Babcock & Wilcox Enterprises (NYSE: BW) reported fourth-quarter and full-year 2025 results on Wednesday, revealing a transformative shift in its business profile as a multi-billion dollar AI data center contract propelled its backlog to record heights.
The energy technology provider ended the year with a backlog of $2.8 billion, a staggering 470% increase compared to the $486 million reported at the end of 2024.
The surge is almost entirely attributed to a recently signed $2.4 billion agreement to provide natural gas-fired power generation infrastructure for a massive AI data center "factory" project.
Under the "full notice to proceed" signed in early 2026, B&W will design and install four 300-megawatt power plants, including boilers and steam turbines, for partner Applied Digital.
Operationally, the company’s fourth-quarter revenue remained stable at $161 million, compared to $161.8 million in the prior-year period.
However, profitability showed marked improvement; the loss from continuing operations narrowed significantly to $3.5 million ($0.05 per share), down from a $53.8 million loss in Q4 2024.
Adjusted EBITDA from continuing operations rose 53% to $16.4 million, driven by strong performance in the higher-margin Parts & Services segment.
For the full year 2025, B&W reported revenue of $587.7 million and a total loss of $32.8 million.
Adjusted EBITDA more than doubled to $43.7 million, reflecting the company’s success in cutting costs and reducing high-interest debt.
By the end of December, B&W had successfully paid off its outstanding bonds due in February 2026, ending the year with a significantly cleaner balance sheet and net debt of $119.7 million.
Looking ahead to 2026, the company previously signaled core adjusted EBITDA guidance in the range of $70 million to $85 million—a target that does not include any potential upside from the $2.4 billion data center project.