AKRON, Ohio, May 11, 2026, 18:02 (EDT)
- Babcock & Wilcox posted first-quarter revenue of $214.4 million, a 44% increase from the same period last year.
- The company landed $2.5 billion in new contracts, pushing its backlog up to $2.7 billion.
- Shares jumped roughly 30%. The company ended up posting a wider loss, though, hit by a non-cash charge.
Babcock & Wilcox Enterprises shares surged Monday, climbing roughly 30% to $18.91, after the power-technology firm posted a significant boost in first-quarter revenue and orders linked to AI data center electricity needs. Trading volume spiked, well above typical levels.
This matters for B&W, which is pushing to convert that spike in orders for power equipment into actual contracts rather than just stacking up its pipeline. U.S. power infrastructure is stretched thin—data centers, factories, and grid projects are all fueling demand. Reuters, citing sources on Monday, said transformer demand is so strong that buyers face waits of up to four years for large units, as supply falls short.
B&W reported first-quarter revenue of $214.4 million, up from $148.6 million in the same period last year. Adjusted EBITDA climbed to $16.1 million compared with $4.0 million a year ago. The company stuck with its adjusted EBITDA target for 2026, keeping the range at $80 million to $100 million.
Net loss from continuing operations ballooned to $79.6 million, up from $15.6 million—a jump driven mostly by $81.8 million in non-cash warrant and other equity-related charges tied to B&W’s higher common stock price. Stripping out those costs, adjusted net income from continuing operations landed at $2.2 million.
Chief Executive Kenneth Young flagged “strong interest” from AI data center and hyperscaler clients in B&W’s power generation gear. Young also highlighted the Base Electron project plus data center power needs as key forces lifting the company’s pipeline, bookings, and backlog. Babcock & Wilcox
New bookings for the quarter came in at $2.5 billion, feeding future revenue. As of March 31, backlog—work under contract but not yet finished—stood at $2.7 billion, way up from $467.9 million a year ago. B&W noted its backlog reporting might differ from peers, and warned contracts aren’t set in stone; they can be changed or canceled.
Base Electron figures heavily in this narrative. According to B&W’s latest quarterly filing, the company finalized a deal on Feb. 26 with Base Electron—an independent power producer linked to Applied Digital—to handle design and installation work for four 300-megawatt natural gas plants. The $2.4 billion project is slated to kick off operations in 2029.
Base Electron pulled in $31.0 million in revenue for the first quarter, according to the filing. During B&W’s earnings call, CEO Young told Lake Street Capital Markets’ Robert Brown that Base Electron revenue will climb further this year, but the more substantial growth is likely coming next year as construction accelerates.
B&W’s balance sheet showed some gains. As of March 31, secured debt and bonds were $237.2 million, with cash, cash equivalents, and restricted cash totaling $194.8 million—net debt worked out to $42.4 million. The company knocked out $15 million in December 2026 bonds during the quarter and still aims to retire the rest of those bonds later this year.
B&W isn’t the only company catching a tailwind from the AI-driven surge in power needs. GE Vernova bumped its 2026 guidance after a spike in data center demand helped drive power-equipment orders higher, Reuters reported. Siemens Energy, which also supplies steam turbine systems for B&W’s data-center power projects, raised its own outlook on strong grid and power equipment demand.
Execution stands out as the risk. In its filing, B&W notes that backlog isn’t a reliable indicator of future performance—it can change at a customer’s request. The company highlights a grab bag of risks: supply-chain snags, potential contract fights, debt covenants, plus the clock ticking on repayment or refinancing of its 6.50% senior notes maturing Dec. 31, 2026. Management reported that as of March 31, there was no substantial doubt about the company’s ability to keep operating, but cautioned that hinges on generating cash and delivering projects.
Investors right now are taking the quarter as evidence that B&W’s AI power business is shifting from hype to actual revenue. The challenge ahead: converting that $14 billion-plus pipeline into profits and real cash flow—before supply chain snarls, permitting headaches, or shifting customer plans put a dent in the opportunity.
