Free cash flow remains volatile, ranging from a $71.8M outflow in 2024Q3 to a $10.7M inflow in 2026Q1, while the company continues to pay $3.7M in quarterly dividends despite persistent net losses.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | -42.63M | -68.9M | -118.73M | -42.27M | -30.64M | -111.2M | -40.8M | -176.32M | -281.88M | -189.83M | 2.3M | 145.21M | -28.67M | -12.32M |
| Operating CF Margin % | - | -11.72% | -16.55% | -5.81% | -5.03% | -15.64% | -7.2% | -20.52% | -26.53% | -12.19% | 0.15% | 8.26% | -1.8% | -0.7% |
| Operating CF Growth % | 336.05% | 41.97% | -180.9% | -37.97% | 72.45% | -172.54% | 76.86% | 37.45% | -48.49% | -8353.61% | -98.42% | 606.43% | -132.67% | - |
| Net Income | -128.9M | -32.8M | -59.78M | -78.87M | -26.58M | 31.54M | -10.3M | -129.04M | -652.55M | -379.01M | -115.1M | 19.34M | -26.16M | 174.82M |
| Depreciation & Amortization | 10.06M | 10.1M | 16.71M | 21M | 23.99M | 18.34M | 16.8M | 23.61M | 32M | 40.14M | 39.6M | 34.93M | 36.45M | 23.03M |
| Stock-Based Compensation | 12.46M | 0 | 4.69M | 8.7M | 9.98M | 7.8M | 4.56M | 3.08M | 2.25M | 11.81M | 16.1M | 7.77M | -11K | -172K |
| Deferred Taxes | 1.26M | 800K | 7.1M | -1.46M | 5.9M | -7.75M | 1.8M | -855K | 98.06M | 50.3M | -9M | -32.12M | -39.38M | 56.11M |
| Other Non-Cash Items | 55.4M | -21M | 12.42M | -6.5M | -4.09M | -17.83M | 2.54M | 76.11M | 158.41M | 142.51M | 36.2M | 40.37M | 128.97M | -115.51M |
| Working Capital Changes | -15.28M | -26M | -99.88M | 14.87M | -39.83M | -143.3M | -56.2M | -149.22M | 79.93M | -55.58M | 34.5M | 74.91M | -128.54M | -150.6M |
| Change in Receivables | -19.55M | 3.2M | -54.97M | 71.39M | -82.33M | -19.87M | 21.7M | 112.41M | 80.38M | 9.41M | 58.9M | -33.98M | -19.52M | 4.9M |
| Change in Inventory | -4.7M | -7.8M | -6.41M | -8.13M | -19M | -3.05M | -4.1M | -4.14M | 10.34M | 11.87M | 2.9M | 6.06M | 2.96M | 10.77M |
| Change in Payables | -37.92M | -57.9M | 8.14M | 12.93M | 52.68M | 7.08M | -42M | -80.46M | -4.36M | -14.66M | 4.5M | 17.86M | -7.76M | -13.35M |
| Cash from Investing | 197.37M | 197M | 109.96M | -7.94M | -68.8M | -33.54M | 2.2M | 8.78M | 179.22M | -62.14M | -180.8M | -45.88M | -149.57M | -18.66M |
| Capital Expenditures | -19.6M | -16.8M | -11.21M | -9.8M | -13.24M | -6.68M | -8.2M | -3.8M | -5.47M | -14.28M | -22.5M | -35.4M | -17.93M | -11.59M |
| CapEx % of Revenue | 2.93% | 2.86% | 1.56% | 1.35% | 2.17% | 0.94% | 1.45% | 0.44% | 0.52% | 0.92% | 1.43% | 2.01% | 1.13% | 0.66% |
| Acquisitions | 32.4M | 216.3M | 120.91M | 0 | -59.42M | -29.95M | 8M | 7.45M | 183.78M | -52.55M | -153.1M | -7.42M | -132.6M | -6.88M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 187.45M | 0 | 34K | -102K | 466K | 0 | 4.9M | 2.5M | 534K | -1.55M | 10.2M | 5.69M | -6.09M | 6.95M |
| Cash from Financing | -78.6M | -58.7M | 69.73M | 8.56M | -11.16M | 302.81M | 44.1M | 167.02M | 82.61M | 206.13M | -83.4M | 53.61M | 211.7M | 47.77M |
| Debt Issued (Net) | -209.8M | -171.5M | 92.31M | 24.72M | 8.01M | 67.55M | 55.31M | 143.08M | 50.6M | 239.85M | -4.77M | -1.08M | -1.57M | -212K |
| Equity Issued (Net) | 158.59M | 129.7M | 7.6M | -1.41M | -2.82M | 269.17M | -283K | 1.27M | 438K | -17.64M | -78.41M | -25.41M | 0 | 0 |
| Dividends Paid | -14.78M | -14.9M | -18.57M | -11.14M | -14.86M | -9.13M | 0 | 0 | 0 | 0 | 0 | -242K | 0 | 0 |
| Share Repurchases | -400K | -400K | -336K | -1.41M | -2.82M | -4.94M | -283K | -117K | -805K | -17.64M | -78.41M | -25.41M | 0 | 0 |
| Other Financing | -12.6M | -2M | -11.61M | -3.61M | -1.5M | -24.78M | -10.93M | 22.66M | 31.57M | -16.08M | -246K | 80.34M | 213.27M | 47.99M |
| Net Change in Cash | 53.36M | 70.3M | 59.7M | -42.09M | -113.25M | 159.29M | 10.5M | -3.34M | -9.42M | -39.22M | -269.3M | 146.53M | 20.61M | 15.78M |
| Free Cash Flow | -62.23M | -85.7M | -129.94M | -52.07M | -43.88M | -117.88M | -49M | -180.12M | -287.36M | -204.11M | -20.2M | 109.81M | -46.6M | -23.91M |
| FCF Margin % | -9.31% | -14.58% | -18.11% | -7.16% | -7.2% | -16.58% | -8.65% | -20.97% | -27.05% | -13.1% | -1.28% | 6.25% | -2.93% | -1.35% |
