Babcock & Wilcox Enterprises (BW) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 44% year-over-year to $214.4 million, driven by large project volume, including $31 million from the Base Electron contract, and strong demand from AI, data centers, and expanding economies.

• Adjusted EBITDA surged 296% to $16.1 million, exceeding expectations, while adjusted net income from continuing operations was $2.2 million, reversing a prior-year loss.

• Net loss from continuing operations widened to $79.6 million, primarily due to $70.2 million to $81.8 million in non-cash warrant and stock appreciation rights expenses.

• The company completed its strategic divestiture plan, selling non-core businesses to reduce debt and improve liquidity.

• Bookings and backlog saw significant growth, with bookings up 1,971% to $2.5 billion and backlog up 483% to $2.7 billion year-over-year.

Financial highlights

• Revenue: $214.4 million, up from $148.6 million year-over-year.

• Adjusted EBITDA: $16.1 million, up from $4.0 million year-over-year.

• Net loss attributable to stockholders: $80.7 million, compared to $25.7 million loss year-over-year.

• Cash and restricted cash: $194.8 million as of March 31, 2026.

• Net debt reduced by 87% to $42.4 million at quarter-end.

Outlook and guidance

• Backlog at March 31, 2026 was $2.73 billion, with 21% expected to be recognized as revenue in 2026, 22% in 2027, and 57% thereafter.

• Full-year 2026 Adjusted EBITDA target range reiterated at $80.0 million to $100.0 million from core business.

• Management believes current operating plans and available borrowings will satisfy liquidity needs for at least the next twelve months.