Babcock & Wilcox Enterprises, Inc.

Second quarter 2026 consolidated revenue was $319.7 million, up 130% from Q2 2025. Net income was $14.3 million, compared with a $72.8 million increase versus the prior-year quarter. Adjusted EBITDA was $21.8 million, up $7.9 million year over year. For the first half of 2026, revenue was $534.1 million versus $287.5 million in the first half of 2025; net loss was $62.7 million versus a $80.5 million net loss a year ago, though management said this included $77.4 million of noncash warrants and other stock-related costs. Excluding those items, adjusted net income was $14.7 million, and adjusted EBITDA was $37.8 million versus $17.9 million in the first half of 2025. Debt at June 30, 2026 was $276.8 million, cash, cash equivalents and restricted cash were $382.8 million, the company repurchased the remaining $61.8 million of December 2026 bonds, and the board authorized up to $50 million of share repurchases. Full-year 2026 adjusted EBITDA target range was raised to $80 million to $105 million.

Kenny Young framed the quarter as evidence that the company is benefiting from stronger demand for reliable baseload power, especially from utilities, industrial customers and AI/data centers. He emphasized operational momentum in core Parts and Services, progress on Base Electron, a pipeline above $14 billion, and continued development of BrightLoop and other low-carbon technologies. His tone was optimistic and confident, but he also acknowledged labor shortages and supply chain execution as areas requiring active management.

Cameron Frymyer focused on the sharp year-over-year improvement in revenue, net income and adjusted EBITDA, with Q2 revenue at $319.7 million and adjusted EBITDA at $21.8 million. He highlighted first-half revenue of $534.1 million, adjusted EBITDA of $37.8 million, and noted that first-half net loss was affected by $77.4 million of noncash warrants and other stock-related costs. On the balance sheet, he cited $276.8 million of total debt and $382.8 million of cash, cash equivalents and restricted cash, plus the repurchase of the remaining $61.8 million in bonds and authorization of up to $50 million of share repurchases as evidence of disciplined capital allocation.

Analysts pressed management on how Base Electron revenue will flow through the income statement, and Kenny Young said the project is ahead of expectations and on budget, with more revenue expected as construction begins early next year. Questions also focused on the 4 to 6 gigawatt pipeline and whether projects would develop through initial limited notice to proceed and then full notice to proceed; management said several opportunities are advancing and that B&W has reserved Siemens turbine capacity to support them. On supply chain and labor, management said manufacturing capacity is flexible and that it is working closely with unions to improve skilled labor availability, while a question on BrightLoop drew a response that the Massillon demonstration remains on track for late 2027 and is attracting interest from hyperscalers and others.