Babcock & Wilcox Enterprises Inc. Common Stock (BW)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Babcock & Wilcox is a 1,600-employee specialty industrial machinery company that sells energy and emissions-control solutions, including steam generation and chemical looping technology. On the surface, the latest quarter looked dramatically better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $319.7 million, net income was $14.3 million, and diluted EPS was $0.07. That compares with a fiscal Q2 2025 loss of $58.5 million and revenue of $138.9 million. Computed revenue growth of 130.25% and profit growth of 124.37% reflect that swing. But one good quarter does not make a durable business. Filed annual figures show revenue essentially flat—$587.4 million in FY2023, $581.0 million in FY2024, and $587.7 million in FY2025—while net losses persisted: $197.2 million, $59.9 million, and $36.2 million. Fiscal Q1 2026, ended 2026-03-31, also posted a $76.9 million net loss and negative $0.60 diluted EPS. The balance sheet is not Graham-like: debt-to-equity is 5.62, the Altman Z-Score is -1.37, and trailing free cash flow is negative $58.2 million, a -7.8% FCF yield. At the close on 2026-10-13, the $4.98 price gives a negative P/E of -7.78 and a P/B of 12.77, so there is little asset protection. Return on capital employed is just 1.46%, and the Piotroski F-Score is a mediocre 5/9. The FairStock score of 35/100 and the Lynch category of none—because of losses in each of the last four years—fit my view. I see no clear moat or consistent earning power, only a leveraged turnaround.

In plain English: Babcock & Wilcox provides equipment and services for energy and emissions control, mainly for industrial and utility customers. The business has been unprofitable in each of the last four years, has high debt, and is burning cash, so it looks financially weak and speculative. At $4.98, the price does not look cheap compared with the company's accounting value, because it has no recent profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer