Babcock & Wilcox Backlog Surges 470% on Major AI Data Center Deal and Debt Reduction
Backlog Jumps to $2.8 Billion—Driven by $2.4 Billion AI Power Project
Babcock & Wilcox (NYSE: BW) saw its project backlog multiply by nearly fivefold to $2.8 billion at the end of 2025, catapulted by a $2.4 billion agreement to supply advanced natural gas power solutions for a new AI data center campus. This is the largest contract in BW's recent history, backed by client Base Electron in partnership with Applied Digital, and signals a strategic expansion into the fast-growing intersection of power generation and artificial intelligence infrastructure.
Adjusted EBITDA More Than Doubles—Strong Core Performance Outpaces Expectations
BW’s financial progress is clear: for the full year 2025, Adjusted EBITDA from continuing operations rose 107% to $43.7 million, compared to $21.2 million in 2024. Fourth quarter 2025 Adjusted EBITDA also surged to $16.4 million—a 53% year-over-year jump—outpacing analyst expectations. The core parts & services segment saw a 17% sales increase in 2025, supported by robust coal generation demand and higher baseload usage in North America.
| Period | Revenue (million USD) |
Operating Income (million USD) |
Adjusted EBITDA (million USD) |
Backlog (million USD) |
Loss from Continuing Ops (million USD) |
Loss per Share (USD) |
|---|---|---|---|---|---|---|
| Q4 2025 | 161.0 | 12.2 | 16.4 | 2,824 | -3.5 | -0.05 |
| Q4 2024 | 161.8 | 2.6 | 10.7 | 495 | -53.8 | -0.61 |
| FY 2025 | 587.7 | 20.8 | 43.7 | 2,824 | -32.8 | -0.45 |
| FY 2024 | 581.0 | -6.4 | 21.2 | 495 | -104.3 | -1.30 |
Debt Reduced to $119.7 Million—Financial Flexibility Improves
BW made significant progress in strengthening its balance sheet, fully paying off outstanding February 2026 bonds ahead of schedule and reducing total net debt to $119.7 million by year-end 2025. The company is also targeting full repayment of the remaining December 2026 bonds during the coming year. Cash, cash equivalents, and restricted cash totaled $201.4 million at the end of December, providing ample liquidity for further growth initiatives.
AI and Utility Demand Fuel Robust Pipeline—Total Opportunities Now Over $12 Billion
The company’s global pipeline of potential project opportunities—defined as projects in active discussions—now exceeds $12 billion, a roughly 20% increase from the previous year even after the $2.4 billion AI data center order moved to backlog. This reflects rising demand for high-capacity power generation to support artificial intelligence and data center expansion, as well as ongoing strength in traditional coal and baseload power.
Losses Narrow Sharply—Margin Turnaround Evident
Quarterly and full-year losses from continuing operations decreased substantially, from -$53.8 million in Q4 2024 to -$3.5 million in Q4 2025, and from -$104.3 million for the full year 2024 to -$32.8 million in 2025. Improvements in gross margin, strict cost control, and operating leverage played a key role in this turnaround.
Takeaway: Positioned for Growth in the AI-Driven Power Era
BW’s stellar backlog growth, improved operating performance, and rapid balance sheet improvement highlight a company transforming alongside global energy trends. The landmark AI power project, paired with surging demand for robust baseload and utility-scale generation, puts BW in a strong position as the power sector evolves. Investors and industry observers may want to track the company’s progress on further project wins and its execution on the record backlog as it moves into 2026 and beyond.
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