Babcock & Wilcox reports strong Q2 earnings driven by AI power demand

Babcock & Wilcox Enterprises reported second-quarter results that exceeded analyst expectations, leading to an 8% increase in its stock price. The company reported revenue of $319.7 million, a 130% increase year-over-year, and a net income of $14.3 million. This represents a significant improvement from the $0.63 per share loss recorded in the same period last year.

CEO Kenneth Young attributed the growth to rising demand for reliable electricity from industrial customers, utilities, and artificial intelligence data centers. To support these needs, the company announced it will purchase 20 steam turbine generator sets from Siemens to generate 1 gigawatt of electricity for its AI data center clients.

Following the strong first-half results, the company raised its full-year 2026 adjusted EBITDA target range to between $80 million and $105 million. Babcock & Wilcox currently maintains a backlog of $2.6 billion.