Babcock & Wilcox Issues 2027 Adjusted EBITDA Target

The Tip Desk · November 12, 2026 · 3 min read

The company set a 2027 Adjusted EBITDA target of $125 million to $140 million after third-quarter revenue of $290.8 million and bookings of $228 million.

Babcock & Wilcox Enterprises (BW) issued a full-year 2027 Adjusted EBITDA target range of $125 million to $140 million after a third quarter in which revenue more than doubled from a year earlier and bookings rose from the immediately preceding period.

The energy and environmental products company reported third-quarter revenue of $290.8 million, up 109% from $139.2 million in the third quarter of 2025. Sequential revenue declined from $319.7 million in the second quarter. The company said the increase was primarily driven by an increase in large project volume, including $77.8 million from Base Electron.

Adjusted EBITDA was $17.7 million, up 88% from $9.4 million a year earlier. Operating income was $13.8 million, compared with $3.4 million a year earlier. Chairman and Chief Executive Officer Kenneth Young said revenue and Adjusted EBITDA exceeded consensus street expectations.

Net income was $93.9 million, compared with $35.1 million a year earlier. The company said the net income result included a $85.1 million change in fair value of customer warrants and a $4.4 million reduction in interest expense. Adjusted net income, which excludes non-cash warrant and other stock valuations, was $4.8 million. Earnings per share were $0.61, compared with $0.30 a year earlier.

Bookings were $228 million, up 112% from the same period of 2025, and rose sequentially from $151.0 million in the second quarter. Backlog was $2.5 billion, up 571% from the same period of 2025, and declined sequentially from $2.6 billion in the second quarter. Total global pipeline exceeded $16 billion, including 6 gigawatts of new incremental power for utilities, industrials and data centers, versus a pipeline exceeding $14.0 billion in the second quarter.

Young said rising global electricity demand is fueling increased needs from utilities, industrial and data center customers for parts and services and continues to drive new power generation opportunities. He said the current data center project in North Dakota remains on track, with manufacturing of boilers, steam turbines and other long-lead-time components progressing rapidly and nearly all required permitting applications submitted.

The company repurchased $38 million of shares in the third quarter under a board-authorized program and completed full redemption of $61.8 million of outstanding 6.5% bonds due December 2026. Young said the payoff resulted in the lowest company debt levels in recent history. At September 30, 2026, secured debt and bonds were $166.4 million and cash, cash equivalents and restricted cash were $128.9 million.

The company reiterated its full-year 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million. Management continues to monitor inflation, interest rates, foreign exchange, potential tariffs, geopolitical conflicts and supply-chain disruptions, and said an increase in power demand has caused a shortfall in skilled labor such as welders and electricians, raising construction costs and affecting productivity.