Babcock & Wilcox Enterprises, Inc. ( BW ) shares are surging premarket on Thursday after the company disclosed a deal to sell its Diamond Power International business to Austria-based ANDRITZ for $177 million.

The transaction, which is expected to close in about 30 days, will also involve the transfer of around 400 employees to ANDRITZ.

Kenneth Young, B&W chairman and chief executive officer, stated that the sale of Diamond Power, which generates approximately $110 million in annual revenue, marks a significant milestone and highlights the value of the core assets as the company works to recapitalize for future growth.

Management noted that the company is experiencing growing demand for its BrightLoop technologies, particularly for steam and hydrogen production, as they offer a more cost-effective and capital-efficient solution than other hydrogen methods.

This proprietary technology, which enables low-cost hydrogen and steam generation with carbon capture capabilities is expected to play a key role in driving the company’s future growth.

Last month, the company reported a first-quarter loss per share of $(0.26), missing analysts' expectations of a $(0.13) loss, while revenue of $181.2 million exceeded the forecast of $162.6 million.

As of March 31, 2025, BW cash and cash equivalent stood at $21.6 million.

Price Action: BW shares are up 23% at $1.00 premarket at the last check on Thursday.

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