Babcock & Wilcox Revenue Doubles to $290.8 Million on Data-Center Power

Babcock & Wilcox posted third-quarter revenue of $290.8 million, up 109% from $139.2 million a year earlier, with $77.8 million of the total booked on the Base Electron gas-fired power project serving an AI data-center campus in North Dakota. The Akron, Ohio-based maker of boilers and power plant equipment said its data-center pipeline now exceeds 6 gigawatts of opportunities inside a global pipeline of more than $16 billion, up from more than $14 billion in August.

The quarter's headline profit rested largely on warrants. Net income of $93.9 million included an $85.1 million gain from the change in fair value of customer warrants. Excluding warrant and other stock-related items, adjusted net income was $4.8 million. Diluted earnings per share came to $0.02, against $0.30 a year earlier, when a $41.2 million gain from discontinued operations lifted the result. Operating income rose to $13.8 million from $3.4 million. Adjusted EBITDA rose 88% to $17.7 million.

How the North Dakota project took shape

B&W entered the data-center power market a year ago. It received a limited notice to proceed on a project valued at more than $1.5 billion to supply 1 gigawatt of power for an Applied Digital AI campus. The plant is built from four 300-megawatt gas-fired boiler and steam turbine units and is targeted to begin operating in 2028. In February, B&W signed a definitive agreement with Base Electron to design and install the four plants for total consideration of $2.4 billion, according to its quarterly filing. Applied Digital assigned part of the customer warrants it holds in B&W to Base Electron in March.

Chief Executive Kenneth Young said manufacturing of the boilers, steam turbines and other long-lead components for the North Dakota project is progressing rapidly. Nearly all permit applications have been submitted, and the county has approved conditional use and zoning permits. "Momentum in the data center market continues to build, with our pipeline now exceeding 6 gigawatts of opportunities," Young said.

What the backlog says about future revenue

Third-quarter bookings rose 112% from a year earlier to $228 million, up from $151.0 million in the second quarter. Backlog stood at $2.5 billion at the end of September. That compares with $2.6 billion at the end of June and $393.5 million a year earlier, before the data-center contract. Revenue declined from $319.7 million in the second quarter.

B&W expects to recognize the backlog in a long arc: about 10% as revenue in the rest of 2026, 28% in 2027 and 62% after that.

In August, B&W said it had secured another gigawatt of steam turbines from Siemens Energy in anticipation of its next data-center project. It has not announced a second data-center contract.

Where the balance sheet stands

The company repurchased $38 million of shares in the quarter. It also redeemed the remaining $61.8 million of 6.5% bonds due December 2026. It ended September with $166.4 million of secured debt and bonds and $128.9 million of cash, cash equivalents and restricted cash.

What comes next for the EBITDA targets

B&W reiterated its 2026 adjusted EBITDA target of $80 million to $105 million. It issued a 2027 target of $125 million to $140 million — 56% above the low end and 33% above the high end of the 2026 range, by MLQ's calculation. The company said the targets are not intended as guidance.

The commercial test ahead is conversion. A 6-gigawatt pipeline and a second gigawatt of reserved Siemens Energy turbines give B&W the supply position to land another contract, but the backlog schedule leaves most revenue recognition beyond 2027.