Babcock & Wilcox Q3 revenue jumps 109% to $291M
B&W reported a global pipeline exceeding $16 billion, including 6 gigawatts of new incremental power.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Babcock & Wilcox Enterprises, Inc. (BW) reported third-quarter 2026 revenue of $290.8 million, up 109% from $139.2 million, and Adjusted EBITDA of $17.7 million, up 88% from $9.4 million. Net income was $93.9 million versus $35.1 million, including an $85.1 million change in fair value of customer warrants; adjusted net income was $4.8 million.
Bookings were $228 million, up 112%, and backlog was $2.5 billion, up 571%. B&W cautioned that backlog may be canceled or modified and may not indicate future results. It reiterated a 2026 Adjusted EBITDA target of $80.0 million to $105.0 million and issued a 2027 target of $125 million to $140 million; the company says these targets are not guidance for expected business performance.
During the quarter, B&W repurchased $38 million of shares and redeemed $61.8 million of 6.5% bonds due in December 2026. At September 30, 2026, cash, cash equivalents and restricted cash totaled $128.9 million. Operating cash used in the first nine months was $130.3 million, compared with $65.9 million a year earlier.
3 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 109% to $290.8 million in the third quarter.
- Moderate pointAdjusted EBITDA increased 88% to $17.7 million.
- Moderate pointNet income was $93.9 million, including an $85.1 million customer-warrant fair-value change.
Negative
- Moderate pointAdjusted net income was $4.8 million, versus $35.1 million a year earlier.
- Moderate pointNine-month operating cash use was $130.3 million, versus $65.9 million.
Filing Explained
For the third quarter, B&W reported basic EPS of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $290.8 million
Adjusted EBITDA: $17.7 million
Net income: $93.9 million
+5 more
8 metrics
Revenue
$290.8 million
Third quarter 2026; $139.2 million in third quarter 2025; 109% increase
Adjusted EBITDA
$17.7 million
Third quarter 2026; $9.4 million in third quarter 2025; 88% increase
Net income
$93.9 million
Third quarter 2026; $35.1 million in third quarter 2025; included an $85.1 million change in fair value of customer warrants
Adjusted net income
$4.8 million
Third quarter 2026; $35.1 million in third quarter 2025
Bookings
$228 million
Third quarter 2026; 112% increase compared with third quarter 2025
Backlog
$2.5 billion
Third quarter 2026; 571% increase compared with third quarter 2025
Cash, cash equivalents and restricted cash
$128.9 million
As of September 30, 2026
Net cash used in operating activities
$130.3 million
Nine months ended September 30, 2026; $65.9 million in the same period of 2025
Key Terms
Adjusted EBITDA, customer warrants, backlog, bookings, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $17.7 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
customer warrants financial
"change in fair value of customer warrants"
Warrants issued to customers are contracts that give a customer the right to buy a company’s shares at a set price for a limited time, often granted as part of a sale, loyalty program, or incentive. They matter to investors because if customers exercise those warrants the company issues new shares, which can dilute existing ownership and change the company’s share count and future earnings per share—think of them as discount coupons that can turn into additional shares.
backlog financial
"Bookings and backlog are our measures of remaining performance obligations"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
bookings financial
"Bookings represent changes to the backlog"
"Bookings" refer to the total value of new sales or agreements a company secures during a specific period. It shows how much business the company has signed up for, even if the products or services haven't been delivered yet. This figure helps investors understand the company's future growth potential.
pipeline financial
"Pipeline represents our uncontracted, potential opportunities"
A pipeline is the organized list of products, drugs or projects a company is developing but has not yet fully launched or commercialized. For investors it acts like a forecasted inventory of future revenue sources — showing what could become earnings, how far along each item is, and the risk and time before they might pay off; think of it as a company’s product roadmap that helps gauge growth potential and uncertainty.
Earnings Snapshot
Revenue: $290.8 million · Guidance included
Third quarter 2026
Revenue
$290.8 million
109% increase versus third quarter 2025
Net income
$93.9 million
Compared with $35.1 million in third quarter 2025
Adjusted net income
$4.8 million
Compared with $35.1 million in third quarter 2025
Adjusted EBITDA
$17.7 million
88% increase versus third quarter 2025
Guidance
Full-year 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million; full-year 2027 target range of $125 million to $140 million. The company said these targets are not intended as guidance regarding how it believes the business will perform.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did BW report in Q3 2026?
