Why Did BW Stock Jump 33% Today?

• The project will deliver 1.2 gigawatts of new capacity to supply electricity to Applied Digital’s AI Factory campuses.
• The company is also exploring an option with Base Electron to add another 1.2 gigawatts of generation capacity.
• Babcock & Wilcox’s Q4 revenue came in at $161 million, above Wall Street’s estimates of $155.3 million, according to Fiscal.ai data.

Shares of Babcock & Wilcox (BW) surged 33% on Wednesday, after the company announced that it has received a notice to proceed on a $2.4 billion power generation project for Applied Digital-backed Base Electron.

The project will deliver 1.2 gigawatts of new capacity to supply electricity to Applied Digital’s AI Factory campuses. The facility will include four 300-megawatt natural gas-fired boilers and steam turbine generators.

Babcock & Wilcox will handle engineering, procurement and construction, while Siemens Energy will design and supply the steam turbine systems. The company is also exploring an option with Base Electron to add another 1.2 gigawatts of generation capacity to support potential future expansion of the project.

Q4 Earnings Beats Wall Street Estimates

The company also reported fourth-quarter (Q4) results with revenue coming in at $161 million, above Wall Street’s estimates of $155.3 million, according to Fiscal.ai data. However, it fell slightly below the $161.8 million revenue recorded a year earlier.

Loss from continuing operations narrowed to $3.5 million, or $0.05 per share, compared with a $53.8 million loss or $0.61 per share last year. Consensus estimates had pegged a loss of $0.11 per share.

“The increasing need for power and electricity to support artificial intelligence and data center growth have become key drivers for momentum across our broad range of technologies. As a result of this surging demand, our global pipeline remains robust, exceeding $12.0 billion in project opportunities, after previously converting the $2.4 billion data center project from pipeline to backlog,” said Kenneth Young, B&W Chairman and CEO.

How Did Stocktwits Users React?

Retail sentiment surrounding the BW stock turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.

One user commented on the magnitude of the deal with Base Electron, expecting at least 20% profit margin over the next 2 years in the worst case scenario.

Year-to-date, the stock has surged around 67%

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