Babcock & Wilcox Enterprises (BW) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw a 31% year-over-year increase in Parts and Services revenue, driven by rising power demand from AI-driven data centers and increased baseload generation needs.

• Operating income improved to $8.1 million from a $4.4 million loss in Q2 2024, supported by cost reductions and a higher-margin product mix.

• Net loss from continuing operations narrowed to $6.1 million in Q2 2025 from $20.5 million in Q2 2024, though net loss attributable to common stockholders widened due to discontinued operations and divestitures.

• Major divestitures included the sale of Diamond Power International for $177 million, aiding debt reduction and balance sheet improvement.

• Backlog for continuing operations increased 49% year-over-year to $418.1 million.

Financial highlights

• Q2 2025 consolidated revenue was $144.1 million, down from $151.4 million in Q2 2024; first half 2025 revenue was $299.9 million, up from $292.3 million in 2024.

• Global Parts and Services revenue in Q2 2025 was $64.8 million, up from $49.3 million year-over-year.

• Adjusted EBITDA from continuing operations was $15.1 million in Q2 2025, up from $8.0 million in Q2 2024; first half 2025 adjusted EBITDA was $21.2 million, up from $10.8 million in 2024.

• Q2 2025 net loss from continuing operations was $6.1 million, improved from a $20.5 million loss in Q2 2024; Q2 2025 net loss attributable to common stockholders was $62.2 million.

• Q2 2025 basic and diluted EPS: $(0.63) (vs. $0.24 in Q2 2024); Q2 2025 loss per share from continuing operations: $0.10, improved from $0.26 loss per share in Q2 2024.

Outlook and guidance

• Management anticipates continued strong financial performance in the second half of 2025 and into 2026, driven by high-margin Parts and Services and a robust $7.6 billion global project pipeline.

• Expects to return to positive cash flow in 2025, excluding BrightLoop, with confidence in generating positive cash in the second half.

• Backlog at June 30, 2025 was $418.1 million, with 55% expected to be recognized as revenue in 2025.

• Ongoing focus on cost controls, working capital management, and further non-core asset divestitures.

• Guidance for the remainder of the year will be provided before year-end.