Babcock & Wilcox reported $290.8 million of revenue in the third quarter of 2026, a 109% increase from $139.2 million in the third quarter of 2025. The company attributed the increase primarily to higher large-project volume, including $77.8 million from Base Electron.
What are BW's Adjusted EBITDA targets?
B&W reiterated a full-year 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million and issued a full-year 2027 target range of $125 million to $140 million. The company said these targets are not intended as guidance regarding how it believes the business will perform.
How does BW define its backlog?
B&W generally includes expected contract revenue in backlog after receiving written customer confirmation authorizing the work and committing the customer to payment. Backlog may be canceled or modified, may not indicate future operating results, and excludes orders of unconsolidated joint ventures.
What did BW report about its North Dakota data center project?
Management said the project remained on track, with manufacturing of boilers, steam turbines and other long-lead-time components progressing. Nearly all required permit applications had been submitted, and county approval had been secured for conditional use and zoning permits.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 9, 2026
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant’s Telephone Number, including Area Code: (330 ) 753-4511
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On November 9, 2026, the Company issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1, and the information contained in Exhibit 99.1 is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
99.1 | Press release dated November 9, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
2
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
BABCOCK & WILCOX ENTERPRISES, INC. | |||||||||||
November 9, 2026 | By: | /s/ Cameron Frymyer | |||||||||
Cameron Frymyer | |||||||||||
| Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer and Duly Authorized Representative) | |||||||||||
3
| Exhibit 99.1 | ||
| News Release | ||
Babcock & Wilcox Enterprises Reports Third Quarter 2026 Results
•Revenue in the third quarter of $291 million, a 109% increase compared to the same period of 2025
•Net Income was $94 million in the third quarter, including revaluation of warrants
•Earnings per share of $0.61, compared to earnings per share of $0.30 in the third quarter of 2025
•Adjusted EBITDA in the third quarter of just under $18 million, an 88% increase compared to the same period of 2025
•Bookings of $228 million in the third quarter, a 112% increase compared to the same period of 2025
•Backlog of $2.5 billion in the third quarter, a 571% increase compared to the same period of 2025
•Total global pipeline exceeds $16 billion including 6 gigawatts of new incremental power for utilities, industrials and data centers
•Repurchased $38 million in shares during the quarter
•Completed the full redemption of $62 million of outstanding 6.5% bonds due in December 2026
•Issued full year 2027 Adjusted EBITDA target range of $125 million to $140 million
Q3 2026 Financial Highlights and Outlook
–Revenue of $290.8 million, compared to revenue of $139.2 million in the third quarter of 2025
–Net income of $93.9 million, compared to net income of $35.1 million in the third quarter of 2025
–Adjusted Net Income, which excludes non-cash warrant and other stock valuations, was $4.8 million in the third quarter
–Earnings per share of $0.61, compared to earnings per share of $0.30 in the third quarter of 2025
–Adjusted EBITDA of $17.7 million, compared to adjusted EBITDA of $9.4 million in the third quarter of 2025
–Company reiterates full year 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million
(AKRON, Ohio – November 9, 2026) – Babcock & Wilcox Enterprises, Inc. ("B&W", "Babcock & Wilcox" or the "Company") (NYSE: BW) announced its financial results for the third quarter of 2026.
"B&W maintained its strong performance in the third quarter of 2026, reflecting continued demand across all of our businesses and sustained operational momentum," said Kenneth Young, B&W's Chairman and Chief Executive Officer. "Rising global electricity demand is fueling increased needs from utilities, industrial and data center customers for our parts and services businesses and continues to drive new power generation opportunities. These trends support strong performance across our core parts and services, environmental technologies, and coal and natural gas-fired power generation solutions."
"B&W is well positioned to capitalize on these opportunities, which is reflected in our strong bookings performance, especially in our projects and core parts and services groups. Momentum in the data center market continues to build, with our pipeline now exceeding 6 gigawatts of opportunities. Our current data center project in North Dakota remains on track, as manufacturing of the boilers, steam turbines and
other long-lead-time components is progressing rapidly. Significant progress has been made on permitting, with nearly all required applications submitted and county approval secured for conditional use and zoning permits. The continued advancement of this project reinforces that B&W has the experience and resources needed to bring power generation solutions to market quickly, further strengthening our position as we pursue additional data center and power generation opportunities."
"Our strong financial performance was underpinned by significant development in our bookings and backlog pipeline, setting the stage for continued growth in future quarters. During the third quarter, revenue and Adjusted EBITDA exceeded consensus street expectations and we continue to see positive momentum across our business. We have a strong balance sheet to support our fast-paced growth which includes increased working capital, from time to time," Young added. "As our business continues to expand, we are adding talent in our engineering, commercial and project development teams. Despite ongoing labor constraints throughout the country, B&W has continued to meet and exceed consensus expectations and we remain well positioned to see further growth as labor market conditions improve."
"Earlier this year, our Board of Directors authorized a share repurchase program, which reflects confidence in our balance sheet and our strategic approach to building shareholder value. During the third quarter, B&W repurchased $38 million in shares as part of this program. In addition, we have paid off the remaining $62 million in outstanding 6.5% bonds due in December 2026, resulting in the lowest company debt levels in recent history. Backed by strong industry tailwinds, limited company debt and active project discussions, we are optimistic about the path ahead for B&W, which gives us the confidence to issue a full year 2027 Adjusted EBITDA target range of $125 million to $140 million. We remain focused on executing our strategic vision, delivering on our existing portfolio and advancing our long-term growth initiatives."
Q3 2026 Financial Summary
Revenues in the third quarter of 2026 were $290.8 million versus revenues of $139.2 million in the third quarter of 2025, primarily driven by an increase in large project volume, including $77.8 million from Base Electron. Operating income in the third quarter of 2026 was $13.8 million, compared to operating income of $3.4 million in the third quarter of 2025. Net Income in the third quarter of 2026 was $93.9 million, compared to net income of $35.1 million in the third quarter of 2025, driven by the improvement in operating income results. We benefited from a reduction to interest expense of $4.4 million and change in fair value of customer warrants of $85.1 million. Earnings per share in the third quarter of 2026 was $0.61 compared to earnings per share of $0.30 in the third quarter of 2025. Adjusted EBITDA was $17.7 million, an increase compared to $9.4 million in the third quarter of 2025.
Reconciliations of the non-GAAP measures of Adjusted EBITDA and adjusted net income to the most directly comparable GAAP measures are provided in the exhibits to this release. See “Bookings and Backlog” below for important information regarding our calculation and presentation of those metrics.
Liquidity and Balance Sheet
At September 30, 2026, the Company had secured debt and bonds of $166.4 million, and a cash, cash equivalents and restricted cash balance of $128.9 million. During the third quarter, B&W completed full redemption of the $61.8 million in outstanding 6.5% bonds due in December 2026.
Earnings Call Information
B&W plans to host a conference call and webcast on Monday, November 9, 2026 at 5 p.m. ET to discuss the Company's third quarter 2026 results. The listen-only audio of the conference call will be broadcast
live via the Internet on B&W’s Investor Relations site. The dial-in number for participants in the U.S. is (833) 461-5787; the dial-in number for participants in Canada is (833) 769-6440; the dial-in number for participants in all other locations is (585) 542-9983. The conference ID for all participants is 654862201. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures internally, also referred to in this release as “adjusted” financial measures, to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results and the accompanying reconciliation, the Company believes that its presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting its financial condition and results of operations than GAAP measures alone. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s related financial results prepared in accordance with GAAP.
Adjusted EBITDA on a consolidated basis is a non-GAAP metric and is calculated as earnings before interest expense, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, stock-based compensation, restructuring activities, impairments, gains and losses on debt extinguishment, legal and settlement costs, costs related to financial consulting, and amortization and valuation of customer warrants. In addition, the Company presents consolidated Adjusted EBITDA because it believes it is useful to investors to help facilitate comparisons of the ongoing, operating performance before overhead and other expenses not attributable to the operating performance of the Company.
The Company also presents the non-GAAP financial measure of adjusted net income, which excludes $(89.1) million of non-cash warrants and other stock-related costs, as management believes it is a useful measure for investors to accurately reflect the impact of recent stock price changes on income or costs related to customer warrants and stock-based compensation.
