Shares of Babcock & Wilcox Enterprises surged after the company reported second-quarter revenue above Wall Street's expectations, driven by a higher volume of large projects.

Shares were up 39% to $12.36 in after-hours trading Monday, after closing down 5.2% at $8.88. At close, the stock had gained 40% this year.

The maker of energy and environmental products on Monday reported a profit of $14.3 million, or 7 cents a share, compared with a loss of $58.5 million, or 63 cents a share, a year earlier.

Revenue rose to $319.7 million, up from $138.9 million a year prior. Analysts polled by FactSet were expecting $197 million in revenue.

The increase was driven by a higher volume of large projects, including $100.7 million in revenue from an agreement with the Applied Digital-backed power producer Base Electron, the company said.

The company ended the quarter with a backlog of $2.6 billion, up more than sixfold year over year.

Chief Executive Officer Kenneth Young said the company has benefited from growing electricity demand, including from artificial-intelligence data centers.

"This increase in global energy demand positions us for sustained success across our higher-margin Global Parts and Services business and provides B&W with a strong outlook for the second half of 2026 and beyond," Young said.

The company is boosting its full-year adjusted earnings before interest, taxes, depreciation, and amortization target range to between $80 million and $105 million, Young said.