Babcock & Wilcox Enterprises Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.82%.
Did BW Beat Earnings? Q4 2025 Results
Babcock & Wilcox Enterprises delivered a fourth-quarter 2025 performance that management described as significantly ahead of street expectations on revenue, operating income, and EBITDA, with revenue coming in at $161.00 million and a loss of $0.05 per share, as the company's sweeping strategic transformation began to show tangible results. The quarter's defining moment was securing a full notice to proceed on a $2.40 billion design-build contract with Base Electron, backed by Applied Digital, to supply 1.2 GW of natural gas-fired power generation capacity for AI data center campuses, a deal that drove continuing operations backlog up 470% to $2.80 billion. That contract momentum, combined with a year of disciplined divestitures including Diamond Power for $177.00 million and ASH for $29.00 million, helped reduce net debt to $119.70 million while full-year Adjusted EBITDA more than doubled to $43.70 million. Looking ahead, Base Electron is evaluating an option for an additional 1.2 GW of capacity, and analysts have responded with notable price target upgrades, reflecting growing confidence in B&W's positioning at the intersection of AI-driven power demand and baseload generation technology.
- Parts & services revenues increased 17% in 2025 driven by increased coal generation usage and higher baseload demand in North America
- Favorable business mix shift toward higher-margin parts sales
- Two natural gas conversion projects contributing $25.7 million in incremental revenue
- Adjusted EBITDA from continuing operations increased 107% year-over-year to $43.7 million
- Significant reduction in SG&A expenses and R&D costs
- Improved benefit plan performance reducing pension-related expenses
“During the fourth quarter of 2025, we delivered strong operating results while displaying continued core business momentum and achieving a substantial reduction of debt on our balance sheet. Adjusted EBITDA and Operating Income significantly outperformed consensus street expectations for the quarter. The improvements in our operating results demonstrate B&W's evolution and the notable strategic advancements we have made since 2024.”
Babcock & Wilcox Enterprises CEO, on the earnings call
Forward Guidance & Outlook
B&W's global pipeline of identified project opportunities exceeds $12.0 billion after converting the $2.4 billion data center project to backlog, with the pipeline still growing roughly 20% in 2025. The company plans to pay off remaining December 2026 bonds in 2026. Management sees increasing demand for baseload power generation driven by AI and data center growth, increased coal utilization supported by Department of Energy and National Energy Dominance Council mandates, and lengthy delays in obtaining combustion turbines creating demand for B&W's steam generation technologies. Base Electron is evaluating an option for an additional 1.2 GW of power generation capacity. The company expects to recognize $380.7 million of its $423.6 million backlog (excluding the data center project) in 2026.
BW YoY Financials
BW Revenue by Segment
BW Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.