This release also presents certain targets for the Company's Adjusted EBITDA in the future; these targets are not intended as guidance regarding how the Company believes the business will perform. The Company is unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation, including business transition costs.
Bookings and Backlog
Bookings and backlog are our measures of remaining performance obligations under our sales contracts. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies.
We generally include expected revenue from contracts in our backlog when we receive written confirmation from our customers authorizing the performance of work and committing the customers to payment for work performed. Backlog may not be indicative of future operating results, and contracts in our backlog may be canceled, modified or otherwise altered by customers. Backlog can vary significantly from period to period, particularly when large new-build projects or operations and maintenance contracts are booked because they may be fulfilled over multiple years. Because we operate globally, our backlog is also affected by changes in foreign currencies each period. We do not include orders of our unconsolidated joint ventures in backlog.
Bookings represent changes to the backlog. Bookings include additions from booking new business, subtractions from customer cancellations or modifications, changes in estimates of liquidated damages that affect selling price and revaluation of backlog denominated in foreign currency. We believe comparing bookings on a quarterly basis or for periods less than one year is less meaningful than for longer periods and that shorter-term changes in bookings may not necessarily indicate a material trend.
Pipeline
Pipeline represents our uncontracted, potential opportunities, which have been identified and are in active discussions, that could reach a decision to proceed over the next 36 months. Pipeline is an internal metric monitored by management to understand the anticipated growth of our Company and our estimated future revenue, which may increase or decrease from time to time.
We cannot guarantee that our pipeline will result in actual revenue in the originally anticipated period or at all. Pipeline may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our pipeline fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.
Impacts of Market Conditions
Management continues to adapt to macroeconomic conditions, including the impacts from inflation, changing interest rates and foreign exchange rate volatility, current and potential tariff actions, geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East), and global shipping and supply chain disruptions that continued to have an impact across 2026. In certain instances, these situations have resulted in cost increases and delays or disruptions that have had, and could continue to have, an adverse impact on our ability to meet customers’ demands. Additionally, an increase in power demand has caused a shortfall in skilled labor, such as welders and electricians. These labor constraints increased construction costs and affected productivity. To the extent these conditions persist, they may adversely impact future project execution and operating results.
We continue to actively monitor the impact of these market conditions on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. The duration and scope of these conditions cannot be predicted, and therefore any anticipated negative financial impact on our operating results cannot be reasonably estimated.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this release are forward-looking statements. These forward-looking statements include, without limitation, statements regarding expected demand, our pipeline, technology, and opportunities. You should not place undue reliance on these statements. Forward-looking statements may include words such as "expect," "intend," "plan," "likely," "seek," "believe," "project," "forecast," "target," "goal," "potential," "estimate," "may," "might," "will," "would," "should," "could," "can," "have," "due," "anticipate," "assume," "contemplate," "continue" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events.
The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future
events, or otherwise, except as required by law. These forward-looking statements are based on management's current expectations and involve a number of risks and uncertainties, including, but not limited to: the potential for future conditions that could raise substantial doubt as to our ability to continue as a going concern, which has occurred in the past; risks associated with contractual pricing in our industry; disputes with customers with long-term contracts; the performance of third parties' and subcontractors' on whom we rely; disruptions at our or third-party manufacturing facilities; our ability to execute our growth strategy; our evaluation of strategic alternatives; our ability to deliver our backlog on time or at all; professional liability, product liability, warranty or other claims; inadequate insurance coverage; our ability to compete successfully against current and future competitors; our development of new products; cyclical and economic impacts on demand for our products; compliance with government regulations; legislative and regulatory developments impacting our business; supply chain issues; the financial and other covenants in our debt agreements; our ability to maintain adequate bonding and letter of credit capacity; impairment to our goodwill or other indefinite-lived intangible assets; our exposure to credit risk; disruptions in, or failures of, our information technology systems, including those related to cybersecurity; failure to comply with data and privacy laws, regulations and standards, or if we fail to properly maintain the integrity of our data, protect our proprietary rights to our systems or defend against cybersecurity attacks, we may be subject to government or private actions due to breaches; failure to protect our intellectual property rights, or inability to obtain or renew licenses to use intellectual property of third parties; uncertainty over tariffs and their impacts; sanctions and export controls; international political, economic and other uncertainties; fluctuations in the value of foreign currencies could harm our profitability; volatility of the market price and trading volume of our common stock; dilution of our common shareholders' ownership or voting power; the significant influence of B. Riley over us; anti-takeover provisions in our corporate documents; changes in tax rates or tax law; our ability to use NOL and certain tax credits; failure to maintain effective internal control over financial reporting; new accounting pronouncements or changes in existing accounting standards and practices; our ability to attract and maintain key personnel; our relationship with labor unions; a nationwide shortage of skilled labor; pension and medical expenses associated with our retirement benefit; natural disasters or other events beyond our control; and the risks and uncertainties described under the heading "Risk Factors" in Part I, Item 1A of our Annual Report and Quarterly Reports on Form 10-Q, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.
These forward-looking statements are made based upon detailed assumptions and reflect management's current expectations and beliefs. While we believe that these assumptions underlying the forward-looking statements are reasonable, forward-looking statements are subject to uncertainties and factors relating to our operations and business environment that are difficult to predict and may be beyond our control. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by the forward-looking statements.
About Babcock & Wilcox Enterprises, Inc.
Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.
# # #
| Investor Contact: | Media Contact: | ||||
| Cameron Frymyer, Chief Financial Officer | Ryan Cornell, Public Relations Lead | ||||
Babcock & Wilcox Enterprises, Inc. | Babcock & Wilcox Enterprises, Inc. | ||||
330.860.6802 | investors@babcock.com | 330.860.1345 | rscornell@babcock.com | ||||
Exhibit 1
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Statements of Operations (1)
(Unaudited)
| (In millions, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | $ | 290.8 | $ | 139.2 | $ | 824.9 | $ | 426.7 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of operations | 245.9 | 105.9 | 690.0 | 324.1 | |||||||||||||||||||
| Selling, general and administrative expenses | 30.5 | 29.1 | 108.6 | 90.8 | |||||||||||||||||||
| Research and development costs | 0.6 | 0.3 | 2.0 | 1.6 | |||||||||||||||||||
| Impairment of long-lived assets | — | — | — | 1.0 | |||||||||||||||||||
(Gain) loss on asset disposals, net | — | 0.6 | 0.4 | 0.7 | |||||||||||||||||||
| Total costs and expenses | 277.0 | 135.9 | 801.0 | 418.1 | |||||||||||||||||||
Operating income | 13.8 | 3.4 | 23.9 | 8.5 | |||||||||||||||||||
| Other (expense) income: | |||||||||||||||||||||||
| Interest expense | (4.1) | (8.5) | (13.5) | (30.5) | |||||||||||||||||||
| Interest income | 1.3 | 0.4 | 2.7 | 1.1 | |||||||||||||||||||
(Loss) gain on debt extinguishment | (0.6) | 1.7 | (0.6) | 1.7 | |||||||||||||||||||
| Benefit plans, net | 0.4 | (0.8) | 1.3 | (2.3) | |||||||||||||||||||
| Foreign exchange | (1.2) | (1.3) | (1.3) | (0.1) | |||||||||||||||||||
| Change in fair value of customer warrants | 85.1 | — | 20.8 | — | |||||||||||||||||||
Other income (expense), net | 0.2 | (0.3) | (0.5) | (0.9) | |||||||||||||||||||
Total other income (expense), net | 81.1 | (8.7) | 8.7 | (31.0) | |||||||||||||||||||
Income (loss) before income tax expense | 94.9 | (5.4) | 32.6 | (22.4) | |||||||||||||||||||
Income tax expense | 1.4 | 0.8 | 4.5 | 6.7 | |||||||||||||||||||
Income (loss) from continuing operations | 93.5 | (6.2) | 28.1 | (29.1) | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 0.4 | 41.2 | 3.1 | (16.3) | |||||||||||||||||||
Net income (loss) attributable to stockholders | 93.9 | 35.1 | 31.2 | (45.4) | |||||||||||||||||||
| Less: Dividend on Series A Preferred Stock | 3.7 | 3.7 | 11.1 | 11.1 | |||||||||||||||||||
Net income (loss) attributable to stockholders of common stock | $ | 90.2 | $ | 31.4 | $ | 20.1 | $ | (56.6) | |||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
| Continuing operations | $ | 0.61 | $ | (0.10) | $ | 0.12 | $ | (0.41) | |||||||||||||||
| Discontinued operations | — | 0.40 | 0.02 | (0.16) | |||||||||||||||||||
Basic earnings (loss) per share | $ | 0.61 | $ | 0.30 | $ | 0.14 | $ | (0.57) | |||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
