Babcock & Wilcox: Buying 20 Steam Turbines From Siemens Further Solidifies The Growth Pipeline

Babcock & Wilcox is rated STRONG BUY, leveraging speed-to-market power solutions for data centers amid surging demand and grid constraints. BW's $2.4B Base Electron contract and $14B sales pipeline position it for significant growth, with a second major deal anticipated by year-end. The FastPower deal with Siemens secures 20 steam turbines, enabling BW to deliver 1GW of modular, flexible power for multiple data center projects. BW's net positive cash position funds growth, but project execution and cost control remain key risks as it scales up.

Babcock & Wilcox (BW) has been a beneficiary of data center development. Power is the main constraint in these projects and has tightened to the point where the market will accept any form of