Overview

* Babcock & Wilcox ( BW ) 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/Mis Actual Consensu

s s

Estimate

Q3 Miss $149 mln $155.56

Revenue mln (3

Analysts

)

Q3 Net $35.10

Income mln

Q3 $6.50

Operatin mln

g Income

Q3 -$1.30

Pretax mln

Profit

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 ( BW ) is $1.50, about 149.3% below its November 4 closing price of $3.74

Press Release:

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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.)