| Continuing operations | $ | 0.02 | $ | (0.10) | $ | (0.05) | $ | (0.41) | |||||||||||||||
| Discontinued operations | — | 0.40 | 0.02 | (0.16) | |||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.02 | $ | 0.30 | $ | (0.03) | $ | (0.57) | |||||||||||||||
Shares used in the computation of earnings (loss) per share: | |||||||||||||||||||||||
| Basic | 147.3 | 103.0 | 141.2 | 99.9 | |||||||||||||||||||
| Diluted | 158.7 | 103.0 | 149.0 | 99.9 | |||||||||||||||||||
(1) Figures may not be clerically accurate due to rounding
Exhibit 2
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Balance Sheets (1)
(Unaudited)
| (In millions) | September 30, 2026 | December 31, 2025 | |||||||||
| Cash and cash equivalents | $ | 71.2 | $ | 89.5 | |||||||
| Current restricted cash | 29.0 | 85.0 | |||||||||
| Accounts receivable – trade, net | 260.0 | 118.4 | |||||||||
| Contracts in progress | 102.2 | 72.8 | |||||||||
| Inventories, net | 62.5 | 60.9 | |||||||||
| Customer contract asset current | 13.5 | 8.3 | |||||||||
| Other current assets | 37.2 | 35.9 | |||||||||
| Total current assets | 575.5 | 470.7 | |||||||||
| Net property, plant and equipment, and finance leases | 77.6 | 65.5 | |||||||||
| Goodwill | 52.2 | 53.1 | |||||||||
| Intangible assets, net | 12.7 | 15.3 | |||||||||
| Right-of-use assets | 16.3 | 17.7 | |||||||||
| Long-term restricted cash | 28.7 | 26.9 | |||||||||
| Deferred tax assets | 0.9 | 0.9 | |||||||||
| Customer contract asset noncurrent | 52.4 | — | |||||||||
| Other assets | 28.5 | 12.9 | |||||||||
| Total assets | $ | 844.7 | $ | 662.9 | |||||||
| Accounts payable | $ | 162.9 | $ | 69.2 | |||||||
| Accrued employee benefits | 6.6 | 4.6 | |||||||||
| Advance billings on contracts | 58.8 | 112.0 | |||||||||
| Accrued warranty expense | 3.4 | 3.6 | |||||||||
| Financing lease liabilities | 2.1 | 1.9 | |||||||||
| Operating lease liabilities | 3.6 | 3.8 | |||||||||
| Customer warrants | 51.8 | 8.3 | |||||||||
| Other accrued liabilities | 31.3 | 32.1 | |||||||||
| Current senior notes | — | 83.9 | |||||||||
| Current borrowings | 0.3 | 67.4 | |||||||||
| Total current liabilities | 320.8 | 386.7 | |||||||||
| Borrowings, net of current portion | 55.6 | 18.9 | |||||||||
| Senior Notes due 2030 | 146.6 | 151.0 | |||||||||
| Pension and other postretirement benefit liabilities | 153.0 | 176.2 | |||||||||
| Finance lease liabilities, net of current portion | 25.2 | 26.7 | |||||||||
| Operating lease liabilities, net of current portion | 13.8 | 15.1 | |||||||||
| Deferred tax liability | 10.5 | 10.7 | |||||||||
| Other noncurrent liabilities | 9.6 | 9.2 | |||||||||
| Total liabilities | 735.1 | 794.5 | |||||||||
Stockholders' equity (deficit): | |||||||||||
| Preferred stock | 0.1 | 0.1 | |||||||||
| Common stock | 5.8 | 5.6 | |||||||||
| Capital in excess of par value | 1,967.2 | 1,691.4 | |||||||||
| Treasury stock at cost | (169.0) | (115.9) | |||||||||
| Accumulated deficit | (1,676.7) | (1,696.7) | |||||||||
| Accumulated other comprehensive loss | (17.7) | (16.0) | |||||||||
Total stockholders' equity (deficit) | 109.6 | (131.5) | |||||||||
Total liabilities and stockholders' equity (deficit) | $ | 844.7 | $ | 662.9 | |||||||
(1) Figures may not be clerically accurate due to rounding.
