Second quarter of 2026
Filed Aug 10, 2026Babcock & Wilcox Enterprises Reports Second Quarter 2026 Results
Revenue increased 130% to $319.7 million, net income was $14.3 million versus a net loss of $58.5 million, Adjusted EBITDA increased to $21.8 million, and the Company raised the upper end of its full year 2026 Adjusted EBITDA target range to $105.0 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $319.7 million | – | a 130% increase |
| Operating incomeGAAP | $11.8 million | – | – |
| Net incomeGAAP | $14.3 million | – | – |
| Earnings per shareGAAP | $0.07 | – | – |
| Adjusted EBITDAnon-GAAP | $21.8 million | – | a 57% increase |
| Adjusted Net Incomenon-GAAP | $9.1 million | – | – |
| Bookingsother | $151.0 million | – | a 38% increase |
| Backlogother | $2.6 billion | – | a 533% increase |
| Total global pipelineother | exceeds $14.0 billion | – | – |
Full year 2026 outlook
- NoteAdjusted EBITDA target range: $80.0 million to $105.0 million
Capital returns
- Authorized share repurchase program of up to $50 million
- Repurchase of the remaining $61.8 million of outstanding bonds due December 2026 in August 2026
What drove it
- Revenue was primarily driven by an increase in large project volume, including $100.7 million from Base Electron.
- Management cited demand from AI data centers, utilities, industrial customers and expanding economies for core parts and services, environmental technologies, and coal and natural gas-fired generation solutions.
- The Company secured an additional 1 gigawatt of steam turbines from Siemens Energy for fast delivery in anticipation of its next data center project.
- Net income benefited from a reduction to interest expense of $6.0 million, change in fair value of customer warrants of $5.9 million and a decrease to tax expense of $5.1 million.
Concerns
- Backlog may not be indicative of future operating results, and contracts in backlog may be canceled, modified or otherwise altered by customers.
- Pipeline represents uncontracted potential opportunities and may not result in actual revenue in the originally anticipated period or at all.
- Pipeline may not generate margins equal to historical operating results.
- The Company stated that its future Adjusted EBITDA targets are not intended as guidance regarding how it believes the business will perform.
What to watch
- Progress of the first data center project with Base Electron, including permitting and manufacturing of boilers, steam turbines and other long-lead-time components.
- Conversion of the total global pipeline that exceeds $14.0 billion into contracted backlog.
- Delivery of the additional 1 gigawatt of Siemens Energy steam turbines in the next 12 to 15 months.
- Execution of the repurchase of the remaining $61.8 million of outstanding December 2026 bonds in August 2026.
- Achievement of the full year 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million.
Balance sheet and cash flow
- At June 30, 2026, the Company had secured debt and bonds of $239.8 million.
- At June 30, 2026, the Company had a cash, cash equivalents and restricted cash balance of $382.8 million.
Analysis
B&W reported a sharp acceleration in second-quarter activity. Revenue was $319.7 million versus $138.9 million in the second quarter of 2025, a 130% increase. The Company attributed the increase primarily to higher large-project volume, including $100.7 million from Base Electron. Operating income was $11.8 million compared with $7.0 million, while net income was $14.3 million compared with a net loss of $58.5 million and earnings per share were $0.07 compared with a loss per share of $0.63.
Profitability improved alongside revenue. Adjusted EBITDA was $21.8 million compared with $13.9 million, a 57% increase, while Adjusted Net Income was $9.1 million. The reported net-income improvement also benefited from a reduction to interest expense of $6.0 million, change in fair value of customer warrants of $5.9 million and a decrease to tax expense of $5.1 million. The supplied release does not provide gross margin, operating-expense detail, cash flow or prior-quarter figures, limiting assessment of underlying quarterly margin progression and cash conversion.
Demand indicators were strong but concentrated in long-cycle project activity. Bookings were $151.0 million, a 38% increase compared with the same period of 2025, and backlog was $2.6 billion, a 533% increase. Management also reported a total global pipeline that exceeds $14.0 billion and described active discussions around AI data-center opportunities. The Base Electron project was described as progressing ahead of expectations and on budget, with permitting underway and manufacturing of long-lead-time components progressing.
Capital allocation and liquidity actions were material. At June 30, 2026, secured debt and bonds were $239.8 million, while cash, cash equivalents and restricted cash were $382.8 million. The Board authorized a share repurchase program of up to $50 million in July, and the Company announced the repurchase of the remaining $61.8 million of outstanding December 2026 bonds in August 2026. Management raised the upper end of its full year 2026 Adjusted EBITDA target range to $80.0 million to $105.0 million, while also stating that these future targets are not intended as guidance regarding how it believes the business will perform.
The principal figures to monitor are the conversion of the pipeline into contracted revenue and backlog, execution and permitting on the Base Electron project, and delivery of the additional 1 gigawatt of Siemens Energy steam turbines in the next 12 to 15 months. The Company explicitly cautioned that backlog may not be indicative of future operating results and that pipeline opportunities may not result in revenue in the anticipated period or at all. No prior-quarter financial metrics were provided in the supplied release, so quarter-over-quarter changes cannot be assessed.
Management, verbatim
During the second quarter of 2026, we delivered strong operating results while displaying continued core business momentum, as second quarter revenue, net income and Adjusted EBITDA exceeded Company and consensus street expectations. The growing need for reliable electricity from AI data centers, utilities, industrial customers and expanding economies is accelerating investment in power generation capacity, driving strong demand for our core parts and services, environmental technologies as well as coal and natural gas-fired generation solutions.
Kenneth Young, Chairman and Chief Executive Officer
We continue active discussions on other AI data center opportunities and have placed additional orders with Siemens Energy to secure and deliver an additional 1 gigawatt of steam turbines in the next 12 to 15 months to secure speed to markets.
Kenneth Young, Chairman and Chief Executive Officer
In July, we announced that our Board of Directors authorized a share repurchase program of up to $50 million, which reflects confidence in our balance sheet and our strategic approach to building shareholder value.
Kenneth Young, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin
- Segment revenue, segment profit and segment margins
- Operating expenses
- GAAP diluted weighted-average shares
- Non-GAAP adjusted earnings per share
- Prior-year Adjusted Net Income
- Prior-quarter revenue, operating income, net income, earnings per share, Adjusted EBITDA, bookings and backlog
- Operating cash flow
- Free cash flow
- Capital expenditures
- Dividends
- Detailed cash, debt and maturity schedule beyond the reported secured debt and bonds and cash, cash equivalents and restricted cash balances
- Full year 2026 revenue, gross margin, operating-expense and tax-rate outlook
- Prior-quarter outlook for comparison
- Complete financial statements and non-GAAP reconciliation tables in the supplied filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.