Babcock & Wilcox Enterprises

Industrial - Machinery · Industrials

Price

$8.28

-0.15 (-1.78%)

Market Cap

$1.23B

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Share count rising — dilution

+26.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 83.6M (2021) → 105.4M (2025)

Winston Score History

The full picture

Babcock & Wilcox builds equipment and systems that help power plants and industrial facilities generate energy and manage waste. Its core products include boilers, emissions control systems, and renewable energy technology, sold mainly to utilities, governments, and large industrial companies. The company has been around for over 150 years and has deep experience in both fossil fuel and clean energy systems.

Babcock & Wilcox earns money by selling equipment, providing engineering services, and offering long-term maintenance contracts to its customers. It operates primarily in North America but also has projects in Europe and other international markets, and its long history gives it established relationships with large utility clients that are hard for newer competitors to displace. The key growth driver is demand for cleaner energy solutions, including waste-to-energy and carbon capture technology, though the company carries a significant debt load that limits its financial flexibility and remains a meaningful risk for investors.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+121.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+111.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$1M/ year

↓ Declining (-75% vs prior year)

0.2% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

3.5%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Runway

~3 years

$309M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$309M cash & investments at current burn rate

Revenue accelerating

Babcock & Wilcox Enterprises grew revenue 122% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

14.6%

Thin — 14.6% gross margin

Profit after running costs

Operating Margin

3.7%

Thin — 3.7% operating margin

Return on the money invested

ROCE

9.3%

Below par — 9.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+48.4%

Fast-growing sales (+48.4% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-6.9%

Burning cash (-6.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

4.83

Heavy debt load (4.83)

Covers its interest

Interest Cover

1.25x

Dangerous — barely covers interest (1.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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