Exhibit 3
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Statements of Cash Flows (1)
(Unaudited)
| (In millions) | Nine Months Ended September 30, | ||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities: | |||||||||||
Net income (loss) from continuing operations | $ | 28.1 | $ | (29.1) | |||||||
Net income (loss) from discontinued operations | 3.1 | (16.3) | |||||||||
Net income (loss) | 31.2 | (45.4) | |||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
| Depreciation and amortization of long-lived assets | 8.2 | 7.8 | |||||||||
| Impairment of long-lived assets | — | 9.9 | |||||||||
| Amortization of deferred financing costs and debt premium | (2.4) | 1.5 | |||||||||
| Amortization of guaranty fee | — | 0.1 | |||||||||
| Amortization of customer warrants | 6.6 | — | |||||||||
| Change in fair value of customer warrants | (20.8) | — | |||||||||
| Non-cash operating lease expense | 2.7 | 5.2 | |||||||||
Gain on sale of business | (3.1) | (17.3) | |||||||||
Loss (gain) on debt extinguishment | 0.6 | (1.7) | |||||||||
Loss on asset disposals, net | 0.4 | 0.9 | |||||||||
Benefit from deferred income taxes, including valuation allowances | (0.2) | (0.5) | |||||||||
| Prior service cost amortization for pension and postretirement plans | (1.3) | 0.4 | |||||||||
| Stock-based compensation | 12.9 | 2.2 | |||||||||
| Foreign exchange | 1.3 | (5.7) | |||||||||
Unrealized loss on securities | 0.1 | 2.2 | |||||||||
Bad debt expense | 0.1 | — | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable - trade, net | (152.9) | (6.3) | |||||||||
| Contracts in progress | (29.3) | 11.9 | |||||||||
| Other current and noncurrent assets | (2.4) | (8.2) | |||||||||
| Advance billings on contracts | (53.2) | 16.6 | |||||||||
| Inventories, net | (1.6) | (6.1) | |||||||||
| Income taxes | (7.4) | (0.1) | |||||||||
| Accounts payable | 93.2 | (33.2) | |||||||||
| Accrued and other current liabilities | (0.7) | 12.8 | |||||||||
| Accrued contract loss | 3.1 | (4.5) | |||||||||
| Pension liabilities, accrued postretirement benefits and employee benefits | (14.6) | (6.8) | |||||||||
| Other, net | (0.9) | (1.4) | |||||||||
Net cash used in operating activities | (130.3) | (65.9) | |||||||||
| Investing Activities: | |||||||||||
| Purchase of property, plant and equipment | (18.6) | (12.6) | |||||||||
| Proceeds from sale of business and assets | 3.9 | 187.5 | |||||||||
| Purchases of securities | (6.5) | (5.6) | |||||||||
| Sales and maturities of securities | 6.3 | 3.2 | |||||||||
Net cash (used in) provided by investing activities | (14.8) | 172.4 | |||||||||
| Financing Activities: | |||||||||||
| Borrowings on loan payable | 11.0 | 75.4 | |||||||||
| Repayments on loan payable | (41.3) | (126.8) | |||||||||
| Issuance of Senior Notes due 2030 | — | 5.4 | |||||||||
| Buyback of Senior Notes due 2026 | (84.8) | (6.3) | |||||||||
| Finance lease payments | (1.4) | (1.2) | |||||||||
| Payment of Preferred Stock dividends | (11.1) | (11.1) | |||||||||
| Employee tax withholding on stock-based compensation | (10.3) | (0.4) | |||||||||
| Issuance of common stock, net | 259.6 | 32.5 | |||||||||
| Payment of non-controlling interest dividends | — | (0.1) | |||||||||
| Repurchase of common stock | (42.9) | — | |||||||||
| Debt issuance costs | (5.5) | (4.4) | |||||||||
| Other, net | — | (0.3) | |||||||||
Net cash provided by (used in) financing activities | 73.2 | (37.4) | |||||||||
| Effects of exchange rate changes on cash | (0.7) | 0.9 | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (72.5) | 70.0 | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 201.4 | 131.1 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 128.9 | $ | 201.1 | |||||||
(1) Figures may not be clerically accurate due to rounding.
