Why Is BW Stock Rising Today?

• The company reported a net loss from continuing operations of $79.6 million, against a loss of just $15.6 million in Q1 2025.
• Babcock & Wilcox reported first-quarter bookings at $2.5 billion, a 1,971% surge year over year.
• Global pipeline of identified opportunities grew 17% to exceed $14.0 billion, Babcock & Wilcox stated.

Shares of Babcock & Wilcox Enterprises, Inc. (BW) surged over 17% premarket on Monday after the energy and environmental technology company delivered a stellar first quarter that showcased surging demand from AI data centers and massive contract wins.

The company reported first-quarter (Q1) revenue of $214.4 million, beating analysts’ expectations of $149.72 million, while the adjusted net income from continuing operations, which excludes non-cash warrants and other stock costs, came in at $2.2 million, compared to an adjusted net loss of $15.6 million year over year.

“We are experiencing strong interest from new AI data center and hyperscaler customers, which plan to utilize our power generation solutions to support the increasing demand for energy,” said Kenneth Young, Chairman and Chief Executive Officer at Babcock & Wilcox Enterprises.

Young added that the company is experiencing strong interest from new AI data center and hyperscaler customers and that innovative, strategic collaborations, such as the recent engagement with Base Electron, alongside the increasing power demands of AI data centers, have set the course for future growth.

Strip Out The Non-Cash Charges And BW Actually Made Money

The company reported a net loss from continuing operations of $79.6 million, against a loss of just $15.6 million in Q1 2025.

Of that $79.6 million loss, $81.8 million came from non-cash charges, specifically, the revaluation of customer warrants issued to Base Electron and Applied Digital in November 2025 and February 2026, and stock appreciation rights granted to employees in 2018 at target prices of $22.50 and $25.00, the company stated.

"Excluding the $81.8 million of non-cash warrants and other stock-related costs, the company had adjusted net income from continuing operations of $2.2 million for the first quarter," Young noted.

BW’s Bookings And Backlog Surge

Babcock & Wilcox said its recent collaboration with Base Electron and the increasing power demand of AI data centers has fueled growth in its bookings and backlog.

The company reported Q1 bookings at $2.5 billion, a 1,971% surge year over year. Its backlog also surged 483% year-over-year to $2.7 billion at the quarter's end. The company's global pipeline of identified opportunities grew 17% to exceed $14.0 billion.

Babcock & Wilcox also generated a positive operating cash flow of $17.8 million in Q1,  a reversal from the $8.5 million outflow year over year.

BW Stock: What Retail Thinks About It?

On Stocktwits, retail sentiment surrounding the stock has improved to ‘bullish’, while message volume has also turned a notch higher to ‘high’ in the past 24 hours.

Shares of Babcock & Wilcox have surged more than 127% so far this year.

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