Babcock & Wilcox Enterprises, Inc. 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Babcock & Wilcox Enterprises reported strong second quarter 2026 results with consolidated revenues of $319.7 million, a 130% increase compared to Q2 2025.
- Net income for Q2 2026 was $14.3 million, up $72.8 million from the same period last year.
- Adjusted EBITDA for Q2 2026 was $21.8 million, a $7.9 million increase year over year.
- First half 2026 revenues reached $534.1 million, significantly higher than $287.5 million in the first half of 2025, driven by large project volume including $131.7 million from the base electron project.
- Bookings for the first half of 2026 totaled $2.7 billion, a 1058% increase compared to the first half of 2025, and backlog was $2.6 billion in Q2 2026, up 533% year over year.
- Total project pipeline exceeds $14 billion, including 4 to 6 gigawatts of power generation opportunities, with growing demand from utilities, industrial, and AI data center customers.
- The base electron project is progressing ahead of expectations and on budget, with construction planned to start in early 2027.
- Babcock & Wilcox secured manufacturing reservation rights for an additional one gigawatt of steam turbines from Siemens Energy to support future data center projects.
- The company is increasing workforce hiring and training to address skilled labor shortages, which impacted direct costs on a specific construction project in Q2 2026.
- The Bright Loop commercial scale demonstration project in Massillon, Ohio is progressing with fabrication ongoing and major construction expected to begin later in 2026, targeting operation in late 2027.
- Total debt as of June 30, 2026 was $276.8 million, with cash and equivalents at $382.8 million.
- The company repurchased $61.8 million of outstanding December 2026 bonds and authorized a new $50 million share repurchase program.
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Transcript
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Good afternoon. Thank you for attending the Babcock & Wilcox Enterprises' second quarter 2026 conference call. All lines will be muted during the presentation portion for the call, with an opportunity for questions and answers at the end. I would now like to turn the conference over to your host, Sharyn Brooks, B&W's Director of Communications. Thank you. You may proceed, Ms. Brooks.
Thank you, Crystalyn, and thanks to everyone for joining us on Babcock & Wilcox Enterprises' second quarter 2026 earnings conference call. I'm Sharyn Brooks, Director of Communications. Joining the call today are Kenneth Young, B&W's Chairman and Chief Executive Officer, and Cameron Frymyer, Chief Financial Officer, to discuss our second quarter results. During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and in our quarterly report on Form 10-Q that was filed with the SEC earlier today. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. We also provide non-GAAP information regarding certain historical and targeted results to supplement the results provided in accordance with GAAP.
This information, which includes a discussion of adjusted EBITDA and adjusted net income, should not be considered superior to or a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our second quarter 2026 earnings release published earlier today, and in our company overview presentation filed on Form 8-K, which is posted on the investor relations section of our website at babcock.com. Please also see our second quarter 2026 earnings release published on August 10, 2026 for further information regarding our bookings and backlog. I will now turn the call over to Kenny.
Thanks, Sharyn. Good afternoon, everyone, and thanks for joining us on our second quarter 2026 earnings call. We are pleased to report another strong quarter highlighted by robust financial results and active project development and continued operational momentum in our core business and further strategic debt reduction and stock repurchase. During the second quarter, Babcock & Wilcox continued to benefit from the growing need for reliable electrical generation from all sources of power consumption, including utilities, industrial, and data center customers. These tailwinds drove strong operating results during the quarter and led us to raise our full year 2026 adjusted EBITDA target range from $80 million to $105 million. As excited as we are about the increasing opportunities in new utility, industrial, and AI, and data center power generation project opportunities, we're equally excited about the strong results in our core projects as well as our parts and services businesses.
These businesses have and continue to be strong cash generators for the company and continue to deliver significant growth each quarter due to the increased demand from coal and natural gas utilization, especially in the U.S. Our quarterly financial results were highlighted by revenue, net income, and adjusted EBITDA, all of which exceeded both company and consensus expectations. in the second quarter of 2026, our pipeline, bookings, and backlog saw significant development as well. Our total pipeline is now over $14 billion, including 4-6 gigawatts worth of power generation opportunities. Our bookings and backlog surged year-over-year, fueled by our core business growth and continued development of our Base Electron project in North Dakota. In the first half of 2026, we had bookings of $2.7 billion, which was an increase of more than 1,058% compared to the first half of 2025.
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