Babcock & Wilcox Sees Orders Explode 1,900% as AI Demand Fuels Turnaround

Record $2.5B orders from hyperscalers, revenue up 44%, adjusted EBITDA quadruples. GAAP net loss of $79.6M due to non-cash warrant charge. Debt slashed 87%.

The numbers coming out of Babcock & Wilcox Enterprises for the first quarter of 2026 tell two very different stories—one of extraordinary operational momentum and another of accounting noise that obscures the underlying progress. The energy technology specialist clocked order intake of $2.5 billion, a nearly twentyfold surge from a year earlier, driven overwhelmingly by hyperscalers and AI data center operators scrambling for power infrastructure.

Revenue jumped 44% to $214.4 million, while adjusted EBITDA more than quadrupled to $16.1 million. The bottom line on an adjusted basis swung to a gain of $2.2 million from a loss a year ago—evidence that the core business is finally gaining traction.

Yet on a GAAP basis, the company reported a net loss of $79.6 million, or $0.60 per share. That disconnect stems almost entirely from a non-cash warrant valuation charge of roughly $82 million, triggered by the recent rally in Babcock & Wilcox’s own stock price. As the shares appreciated, the accounting treatment of those warrants produced a hefty paper loss that masks the operational recovery.

“Operationally, the business is clearly firing on all cylinders,” the management’s tone suggested, though the GAAP loss remains a jarring headline for investors focused on clean earnings. The brisk uptick in demand isn’t confined to new-build projects: the company also pointed to stronger orders for spare parts and services as industrial customers, utilities, and data centers require more baseload power.

The order book swelled to $2.7 billion, and the global pipeline now exceeds $14 billion—giving the firm far greater revenue visibility than it has enjoyed in recent years. A newly announced $21 million contract for fuel-switching technologies in the United States underscores that the deal flow is continuing into the current quarter.

Perhaps the most striking improvement came on the balance sheet. Net debt plunged 87% to $42.4 million, leaving leverage below 1.0x trailing twelve-month adjusted EBITDA. That marks a dramatic reversal from the nearly $350 million in debt that weighed on the company just a year ago. For a business with lumpy project revenue, the reduced debt load provides a meaningful cushion.

Executives reaffirmed their full-year 2026 guidance for adjusted EBITDA in the core business of $80 million to $100 million. With a pipeline now more than 50 times that range, the foundation for sustained growth appears solid—provided the company can convert those opportunities into steady, recurring earnings.

Management is scheduled to discuss the results in more detail during a conference call at 5:00 p.m. Eastern Time on Monday. Analysts will be keen to hear whether the furious pace of order intake can be maintained and which specific projects are filling the backlog. For now, the mix of record bookings, sharply lower debt, and a clear demand driver in AI infrastructure paints a picture of a company that has found its footing—even if the GAAP income statement still has some catching up to do.