Babcock (NYSE:BW) Issues Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Babcock beat quarterly estimates: The company reported $0.07 in EPS versus the $0.02 consensus and revenue of $319.7 million, up 130% year over year. Management raised its 2026 adjusted EBITDA guidance to $80 million–$105 million.
• Bookings and data-center opportunities surged: First-half bookings reached $2.7 billion, while backlog rose 533% to $2.6 billion. The company’s data-center power pipeline exceeds $14 billion, with the Base Electron project ahead of schedule and a second project potentially advancing this year.
• Execution risks and investor caution remain: Skilled-labor shortages increased costs on one construction project, while the stock fell 4.4% after the results. Analysts maintain a consensus “Hold” rating despite plans for bond repurchases and up to $50 million in share buybacks.

Babcock (NYSE:BW - Get Free Report) released its quarterly earnings data on Monday. The technology company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.05, FiscalAI reports. The business had revenue of $319.69 million during the quarter, compared to the consensus estimate 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%

NYSE:BW traded down $0.41 during trading hours on Monday, reaching $8.96. The company had a trading volume of 6,701,380 shares, compared to its average volume of 3,854,411. The firm has a market cap of $1.33 billion, a price-to-earnings ratio of -10.18 and a beta of 1.22. The firm's 50 day moving average price is $12.93 and its 200-day moving average price is $13.63. Babcock has a 52 week low of $1.17 and a 52 week high of $22.03.

Wall Street Analysts Forecast Growth

BW has been the subject of several recent analyst reports. Wall Street Zen cut Babcock from a "buy" rating to a "hold" rating in a research note on Saturday, May 16th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a report on Friday, July 17th. Finally, Northland Securities set a $23.00 target price on Babcock in a research report on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $14.25.

Hedge Funds Weigh In On Babcock

A number of institutional investors and hedge funds have recently modified their holdings of the company. Mariner LLC lifted its holdings in Babcock by 10.8% in the fourth quarter. Mariner LLC now owns 16,608 shares of the technology company's stock valued at $105,000 after acquiring an additional 1,620 shares during the period. Wells Fargo & Company MN grew its stake 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 period. Janney Montgomery Scott LLC grew its stake in shares of 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 purchasing an additional 4,400 shares during the period. LPL Financial LLC purchased a new stake in shares of Babcock during the 4th quarter valued at about $80,000. Finally, Algert Global LLC purchased a new stake in shares of Babcock during the 3rd quarter valued at about $102,000. 83.17% of the stock is currently owned by hedge funds and other institutional investors.

About Babcock

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.

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