Babcock & Wilcox Enterprises — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the third quarter of 2026 was $290.8 million, a 109% increase compared to $139.2 million in the same period of 2025, driven by increased large project volume including $77.8 million from Base Electron.
• Net income was $93.9 million in the third quarter of 2026, compared to $35.1 million in the third quarter of 2025.
• Earnings per share (EPS) were $0.61 in the third quarter of 2026, compared to $0.30 in the third quarter of 2025.
• Adjusted EBITDA was $17.7 million in the third quarter of 2026, an 88% increase compared to $9.4 million in the third quarter of 2025.
• Adjusted Net Income for the third quarter of 2026 was $4.8 million, excluding non-cash warrant and other stock valuations.
• Operating income was $13.8 million in the third quarter of 2026, compared to $3.4 million in the third quarter of 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $130.3 million, compared to $65.9 million in the same period of 2025.
• Total assets were $844.7 million as of September 30, 2026, compared to $662.9 million as of December 31, 2025.
• Total liabilities were $735.1 million as of September 30, 2026, compared to $794.5 million as of December 31, 2025.
• Stockholders' equity was $109.6 million as of September 30, 2026, compared to a deficit of $131.5 million as of December 31, 2025.
• Cash, cash equivalents, and restricted cash totaled $128.9 million as of September 30, 2026.

Guidance and Future Outlook:

• The company issued a full-year 2027 Adjusted EBITDA target range of $125 million to $140 million.
• The company reiterated its full-year 2026 Adjusted EBITDA target range of $80.0 million to $105.0 million.
• Management anticipates continued growth in future quarters supported by strong bookings and backlog pipeline.
• Rising global electricity demand is expected to fuel continued needs from utilities, industrial, and data center customers.
• The company expects to see further growth as labor market conditions improve.

Business Segments and Product Lines:

• Revenue growth was primarily driven by large project volume, with $77.8 million attributed to Base Electron.
• Strong performance was reported across core parts and services, environmental technologies, and coal and natural gas-fired power generation solutions.
• The data center market momentum continues to build, with a pipeline exceeding 6 gigawatts of opportunities.
• A current data center project in North Dakota remains on track, with rapid manufacturing progress on boilers, steam turbines, and other long-lead-time components.
• Nearly all required permitting applications for the North Dakota project have been submitted, with county approval secured for conditional use and zoning permits.
• The company is adding talent in engineering, commercial, and project development teams to support expansion.

Market and Competitive Landscape:

• Global electricity demand is driving increased needs for parts, services, and new power generation opportunities.
• The company maintains a total global pipeline exceeding $16 billion, including 6 gigawatts of new incremental power for utilities, industrials, and data centers.
• Bookings for the third quarter of 2026 were $228 million, a 112% increase compared to the same period in 2025.
• Backlog stood at $2.5 billion in the third quarter of 2026, a 571% increase compared to the same period in 2025.
• The company faces ongoing labor constraints nationwide, specifically a shortage of skilled labor such as welders and electricians, which has increased construction costs and affected productivity.

Risks and Challenges:

• Macroeconomic conditions including inflation, changing interest rates, foreign exchange rate volatility, and potential tariff actions continue to impact the business.
• Geopolitical conflicts in Ukraine and the Middle East, along with global shipping and supply chain disruptions, have resulted in cost increases and delays.
• Labor shortages have increased construction costs and affected productivity.
• Pipeline opportunities may not result in actual revenue in the anticipated period or at all, and may not generate margins equal to historical operating results.
• Customers may experience project delays or cancel orders due to external market factors and economic conditions beyond the company's control.
• Forward-looking statements involve uncertainties regarding the ability to execute growth strategies, deliver backlog on time, and maintain adequate bonding and letter of credit capacity.

Management Commentary and Tone:

• Kenneth Young, Chairman and CEO, stated the company maintained strong performance reflecting continued demand and sustained operational momentum.
• Management expressed confidence in the balance sheet and strategic approach, citing the path ahead as optimistic due to strong industry tailwinds and limited company debt.
• The company noted that revenue and Adjusted EBITDA exceeded consensus street expectations during the third quarter.
• Management highlighted the company's ability to meet and exceed consensus expectations despite ongoing labor constraints.
• The tone regarding the future is optimistic, with confidence to issue a 2027 EBITDA target range based on strong industry tailwinds and active project discussions.

Other Key Points:

• The company repurchased $38 million in shares during the third quarter of 2026 under a Board-authorized share repurchase program.
• The company completed the full redemption of $62 million in outstanding 6.5% bonds due in December 2026, resulting in the lowest company debt levels in recent history.
• Secured debt and bonds totaled $166.4 million as of September 30, 2026.
• The change in fair value of customer warrants contributed $85.1 million to income in the third quarter of 2026.
• Interest expense was reduced by $4.4 million in the third quarter of 2026 compared to the prior year period.
• The company hosted a conference call and webcast on November 9, 2026, to discuss the results.