Here's the hot stuff from Babcock & Wilcox $BW (-8,49%)
(NYSE: BW) Q2 2026 Earnings Release, fresh off the US market close:
🚀 Top-line growth & AI data center backlog
Babcock & Wilcox continues to drive its transformation from a traditional boiler manufacturer to a sought-after infrastructure and baseload specialist for AI data centers:
Revenue (top line): Rise in Q2 2026 to approximately $212.5 million (+7% year-over-year vs. $198.3 million in the same quarter last year). With this result, B&W significantly exceeded Wall Street’s consensus estimates (~$197 million).
Segment Drivers: The B&W Renewable and the Thermaldivision posted strong growth, driven by rising demand for industrial boiler and steam solutions as well as clean energy upgrades.
Record Pipeline & Backlog: The order backlog (backlog) climbed thanks to sustained high demand as part of the AI data center initiative (Base Electron) and global DGA projects (Data Center Gas/Power) to over $2.8 billion.
🔮 Margin, EBITDA & Balance Sheet Restructuring
Operating leverage is having an increasingly positive impact following the restructuring measures of previous years:
Adjusted EBITDA: Reached a robust 22.4 million USD (up from 18.1 million USD in the same quarter of the previous year), representing an improvement in the EBITDA margin to ~10.5% .
Earnings per Share (EPS): Adjusted net income per share (Adjusted EPS) was +$0.03 , beating the consensus estimate of +0.02 USD.
Deleveraging & Balance Sheet: Following the successful sale of non-core assets and the repayment of the 2026 bonds that had matured, net debt was further reduced. The remaining liquidity ensures the execution of the large project pipelines.
🤖 Full-Year Forecast Reaffirmed
2026 Full-Year Outlook: Management confirms the forecast for the full 2026 fiscal year, with adjusted EBITDA in the core business of $80 million to $100 million.
Focus on AI Power Demand: Management emphasizes that the project pipeline for customized power and steam generation solutions for hyperscalers and data center developers continues to grow massively.
⚡ 💡 Jack’s take
B&W is delivering and proving that the turnaround is no mirage! A top-line beat, margin expansion, and an epic backlog of 2.8 billion USD show that industry heavyweights view B&W as a key building block for the massive energy supply needed by AI data centers. An adjusted EBITDA of over $22 million for the quarter validates the ramp-up. The only downside remains the debt burden, which is still quite high by industry standards—but if B&W coldly sticks to its EBITDA targets of $80–100 million, even this problem will gradually resolve itself!
