Revenue surged 121.9% YoY to $319.7M in Q2 2026, but gross margin fell to 14.6% from 30.0% a year earlier, indicating a low-quality recovery with strained profitability.
Babcock & Wilcox Enterprises, I (BWNB) annual income statement — 13-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 844.14M | 587.68M | 717.33M | 727.32M | 609.44M | 710.87M | 566.32M | 859.11M | 1.06B | 1.56B | 1.58B | 1.76B | 1.59B | 1.77B |
| Revenue Growth % | 48.41% | -18.07% | -1.37% | 19.34% | -14.27% | 25.53% | -34.08% | -19.13% | -31.8% | -1.3% | -10.19% | 10.54% | -10.07% | - |
| Cost of Goods Sold | 675.61M | 443.82M | 540.31M | 550.61M | 464.3M | 535.83M | 400.46M | 698.85M | 1.19B | 1.46B | 1.4B | 1.45B | 1.36B | 1.33B |
| COGS % of Revenue | - | 75.52% | 75.32% | 75.7% | 76.19% | 75.38% | 70.71% | 81.35% | 112.2% | 93.59% | 88.65% | 82.46% | 85.82% | 75.31% |
| Gross Profit | 168.53M | 143.85M | 177.03M | 176.7M | 145.13M | 175.05M | 165.85M | 160.26M | -129.64M | 99.88M | 179.2M | 308.16M | 225.36M | 436.48M |
| Gross Margin % | 19.97% | 24.48% | 24.68% | 24.3% | 23.81% | 24.62% | 29.29% | 18.65% | -12.2% | 6.41% | 11.35% | 17.54% | 14.18% | 24.69% |
| Gross Profit Growth % | - | -18.74% | 0.18% | 21.75% | -17.09% | 5.54% | 3.49% | 223.61% | -229.8% | -44.26% | -41.85% | 36.74% | -48.37% | - |
| Operating Expenses | 137.29M | 120.94M | 151.94M | 160.1M | 146.29M | 155.63M | 167.59M | 189.64M | 227.11M | 269.21M | 257.5M | 256.51M | 260.45M | 225.11M |
| OpEx % of Revenue | - | 20.58% | 21.18% | 22.01% | 24% | 21.89% | 29.59% | 22.07% | 21.38% | 17.28% | 16.31% | 14.6% | 16.38% | 12.74% |
| Selling, General & Admin | 135.11M | 119.48M | 141.48M | 150.15M | 152.7M | 164.85M | 154.62M | 179.01M | 223.33M | 259.8M | 247.1M | 239.97M | 241.7M | 204.07M |
| SG&A % of Revenue | - | 20.33% | 19.72% | 20.64% | 25.06% | 23.19% | 27.3% | 20.84% | 21.02% | 16.68% | 15.66% | 13.66% | 15.2% | 11.54% |
| Research & Development | 1.63M | 1.46M | 5.79M | 7.2M | 2.56M | 1.59M | 4.38M | 2.86M | 3.78M | 9.41M | 10.4M | 16.54M | 18.75M | 21.04M |
| R&D % of Revenue | - | 0.25% | 0.81% | 0.99% | 0.42% | 0.22% | 0.77% | 0.33% | 0.36% | 0.6% | 0.66% | 0.94% | 1.18% | 1.19% |
| Other Operating Expenses | 553K | 0 | 4.67M | 2.75M | -8.96M | -10.82M | 8.59M | 7.77M | 0 | 0 | -2.4M | -1.22M | 1.16M | 1.44M |
| Operating Income | 31.25M | 22.91M | 25.08M | 16.61M | -1.15M | 19.42M | -1.74M | -29.38M | -426.6M | -281.56M | -102.8M | 21.86M | -57.52M | 210.23M |
| Operating Margin % | 3.7% | 3.9% | 3.5% | 2.28% | -0.19% | 2.73% | -0.31% | -3.42% | -40.15% | -18.08% | -6.51% | 1.24% | -3.62% | 11.89% |
| Operating Income Growth % | - | -8.65% | 51.06% | 1538.91% | -105.94% | 1218.13% | 94.09% | 93.11% | -51.51% | -173.9% | -570.24% | 138.01% | -127.36% | - |
| EBITDA | 41.59M | 33.05M | 41.79M | 37.6M | 22.84M | 37.76M | 15.07M | -5.78M | -398.08M | -251.12M | -63.22M | 56.79M | -21.06M | 233.26M |
| EBITDA Margin % | 4.93% | 5.62% | 5.83% | 5.17% | 3.75% | 5.31% | 2.66% | -0.67% | -37.47% | -16.12% | -4.01% | 3.23% | -1.32% | 13.2% |
| EBITDA Growth % | 3091.73% | -20.92% | 11.15% | 64.64% | -39.52% | 150.59% | 360.83% | 98.55% | -58.52% | -297.23% | -211.31% | 369.66% | -109.03% | - |
| D&A (Non-Cash Add-back) | 10.34M | 10.14M | 16.71M | 21M | 23.99M | 18.34M | 16.8M | 23.61M | 28.52M | 30.45M | 39.58M | 34.93M | 36.45M | 23.03M |
| EBIT | -40.65M | 16.04M | -14.64M | -23.41M | 34.68M | 60.81M | 39.41M | -80.06M | -506.19M | -297.89M | -117.17M | 21.41M | -36.13M | 212.95M |
| Net Interest Income | -22.81M | -36.05M | -45.33M | -41.49M | -39.21M | -33M | -59.15M | -93.98M | -49.37M | -25.43M | -2.99M | -441K | 568K | 814K |
| Interest Income | 2.15M | 4.56M | 814K | 1.08M | 586K | 531K | 646K | 923K | 244K | 507K | 810K | 618K | 1.06M | 1.28M |
| Interest Expense | 24.95M | 40.61M | 46.15M | 42.57M | 39.8M | 33.53M | 59.8M | 94.9M | 49.61M | 25.93M | 3.8M | 1.06M | 492K | 462K |
| Other Income/Expense | -96.85M | -47.48M | -85.87M | -82.58M | -3.96M | 7.86M | -2.18M | -95.06M | -129.2M | -35.98M | -16.83M | -1.66M | 1.36M | 2.26M |
| Pretax Income | -65.6M | -24.57M | -60.79M | -65.98M | -5.12M | 27.29M | -3.92M | -124.45M | -555.8M | -314.2M | -108.1M | 20.2M | -55.69M | 212.49M |
| Pretax Margin % | -7.77% | -4.18% | -8.47% | -9.07% | -0.84% | 3.84% | -0.69% | -14.49% | -52.32% | -20.17% | -6.85% | 1.15% | -3.5% | 12.02% |
| Income Tax | 5.71M | 8.28M | 12.17M | 9.82M | 9.07M | -2.03M | 8.18M | 5.29M | 102.22M | 64.82M | 6.9M | 3.67M | -29.53M | 72.01M |
| Effective Tax Rate % | -8.7% | -33.7% | -20.02% | -14.88% | -177.34% | -7.43% | -208.75% | -4.25% | -18.39% | -20.63% | -6.38% | 18.17% | 53.02% | 33.89% |
| Net Income | -93.01M | -36.16M | -59.91M | -197.21M | -22.86M | 30.89M | -10.32M | -121.97M | -725.29M | -379.82M | -115.6M | 19.14M | -26.53M | 174.53M |
| Net Margin % | -11.02% | -6.15% | -8.35% | -27.11% | -3.75% | 4.35% | -1.82% | -14.2% | -68.27% | -24.38% | -7.32% | 1.09% | -1.67% | 9.87% |
| Net Income Growth % | 17.73% | 39.65% | 69.62% | -762.64% | -174% | 399.42% | 91.54% | 83.18% | -90.95% | -228.57% | -703.94% | 172.15% | -115.2% | - |
| Net Income (Continuing) | -71.31M | -32.85M | -72.96M | -75.79M | -14.19M | 29.31M | -12.1M | -129.73M | -658.02M | -381.26M | -122.33M | 16.53M | -11.89M | 140.48M |
| Discontinued Operations | -1000K | -3.31M | 13.18M | -121.18M | -12.4M | 2.23M | 1.8M | 694K | 0 | 2.24M | 0 | 2.8M | 0 | 34.34M |
| Minority Interest | 0 | 0 | 591K | 611K | 485K | 25.47M | 1.1M | 1.42M | 8.83M | 8.6M | 8.8M | 719K | 1.03M | 924K |
| EPS (Diluted) | -0.60 | -0.48 | -0.82 | -2.38 | -0.43 | 0.26 | -0.21 | -3.87 | -52.45 | -40.34 | -11.50 | 1.78 | -2.47 | 16.24 |
| EPS Growth % | 48.82% | 41.46% | 65.55% | -453.49% | -265.38% | 223.81% | 94.57% | 92.62% | -30.02% | -250.78% | -746.07% | 172.06% | -115.21% | - |
| EPS (Basic) | - | -0.48 | -0.82 | -2.38 | -0.43 | 0.26 | -0.21 | -3.87 | -52.45 | -40.34 | -11.50 | 1.78 | -2.48 | 16.30 |
| Diluted Shares Outstanding | 154.51M | 105.4M | 91.72M | 89M | 88.3M | 83.6M | 48.7M | 31.5M | 13.83M | 9.42M | 10.06M | 10.77M | 10.75M | 10.75M |
| Basic Shares Outstanding | 142.33M | 105.4M | 91.72M | 89M | 88.3M | 82.4M | 48.7M | 31.5M | 13.83M | 9.42M | 10.06M | 10.73M | 10.71M | 10.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 1.26% | - | - |
Quick answers to the most common questions about buying BWNB stock.
For fiscal year 2025, Babcock & Wilcox Enterprises, I (BWNB) reported total revenue of $587.7M. This represents a 66.8% decline compared to $1.77B in 2013.
