Shares of Babcock & Wilcox Enterprises rose 4.1% in pre-market trading on Thursday, lifting the stock to around $7.42 from a prior close of $7.16.
The move followed Needham’s initiation of coverage with a buy rating and a price target of $20, citing the company’s FastPower program as a potential recurring revenue driver for data center power generation. Northland Securities also assigned a buy recommendation earlier in August.
Babcock & Wilcox secured a $2.4 billion FastPower contract with Base Electron, pushing its total backlog to approximately $2.6 billion. A second project is expected to receive full execution authorization before the end of 2026.
The company reported adjusted earnings per share of $0.07 for the second quarter of 2026, a significant improvement from a loss of $0.63 in the same period a year earlier. Full-year 2026 adjusted EBITDA guidance was raised to a range of $80 million to $105 million.
Corporate actions included a $50 million share repurchase program authorized by the board and the full redemption of $61.4 million in senior notes maturing in 2026. CEO and director purchases of company stock in early August signaled internal confidence.
U.S. stock indices declined modestly in pre-market trading, while hawkish remarks from Federal Reserve Chairman Kevin Warsh at Jackson Hole and geopolitical tensions in the Middle East contributed to higher oil prices.
