Babcock & Wilcox Enterprises (BW) Q4 2025 earnings summary

Executive summary

• Achieved significant growth in 2025, driven by elevated demand for electrical generation and parts/services, especially from increased baseload and coal plant utilization in North America and globally.

• Secured a $2.4 billion contract with Base Electron for AI data centers, supporting 1.2GW of electricity, with potential for an additional 1.2GW project.

• Backlog rose to $2.8 billion, a 470% increase year-over-year, and the project pipeline exceeded $12 billion, up 20% from 2024.

• Q4 2025 revenue reached $161.0 million, with operating income of $12.2 million, both ahead of expectations.

• Paid off bonds due in February 2026 and committed to paying off December 2026 bonds, reducing net debt by $217.3 million year-over-year.

Financial highlights

• 2025 consolidated revenues were $587.7 million, up from $581 million in 2024.

• Parts and services revenue grew 17% year-over-year, outperforming expectations.

• Operating income reached $20.7 million in 2025, compared to a $6.3 million loss in 2024.

• Adjusted EBITDA from continuing operations was $43.7 million, up 107% from $21.2 million in 2024.

• Loss from continuing operations improved to $32.8 million from $104.3 million in 2024; loss per share was $0.45 versus $1.30.

Outlook and guidance

• 2026 adjusted EBITDA target range increased to $80–$100 million, reflecting contributions from the Base Electron project and continued core business growth.

• Growth in adjusted EBITDA and revenue expected to step up each quarter in 2026.

• Management expects continued strong demand for baseload generation, especially from AI data centers and increased coal usage.

• Global pipeline of project opportunities exceeds $12.0 billion, with further growth anticipated.

• Company remains optimistic about executing on existing pipeline and expanding with rising power generation demand.