Babcock Wilcox 2025 Q3 Earnings 758% Net Income Surge Drives Turnaround

Babcock & Wilcox (BW) delivered a dramatic turnaround in Q3 2025, reporting a net income of $35.09 million—up 758.1% from a $5.33 million loss in the prior-year period—while EPS surged to $0.30 from a $0.10 loss. The company exceeded expectations with adjusted EBITDA growth of 58% and operating income up 315%, supported by a $67.5 million equity raise and a $1.5 billion AI data center project. Management raised its 2026 core EBITDA guidance to $70–$85 million, reflecting confidence in its $10–$12 billion pipeline.

Revenue

Babcock & Wilcox’s total revenue declined 2.4% to $149.01 million in Q3 2025, compared to $152.63 million in the prior-year quarter. The B&W Thermal segment led with $118.30 million in revenue, followed by the B&W Renewable segment, which contributed $15.20 million. The B&W Environmental segment rounded out the performance with $15.55 million in revenue. These figures reflect a slight imbalance in segment contributions, with thermal operations remaining the dominant revenue driver despite the overall contraction in total sales.

Earnings/Net Income

Babcock & Wilcox returned to profitability in Q3 2025, reporting a net income of $35.09 million—up 758.1% from a $5.33 million loss in the prior-year period. Earnings per share (EPS) surged to $0.30, reversing a $0.10 loss, marking a 400% positive swing. This turnaround underscores the company’s operational improvements and strategic execution, particularly in its Global Parts & Services business, which achieved record bookings and revenue.

The company’s profitability rebound is a significant positive signal, demonstrating its ability to leverage cost controls and high-margin opportunities.

Price Action

The stock price of Babcock & Wilcox experienced a sharp rally in the wake of its earnings report, surging 16.95% on the latest trading day, 76.02% over the most recent full trading week, and 84.99% month-to-date. This dramatic price action was spurred by the company’s profitability return, the $67.5 million equity raise, and the $1.5 billion AI data center project. The equity offering, which included $50 million from a single institutional investor, further bolstered market confidence in B&W’s strategic direction.

CEO Commentary

Kenneth Young, Chairman and CEO, emphasized B&W’s strategic focus on its 400+ gigawatt global installed base to drive growth in aftermarket services and retrofits. He highlighted a $10–$12 billion pipeline, including a $3–$5 billion AI data center initiative and $2.6 billion in BrightLoop/ClimateBright opportunities, as key catalysts. Challenges remain, including liquidity constraints and debt refinancing risks, but Young expressed confidence in securing financing for projects like the $1.5 billion Applied Digital AI Factory.

Guidance

B&W outlined aggressive growth targets, projecting a $70–$85 million core EBITDA range for 2026—80% higher than 2025—excluding AI data center projects. The company reiterated its focus on decarbonization technologies, coal-to-gas conversions, and rising electricity demand, with $1.5 billion in Applied Digital projects slated for Q1 2026 execution. Management remains committed to reducing debt obligations while capitalizing on its $10–$12 billion pipeline.

Additional News

Babcock & Wilcox raised $67.5 million through an at-the-market equity offering, with $50 million contributed by a single institutional investor. This follows a Limited Notice to Proceed for a $1.5 billion AI data center project, which expands its pipeline to $10–$12 billion. The company also announced a $70–$85 million 2026 core EBITDA target, reflecting confidence in its Global Parts & Services backlog, which rose 56% to $393 million. CEO Kenneth Young emphasized the strategic value of the AI data center initiative in positioning B&W to meet surging energy demands and support the global energy transition.