Babcock & Wilcox Enterprises Inc. surged 4.1% in pre-market trading after Needham initiated coverage with a Buy rating and a $20 price target.
The upgrade follows the company’s $2.4 billion FastPower award from Base Electron, lifting Babcock & Wilcox’s total backlog to approximately $2.6 billion. A second FastPower project is expected to reach full notice to proceed by year-end 2026, according to company disclosures.
The momentum comes as Babcock & Wilcox reported adjusted earnings per share of $0.07 in the second quarter of 2026, a reversal from a $0.63 loss in the same period a year earlier. The company also raised its full-year 2026 adjusted EBITDA guidance to a range of $80 million to $105 million, up from prior targets.
In addition to the operational progress, Babcock & Wilcox’s Board authorized a $50 million share repurchase program, signaling confidence in its financial position. The company also completed the redemption of $61.4 million in senior notes due in 2026, further strengthening its balance sheet.
Northland Securities had previously assigned a Buy rating to Babcock & Wilcox in early August, while CEO and director insider purchases in the same period underscored internal confidence. The broader U.S. equity market edged lower in pre-market trading, with the S&P 500, Dow Jones, and Nasdaq all modestly down amid hawkish remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium and elevated oil prices driven by Middle East geopolitical tensions.
