Adjusted EBITDA was $16.1 million for the first quarter, which was 296% increase compared to the first quarter of 2025.
— Kenneth Young
03Detailed Report
BWSN
Company BWSN
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Babcock & Wilcox Enterprises I delivered a strong start to 2026, underpinned by a surge in project activity driven by data-center demand and broader power-generation needs. Revenue climbed to $214.4 million in Q1 2026, up about 44% year over year per management commentary, while Adjusted EBITDA rose to $16.1 million, a 296% year-over-year improvement. The GAAP net loss expanded to $80.7 million primarily due to $81.8 million of noncash warrant and stock-related costs linked to a sharp rise in the company’s stock price; excluding these items, Adjusted Net Income from continuing operations was $2.2 million. Management emphasizes continued strength in parts and services, a multi-year growth runway in AI data center-related opportunities, and a substantial expansion of the project pipeline and bookings.
Key operational highlights include a total pipeline exceeding $14 billion (up more than 17% QoQ), bookings of $2.5 billion (up ~1,900% YoY), and backlog of $2.7 billion (up ~483% YoY). The company has accelerated debt reduction, reporting net debt of $42.4 million at quarter-end and a net-debt-to-Adjusted EBITDA ratio below 1x, aided by bond buybacks and a plan to retire remaining December 2026 bonds. Management characterized Base Electron (North Dakota) as progressing with on-site construction activity forecast for 2027–2028 and noted over $2 billion of incremental AI data center opportunities added to the pipeline. These dynamics position B&W to capitalize on near-term demand for power generation and long-term opportunities in AI data centers and environmental technologies.
However, the firm remains exposed to cyclicality in power generation, project execution risk, and longer lead times on large EPC-type contracts. The company reaffirmed its current guidance with potential upside if project cadence improves or manufacturing can be accelerated, signaling an optionality that investors should monitor closely over the balance of 2026.
Key Performance Indicators
Revenue
Decreasing
214.41M
QoQ: 18.33% | YoY: -8.23%
Operating Income
Decreasing
-79.62M
QoQ: -1 461.06% | YoY: -288.68%
Net Income
Decreasing
-80.66M
QoQ: -266.52% | YoY: -418.63%
EPS
Decreasing
-0.60
QoQ: -130.77% | YoY: -350.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue analysis:
- Q1 2026 revenue: $214.414 million, up 44% year over year per management commentary. This reflects higher project volume, including $31 million from Base Electron, and stronger demand for electricity from fossil-fueled generation driven by AI data centers and expanding economies.
Profitability:
- GAAP operating loss: $79.622 million; EBITDA: -$79.622 million; EBITDARatio: -0.3713; Operating income: -$79.622 million; Net income: -$80.66 million; Net income margin: -37.62%; EPS: -$0.60.
- Adjusted EBITDA (continuing operations): $16.1 million in Q1 2026, up 296% from Q1 2025.
- Adjusted net income from continuing operations: $2.2 million (excluding $81.8 million of noncash warrant/stock-related costs).
Balance sheet and liquidity:
- Total debt (as of 3/31/2026): $275.9 million; excluding fees/gains/leases, secured debt and senior notes totaled $237.2 million with $69.1 million current.
- Cash, cash equivalents and restricted cash: $194.8 million; Net debt: $42.4 million; Net debt to trailing 12-month Adjusted EBITDA < 1x.
Operational metrics and outlook:
- Pipeline: >$14 billion (up >17% QoQ); AI data center opportunities added; Base Electron progress cited with favorable manufacturing and turbine fabrication activity from Siemens Energy.
- Bookings: $2.5 billion (up >1,900% YoY).
- Backlog: $2.7 billion (up 483% YoY).
- Growth drivers: core parts and services strength, baseload generation, and AI data center demand; potential for higher cadence in 2026 with ongoing discussions for additional bookings.
Management commentary highlights:
- Adjusted EBITDA of $16.1 million and revenue of $214.4 million exceeded expectations; the company notes strong tailwinds from AI data centers and core services.
- Management emphasized debt reduction, with bonds repurchased and expectations to retire remaining December 2026 bonds in a timely fashion; net debt remains well-balanced for a company of its size.
- Guidance remains flat for the year with potential upside as visibility improves; management intends to reassess guidance as the year progresses.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
214.41M
-8.23%
18.33%
Operating Income
-79.62M
-288.68%
-1 461.06%
Net Income
-80.66M
-418.63%
-266.52%
EPS
-0.60
-350.00%
-130.77%
Key Financial Ratios
Management Insights Available for Members
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