Babcock & Wilcox Enterprises, Inc., known as BW, operates globally to deliver specialized solutions for energy generation and environmental emissions management through ...
Babcock & Wilcox Enterprises, Inc. is an industrial technology and services company with roots extending to 1867, when George Babcock and Stephen Wilcox developed steam-generation technology. The modern company, traded on the New York Stock Exchange under the symbol BW, focuses on energy generation, emissions management, environmental protection, and related ...Babcock & Wilcox Enterprises, Inc. is an industrial technology and services company with roots extending to 1867, when George Babcock and Stephen Wilcox developed steam-generation technology. The modern company, traded on the New York Stock Exchange under the symbol BW, focuses on energy generation, emissions management, environmental protection, and related lifecycle services. Its headquarters are located at 1200 East Market Street in Akron, Ohio, and the company operates internationally through subsidiaries and project organizations. Kenneth Young serves as chairman and chief executive officer.
BW organizes its activities into three primary business segments. Babcock & Wilcox Renewable develops technologies intended to convert waste and alternative fuels into useful energy. Its offerings include waste-to-energy systems, biomass energy solutions, solar project construction and installation, and black liquor recovery systems used by pulp and paper producers. These systems can help customers divert waste from landfills, recover energy and metals, reduce fossil-fuel consumption, and lower environmental emissions. Babcock & Wilcox Environmental supplies pollution-control and environmental-management technologies for utilities, waste-to-energy facilities, biomass plants, carbon-black producers, and industrial steam users. Products and services include particulate-control equipment, nitrogen-oxide and sulfur-oxide reduction systems, mercury-control solutions, ash handling, thermal cooling, and chemical-looping technologies associated with carbon capture. Babcock & Wilcox Thermal provides boilers and other steam-generation equipment, replacement components, engineering, construction, maintenance, upgrades, and field support. Its installed equipment base serves electric utilities and industrial customers in refining, petrochemicals, food processing, metallurgy, and other sectors.
The company's business model combines large project-based equipment sales with recurring aftermarket parts, maintenance, engineering, and field services. This installed-base strategy can create opportunities for long-term customer relationships, although revenue and cash flow may be affected by project timing, customer capital budgets, commodity prices, regulatory requirements, supply-chain conditions, and execution risk. Costs typically include engineering and design, manufacturing or procurement of major equipment, construction labor, subcontractors, installation, warranty obligations, research and development, selling and administration, and working-capital requirements for receivables and inventory. Because BW delivers complex systems, its bill of materials can include boilers, pressure vessels, combustion and fuel-handling equipment, heat-transfer surfaces, pumps, fans, ductwork, catalysts, filters, control systems, sensors, structural components, and specialized replacement parts.
The supplied trailing-twelve-month data indicates approximately 1,600 full-time employees and no dividend. It reports revenue of roughly $669 million when inferred from the stated enterprise-value-to-sales relationship, a gross margin near 24.7%, negative EBITDA and net margins, negative operating cash flow, and a current ratio close to 1.0. These figures suggest that profitability, liquidity, project execution, and cash conversion are important considerations. BW's strategic opportunity is to benefit from global demand for cleaner energy, waste conversion, industrial decarbonization, emissions compliance, and modernization of aging generation assets. Its principal challenges include competition, financing needs, leverage and balance-sheet constraints, uneven project profitability, and the technically demanding nature of large energy infrastructure programs.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$587.7M
-18.1%
+49.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-36.2M
+39.6%
+118.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+24.5%
-0.8%
-28.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+3.9%
+11.5%
+771.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-6.2%
+26.3%
+112.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-85.7M
+34.0%
-325.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-14.6%
+19.5%
-251.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-280.2%
-47.8%
+383.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.22x
-3.5%
+46.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: 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.
Sharyn Brooks: Thank you, Crystaline, 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 filed with the SEC earlier today. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. We -- we also provide non-GAAP information regarding certain historical and targeted results to supplement the results provided in accordance with GAAP. This information, which includes a discussion of adjusted EBITDA and adjusted net income, should not be considered superior to or a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our second quarter 2026 earnings release published earlier today and in our company overview presentation filed on Form 8-K, which is posted on the Investor Relations section of our website at babcock.com. Please also see our second quarter 2026 earnings release published on August 10, 2026, for further information regarding our bookings and backlog. I will now turn the call over to Kenny.
Kenneth Young: Thanks, Sharyn. Well, good afternoon, everyone, and thanks for joining us on our second quarter 2026 earnings call. We are pleased to report another strong quarter, highlighted by robust financial results and active project development and continued operational momentum in our core business and further strategic debt reduction and stock repurchase. During the second quarter, Babcock & Wilcox continued to benefit from the growing need for reliable electrical generation from all sources of power consumption, including utilities, industrial and data center customers. These tailwinds drove strong operating results during the quarter and led us to raise our full year 2026 adjusted EBITDA target range from $80 million to $105 million. As excited as we are about the increasing opportunities in new utility, industrial and AI and data center power generation project opportunities, we're equally excited about the strong results in our core projects as well as our Parts and Services businesses. These businesses have and continue to be strong cash generators for …
