Babcock & Wilcox Enterprises Inc. advanced 4.1% in pre-market trading after Needham initiated coverage with a Buy rating and a $20 price target.
The analyst cited the FastPower program as a potential recurring revenue driver for data-center power generation. The program’s backlog now stands at approximately $2.6 billion, following a $2.4 billion award from Base Electron. A second project is expected to receive full notice to proceed before the end of 2026.
The company also reported a sharp turnaround in its Q2 2026 outlook, projecting earnings per share of $0.07 compared with 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 the authorization of a $50 million share repurchase program and the full redemption of $61.4 million in senior notes due in 2026. Northland Securities had previously assigned a Buy rating in August, while CEO and director insider purchases were reported around the same time.
U.S. equities slipped modestly in pre-market trading, with broader market headwinds linked to hawkish remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium and rising oil prices amid Middle East geopolitical tensions.
