Babcock & Wilcox Q1 revenue beats on large project volume

Overview

• US energy technology firm's Q1 revenue rose 44%, beating analyst expectations

• Adjusted EBITDA for Q1 up 296% yr/yr

• Company posted adjusted net income of $2.2 mln, reversing loss last year

Outlook

• Company reiterates full-year 2026 adjusted EBITDA target of $80 mln to $100 mln

• Company expects to fully pay off remaining December 2026 bonds in 2026

• Company says macroeconomic conditions, including inflation and supply chain disruptions, could continue to impact results

Result Drivers

• LARGE PROJECT VOLUME - Q1 revenue growth was primarily driven by an increase in large project volume, including the ongoing Base Electron project

• AI DATA CENTER DEMAND - Company cited strong interest from AI data center and hyperscaler customers for power generation solutions, fueling bookings and pipeline growth

• CORE PARTS AND SERVICES DEMAND - Higher demand from consumers, industrials, and AI data centers drove increased coal baseload generation and supported revenue growth

Company press release: ID:nBw7wVQsda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy electrical equipment peer group is "buy"

• Wall Street's median 12-month price target for Babcock & Wilcox Enterprises Inc is $19.00, about 30.7% above its May 8 closing price of $14.54

• The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 501 three months ago

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