Babcock & Wilcox Enterprises, Inc. (BW)

Price$7.94Cached quoteAs of 2026-09-13 17:50 UTC

AI: Overvalued

Price checkThe market price demands cleaner cash profits than the company has yet delivered.

Using 149.0 million shares, common equity is valued near $1.18 billion. Adding $276.8 million of debt and $191.7 million of preferred stock, then subtracting $382.8 million of cash and restricted cash, puts the operating-business value near $1.27 billion. That is 12–16 times management’s $80–105 million 2026 adjusted profit target, which excludes interest, taxes, asset wear and several other costs. At the midpoint, recent interest, preferred dividends and capital spending leave roughly $30 million before tax and working-capital swings—nearly 40 times this rough cash proxy.

Big pictureSales have surged, but reported profits and cash remain too uneven to trust.

Revenue increased just 1% to $587.7 million in 2025, although operating income improved from a $6.3 million loss to a $20.7 million profit. The company still lost $36.2 million and consumed $68.9 million through operations. After $16.8 million of capital spending, free cash flow—cash left after running and investing in the business—was negative $85.7 million. First-half 2026 free cash flow improved to negative $13.4 million, but six years of mostly negative earnings and uneven sales show that project demand remains cyclical.

Business strengthA huge backlog offers growth, though one project dominates and margins have narrowed.

Second-quarter revenue rose 130% to $319.7 million, operating income reached $11.8 million, and backlog expanded from $405.6 million to $2.57 billion. However, Base Electron supplied $100.7 million of quarterly revenue and $2.4 billion of first-half bookings, creating major customer and project concentration. Gross margin—the share of sales remaining after direct costs—fell from 29.9% to 14.6% as large-project work increased. The bull case is successful backlog delivery; the bear case is that thinner margins make overruns unusually costly.

What could change the storyBetter cash conversion could justify optimism; overruns or more dilution would weaken it.

The May equity sale supplied $224.9 million net and helped lift cash plus restricted cash to $382.8 million, while August’s $61.4 million note redemption reduced near-term refinancing pressure. Nevertheless, preferred stock totaled $191.7 million, pension obligations were $167.7 million, and $74.2 million of cash was restricted. Shares increased from 95.1 million at year-end 2024 to 149.0 million. The authorized $50 million buyback is optional. A stronger thesis requires sustained positive cash after capital spending and preferred dividends, alongside rising profit per share without renewed issuance.

AI: News

Air-control project startAn initial $130 million award adds work, but the full project still needs confirmation.

On September 10, B&W received a limited notice to proceed for an approximately $130 million emissions-control project at a U.S. coal-fired power plant. The authorization covers development, engineering and long-lead purchasing, with a subsidiary expected to perform construction and installation. Because it is limited rather than a full notice, the ultimate scope remains uncertain. Shares closed 10.7% higher the next session; the timing suggests a possible connection, but does not establish that the announcement caused the move.

Quarterly growth and guidanceQuarterly sales more than doubled, while stronger guidance raised the bar for future execution.

On August 10, B&W reported second-quarter revenue of $319.7 million, up 130%, and operating income of $11.8 million versus $7.0 million one year earlier. Adjusted profit before interest, taxes and non-cash asset wear rose 57% to $21.8 million. Management increased its full-year target to $80–105 million. Backlog reached $2.6 billion, but most came from one Base Electron project, so the improved outlook depends heavily on timely, profitable execution and customer payments.

Data-center turbines securedA Siemens agreement secured turbine capacity for data-center power projects, supporting faster delivery.

On August 11, B&W said Siemens Energy would begin work on 20 steam turbine generator sets, each rated at 50 megawatts, for a combined one gigawatt of capacity. The equipment supports B&W’s fast-delivery program for data centers and is additional to an earlier turbine order. Securing scarce equipment could shorten future project schedules. However, the announcement described a supplier agreement rather than a newly priced customer contract, so it should not be treated as equivalent to booked revenue.

Balance-sheet resetFresh equity and debt repayment cut refinancing risk, but shareholders absorbed meaningful dilution.

