Northland Securities Cuts Earnings Estimates for Babcock

Key Points

• Northland Securities lowered Babcock’s FY2026 EPS forecast to $0.30 from $0.31, below the $0.31 consensus estimate.
• Babcock’s latest quarterly results beat expectations, with EPS of $0.04 versus the $0.02 consensus and revenue of $319.69 million versus $196.95 million expected. However, the company reported a negative return on equity and net margin.
• Analyst sentiment remains mixed, with a consensus rating of Hold and a $14.25 price target; institutional investors own approximately 83.17% of the stock.

Babcock (NYSE:BW - Free Report) - Stock analysts at Northland Securities lowered their FY2026 earnings per share estimates for shares of Babcock in a report issued on Tuesday, August 11th. Northland Securities analyst J. Grampp now expects that the technology company will earn $0.30 per share for the year, down from their previous forecast of $0.31. The consensus estimate for Babcock's current full-year earnings is $0.31 per share.

Babcock (NYSE:BW - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.02. Babcock had a negative return on equity of 3.02% and a negative net margin of 2.17%.The company had revenue of $319.69 million during the quarter, compared to analysts' expectations of $196.95 million.

A number of other equities research analysts also recently commented on BW. Weiss Ratings raised Babcock from a "sell (d-)" rating to a "sell (d+)" rating in a report on Tuesday. Wall Street Zen downgraded shares of Babcock from a "buy" rating to a "hold" rating in a 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. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $14.25.

Babcock Stock Performance

Babcock stock opened at $9.78 on Thursday. The business's 50-day simple moving average is $12.43 and its two-hundred day simple moving average is $13.64. The company has a market cap of $1.46 billion, a PE ratio of -54.33 and a beta of 1.21. Babcock has a fifty-two week low of $1.40 and a fifty-two week high of $22.03.

Institutional Investors Weigh In On Babcock

Several hedge funds have recently added to or reduced their stakes in the business. Situational Awareness LP purchased a new stake in Babcock in the 4th quarter worth approximately $8,584,000. UBS Group AG increased its holdings in shares of Babcock by 337.1% during the 4th quarter. UBS Group AG now owns 1,445,218 shares of the technology company's stock valued at $9,163,000 after purchasing an additional 1,114,593 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Babcock during the 4th quarter valued at approximately $569,000. Cooper Creek Partners Management LLC acquired a new position in shares of Babcock in the 1st quarter valued at $15,205,000. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Babcock by 777.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock valued at $43,693,000 after purchasing an additional 2,635,304 shares during the period. 83.17% of the stock is owned by hedge funds and other institutional investors.

Babcock News Roundup

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: Siemens Energy agreement expands data-center opportunity. Babcock & Wilcox will begin work on 20 Siemens steam turbine-generator sets totaling 1 gigawatt of capacity for its FastPower program. The deal strengthens BW’s positioning in the rapidly growing market for power infrastructure serving data centers and artificial-intelligence demand, although financial terms were not disclosed. Babcock & Wilcox Siemens Energy agreement
• Positive Sentiment: Q2 results materially beat expectations. Revenue reached approximately $319.7 million, while the company swung to a profit and adjusted EBITDA rose to $21.8 million from $13.9 million a year earlier. Management also raised its 2026 adjusted EBITDA target to $80 million-$105 million, increased bookings 38% to $151 million and reported a $2.6 billion backlog. Babcock & Wilcox Q2 results
• Positive Sentiment: Northland Securities gave BW a Buy rating, adding analyst support following the earnings report. Northland Securities Buy rating
• Neutral Sentiment: Capital-return plans may provide additional support. The company has a previously announced $50 million share-repurchase authorization and plans to repurchase its remaining 2026 bonds, but the timing and financial impact remain uncertain.
• Negative Sentiment: Northland reduced its EPS forecasts for Q3 2026, Q4 2026 and FY2027 to $0.03, $0.15 and $0.54, respectively, from $0.07, $0.17 and $0.59. The cuts temper the bullish impact of the Buy rating and suggest analysts expect a slower earnings ramp than previously projected. Northland EPS estimate changes

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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