| FCF Growth % | 50.04% | 34.05% | -149.55% | -18.68% | 62.78% | -140.56% | 72.8% | 37.32% | -40.79% | -910.45% | -118.4% | 335.65% | -94.88% | - |
| FCF per Share | -0.47 | -0.81 | -1.42 | -0.59 | -0.50 | -1.41 | -1.01 | -5.72 | -20.78 | -21.68 | -2.01 | 10.19 | -4.34 | -2.23 |
| FCF Conversion (FCF/Net Income) | 0.48x | 1.91x | 1.98x | 0.21x | 1.34x | -3.60x | 3.95x | 1.45x | 0.39x | 0.50x | -0.02x | 7.59x | 1.08x | -0.07x |
| Interest Paid | 15.52M | 0 | 37.32M | 23.07M | 25.67M | 20.23M | 17.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 5.6M | 0 | 7.76M | 6.73M | 7.95M | 4.99M | 6.96M | 0 | 0 | 0 | 0 | 0 | 8.21M | 0 |
Liquidity and project execution
According to reported financial statements, Babcock & Wilcox exhibits a chronic inability to align net income with operating cash flow, as evidenced by the 2026Q1 period where a $76.9M net loss was paradoxically accompanied by $17.8M in positive operating cash flow, suggesting significant non-cash accounting distortions.
The wide variance between net income and operating cash flow suggests that reported earnings are heavily impacted by non-cash charges or accounting adjustments that do not reflect the underlying cash-generating capacity of the business. Investors should monitor whether this divergence is driven by aggressive revenue recognition or the timing of project-related accruals that may eventually reverse.
As reported in recent filings, the company's free cash flow trajectory remains highly erratic, with a peak outflow of $71.8M in 2024Q3 followed by a modest $10.7M inflow in 2026Q1, indicating that the business lacks a stable mechanism for consistent internal cash generation across its project cycles.
The inability to maintain positive free cash flow suggests that the company's operational model is highly sensitive to project timing and execution delays. This volatility complicates the assessment of long-term solvency and may force management to rely on external financing to bridge gaps during periods of negative cash generation.
Based on the provided quarterly data, working capital changes have been a primary driver of cash flow volatility, including a significant $31.1M outflow in 2024Q3, which highlights the company's struggle to manage the cash conversion cycle effectively amidst its complex, long-cycle engineering and construction project portfolio.
Large fluctuations in working capital suggest that the company is frequently forced to tie up cash in unbilled receivables or inventory, which limits liquidity. This pattern warrants further investigation into whether the company is facing difficulties in collecting payments from utility customers or if project milestones are consistently slipping.
As indicated by the financial statements, Babcock & Wilcox has continued to pay dividends despite persistent negative net income and volatile cash flows, with $3.7M in quarterly dividend payments, a practice that appears difficult to justify given the company's current cash-burning operational profile and limited liquidity buffer.
The decision to maintain dividend payments while the core business struggles to generate consistent free cash flow suggests a potential misalignment between capital allocation strategy and operational reality. Investors should monitor whether this commitment to shareholder returns is sustainable or if it will eventually necessitate a reduction to preserve essential working capital.
Quick answers to the most common questions about buying BW stock.
Babcock & Wilcox Enterprises, Inc. (BW) generated $-68.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Babcock & Wilcox Enterprises, Inc. (BW) reported negative free cash flow of $85.7M in 2025, indicating capital requirements exceeded cash from operations.
Babcock & Wilcox Enterprises, Inc. (BW) spent $16.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Babcock & Wilcox Enterprises, Inc. (BW) returned $14.9M to shareholders via cash dividends and spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.