Exhibit 4
Babcock & Wilcox Enterprises, Inc.
Reconciliation of Adjusted EBITDA (1)
(In millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 93.5 | $ | (6.2) | $ | 28.1 | $ | (29.1) | |||||||||||||||
| Interest expense, net | 2.8 | 8.1 | 10.9 | 29.4 | |||||||||||||||||||
Income tax expense | 1.4 | 0.8 | 4.5 | 6.7 | |||||||||||||||||||
| Depreciation & amortization | 3.2 | 2.9 | 8.2 | 7.3 | |||||||||||||||||||
| EBITDA | 100.9 | 5.6 | 51.7 | 14.3 | |||||||||||||||||||
| Impairment of long-lived assets | — | — | — | 1.0 | |||||||||||||||||||
| Benefit plans, net | (0.4) | 0.8 | (1.3) | 2.3 | |||||||||||||||||||
(Gain) loss on asset disposals, net | — | 0.6 | 0.4 | 0.7 | |||||||||||||||||||
| Stock-based compensation | (2.0) | 0.7 | 12.9 | 2.3 | |||||||||||||||||||
| Restructuring activities | — | — | 2.5 | 0.1 | |||||||||||||||||||
Loss (gain) on debt extinguishment | 0.6 | (1.7) | 0.6 | (1.7) | |||||||||||||||||||
Settlements and related legal costs | 0.1 | 0.3 | 0.1 | 0.9 | |||||||||||||||||||
| Foreign exchange | 1.2 | 1.3 | 1.3 | 0.1 | |||||||||||||||||||
| Financial advisory services | 0.1 | 1.6 | 0.8 | 6.8 | |||||||||||||||||||
| Customer warrant amortization | 2.5 | — | 6.6 | — | |||||||||||||||||||
| Change in fair value of customer warrants | (85.1) | — | (20.8) | — | |||||||||||||||||||
| Other-net | (0.2) | 0.3 | 0.5 | 0.7 | |||||||||||||||||||
| Adjusted EBITDA | $ | 17.7 | $ | 9.4 | $ | 55.5 | $ | 27.3 | |||||||||||||||
(1) Figures may not be clerically accurate due to rounding.
Exhibit 5
Babcock & Wilcox Enterprises, Inc.
Reconciliation of Net Income (loss) (1)
(In millions)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net income (loss) | $ | 93.9 | $ | 35.1 | $ | 31.2 | $ | (45.4) | |||||||||||||||
Stock appreciation rights (2) | (4.7) | — | 0.6 | — | |||||||||||||||||||
Customer warrants (3) | (84.4) | — | (13.5) | — | |||||||||||||||||||
Adjusted net income (loss) | $ | 4.8 | $ | 35.1 | $ | 18.3 | $ | (45.4) | |||||||||||||||
(1) Figures may not be clerically accurate due to rounding.
(2) Stock appreciation rights issued in 2018 for target stock price of $22.50 and $25.00 to current and former employees. The change in fair value of the stock appreciation rights was $(4.7) million and $0.6 million for the three and nine months ended September 30, 2026, increased by the tax effect of $0.1 million and $0.8 million for the three and nine months ended September 30, 2026, respectively.
(3) These customer warrants consist of an initial warrant issued to Applied Digital in November 2025, and an additional warrant which vested in February 2026. A portion of the customer warrants were assigned to Base Electron in March 2026. The amount includes the variance in warrant value at quarter-end compared to the original valuation at grant of the awards which is reported separately as expense (income) in the calculation of income. This also includes amortization of the cost of the warrants reported as a reduction in revenue for the period. The tax effect of these adjustments is an increase of $1.7 million and a decrease of $0.6 million for the three and nine months ended September 30, 2026, respectively.