Babcock Q2 Earnings Call Highlights

Second-quarter results surpassed expectations: Revenue rose 130% year over year to $319.7 million, while net income reached $14.3 million and adjusted EBITDA increased to $21.8 million. Babcock raised its full-year 2026 adjusted EBITDA target to $80 million–$105 million. Bookings and growth prospects expanded sharply: First-half bookings reached $2.7 billion and second-quarter backlog grew to $2.6 billion, supported by large projects and demand from utilities, industrial customers and AI data centers. The company’s pipeline exceeds $14 billion, including 4–6 gigawatts of power-generation opportunities. Data-center and technology initiatives advanced: The Base Electron project in North Dakota is ahead of schedule and on budget, while a second data-center project could receive approval in 2026. Babcock also continues developing its BrightLoop hydrogen and carbon-capture technology, though skilled-labor shortages increased costs on one construction project.

Babcock NYSE: BW reported higher second-quarter revenue, net income and adjusted EBITDA, citing increased project activity and demand for reliable power generation from utility, industrial and data center customers. Chairman and Chief Executive Officer Kenny Young said the company raised its full-year 2026 adjusted EBITDA target range to $80 million to $105 million following first-half results and continued demand visibility. He pointed to growth in the company’s core projects, parts and services businesses, as well as development of power-generation projects intended to serve AI data centers.

Chief Financial Officer Cameron Frymyer said consolidated revenue for the second quarter totaled $319.7 million, up 130% from the prior-year period. Net income was $14.3 million, an improvement of $72.8 million from the second quarter of 2025, while adjusted EBITDA rose $7.9 million year over year to $21.8 million. For the first half of 2026, revenue reached $534.1 million, compared with $287.5 million in the first half of 2025. Frymyer attributed the increase primarily to higher large-project volume, including $131.7 million associated with the Base Electron project, alongside demand for electricity generated from fossil fuels. The company recorded a first-half net loss of $62.7 million, compared with a net loss of $80.5 million a year earlier. Frymyer said the 2026 loss included $77.4 million in non-cash warrant and other stock-related costs tied to the company’s stock performance. Excluding those items, Babcock & Wilcox reported adjusted net income of $14.7 million for the first half. First-half adjusted EBITDA increased to $37.8 million from $17.9 million in the prior-year period.

Babcock & Wilcox also reported substantial growth in its order book. First-half bookings totaled $2.7 billion, up more than 1,058% from the first half of 2025, while second-quarter backlog stood at $2.6 billion, a 533% increase from a year earlier. Young said the company’s total pipeline exceeded $14 billion, including an estimated 4 to 6 gigawatts of power-generation opportunities.

Young said the company’s initial data center project with Base Electron in North Dakota was progressing ahead of expectations and on budget. Manufacturing of boilers, steam turbines and other long-lead components is underway,...