Babcock (NYSE:BW) Releases Earnings Results, Beats Estimates By $0.02 EPS

Babcock (NYSE:BW) issued its quarterly earnings results on Monday. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02, Zacks reports. The business had revenue of $319.69 million during the quarter, compared to analysts’ expectations of $196.95 million.

Here are the key takeaways from Babcock’s conference call:

• Strong quarterly results and raised guidance: Second-quarter revenue rose 130% year over year to $319.7 million, while adjusted EBITDA increased to $21.8 million. Management raised its full-year 2026 adjusted EBITDA target range to $80 million–$105 million.
• Bookings and backlog expanded sharply: First-half bookings reached $2.7 billion, up more than 1,058% year over year, and second-quarter backlog increased 533% to $2.6 billion, driven by core business growth and the Base Electron project.
• Data-center power opportunity continues to build: B&W’s pipeline exceeds $14 billion and includes 4–6 gigawatts of potential power-generation projects. The Base Electron project is ahead of schedule and on budget, while a second data-center project could receive full notice to proceed this year.
• Debt reduction and shareholder returns: The company announced plans to repurchase its remaining $61.8 million of December 2026 bonds, and the board authorized up to $50 million in share repurchases.
• Skilled-labor shortages pressured costs: A shortage of qualified U.S. workers, particularly welders and electricians, reduced efficiency and increased direct costs on one construction project during the quarter. Management is addressing the issue through union incentives, recruiting, training, rehires, and delayed retirements.

Babcock Trading Down 4.4%

Shares of Babcock stock opened at $8.96 on Tuesday. The stock has a 50 day moving average of $12.77 and a 200 day moving average of $13.63. Babcock has a 12 month low of $1.17 and a 12 month high of $22.03. The firm has a market cap of $1.33 billion, a PE ratio of -10.18 and a beta of 1.22.

Institutional Trading of Babcock

Several hedge funds have recently modified their holdings of BW. Mariner LLC lifted its stake in shares of Babcock by 10.8% in the 4th quarter. Mariner LLC now owns 16,608 shares of the technology company’s stock valued at $105,000 after purchasing an additional 1,620 shares during the last quarter. Wells Fargo & Company MN increased its position in shares of Babcock by 692.8% during the 4th quarter. Wells Fargo & Company MN now owns 20,026 shares of the technology company’s stock valued at $127,000 after purchasing an additional 17,500 shares during the last quarter. Janney Montgomery Scott LLC raised its holdings in Babcock by 29.3% during the 4th quarter. Janney Montgomery Scott LLC now owns 19,400 shares of the technology company’s stock valued at $123,000 after buying an additional 4,400 shares during the period. LPL Financial LLC purchased a new stake in Babcock during the 4th quarter valued at $80,000. Finally, Algert Global LLC bought a new stake in Babcock in the third quarter worth $102,000. 83.17% of the stock is owned by hedge funds and other institutional investors.

Babcock News Summary

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: New Siemens Energy agreement supports data-center growth. Babcock & Wilcox signed an agreement to begin work on 20 Siemens Energy steam turbine generator sets totaling 1 gigawatt of capacity for its FastPower program. The project adds to a previously announced turbine order and gives investors additional evidence of potential demand from AI and data-center infrastructure. Babcock & Wilcox Signs Agreement with Siemens Energy
• Positive Sentiment: Second-quarter results significantly exceeded expectations. The company reported $319.7 million in revenue, up 130% year over year and well above the approximately $197 million consensus estimate. Adjusted EPS was $0.04 versus expectations of $0.02, while net income improved to $14.3 million from a $58.5 million loss a year earlier. Babcock & Wilcox Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised its full-year outlook. Babcock & Wilcox increased its 2026 adjusted EBITDA target to $80 million-$105 million. Bookings rose 38% to $151 million, backlog climbed to $2.6 billion, and the company cited a global pipeline exceeding $14 billion. It also authorized up to $50 million in share repurchases and planned to retire its remaining $61.8 million of bonds due in December 2026. Babcock & Wilcox 2026 EBITDA Target
• Neutral Sentiment: Analysts maintained a consensus “Hold” rating, suggesting that despite improving fundamentals, investors remain cautious about execution, profitability durability and the stock’s sharp volatility. Babcock Consensus Hold Rating

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Wall Street Zen lowered Babcock from a “buy” rating to a “hold” rating in a research note on Saturday, May 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of Babcock in a report on Friday, July 17th. Finally, Northland Securities set a $23.00 price target on Babcock in a research note on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Babcock currently has an average rating of “Hold” and an average target price of $14.25.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc (NYSE: BW) is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.