Babcock (NYSE:BW) reported higher second-quarter revenue, net income and adjusted EBITDA, citing increased project activity and demand for reliable power generation from utility, industrial and data center customers.
Chairman and Chief Executive Officer Kenny Young said the company raised its full-year 2026 adjusted EBITDA target range to $80 million to $105 million following first-half results and continued demand visibility. He pointed to growth in the company’s core projects, parts and services businesses, as well as development of power-generation projects intended to serve AI data centers.
Second-Quarter Results and Backlog Growth
Chief Financial Officer Cameron Frymyer said consolidated revenue for the second quarter totaled $319.7 million, up 130% from the prior-year period. Net income was $14.3 million, an improvement of $72.8 million from the second quarter of 2025, while adjusted EBITDA rose $7.9 million year over year to $21.8 million.
For the first half of 2026, revenue reached $534.1 million, compared with $287.5 million in the first half of 2025. Frymyer attributed the increase primarily to higher large-project volume, including $131.7 million associated with the Base Electron project, alongside demand for electricity generated from fossil fuels.
The company recorded a first-half net loss of $62.7 million, compared with a net loss of $80.5 million a year earlier. Frymyer said the 2026 loss included $77.4 million in non-cash warrant and other stock-related costs tied to the company’s stock performance. Excluding those items, Babcock & Wilcox reported adjusted net income of $14.7 million for the first half.
First-half adjusted EBITDA increased to $37.8 million from $17.9 million in the prior-year period.
Babcock & Wilcox also reported substantial growth in its order book. First-half bookings totaled $2.7 billion, up more than 1,058% from the first half of 2025, while second-quarter backlog stood at $2.6 billion, a 533% increase from a year earlier. Young said the company’s total pipeline exceeded $14 billion, including an estimated 4 to 6 gigawatts of power-generation opportunities.
Data Center Projects Advance
Young said the company’s initial data center project with Base Electron in North Dakota was progressing ahead of expectations and on budget. Manufacturing of boilers, steam turbines and other long-lead components is underway, while Base Electron has submitted a conditional-use permit application.
Babcock & Wilcox expects most on-site civil and mechanical construction to begin in the first part of 2027, followed by deliveries of boiler and turbine components after construction begins. During the question-and-answer session, Young said the company recognized more Base Electron revenue than expected early in the project due to manufacturing milestones. He said more substantial revenue is expected as construction begins and materials are shipped to the site.
The company expects a second data center project to receive a full notice to proceed during 2026, according to Young. To support potential additional work, Babcock & Wilcox secured manufacturing reservation rights with Siemens Energy for one gigawatt of steam turbines. The reservation covers 20 50-megawatt turbines, with initial generator sets expected to be delivered 12 to 14 months after production begins.
Young said the company is discussing power projects with multiple AI data center customers, including projects using coal and natural gas. He described an “enhanced combined cycle” configuration in which boiler and steam-turbine equipment could be installed before a combustion turbine, allowing a customer to generate power sooner and later add combustion-turbine capacity.
According to Young, the configuration could provide power three to five years faster than relying on a combustion turbine alone, while offering continued partial generation if either the steam or combustion portion is out of service.
Labor, Supply Chain and BrightLoop Development
The company said a shortage of highly skilled U.S. labor negatively affected efficiency and increased direct costs on a specific construction project during the quarter. Young said Babcock & Wilcox responded by working with unions on incentives, rehires and delayed retirements, and by expanding recruiting and training efforts for skilled welders, electricians, engineers and project personnel.
Young said the company does not expect labor shortages to be a persistent issue because its near-term construction focus has shifted toward variable-price projects. He also said the company has manufacturing flexibility through internal and third-party facilities and is working to improve both production capacity and delivery speed.
Separately, Babcock & Wilcox continues to develop its BrightLoop technology at a commercial-scale demonstration site in Massillon, Ohio. The company is fabricating major components and expects to begin major on-site construction later this year. Young said initial operation of the fuel reactor and hydrogen reactor is anticipated in the latter part of 2027.
The company said BrightLoop can produce hydrogen or steam and has drawn interest from hyperscalers, oil companies and other potential customers. Young said the technology’s ability to isolate carbon dioxide could support applications involving coal-fired steam production and enhanced methane or oil recovery.
Balance Sheet Actions
As of June 30, total debt was $276.8 million, including unamortized fees and gains related to a 2025 bond swap. Cash equivalents and restricted cash totaled $382.8 million.
During the second quarter, the company announced the repurchase of its remaining $61.8 million of December 2026 bonds. In July, the board authorized a share-repurchase program of up to $50 million. Frymyer said the debt repayment and share-repurchase authorization reflected the company’s approach to balance-sheet management and shareholder value creation.
About Babcock (NYSE:BW)
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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