Babcock & Wilcox Enterprises reported a sharp year-over-year increase in third-quarter revenue, bookings and backlog, alongside higher adjusted EBITDA. The power and industrial services company also reported net income that included a substantial effect from warrant revaluations, repurchased $38 million of its shares and retired $62 million of bonds due in December 2026.
The company maintained its 2026 adjusted EBITDA target and set a target range for 2027.
Key details
- Revenue nearly doubled: Third-quarter revenue was $290.8 million, up 109% from $139.2 million a year earlier.
- Reported profit included valuation effects: Net income was $93.9 million, compared with $35.1 million in the 2025 quarter. The company said the latest result included warrant revaluation. Adjusted net income, which excludes non-cash warrant and other stock valuations, was $4.8 million.
- Adjusted EBITDA increased: The measure was $17.7 million, up from $9.4 million in the year-earlier quarter—an 88% increase.
- Earnings per share rose: Reported EPS was $0.61, compared with $0.30 a year earlier.
- Bookings and backlog expanded: Third-quarter bookings were $228 million, up 112% year over year. Backlog reached $2.5 billion, up 571%.
- Pipeline points to potential demand: B&W said its global pipeline exceeded $16 billion and included 6 gigawatts of incremental power opportunities for utilities, industrial customers and data centers. Pipeline represents potential business, rather than contracted work already included in backlog.
- Share repurchases and bond retirement: The company bought back $38 million of shares during the quarter and completed repayment of $62 million of outstanding 6.5% bonds due in December 2026.
- Outlook: B&W reiterated its 2026 adjusted EBITDA target of $80 million to $105 million and issued a 2027 target range of $125 million to $140 million.
The results show a much larger reported profit than adjusted net income, reflecting the effect of non-cash valuation items. Meanwhile, the expanded backlog and bookings indicate a substantial increase in contracted work, while the larger pipeline reflects additional potential opportunities. The bond repayment removes the specified $62 million obligation ahead of its December 2026 maturity.