Babcock & Wilcox Stock Jumps 18% the Day After Third-Quarter Results

Babcock & Wilcox Enterprises (NYSE: BW) shares rose 18.2% on Tuesday, closing at $4.48 against a previous close of $3.79, on volume about 4.1 times normal. The S&P 500 ETF (SPY) fell 0.37% over the same session. The move came the day after the company filed its third-quarter results in an 8-K with a press release attached, and the stock's reaction followed that release. The company did not state a reason for the move beyond its results.

Revenue more than doubled

Revenue for the quarter ended Sept. 30 was $290.8 million, compared with $139.2 million a year earlier, driven mainly by large project volume, including $77.8 million from Base Electron. Operating income was $13.8 million, against $3.4 million in the same quarter of 2025. Adjusted EBITDA was $17.7 million, up from $9.4 million.

Warrant revaluation lifted net income

Net income was $93.9 million, or $0.61 per basic share, but the company said the figure included an $85.1 million gain from the change in fair value of customer warrants. Adjusted net income, which excludes non-cash warrant and stock valuations, was $4.8 million. Diluted earnings per share were $0.02.

Backlog and guidance

Backlog reached $2.5 billion at the end of the quarter, and bookings were $228 million. The company reiterated its 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million and issued a 2027 target of $125 million to $140 million. Chief Executive Kenneth Young said the company's data center pipeline now exceeds 6 gigawatts.

Debt and cash

The company said it fully redeemed $62 million of 6.5% bonds due in December 2026 and repurchased $38 million of its shares during the quarter. At Sept. 30, it held $128.9 million in cash, cash equivalents and restricted cash and $166.4 million in secured debt and bonds.