Babcock & Wilcox Enterprises, Inc. Announces Strong Q4 and Full Year 2025 Results

Key Highlights

• Revenue, Operating Income, and EBITDA exceed street expectations.
• Fourth quarter revenue of \$161.0 million.
• Operating income in Q4 of \$12.2 million, up from \$2.6 million in Q4 2024.
• Adjusted EBITDA from Continuing Operations in Q4 of \$16.4 million, up 53% year-over-year.
• Parts & Services revenues grew 17% in 2025, outperforming expectations due to increased coal generation usage and higher baseload demand in North America.
• Full pay-off of bonds due February 2026 in December 2025.
• Full notice to proceed signed for a \$2.4 billion AI data center project.
• Total global pipeline exceeds \$12.0 billion.
• Backlog surges to \$2.8 billion, including the \$2.4 billion data center project—a 470% increase compared to end of 2024.
• Net debt reduced to \$119.7 million, with total debt of \$321.1 million and cash, equivalents, and restricted cash at \$201.4 million.

Detailed Financial Performance

Fourth Quarter 2025

• Revenue: \$161.0 million (Q4 2024: \$161.8 million)
• Operating income: \$12.2 million (Q4 2024: \$2.6 million)
• Loss from Continuing Operations: \$3.5 million (improved from \$53.8 million loss in Q4 2024)
• Loss per share: \$0.05 (Q4 2024: \$0.61)
• Adjusted EBITDA: \$16.4 million (Q4 2024: \$10.7 million)

Full Year 2025

• Revenue: \$587.7 million (2024: \$581.0 million)
• Loss from Continuing Operations: \$32.8 million (2024: \$104.3 million)
• Loss per share: \$0.45 (2024: \$1.30)
• Adjusted EBITDA: \$43.7 million (2024: \$21.2 million; up 107%)
• Backlog: \$2.8 billion (2024: \$495 million; increase driven by new AI data center contract)

Major Corporate Developments

• AI Data Center Contract: Agreement signed with Base Electron, backed by Applied Digital (NASDAQ: APLD), for a \$2.4 billion project utilizing efficient natural gas technology for AI Factory campuses. This project moved from the pipeline to backlog, significantly increasing the backlog and providing visibility on future revenue.
• Debt Reduction: The company paid off all bonds due February 2026 ahead of schedule and plans to pay off December 2026 bonds in 2026. Senior debt levels have been reduced, and the maturity date of the Axos facility has been extended.
• Growth in Parts & Services: Continued outperformance due to increased coal generation usage and higher baseload demand, especially from data centers and industrial customers.
• Pipeline Expansion: Global pipeline of identified project opportunities now exceeds \$12.0 billion. Even after converting the \$2.4 billion data center project from pipeline to backlog, the pipeline still grew by 20% in 2025.
• Strategic Positioning: B&W positions itself to capitalize on growing global demand for baseload power generation, increased coal utilization, and rapid expansion in energy needs driven by AI and data center growth.
• Balance Sheet Improvement: Net debt reduced to \$119.7 million, and liquidity is strong with over \$200 million in cash and equivalents.

Potentially Price Sensitive Information for Shareholders

• AI Data Center Contract (\$2.4 billion): This is a transformational project for B&W, likely to have a substantial positive impact on future revenue and earnings visibility. The formal move from limited to full notice to proceed is a milestone.
• Backlog Surge: Backlog up 470% year-over-year, driven by the AI data center contract. Investors often view backlog as an indicator of future revenue and profit potential, which could positively affect share price.
• Debt Reduction and Improved Liquidity: Paying off bonds ahead of schedule and reducing net debt strengthens the balance sheet, lowers risk, and may improve market perception.
• Adjusted EBITDA Growth: 107% increase year-over-year demonstrates tangible progress from strategic actions and operational improvements.
• Pipeline Growth: The global pipeline remains robust (> \$12 billion), signaling continued opportunities for further growth, especially in the rapidly expanding AI/data center power generation sector.
• Ongoing Macroeconomic Risks: Management notes continued risks from inflation, interest rates, supply chain disruptions, and geopolitical conflicts. These could impact margins and delivery timelines, and investors should monitor these closely.
• Forward-Looking Statements and Risks: The company cautions that backlog and pipeline may not convert to revenue as planned, and external factors (tariffs, regulations, competition, supply chain, etc.) may impact results.

Condensed Consolidated Financials

Balance Sheet (as of December 31, 2025)

• Total assets: \$662.9 million
• Total liabilities: \$794.5 million
• Stockholders’ deficit: \$(131.5) million (improved from \$(283.2) million at end of 2024)
• Cash, cash equivalents, and restricted cash: \$201.4 million
• Current borrowings: \$67.4 million, Senior notes (due 2030): \$151.0 million

Cash Flow Highlights

• Net cash used in operating activities: \$(68.9) million (improved from \$(118.7) million in 2024)
• Net cash provided by investing activities: \$197.0 million (2024: \$109.9 million)
• Net cash used in financing activities: \$(58.7) million (2024: \$69.7 million provided)
• Cash, cash equivalents, and restricted cash increased by \$70.3 million during the year

Adjusted EBITDA Reconciliation

Backlog Breakdown (Pro Forma)

• Babcock & Wilcox: \$424 million
• Base Electron AI Data Center Contract: \$2,400 million
• Total Pro Forma Backlog: \$2,824 million (up from \$495 million at end of 2024)

Management Commentary

“During the fourth quarter of 2025, we delivered strong operating results while displaying continued core business momentum and achieving a substantial reduction of debt on our balance sheet. Adjusted EBITDA and Operating Income significantly outperformed consensus street expectations for the quarter. The improvements in our operating results demonstrate B&W’s evolution and the notable strategic advancements we have made since 2024. Additionally, our core parts & services continued to excel, reflecting tailwinds from increased coal baseload generation usage due to higher demand from consumers, industrials and data centers. We have reduced our senior debt levels and recently extended the maturity date of our Axos facility.” — Kenneth Young, Chairman and CEO

“Our announcement of full notice to proceed on our project with Base Electron is an exciting step forward as B&W further expands into power generation for the rapidly evolving AI Data Center space. We believe that our proven and previously installed natural gas-fired boilers and related technologies—as well as steam turbines supplied through an agreement with Siemens Energy—will provide the reliable, high-capacity energy generation on the fast-track schedule that is required to meet the demand of the power grid today.” — Kenneth Young

Risks and Forward-Looking Statements

• Backlog and pipeline may not convert to revenue as anticipated, and contracts may be canceled or delayed.
• Macroeconomic factors (inflation, interest rates, tariffs, geopolitical conflicts, supply chain disruptions) may impact costs, margins, and delivery timelines.
• Company faces risks related to debt refinancing, competition, regulatory changes, cybersecurity, intellectual property, and other external factors.

Investor and Media Contacts

Investor Contact: Cameron Frymyer, Chief Financial Officer
Email: [email protected]
Phone: 330.860.6176

Media Contact: Ryan Cornell, Public Relations Lead
Email: [email protected]
Phone: 330.860.1345

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice. Forward-looking statements herein are based on current management expectations and are subject to risks and uncertainties which may cause actual results to differ materially. Investors should review all relevant filings and disclosures from Babcock & Wilcox Enterprises, Inc. and consult with a qualified financial advisor before making any investment decisions.

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