Babcock & Wilcox revenue jumps 44% on AI-driven power demand

Babcock & Wilcox Enterprises (NYSE:BW) posted first-quarter 2026 revenue of $214.4 million, a 44% increase over the same period last year.

The top-line growth was primarily fueled by the commencement of the "Base Electron" project—a transformational 1.2 GW power plant contract designed to meet the rising energy demands of the artificial intelligence sector.

While the company reported a net loss from continuing operations of $79.6 million, management noted the figure was heavily skewed by $81.8 million in non-cash charges.

These charges were related to the increased valuation of customer warrants and stock appreciation rights, triggered by the company's significant share price appreciation during the quarter.

On an adjusted basis, B&W recorded a net income of $2.2 million, a sharp recovery from the $15.6 million adjusted loss a year ago.

Adjusted EBITDA rose nearly 300% to $16.1 million, reflecting stronger underlying performance across its core segments.

The company’s total backlog has skyrocketed to $2.7 billion, a 483% increase year-over-year, providing multi-year visibility as utilities lean on B&W for life-extension work and new baseload capacity.

Meanwhile, the Akron-based firm made significant strides in its balance sheet "holistic reset," reducing its net debt to $42.4 million by the end of the quarter.

B&W also repurchased $15 million of its senior notes due in late 2026 and stated that previous concerns regarding its ability to continue as a going concern have been "alleviated."

Elsewhere, Babcock & Wilcox reiterated its full-year 2026 adjusted EBITDA target range of $80 million to $100 million, citing a global sales pipeline that now exceeds $14 billion.