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1. Company Snapshot

1.a. Company Description

Babcock & Wilcox Enterprises, Inc., together with its subsidiaries, provides energy and emissions control solutions to a range of industrial, electrical utility, municipal, and other customers worldwide.It operates through three segments: Babcock & Wilcox Renewable; Babcock & Wilcox Environmental; and Babcock & Wilcox Thermal.The Babcock & Wilcox Renewable segment offers technologies for waste-to-energy, solar construction and installation, and biomass energy systems, as well as black liquor systems for the pulp and paper industry.


This segment provides technologies support solutions for diverting waste from landfills to use for power generation and replacing fossil fuels while recovering metals and reducing emissions.The Babcock & Wilcox Environmental segment offers a range of emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications.This segment provides systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.


The Babcock & Wilcox Thermal segment offers steam generation equipment; aftermarket parts; and construction, maintenance, and field services for plants in the power generation, oil and gas, and industrial sectors.This segment has an installed equipment for utilities and general industrial applications, including refining, petrochemical, food processing, metals, and others.The company was founded in 1867 and is headquartered in Akron, Ohio.

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1.b. Last Insights on BW

Babcock & Wilcox Enterprises' recent performance was negatively impacted by a lack of significant earnings growth despite receiving several contract awards. The company's Q4 2024 earnings release showed a year-over-year decline in revenue and net loss, indicating a challenging business environment. The recent contract awards, including a $35 million maintenance and service work contract and a $13 million boiler cleaning equipment contract, provide some positive momentum, but may not be enough to offset the company's underlying financial struggles. The $10 million funding agreement for the BrightLoop hydrogen production facility is a promising development, but its short-term impact on earnings is unclear.

1.c. Company Highlights

2. B&W's Q3 Earnings Shine with 58% Adjusted EBITDA Jump

Babcock & Wilcox Enterprises reported a significant improvement in its third-quarter 2025 financial performance, with adjusted EBITDA reaching $12.6 million, a 58% increase from the third quarter of 2024. Operating income also saw a substantial surge, rising 315% year-over-year to $6.5 million. The company's earnings per share (EPS) came in at -$0.06, beating estimates of -$0.11. Revenue growth, although not explicitly stated, is expected to continue, with analysts estimating a 4.9% increase in revenues for the next year.

Publication Date: Dec -02

📋 Highlights
  • Global Parts & Services Growth: Adjusted EBITDA surged 58% to $12.6M YoY; operating income rose 315% to $6.5M YoY.
  • Backlog Expansion: Backlog increased 56% QoQ to $393M, signaling strong future revenue potential.
  • Debt Reduction & Capital Raise: $70M bonds paid down; $65M equity raised, reducing pro forma net debt to $113.2M.
  • $1.5B Applied Digital Project: 300MW natural gas power plants for AI/data centers, adding $3-5B to $10-12B pipeline.
  • 2026 EBITDA Guidance: Core business projected at $70-85M ($53M in 2025), reflecting 80% YoY growth.

Operational Highlights and Backlog

The company's Global Parts & Services business drove the growth, and the backlog rose 56% quarter-over-quarter to $393 million, indicating a strong pipeline of future projects. This momentum is expected to continue, with B&W projecting 2026 EBITDA of $70 million to $85 million from its core business, representing 80% growth year-over-year.

New Project Wins and Expanding Opportunities

A significant development was the announcement of a $1.5 billion project with Applied Digital to deliver and install natural gas technology for an AI factory and data center project. This deal adds $3 billion to $5 billion in AI data center opportunities to B&W's pipeline, now standing at $10 billion to $12 billion. The project involves designing and installing four 300-megawatt natural gas-fired power plants, with work expected to begin in the next few months and operations targeted to start in 2028.

Balance Sheet Strengthening

B&W has paid down $70 million of bonds due in February 2026 and plans to fully pay off the remaining bonds by the end of 2025. The company raised an additional $65 million in equity, strengthening its balance sheet. As of September 30, 2025, total debt was $309.3 million, and cash balance was $201.1 million, resulting in a pro forma net debt of $113.2 million.

Valuation and Future Prospects

With a P/S Ratio of 1.11 and an EV/EBITDA ratio of -39.25, the market's expectations for B&W's future growth are evident. The company's ROE stands at 38.46%, indicating efficient use of equity. As B&W continues to pay down debt and position itself for substantial growth in 2026, its prospects appear promising, driven by increasing demand for power generation needs, particularly from AI data centers and expanding economies.

