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

Babcock (NYSE:BW) issued its quarterly earnings data on Monday. The technology company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.02, Zacks reports. Babcock had a negative return on equity of 3.02% and a negative net margin of 2.17%.The business had revenue of $319.69 million for 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 Stock Performance

NYSE:BW traded up $0.19 during trading hours on Wednesday, reaching $9.38. The company’s stock had a trading volume of 3,607,866 shares, compared to its average volume of 3,961,804. The company has a market capitalization of $1.40 billion, a P/E ratio of -52.34 and a beta of 1.22. Babcock has a 12 month low of $1.40 and a 12 month high of $22.03. The stock has a 50 day moving average price of $12.59 and a two-hundred day moving average price of $13.64.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Babcock in a research report on Friday, July 17th. Northland Securities set a $23.00 target price on Babcock in a research report on Tuesday, May 12th. Finally, Wall Street Zen downgraded Babcock from a “buy” rating to a “hold” rating in a research report on Saturday, May 16th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Babcock presently has a consensus rating of “Hold” and a consensus price target of $14.25.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of BW. Gendell Jeffrey L increased its position in shares of Babcock by 6.2% during the fourth quarter. Gendell Jeffrey L now owns 5,046,068 shares of the technology company’s stock worth $31,992,000 after purchasing an additional 293,245 shares in the last quarter. Legal & General Group Plc purchased a new position in Babcock during the 3rd quarter worth $14,086,000. Vanguard Group Inc. increased its position in Babcock by 54.3% during the 3rd quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company’s stock valued at $12,827,000 after buying an additional 1,556,692 shares in the last quarter. Marshall Wace LLP increased its position in Babcock by 42.4% during the 4th quarter. Marshall Wace LLP now owns 3,371,134 shares of the technology company’s stock valued at $21,373,000 after buying an additional 1,004,533 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in Babcock by 18.9% in the fourth quarter. Geode Capital Management LLC now owns 931,668 shares of the technology company’s stock valued at $5,909,000 after buying an additional 147,986 shares during the last quarter. Institutional investors own 83.17% of the company’s stock.

Babcock News Summary

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: Babcock & Wilcox signed an agreement with Siemens Energy to begin work on 20 steam turbine generator sets totaling 1 gigawatt of capacity. The equipment will support the company’s FastPower program for data-center projects, reinforcing the investment case around rising electricity demand from artificial intelligence and hyperscale computing. Babcock & Wilcox Siemens Energy turbine agreement
• Positive Sentiment: Second-quarter revenue surged 130% year over year to approximately $319.7 million, exceeding the roughly $197 million analyst forecast. Babcock & Wilcox reported quarterly profit, adjusted EBITDA of $21.8 million, bookings of $151 million and a backlog of $2.6 billion, compared with a loss in the prior-year period. Babcock & Wilcox second-quarter 2026 results
• Positive Sentiment: Management raised its 2026 adjusted EBITDA target to $80 million-$105 million and cited a pipeline exceeding $14 billion. The company also authorized up to $50 million in share repurchases and plans to retire its remaining $61.8 million of bonds due in December 2026, potentially reducing financial risk and supporting the stock. Babcock & Wilcox revenue and outlook update
• Neutral Sentiment: Recent institutional activity was mixed, with several large investors adding BW shares while others reduced positions. Insider activity also included purchases by the CEO and CFO, but a larger block sale by an outside holder limits the significance of the buying.
• Negative Sentiment: Northland Securities reduced its 2026 third-quarter EPS estimate to $0.03 from $0.07, its fourth-quarter estimate to $0.15 from $0.17, and its FY2027 estimate to $0.54 from $0.59. These cuts suggest analysts remain cautious about the pace and timing of earnings growth despite the stronger outlook.

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.