Company raises 2026 Adjusted EBITDA target to $80 mln-$105 mln
Company expects strong demand from AI data centers and utilities to drive results in H2 2026
Company says inflation, labor shortages and supply chain disruptions may impact future results
Overview
U.S. energy solutions provider's Q2 revenue grew 130% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 rose 57% yr/yr
Company authorized $50 mln share repurchase and repurchased $61.8 mln in bonds
Result drivers
Large project volume - Revenue growth was primarily driven by an increase in large project volume, including $100.7 mln from Base Electron
Strong energy demand - Co cited growing need for reliable electricity from AI data centers, utilities, and industrial customers as accelerating investment in power generation capacity
Favorable financial items - Improved net income benefited from reduced interest expense, change in fair value of customer warrants, and decreased tax expense
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy electrical equipment peer group is "buy"
Wall Street's median 12-month price target for Babcock & Wilcox Enterprises Inc is $25.00, about 166.8% above its August 7 closing price of $9.37
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 52 three months ago
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