Babcock & Wilcox Enterprises, Inc. BW reported first-quarter 2026 non-GAAP loss per share of a penny, narrower than the Zacks Consensus Estimate of a loss of 3 cents. BW had incurred a loss of 10 cents per share in the year-ago quarter.
BW posted first-quarter 2026 revenues of $214.4 million, surpassing the Zacks Consensus Estimate by 42.55%. The top line climbed 44.3% year over year, driven by the rising demand tied to utility, industrial and AI data center power needs.
BW’s Revenue Growth Reflects Large-Project Momentum
BW’s top-line acceleration was driven primarily by higher large-project volume, which increased more than $60 million year over year. The company cited ongoing progress on the Base Electron work as an important contributor to the quarterly lift, as execution milestones on manufacturing and early site preparation moved forward.
Babcock Price, Consensus and EPS Surprise
Babcock price-consensus-eps-surprise-chart | Babcock Quote
On the first-quarter 2026 earnings call, management noted that Base Electron generated $31 million of revenues in the quarter. While BW expects additional revenue contributions in 2026 as milestones are achieved, management characterized the more meaningful ramp as beginning next year when full on-site construction activity expands.
B&W Results Improve Despite Stock-Cost Volatility
B&W’s operating loss narrowed modestly to $1.7 million from $1.8 million a year ago, showing that the stronger revenue base largely offset higher operating costs. Selling, general and administrative expenses rose alongside growth initiatives and project activity, while the overall cost structure reflected higher volume.
The quarter’s headline net loss from continuing operations of $79.6 million was heavily influenced by non-cash valuation changes tied to warrants and other stock-related costs. Excluding $81.8 million of those items, BW reported adjusted net income from continuing operations of $2.2 million. Adjusted EBITDA rose to $16.1 million versus $4 million in the prior-year quarter, underscoring improved operating leverage as revenues expanded.
BW Bookings and Backlog Signal AI Opportunity Depth
BW posted bookings of $2.5 billion in the first quarter, up 1,971% from the prior-year period, reflecting the scale of power-generation opportunities tied to both its core portfolio and AI data center-related demand. Backlog ended the quarter at $2.7 billion, representing an increase of 483% year over year, supporting multi-quarter revenue visibility as large projects progress through execution.
Management also highlighted that the company’s total global pipeline expanded by 17% to more than $14 billion, with new AI data center and hyperscaler opportunities contributing meaningfully. Commentary on the call pointed to active discussions across a broad range of project sizes, including potential behind-the-meter power solutions that can be deployed faster using BW’s steam boiler and turbine approach.
B&W Balance Sheet Shows Rapid Deleveraging Progress
As of March 31, BW had cash, cash equivalents and restricted cash of $194.8 million compared to $201.4 million at the end of the previous quarter. B&W ended the quarter with secured debt and bonds of $237.2 million, implying a net debt of $42.4 million.
During the quarter, the company repurchased and retired $15 million of bonds due December 2026 and reiterated expectations to fully pay off the remaining outstanding December 2026 bonds during 2026.
Cash flow trends improved with operating activities providing $17.8 million in the quarter compared with cash used in operations in the year-ago period. Management emphasized that the debt reduction moves have reduced net debt to below 1x trailing-12-month adjusted EBITDA, positioning BW with greater flexibility as large projects and parts-and-services demand expand.
BW’s 2026 Guidance
The Zacks Consensus Estimate for BW’s 2026 revenues is pegged at $822.2 million, indicating year-over-year growth of 29%.
BW reiterated its 2026 adjusted EBITDA to be in the range of $80 million to $100 million from the core business.
The Zacks Consensus Estimate for BW’s 2026 earnings is pegged at 21 cents per share, indicating year-over-year growth of 148%.
Zacks Rank and Stocks to Consider
Currently, BW carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Samsara IOT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Broadcom have gained 21.7% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating an increase of 68% year over year.
Shares of Celestica have rallied 41.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $9.85 per share, up $1.01 over the past seven days, indicating an increase of 62.8% year over year.
Samsara shares have lost 14% year to date. The Zacks Consensus Estimate for IOT’s fiscal 2027 earnings is pegged at 68 cents per share, up 11 cents over the past 60 days, indicating an increase of 21.4% year over year.
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This article originally published on Zacks Investment Research (zacks.com).