Activist Investor Takes 4.3% Stake in Babcock & Wilcox Amid Record Growth

Galloway Capital Partners Announces 4.31% Stake in Babcock & Wilcox Enterprises, Inc.

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06/02/2025 - 08:30 AM

Believes Babcock & Wilcox is Significantly Undervalued and Well-Positioned for Substantial Shareholder Value Creation

MIAMI--(BUSINESS WIRE)-- Galloway Capital Partners, LLC and its affiliate, Diveroli Investment Group (collectively, “Galloway”), announced today a 4.31% stake in Babcock & Wilcox Enterprises, Inc. (NYSE: BW), a U.S.-based global leader in energy and environmental technologies and services.

Bruce Galloway, the Founder and Chief Investment Officer of Galloway, stated, “Based on our analysis, we believe B&W’s share price is deeply undervalued relative to its potential. Our experienced team seeks to work with management and the Board to enhance and unlock shareholder value.”

Three Core Reasons Why B&W is Undervalued:

Record Backlog and Strong Bookings Signal Growth Visibility

The Company’s 2024 bookings surged 39% year-over-year to $889.6 million, and backlog reached a record $540.1 million, up 47% from 2023. This provides a solid runway for revenue conversion in 2025–2026 and demonstrates robust demand for B&W’s Thermal and Environmental solutions.

BrightLoop Technology Has Transformational Potential

B&W’s proprietary BrightLoop™ hydrogen and carbon capture platform is progressing toward commercialization, with a demo plant on track for 2026. Management has targeted ~$1 billion in BrightLoop bookings by 2028—a fraction of the global hydrogen market, but potentially a transformative growth engine.

Operational Turnaround is Underway Despite Legacy Headwinds

Adjusted EBITDA rose 13% year-over-year in 2024 (excluding BrightLoop), and Q1 2025 results showed continued margin expansion. While the Company’s balance sheet remains somewhat leveraged, we believe that the Net Debt to EBITDA is very manageable at approximately 3x.

The global surge in AI-driven data centers is creating unprecedented demand for power infrastructure - and Babcock & Wilcox is well-positioned to benefit. Its Thermal segment, specializing in steam generation and natural gas conversions, aligns with the grid-scale energy solutions now required by hyperscalers. As utilities upgrade infrastructure to support data center growth, B&W’s deep engineering expertise and record backlog suggest it could be a stealth beneficiary of one of the fastest-growing trends in infrastructure today.

Important Additional Information and Where to Find It

This communication is not a recommendation to buy, sell or exchange any securities, and it does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any securities. Information about Galloway Capital Partners and certain matters discussed in this press release are described in Galloway Capital’s Schedule 13D filed on June 2, 2025, available at the SEC’s website at www.sec.gov.

About Galloway Capital Partners, LLC

Galloway Capital Partners, LLC is a firm with a strategy targeting investments in undervalued publicly traded companies. The firm focuses on deep value opportunities with significant upside potential by identifying catalysts which will unlock shareholder value. www.gallowaycap.com.