Babcock & Wilcox shares surged 8.52% following $40 million contract win for Wet Gas Scrubbing technology

Babcock & Wilcox shares surged 8.52% in pre-market trading on Dec. 26, 2025, following a $40 million contract win for its Wet Gas Scrubbing technology at a Canadian refinery. The deal highlights renewed demand for the company’s environmental solutions in the energy sector.

The contract follows a broader trend of improved financial performance. The firm reported a Q3 net income of $35.1 million, reversing a year-earlier loss, and redeemed $26 million in senior notes in December. These moves signal stronger liquidity management amid ongoing reliance on external borrowing.

Meanwhile, the company’s SolveBright carbon capture system is gaining traction in U.S. markets, positioning it to benefit from growing decarbonization initiatives. While thermal and environmental segments remain volatile, the recent contract and operational gains suggest short-term momentum for the small-cap energy solutions provider.

Investors are now assessing whether the firm can maintain its positive momentum as it continues to execute on its capital-intensive projects. Analysts note that the recent profitability figures and refinancing activity may help stabilize the firm’s balance sheet over the near term, but longer-term success will depend on the scalability of its decarbonization technologies.