Q2 2026 Babcock & Wilcox Enterprises Inc Earnings Call Transcript
Key Points
- Babcock & Wilcox Enterprises Inc (BW) reported strong Q2 2026 results with revenue up 130% year-over-year to $319.7 million, net income of $14.3 million, and adjusted EBITDA of $21.8 million, all exceeding expectations.
- The company raised its full-year 2026 adjusted EBITDA target range to $80 million to $105 million, reflecting confidence in continued growth.
- Bookings surged 1,058% year-over-year to $2.7 billion in the first half of 2026, and backlog increased 533% to $2.6 billion, driven by strong demand and the Base Electron project.
- The total pipeline now exceeds $14 billion, including 4 to 6 gigawatts of power generation opportunities from AI data centers, utilities, and industrial customers.
- Babcock & Wilcox Enterprises Inc (BW) is making progress on its Base Electron data center project, which is ahead of schedule and on budget, with manufacturing of key components advancing and a second data center project expected to reach full notice to proceed this year.
- The company secured manufacturing reservation rights for an additional 1 gigawatt of steam turbines from Siemens Energy, supporting future project deployments.
- Babcock & Wilcox Enterprises Inc (BW) continues to strengthen its balance sheet by repurchasing the remaining $61.8 million in December 2026 bonds and authorizing a $50 million share repurchase program.
- The BrightLoop commercial demonstration at Massillon is progressing, with major component fabrication underway and site construction expected to begin this year, positioning the technology for commercialization by late 2027.
- Babcock & Wilcox Enterprises Inc (BW) experienced labor shortages in the second quarter, which negatively impacted efficiencies and increased direct costs on a specific construction project.
- The company recorded $77.4 million in non-cash warrants and other stock-related costs in the first half of 2026 due to the increase in stock performance, contributing to a net loss of $62.7 million.
- The availability of highly skilled labor, especially welders and electricians, remains a challenge in the US, requiring immediate action and ongoing investment in recruiting and training.
- The company's near-term focus in its Construction business has shifted towards variable price construction projects, which may introduce revenue and margin volatility.
- The BrightLoop commercial demonstration at Massillon is not expected to be operational until late 2027, limiting near-term revenue contributions from this technology.
- The company faces ongoing pressure from customers to accelerate project timelines, which could strain resources and increase execution risks.
- While the pipeline is robust, the conversion of opportunities to firm contracts is uncertain, and the company is still in active negotiations for several projects.
Good afternoon. Thank you for attending the Babcock & Wilcox Enterprises' second-quarter 2026 conference call. (Operator Instructions)
I would now like to turn the conference over to your host, Sharyn Brooks, B&W's Director of Communications. Thank you. You may proceed, Ms. Brooks.
Thank you, Krystalyn, and thanks to everyone for joining us on Babcock & Wilcox Enterprises' second-quarter 2026 earnings conference call. I'm Sharyn Brooks, Director of Communications. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer; and Cameron Frymyer, Chief Financial Officer, to discuss our second-quarter results.
During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and in our quarterly report on Form 10-Q that was
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