Why Babcock & Wilcox Enterprises Stock Popped Today
Key Points
Babcock & Wilcox Enterprises beat on earnings last night, delivering twice the expected profit.
The company is partnering with Siemens to produce 1 GW of power equipment for data center customers.
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Energy equipment producer Babcock & Wilcox Enterprises (NYSE: BW) stock jumped 8% through 11:25 a.m. ET Tuesday after beating earnings expectations last night.
Heading into the report, analysts expected B&W to earn only $0.03 per share on sales of less than $197 million in Q2 2026. The company actually earned more than twice that -- $0.07 per share -- and crushed on sales as well, reporting revenue of $319.7 million.
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Babcock & Wilcox Q2 earnings
Sales surged 130% year over year, and earnings flipped from a $0.63 per share loss a year ago to the aforementioned $0.07 per share profit. And while it would be tough to keep these numbers going consistently, B&W noted its Q2 bookings were $151 million -- not enough to replace $320 million in orders going out the door, but still up 38% year over year.
So business remains brisk.
CEO Kenneth Young credited "the growing need for reliable electricity from AI data centers, utilities, industrial customers and expanding economies" for his company's Q2 success, saying this is "driving strong demand for our core parts and services" -- as evidenced by continued strong order growth.
In further evidence of this demand, B&W announced today it will purchase 20 steam turbine generator sets from German industrial giant Siemens (NYSE: SI). Paired with B&W's industrial boilers, these units will generate 1 gigawatt of electricity for the company's artificial intelligence data center customers.
What's next for Babcock & Wilcox stock
Babcock & Wilcox management did not provide guidance for Q3 or beyond. But with $2.6 billion in backlog, the company has a big enough book of business to keep it busy for the next three years.
Now let's just see if they can keep doing so -- profitably.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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