Babcock & Wilcox Revenue Jumps to $290.8 Million in Third Quarter
Key Facts
Babcock & Wilcox reported revenue of $290.8 million in the third quarter on November 9, 2026, compared with $139.2 million in the same period a year earlier. The company said the increase was mainly driven by higher volume from large projects. Revenue included $77.8 million from the PACE Electron project. Operating income rose to $13.8 million, compared with $3.4 million in the third quarter of 2025. These figures show an improvement in operating activity alongside an expansion in the scale of projects underway.
Net income was $93.9 million, compared with $35.1 million a year earlier, while earnings per share rose to $0.61 from $0.30. The company attributed the improvement in net income to better operating income results. Results also benefited from a $4.4 million reduction in interest expense. A $85.1 million change in the fair value of customer warrants also contributed. Reported earnings therefore combined operating improvement with the impact of financial items related to interest and warrant valuation.
Excluding non-cash warrant valuations and other items related to stock valuation, adjusted net income was $4.8 million. Adjusted EBITDA was $17.7 million, up from $9.4 million in the corresponding period of 2025. This measure presents a separate picture from reported net income, which was affected by the change in the value of customer warrants. The rise in adjusted earnings also reflects an improvement compared with the third quarter of the previous year. The gap between the two measures shows that reported net income was not limited to operating performance during the quarter.
Third-quarter bookings were $228 million, up 112% from the same period in 2025. Backlog reached $2.5 billion, up 571% year over year. The company links part of its activity to rising demand for fossil-fuel-generated electricity, driven by artificial intelligence, data centers and expanding economies. Chief Executive Kenneth Young said rising global electricity demand is increasing utilities’, industrial customers’ and data centers’ need for parts and services. He added that this demand is driving new power-generation opportunities.
The company said its global opportunity pipeline exceeds $16 billion and includes 6 gigawatts of potential additional power for utilities, industrial customers and data centers. For the data center project in North Dakota, it said work was progressing according to plan. It added that manufacturing of boilers, steam turbines and long-lead components was advancing. Permit applications also received county approval for conditional use and zoning. The company cautioned that backlog may not reflect future operating results and that contracts included in it may be canceled or modified.
As of September 30, 2026, secured debt and bonds totaled $166.4 million, while cash and cash equivalents and restricted cash reached $128.9 million. During the third quarter, the company fully redeemed $61.8 million of bonds carrying 6.5% interest and due in December 2026. It also repurchased $38 million of shares under its buyback program. These actions provide a picture of the company’s debt and capital management during the quarter. The reported debt and cash figures remain tied to September 30.
Babcock & Wilcox reaffirmed its 2026 adjusted EBITDA target of between $80.0 million and $105.0 million. It set a target range of between $125 million and $140 million for 2027. The company said these forward targets do not represent guidance on what it expects the business to achieve. In trading, the stock closed at $3.25 in the November 9 session, up 4.84% from the previous close. It traded between $3.08 and $3.29 during the session, while the company was scheduled to hold an earnings call that day at 5 p.m. Eastern Time.