Babcock (NYSE:BW) Releases Earnings Results, Misses Estimates By $0.01 EPS

Babcock (NYSE:BW) released its quarterly earnings results on Monday. The technology company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01), FiscalAI reports. The business had revenue of $161.00 million for the quarter, compared to the consensus estimate of $155.60 million.

Here are the key takeaways from Babcock’s conference call:

• B&W received full approval on the Base Electron (Applied Digital–backed) contract valued at $2.4 billion to deliver 1.2 GW for AI data centers; site visits and boiler/turbine manufacturing have started and Applied Digital is backstopping Base Electron’s obligations.
• The company raised its 2026 adjusted EBITDA target to $80M–$100M after a strong Q4 in which adjusted EBITDA increased 53% year‑over‑year and operating income rose 373% year‑over‑year.
• Backlog expanded to $2.8 billion (a 470% increase vs. year‑end 2024) and the pipeline grew to over $12 billion, supported by a 17% increase in parts & services and new AI data center and baseload power opportunities.
• Execution and margin risks remain—only about $430 million of the Base Electron contract is fixed‑price while the rest is cost‑plus, revenue recognition hinges on cost‑to‑site and construction timing, and turbine/manufacturer and labor capacity could constrain delivery.

Babcock Trading Up 26.9%

BW opened at $14.90 on Wednesday. The stock has a fifty day moving average price of $9.87 and a 200 day moving average price of $6.39. Babcock has a 1 year low of $0.22 and a 1 year high of $14.93. The stock has a market cap of $1.65 billion, a price-to-earnings ratio of -27.59 and a beta of 1.54.

Trending Headlines about Babcock

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: Northland Securities raised its 2026 quarterly EPS forecasts (Q1 to $0.01, Q2 to $0.04, Q3 to $0.06) and maintains an “Outperform” rating with a $10 price target — a clear analyst upgrade that supports investor optimism.
• Positive Sentiment: Babcock said it expects $80M–$100M of adjusted EBITDA for 2026 after winning a reported $2.4B AI data‑center contract; that contract and the higher EBITDA target materially improve the company’s growth and margin outlook. Babcock targets $80M–$100M 2026 adjusted EBITDA
• Positive Sentiment: Market/press coverage highlights stronger 2025 results (FY revenue ~$587.7M and improved operating income) and upbeat analyst commentary — momentum that likely drew buying interest into the name. BW hits 7-year high on 70% price target upgrade
• Neutral Sentiment: Company released its Q4 2025 earnings call transcript providing more detail on performance and strategy; useful for modeling but not a surprise driver by itself. Q4 2025 earnings call transcript
• Neutral Sentiment: Several buyback headlines in the feed refer to Babcock International (GB:BAB), a different company; these are not directly relevant to BW but can create confusion in press aggregation. TipRanks: Babcock continues share buyback TipRanks: Babcock adds to ongoing buyback
• Negative Sentiment: Lowey Dannenberg P.C. announced an investigation into Babcock & Wilcox for potential federal securities-law violations tied to a prior short‑seller report — this raises legal and reputational risk that could increase volatility and lead to downside if filings or further evidence emerge. Lowey Dannenberg investigation announcement

Analyst Upgrades and Downgrades

Several analysts recently issued reports on BW shares. Craig Hallum restated a “buy” rating and issued a $19.00 price target on shares of Babcock in a report on Tuesday. Weiss Ratings restated a “sell (d-)” rating on shares of Babcock in a research note on Wednesday, January 21st. Zacks Research upgraded shares of Babcock to a “hold” rating in a research report on Friday, January 23rd. Finally, Northland Securities began coverage on Babcock in a research report on Thursday, January 22nd. They set an “outperform” rating and a $10.00 price objective for the company. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $11.00.

Insider Activity

In other news, major shareholder Brc Group Holdings, Inc. sold 1,155,382 shares of Babcock stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $9.00, for a total value of $10,398,438.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 3.90% of the company’s stock.

Hedge Funds Weigh In On Babcock

Large investors have recently added to or reduced their stakes in the company. Legal & General Group Plc bought a new position in Babcock in the 3rd quarter worth approximately $14,086,000. Marshall Wace LLP boosted its holdings in Babcock by 497.7% during the third quarter. Marshall Wace LLP now owns 2,366,601 shares of the technology company’s stock worth $6,863,000 after buying an additional 1,970,656 shares during the last quarter. Vanguard Group Inc. grew its holdings in Babcock by 54.3% during the third quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company’s stock valued at $12,827,000 after purchasing an additional 1,556,692 shares during the period. Thames Capital Management LLC acquired a new position in shares of Babcock in the 3rd quarter valued at $4,033,000. Finally, Situational Awareness LP acquired a new position in Babcock in the fourth quarter valued at about $8,584,000. Institutional investors and hedge funds own 83.17% of the company’s stock.

About Babcock

Babcock & Wilcox Enterprises, Inc (NYSE: BW) is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.