📊 BW-PA Key Takeaways
Is Babcock & Wilcox Enterprises, Inc. (BW-PA) a Good Investment?
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.
Babcock & Wilcox shows weak fundamental quality despite modest revenue growth and improved year-over-year earnings. Profitability remains thin at the operating level and still negative at the net level, while cash generation is materially weak with negative operating cash flow and deeply negative free cash flow. The balance sheet is a major concern given negative stockholders' equity, which leaves little margin for operational setbacks or capital needs.
Why Buy Babcock & Wilcox Enterprises, Inc. Stock? BW-PA 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
- Maintains $89.5M in cash providing short-term liquidity buffer
- Revenue is still growing modestly year over year, indicating underlying demand stability
- Operating income is positive and interest coverage of 4.6x suggests debt service is currently manageable
- Liquidity is not immediately distressed, with current and quick ratios above 1.0x
BW-PA Stock Risks: Babcock & Wilcox Enterprises, Inc. Investment 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
- Negative stockholders' equity signals a highly stressed capital structure
- Net losses and negative free cash flow indicate poor earnings quality and weak internal funding capacity
- Low gross and operating margins leave limited cushion against cost inflation, project execution issues, or revenue softness
Key Metrics to Watch
- Cash balance depletion rate relative to quarterly operating cash burn
- Stockholders' equity trajectory and return to positive territory
- Operating cash flow stabilization and path to positive FCF
- Revenue growth acceleration beyond 1.1% and gross margin expansion
- Debt covenant compliance and refinancing requirements
- Operating cash flow and free cash flow trend
- Gross margin and operating margin sustainability
Babcock & Wilcox Enterprises, Inc. (BW-PA) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
BW-PA vs Utilities Sector: How Babcock & Wilcox Enterprises, Inc. Compares
How Babcock & Wilcox Enterprises, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Babcock & Wilcox Enterprises, Inc. Stock Overvalued? BW-PA Valuation Analysis 2026
Based on fundamental analysis, Babcock & Wilcox Enterprises, Inc. has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Babcock & Wilcox Enterprises, Inc. Balance Sheet: BW-PA Debt, Cash & Liquidity
BW-PA Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
BW-PA Quarterly Earnings & Performance
| 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.
Babcock & Wilcox Enterprises, Inc. Dividends, Buybacks & Capital Allocation
BW-PA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Babcock & Wilcox Enterprises, Inc. (CIK: 0001630805)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BW-PA
What is the AI rating for BW-PA?
Babcock & Wilcox Enterprises, Inc. (BW-PA) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BW-PA's key strengths?
Claude: Positive interest coverage ratio of 4.6x suggests near-term debt service capability. Revenue relatively stable with modest 1.1% growth despite operational challenges. ChatGPT: Revenue is still growing modestly year over year, indicating underlying demand stability. Operating income is positive and interest coverage of 4.6x suggests debt service is currently manageable.
What are the risks of investing in BW-PA?
Claude: 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. ChatGPT: Negative stockholders' equity signals a highly stressed capital structure. Net losses and negative free cash flow indicate poor earnings quality and weak internal funding capacity.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BW-PA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Babcock & Wilcox Enterprises, Inc. has a SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BW-PA stock overvalued or undervalued?
Valuation metrics for BW-PA: ROE of N/A (sector avg: 10%), net margin of -6.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy BW-PA stock in 2026?
Our dual AI analysis gives Babcock & Wilcox Enterprises, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BW-PA's free cash flow?
Babcock & Wilcox Enterprises, Inc.'s operating cash flow is $-68.9M, with capital expenditures of $16.8M. FCF margin is -14.6%.
How does BW-PA compare to other Utilities stocks?
Vs Utilities sector averages: Net margin -6.2% (avg: 12%), ROE N/A (avg: 10%), current ratio 1.22 (avg: 0.8).