3. NewsRoom

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Happy Thanksgiving! Thank You For The Dividends

Nov -27

Source: seekingalpha.com

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Babcock & Wilcox to Present at 5th Annual B. Riley Convergence Conference on December 4, 2025

Nov -25

Source: businesswire.com

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Babcock & Wilcox Enterprises Announces Retirement of Henry Bartoli from its Board of Directors

Nov -24

Source: businesswire.com

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Babcock & Wilcox Construction Co., LLC Awarded $17 Million Contract for Refurbishing a U.S. Power Plant

Nov -20

Source: businesswire.com

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Babcock & Wilcox Enterprises, Inc. (BW) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Babcock & Wilcox Announces It Raised $67.5 Million Through its At-the-Market Equity Offering

Nov -07

Source: businesswire.com

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Babcock & Wilcox: 2000% Isn't Enough (Upgrade)

Nov -06

Source: seekingalpha.com

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Babcock & Wilcox Announces Sale of Allen-Sherman-Hoff Business

Nov -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.64%)

6. Segments

Babcock and Wilcox Thermal

Expected Growth: -1%

Babcock and Wilcox Thermal's -1% growth is driven by declining demand for fossil fuel-based power generation, increased competition from renewable energy sources, and delayed project timelines due to COVID-19 pandemic-related disruptions.

Babcock and Wilcox Renewable

Expected Growth: 5%

Babcock and Wilcox Renewable's 5% growth is driven by increasing demand for renewable energy, government incentives for clean energy adoption, and strategic partnerships to develop innovative waste-to-energy solutions. Additionally, the company's focus on energy storage and grid resiliency contributes to its growth momentum.

Babcock and Wilcox Environmental

Expected Growth: 3%

Babcock and Wilcox Environmental's 3% growth is driven by increasing demand for environmental solutions, stringent regulations, and growing adoption of clean energy technologies. Additionally, the segment benefits from its diversified customer base, strong brand reputation, and strategic partnerships, enabling it to capitalize on emerging trends in the environmental sector.

Eliminations

Expected Growth: 0%

No growth in eliminations from Babcock & Wilcox Enterprises, Inc. is attributed to stagnant sales, lack of new contracts, and absence of cost savings initiatives. The company's inability to reduce intercompany transactions and inefficiencies in its operations also contributed to the flat growth.

7. Detailed Products

Boilers

Babcock & Wilcox Enterprises, Inc. designs, manufactures, and services boilers for utility and industrial power generation, as well as for industrial processes.

Environmental Equipment

The company offers a range of environmental equipment, including scrubbers, electrostatic precipitators, and fabric filters, to reduce emissions and improve air quality.

Pulp and Paper Dryers

Babcock & Wilcox Enterprises, Inc. designs and manufactures pulp and paper dryers for the paper industry.

Renewable Energy Technologies

The company offers a range of renewable energy technologies, including biomass and waste-to-energy systems.

Nuclear Services

Babcock & Wilcox Enterprises, Inc. provides nuclear services, including nuclear plant maintenance, modification, and decommissioning.

Industrial Services

The company offers industrial services, including plant maintenance, repair, and operations services.

8. Babcock & Wilcox Enterprises, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Babcock & Wilcox Enterprises, Inc. is medium due to the presence of alternative energy sources and technologies that can replace traditional fossil fuels.

Bargaining Power Of Customers

The bargaining power of customers for Babcock & Wilcox Enterprises, Inc. is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Babcock & Wilcox Enterprises, Inc. is medium due to the company's dependence on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants for Babcock & Wilcox Enterprises, Inc. is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Babcock & Wilcox Enterprises, Inc. is high due to the competitive nature of the industry, with several established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 209.32%
Debt Cost 10.20%
Equity Weight -109.32%
Equity Cost 10.98%
WACC 9.35%
Leverage -191.47%

11. Quality Control: Babcock & Wilcox Enterprises, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Broadwind

A-Score: 3.9/10

Value: 8.2

Growth: 5.0

Quality: 3.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

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Babcock & Wilcox Enterprises

A-Score: 3.6/10

Value: 7.8

Growth: 3.2

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 0.0

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CVD Equipment

A-Score: 3.6/10

Value: 6.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

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TPI Composites

A-Score: 3.0/10

Value: 10.0

Growth: 3.2

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Laser Photonics

A-Score: 2.2/10

Value: 6.2

Growth: 2.2

Quality: 3.4

Yield: 0.0

Momentum: 1.5

Volatility: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.68$

Current Price

5.68$

Potential

-0.00%

Expected Cash-Flows