Babcock & Wilcox Q2 revenue eases past estimates, helped by large project volume

Babcock & Wilcox Enterprises

10/08/2026 21:55

Overview
U.S. energy solutions provider's Q2 revenue grew 130% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 rose 57% yr/yr
Company authorized $50 mln share repurchase and repurchased $61.8 mln in bonds

Outlook
Company raises 2026 Adjusted EBITDA target to $80 mln-$105 mln
Company expects strong demand from AI data centers and utilities to drive results in H2 2026
Company says inflation, labor shortages and supply chain disruptions may impact future results

Result Drivers
LARGE PROJECT VOLUME - Revenue growth was primarily driven by an increase in large project volume, including $100.7 mln from Base Electron
STRONG ENERGY DEMAND - Co cited growing need for reliable electricity from AI data centers, utilities, and industrial customers as accelerating investment in power generation capacity
FAVORABLE FINANCIAL ITEMS - Improved net income benefited from reduced interest expense, change in fair value of customer warrants, and decreased tax expense

Company press release: ID:nBw2hb98ra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$319.70 mln
$196.97 mln (3 Analysts)
Q2 EPS
 
$0.07
 
Q2 Pretax Profit
 
$13.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy"
Wall Street's median 12-month price target for Babcock & Wilcox Enterprises Inc is $25.00, about 166.8% above its August 7 closing price of $9.37
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 52 three months ago

Reuters Recommended Reads
Aug 10 - Energy Services of America Q3 revenue rises 25.5% on strong segment demand
Aug 10 - Hallador Energy Q2 revenue beats estimates on higher capacity revenue, coal sales

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)