Babcock & Wilcox Enterprises, I (BWNB) reported a net loss of $36.2M for the fiscal year ending 2025.
Babcock & Wilcox Enterprises, I (BWNB) reported an operating income of $22.9M, resulting in an operating profit margin of 3.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Babcock & Wilcox Enterprises, I (BWNB) generated $143.9M in gross profit for the year, representing a gross profit margin of 24.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Debt service and project volatility
Metrics are mathematically derived from official filings.
Volatile Revenue Rebound Masks Structural Decline
Q2 2026 revenue surged 121.9% YoY to $319.7M, but TTM revenue remains down 18.1%, per reported figures, suggesting a sharp but possibly unsustainable recovery.
The 121.9% YoY growth in Q2 2026 is dramatic, yet it follows a period of severe contraction, including a -70.8% YoY drop in Q4 2024. This volatility likely reflects lumpy project-based revenue recognition rather than a steady organic expansion. The TTM decline of -18.1% indicates that the recent quarter may be a rebound from a low base, not a durable trend. Investors should monitor whether subsequent quarters can sustain this pace, as the mix of aftermarket services and large EPC projects creates inherent unpredictability.
Gross Margin Compression Signals Pricing Pressure
Gross margin fell to 14.6% in Q2 2026 from 30.0% a year earlier, per financial statements, suggesting a shift toward lower-margin project work.
The 14.6% gross margin in Q2 2026 is a stark contrast to the 30.0% reported in Q2 2025, indicating that the revenue surge may be driven by lower-margin construction or environmental projects rather than high-margin thermal aftermarket parts. This compression, alongside a peer average gross margin of roughly 24%, suggests BWNB is losing pricing power or facing input cost pressures. If this mix shift persists, the company's ability to generate operating leverage will be constrained, even as revenue grows.
Operating Leverage Elusive Amid Cost Swings
Operating income swung from $42.2M in Q2 2024 to $11.8M in Q2 2026, with SG&A rising 0.6% sequentially, per reported data, indicating limited scalability.
Despite a 49% sequential revenue increase in Q2 2026, operating income only rose from -$1.2M to $11.8M, implying that incremental revenue is not translating efficiently to the bottom line. SG&A of $33.7M in Q2 2026 is relatively flat versus prior quarters, but the gross margin collapse suggests that variable costs are absorbing the revenue gains. The company appears to lack the operating leverage typical of a high-fixed-cost industrial, as project execution risks and input costs erode potential scale benefits.
Net Income Volatility Masks Core Profitability
Q2 2026 net income of $14.3M contrasts with a -$76.9M loss in Q1 2026, per income statement data, highlighting extreme quarterly swings.
The $91.2M swing in net income between Q1 and Q2 2026 is far larger than the operating income change, suggesting significant below-the-line items such as tax benefits, impairments, or one-time gains. The Q1 2026 net loss of -$76.9M on -$1.2M operating income implies a massive non-operating charge, possibly related to debt restructuring or asset write-downs. This volatility undermines the reliability of quarterly EPS as a measure of underlying performance, and investors should focus on operating income and cash flow to assess true earning power.
COGS Dominates as R&D and SG&A Remain Lean
COGS consumed 85.4% of revenue in Q2 2026, while R&D was just $619K, per reported figures, indicating a cost structure driven by project inputs.
The cost structure is heavily weighted toward COGS, which at $273.1M in Q2 2026 represents the vast majority of revenue, leaving little room for margin expansion. R&D spending of $619K is minimal, suggesting that the company is not investing heavily in new technologies like BrightLoop, which could limit long-term competitiveness. SG&A of $33.7M is relatively controlled, but the high COGS ratio implies that raw material and labor costs are the primary drivers of profitability, making the company vulnerable to commodity price spikes.
Q2 2026 Marks Potential Turnaround After Losses
Q2 2026 delivered the first positive net margin (4.5%) in five quarters, per income statement data, following a -95.2% net margin in Q4 2024.
The transition from a -95.2% net margin in Q4 2024 to a positive 4.5% in Q2 2026 is a significant inflection, driven by a revenue surge and improved operating income. However, this turnaround appears fragile, as the gross margin is at its lowest in the period, and the net profit may be aided by one-time items. The company's ability to sustain this profitability will depend on whether the revenue mix shifts back toward higher-margin thermal services and whether debt service costs remain manageable.
Debt and Mix Shift Threaten Recovery
Despite Q2 2026 profitability, net margin remains negative on a TTM basis, and gross margin compression suggests the recovery may be low-quality, per reported data.
Short-sellers would likely highlight that the Q2 2026 net income of $14.3M is insufficient to offset the -$76.9M loss in Q1 2026, leaving TTM net income deeply negative. The gross margin decline to 14.6% from 30.0% a year ago indicates that the revenue growth is coming from lower-margin projects, which may not be sustainable. Additionally, the persistent negative net margins despite positive operating income in some quarters suggest that interest expenses or other non-operating costs are a structural drag, potentially requiring dilutive financing or asset sales to manage.