Overview
Babcock & Wilcox Q3 revenue misses analyst expectations
Operating income for Q3 rises 315% yr/yr, beating street expectations
Adjusted EBITDA for Q3 increases 59% yr/yr, exceeding expectations
Outlook
Company targets 2026 Adjusted EBITDA of $70 mln to $85 mln, excluding AI projects
B&W sees strong demand for power from AI data centers driving growth
Company expects continued growth in parts and services revenue in 2025
Result Drivers
AI DATA CENTER CONTRACT - Signed a limited notice to proceed for a $1.5 bln contract with Applied Digital for an AI Data Center project
BACKLOG GROWTH - Backlog increased 56% yr/yr, driven by demand for thermal projects and services
STRATEGIC PARTNERSHIP - Partnership with Denham Capital to convert coal plants to natural gas for AI Data Centers
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $149 mln | $155.56 mln (3 Analysts) |
Q3 Net Income | $35.10 mln | ||
Q3 Operating Income | $6.50 mln | ||
Q3 Pretax Profit | -$1.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy."
Wall Street's median 12-month price target for Babcock & Wilcox Enterprises Inc is $1.50, about 149.3% below its November 4 closing price of $3.74
Press Release: ID:nBw7Rbg0Ra
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)