B&W sold 12.43 million new shares in May for approximately $230 million of gross proceeds. Its board then authorized an optional $50 million repurchase program on July 13, and the company redeemed $61.4 million of notes on August 14. These actions provided project funding and removed a 2026 maturity. They also illustrate the capital-allocation tension: issuing shares enlarged the ownership base, while repurchasing shares could consume cash still needed for working capital and historically negative free cash flow.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Revenue	$587.7M	$581.0M	$587.4M	$609.4M	$710.9M	$566.3M	$859.1M	$1.06B	$1.34B	$1.42B	$1.76B	$1.49B	$1.77B
Gross profit	$143.9M	$126.7M	$121.5M	$145.1M	$175.0M	$165.9M	$160.3M	−$129.6M	$24.2M	$138.3M	−$308.2M	−$219.0M	$436.5M
Gross margin	24.48%	21.81%	20.68%	23.81%	24.62%	29.29%	18.65%	−12.20%	1.81%	9.73%	−17.54%	−14.74%	24.69%
Research & development	$1.5M	$5.1M	$6.5M	$3.8M	$1.6M	$4.4M	$2.9M	$3.8M	$7.6M	$8.8M	$16.5M	$18.5M	$21.0M
Operating expenses	$566.9M	$587.4M	$607.5M	$610.6M	$691.5M	$568.1M	$888.5M	$297.0M	$340.6M	$248.3M	$1.74B	—	$226.3M
Operating income	$20.7M	−$6.3M	−$20.1M	−$1.2M	$19.4M	−$1.7M	−$29.4M	−$426.6M	−$316.4M	−$110.0M	$21.9M	−$38.0M	$210.2M
Operating margin	3.53%	−1.09%	−3.42%	−0.19%	2.73%	−0.31%	−3.42%	−40.15%	−23.58%	−7.74%	1.24%	−2.56%	11.89%
EBITDA	$30.9M	$10.4M	$931,000	$22.8M	$37.8M	$15.1M	−$5.8M	−$394.6M	−$276.2M	−$70.4M	$56.8M	−$5.5M	$233.3M
EBITDA margin	5.25%	1.79%	0.16%	3.75%	5.31%	2.66%	−0.67%	−37.14%	−20.59%	−4.96%	3.23%	−0.37%	13.20%
Net income	−$36.2M	−$59.9M	−$197.2M	−$22.9M	$30.9M	−$10.3M	−$122.0M	−$725.3M	−$379.8M	−$115.6M	$19.1M	−$26.5M	$174.5M
Net profit margin	−6.15%	−10.31%	−33.57%	−3.75%	4.35%	−1.82%	−14.20%	−68.27%	−28.31%	−8.14%	1.09%	−1.79%	9.87%
Basic EPSper basic share	-$0.48	-$0.82	-$2.38	-$0.43	$0.26	-$0.21	-$3.87	-$52.45	-$80.90	-$23.10	$3.60	-$4.90	$31.20
Diluted EPSper diluted share	-$0.48	-$0.82	-$2.38	-$0.43	$0.26	-$0.21	-$3.87	-$52.45	-$80.90	-$23.10	$3.60	-$4.90	$31.00

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

18.43%of listed shares

BRC Group Holdings, Inc.27.45M shares · Jun 30, 2026

View holders

Top 20 reported holders of BW
Holder	% owned
BRC Group Holdings, Inc.	18.43%27.45M shares
Hood River Capital Management LLC	9.19%13.69M shares
BlackRock, Inc.	7.62%11.35M shares
AMERIPRISE FINANCIAL INC	5.14%7.66M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.02%5.99M shares
GENDELL JEFFREY L	3.45%5.14M shares
MARSHALL WACE, LLP	2.63%3.91M shares
NEUBERGER BERMAN GROUP LLC	2.20%3.28M shares
GEODE CAPITAL MANAGEMENT, LLC	2.15%3.21M shares
STATE STREET CORP	1.99%2.96M shares
Driehaus Capital Management LLC	1.57%2.34M shares
Value Aligned Research Advisors, LLC	1.50%2.24M shares
PRICE T ROWE ASSOCIATES INC /MD/	1.49%2.23M shares
COOPER CREEK PARTNERS MANAGEMENT LLC	1.47%2.19M shares
Situational Awareness LP	1.36%2.03M shares
Young Kenneth M	≈1.30%1.93M shares
Legal & General Group Plc	1.09%1.62M shares
MILLENNIUM MANAGEMENT LLC	0.90%1.35M shares
VOYA INVESTMENT MANAGEMENT LLC	0.88%1.32M shares
WELLINGTON MANAGEMENT GROUP LLP	0.87%1.3M shares

Percentages use 148.96M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$267.6K disclosed value

Sells (SEC code S)6$10.60M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 18, 2026Form 4	Frymyer Cameron MChief Financial Officer	BuyCommon Stock	1.3K	$14.76	$19.0K	324.1K
Mar 18, 2026Form 4	Young Kenneth MChief Executive Officer	BuyCommon Stock	7.0K	$15.15	$106.0K	1.66M
Feb 11, 2026Form 4	BRC Group Holdings, Inc. +3TenPercentOwner	SellCommon Stock, $0.01 par value per share	1.16M	$9.00	$10.40M	0
Nov 12, 2025Form 4	Frymyer Cameron MChief Financial Officer	BuyCommon Stock	2.9K	$7.05	$20.1K	156.7K
Nov 12, 2025Form 4	Young Kenneth MChief Executive Officer	BuyCommon Stock	1.5K	$7.13	$10.7K	1.44M

Review ownership filings at SEC.gov ↗

Community posts

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@tickerstat1 month ago
Babcock & Wilcox receives an early-work award for a roughly $130 million project
Babcock & Wilcox ($BW) received a limited notice to proceed on an air-quality project at a US coal-fired power plant with an estimated total value of approximately $130 million. The initial authorization covers activities including engineer ...
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Babcock & Wilcox Enterprises, Inc. (BW)

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Babcock & Wilcox receives an early-work award for a roughly $130 million project