Babcock & Wilcox Enterprises (BW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $319.7 million, a 130% year-over-year increase, driven by large project volume, especially from Base Electron, and strong demand from AI, data centers, and utilities.

• Net income for Q2 was $14.3 million, reversing a prior-year loss, with adjusted EBITDA up 57% to $21.8 million.

• Bookings and backlog surged, with backlog at $2.6 billion, up 533% year-over-year, and bookings of $2.7 billion in the first half.

• Major divestitures of non-core businesses were completed, and the company announced a $50 million share repurchase program and bond redemptions.

• Benefited from increased demand for reliable electrical generation across utilities, industrial, and data center customers, with a global pipeline exceeding $14 billion.

Financial highlights

• Q2 2026 consolidated revenues were $319.7 million, up from $138.9 million in Q2 2025; first half revenues were $534.1 million, up from $287.5 million.

• Net income for Q2 was $14.3 million; adjusted EBITDA for Q2 was $21.8 million, and for the first half was $37.8 million.

• Net loss for the first half of 2026 was $62.7 million, primarily due to $64.4 million in non-cash warrant expenses.

• Cash and restricted cash at June 30, 2026, was $382.8 million; total debt was $276.8 million.

• EPS for Q2 2026 was $0.07, compared to a loss per share of $0.63 in Q2 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA target range raised to $80–$105 million, reflecting strong demand and project pipeline.

• Backlog at June 30, 2026, was $2.57 billion, with 16% expected as 2026 revenue, 26% in 2027, and 58% thereafter.

• Anticipates significant revenue growth as major projects, such as Base Electron, move into construction phases in 2027.

• Expects continued strong demand for baseload power and energy security, positioning for further growth.

• Strong outlook for H2 2026 and beyond, driven by energy demand and data center projects.