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BW-PA Stock Analysis - Babcock & Wilcox Enterprises, Inc. AI Rating

BW-PA NYSE Heating Equipment, Except Electric & Warm Air Furnaces DE CIK: 0001630805
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 BW-PA Key Takeaways

Revenue: $587.7M
Net Margin: -6.2%
Free Cash Flow: $-85.7M
Current Ratio: 1.22x
Debt/Equity: N/A
EPS: $-0.48
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Babcock & Wilcox faces severe financial distress with negative stockholders' equity of -$131.5M and deteriorating cash flows, signaling insolvency risk. The company is unprofitable with a -6.2% net margin, burning cash operationally (-$68.9M) and generating negative free cash flow (-$85.7M), while revenue growth remains stagnant at only 1.1% YoY, indicating inability to drive scale or profitability improvements.

BW-PA Strengths

  • + Positive interest coverage ratio of 4.6x suggests near-term debt service capability
  • + Revenue relatively stable with modest 1.1% growth despite operational challenges
  • + Maintains $89.5M in cash providing short-term liquidity buffer

BW-PA Risks

  • ! Negative stockholders' equity of -$131.5M exceeds liabilities by $131.5M indicating technical insolvency
  • ! Operating cash flow severely negative at -$68.9M with free cash flow of -$85.7M indicating structural unprofitability
  • ! Negative net income of -$36.2M with -6.2% net margin and deteriorating operational efficiency despite revenue growth
  • ! Total liabilities of $794.5M exceed total assets of $662.9M by $131.6M creating balance sheet crisis
  • ! Long-term debt of $181.2M against negative equity creates refinancing risk and covenant default exposure

Key Metrics to Watch

BW-PA Financial Metrics

Revenue
$587.7M
Net Income
$-36.2M
EPS (Diluted)
$-0.48
Free Cash Flow
$-85.7M
Total Assets
$662.9M
Cash Position
$89.5M

💡 AI Analyst Insight

Babcock & Wilcox Enterprises, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BW-PA Profitability Ratios

Gross Margin 12.8%
Operating Margin 3.5%
Net Margin -6.2%
ROE N/A
ROA -5.5%
FCF Margin -14.6%

BW-PA vs Default Sector

How Babcock & Wilcox Enterprises, Inc. compares to Default sector averages

Net Margin
BW-PA -6.2%
vs
Sector Avg 12.0%
BW-PA Sector
ROE
BW-PA 0.0%
vs
Sector Avg 15.0%
BW-PA Sector
Current Ratio
BW-PA 1.2x
vs
Sector Avg 1.8x
BW-PA Sector
Debt/Equity
BW-PA 0.0x
vs
Sector Avg 0.7x
BW-PA Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BW-PA Balance Sheet & Liquidity

Current Ratio
1.22x
Quick Ratio
1.06x
Debt/Equity
N/A
Debt/Assets
119.8%
Interest Coverage
4.61x
Long-term Debt
$181.2M

BW-PA 5-Year Financial Trend

BW-PA 5-year financial data: Year 2021: Revenue $859.1M, Net Income -$122.0M, EPS $-3.87. Year 2022: Revenue $889.8M, Net Income -$10.3M, EPS $-0.21. Year 2023: Revenue $999.4M, Net Income $30.9M, EPS $0.26. Year 2024: Revenue $727.3M, Net Income -$22.9M, EPS $-0.43. Year 2025: Revenue $587.7M, Net Income -$197.2M, EPS $-2.38.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Babcock & Wilcox Enterprises, Inc.'s revenue has declined by 32% over the 5-year period, indicating business contraction. The most recent EPS of $-2.38 indicates the company is currently unprofitable.

BW-PA Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-14.6%
Free cash flow / Revenue

BW-PA Quarterly Performance

Quarterly financial performance data for Babcock & Wilcox Enterprises, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $149.0M $3.2M $-0.09
Q2 2025 $144.1M $8.6M $0.01
Q1 2025 $164.3M -$16.8M $-0.23
Q3 2024 $209.9M $3.2M $-0.09
Q2 2024 $233.6M -$5.1M $0.01
Q1 2024 $207.6M -$12.5M $-0.18
Q3 2023 $211.7M -$17.8M $-0.24
Q2 2023 $221.0M -$2.6M $-0.07

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BW-PA Capital Allocation

Operating Cash Flow
-$68.9M
Cash generated from operations
Stock Buybacks
$386.0K
Shares repurchased (TTM)
Capital Expenditures
$16.8M
Investment in assets
Dividends
None
No dividend program

BW-PA SEC Filings

Access official SEC EDGAR filings for Babcock & Wilcox Enterprises, Inc. (CIK: 0001630805)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 16, 2026 10-K bw-20251231.htm View →
Mar 16, 2026 8-K bw-20260316.htm View →

Frequently Asked Questions about BW-PA

What is the AI rating for BW-PA?

Babcock & Wilcox Enterprises, Inc. (BW-PA) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BW-PA's key strengths?

Positive interest coverage ratio of 4.6x suggests near-term debt service capability. Revenue relatively stable with modest 1.1% growth despite operational challenges.

What are the risks of investing in BW-PA?

Negative stockholders' equity of -$131.5M exceeds liabilities by $131.5M indicating technical insolvency. Operating cash flow severely negative at -$68.9M with free cash flow of -$85.7M indicating structural unprofitability.

What is BW-PA's revenue and growth?

Babcock & Wilcox Enterprises, Inc. reported revenue of $587.7M.

Does BW-PA pay dividends?

Babcock & Wilcox Enterprises, Inc. does not currently pay dividends.

Where can I find BW-PA SEC filings?

Official SEC filings for Babcock & Wilcox Enterprises, Inc. (CIK: 0001630805) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BW-PA's EPS?

Babcock & Wilcox Enterprises, Inc. has a diluted EPS of $-0.48.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI