13. The net effect depends on how the company manages its capital.
- Tariffs and material costsheadwind
Fixed-price contracts expose the company to rising steel and labor costs, and tariffs can amplify these pressures over the life of contracts 1. The trend could be neutral or negative for margins on new projects.
Competitive position
The company operates in highly competitive markets where the main bases of competition are price, technical capabilities, quality, timeliness, breadth of products and willingness to accept contract risks 1. Competition comes from equipment makers, engineering and construction firms, and suppliers of replacement parts and retrofit services 1.
- GE VernovaGEV
Major supplier of turbines and generation technologies, cited as a key competitor in the company's sources.
- Mitsubishi Power
Power equipment maker named among direct competitors for power plant projects.
- Valmet
Supplier of process technology and boilers, included in the competitor list in the source.
- CECO EnvironmentalCECO
Emissions control and environmental technology company competing in green solutions.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Jim Cramer Notes Babcock & Wilcox (BW) Story Has Not Panned OutYahoo Finance — News · 28 Aug 2026 · EN
The latest news item in our archive is from 28 Aug 2026; the newest SEC filing is from 08 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report08 Sept 2026Other events
- Quarterly report10 Aug 2026
- Current report10 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report13 Jul 2026Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report08 Jun 2026Other events
- Current report22 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report18 May 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Current report14 May 2026Regulation FD disclosure · Financial statements and exhibits
- Current report11 May 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report11 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Babcock & Wilcox Enterprises, Inc. · 16 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Babcock & Wilcox Enterprises, Inc. · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Babcock & Wilcox Enterprises, Inc. · 10 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.