Babcock Wilcox 2025 Q2 Earnings Net Loss Widens 330.2%

Babcock & Wilcox reported its fiscal 2025 Q2 earnings on August 11, 2025, showing a significant deterioration in performance compared to the prior year. The company swung to a net loss of $58.49 million, representing a 330.2% decline from the $25.41 million net income in 2024 Q2, while earnings per share fell from $0.24 to a loss of $0.63, a 362.5% negative change.

Revenue
The company’s total revenue for the quarter declined by 4.9% year-over-year to $144.05 million, reflecting a downturn in key business segments. The B&W Renewable segment led with $104.28 million in revenue, significantly contributing to the overall figures. The B&W Environmental segment contributed $18.97 million, while the B&W Thermal segment added $20.80 million. Adjustments within the business were also noted, with eliminations amounting to a negative $2,000.

Earnings/Net Income
Babcock & Wilcox experienced a dramatic shift in profitability, reporting a net loss of $58.49 million for Q2 2025, a substantial deterioration from the $25.41 million net income in the same period of the previous year. Earnings per share turned negative, dropping to a loss of $0.63 per share compared to a profit of $0.24 per share in Q2 2024. This marked a 362.5% negative change in earnings per share and a 330.2% drop in net income.

Price Action
The company’s stock price showed mixed short-term volatility. It declined by 3.05% during the latest trading day, but posted strong weekly and monthly returns, with a 11.40% gain for the week and a 20.95% rise month-to-date.

Post-Earnings Price Action Review
Investing in Babcock & Wilcox shares after a revenue increase quarter-over-quarter in the past three years proved to be a poor strategy. The strategy yielded a return of -85.68%, significantly underperforming the benchmark by 132.97%. The Sharpe ratio of -0.45 indicated a high level of risk, and the maximum drawdown of 0% showed no further decline but also no gains.

CEO Commentary
Kenneth M. Young, CEO and Chairman of the Board, highlighted strong performance from B&W’s parts and services business, which saw a 31% revenue increase compared to Q2 2024. This growth was attributed to rising demand for baseload generation driven by AI data centers and industrial expansion. Young emphasized the company’s strategic focus on coal, natural gas, and new technologies like BrightLoop to support power generation and energy transition. The CEO noted the sale of Diamond Power as a key step in deleveraging and improving the balance sheet. Looking ahead, Young expressed optimism about the company’s $7.6 billion global project pipeline and anticipated key project announcements by year-end.

Guidance
Young expects continued strong performance for the remainder of 2025 and into 2026, supported by the growing demand for baseload generation and the company’s $418.1 million backlog. He noted that the company anticipates returning to positive cash flows in 2025, excluding BrightLoop, and expects the second half of the year to be cash-positive. Young also mentioned that B&W aims to issue updated guidance before the end of the year and is working on large U.S. plant upgrades and new builds expected to be announced by year-end.

Additional News
Recent developments in the industry include increased U.S. government support for energy infrastructure, with new loan programs targeting baseload generation capacity. Additionally, the company has initiated a strategic review of non-core assets, signaling a potential focus on long-term profitability and growth. B&W is also engaging in partnerships with emerging technologies in the energy transition space, aligning with global decarbonization goals. The company’s efforts in asset sales and refinancing are expected to reduce debt and position it for long-term financial stability.