Babcock & Wilcox Enterprises (BW) has signed an agreement with Siemens Energy to begin work on 20 steam turbine generator sets totaling one gigawatt of generating capacity for AI data center projects, deepening the Akron, Ohio-based company’s push into one of the fastest-growing segments of the power market.<\/p>\n
The deal, announced August 11, covers 20 units rated at 50 megawatts each under B&W’s FastPower program, which targets customers needing accelerated deployment timelines. It builds on a previously announced turbine order with Siemens Energy from January that will supply one gigawatt of power to an “AI Factory” for Dallas-based data center developer Applied Digital.<\/p>\n
Brandy Johnson, B&W’s chief technology officer, said details about the specific customer and location remain confidential, but noted the equipment is “targeted for a behind-the-meter data center application.” She added that the standardized design approach gives the company flexibility: “We have potential projects with other customers in progression, so these turbines could be used for other customers if one of those projects progresses faster than the initial intended target.”<\/p>\n
Siemens Energy framed the agreement as part of a broader market shift. Tobias Panse, senior vice president of steam turbines and generators at Siemens Energy, said the deal “reflects a broader trend we are currently seeing in the U.S. market: growing demand for reliable, affordable, and resilient energy infrastructure.”<\/p>\n
The announcement came alongside B&W’s second-quarter 2026 earnings, which showed revenue more than doubling to $319.7 million from $138.9 million a year earlier. Net income swung to a profit of $14.3 million, compared with a $58.5 million net loss in the prior-year quarter. Earnings per share came in at 4 cents on a reported basis, versus a 63-cent loss a year ago, while adjusted EBITDA rose 57% to $21.8 million from $13.9 million.<\/p>\n
The company also raised its full-year 2026 adjusted EBITDA target, with management saying revenue, net income and adjusted EBITDA all exceeded both company and consensus expectations.<\/p>\n
Kenneth Young, B&W’s chairman, president and CEO, pushed back against market skepticism about the durability of AI-driven power demand during an August 10 earnings call. “We don’t see an end to the power generation demands coming from AI and data centers, despite what the public markets have been stating,” Young said. “The demand continues not only here but worldwide.”<\/p>\n
Shares of B&W jumped more than 35% in premarket trading Tuesday following the earnings release and Siemens agreement, reaching around $12.12 at one point. The stock closed at $9.24 on August 11, up 4.39% on the day. Over the past year, the share price has risen roughly 7x, delivering returns of approximately 525%.<\/p>\n
Despite the dramatic run-up, valuation metrics suggest the stock still trades at a discount to industry peers. B&W currently trades at a price-to-sales ratio of about 1.6x, well below the Electrical industry average of 2.9x and the peer group average of 3.9x. A fair value estimate of 2.4x based on the company’s risk profile, margins and size indicates the market is pricing in meaningful execution uncertainty around large power and decarbonization contracts.<\/p>\n
The gap between the current multiple and the modeled fair ratio raises a key question for investors: whether the discount reflects genuine concern about B&W’s ability to deliver on its expanding contract pipeline, or whether it leaves room for multiple expansion if execution and margins progress as management expects.<\/p>\n
Beyond the Siemens agreements, B&W is planning a $2.4 billion, 1.2-gigawatt data center project with Base Electron, an independent power producer backed by Applied Digital. That project, announced in March, will be located near Center, North Dakota. The company also has an existing agreement with Denham Capital announced last September, though B&W declined to share financial terms or specifics about power plant plans related to that deal.<\/p>\n
The broader AI data center market continues to expand rapidly, with some of the largest planned facilities including a proposed Amazon (AMZN) data center in Texas that would utilize up to 7.65 gigawatts of power, and Meta’s (META) in-development 5-gigawatt data center in Louisiana.<\/p>\n
On the balance sheet, B&W reported total secured debt and bonds of $239.8 million as of June 30, with cash, cash equivalents and restricted cash of $382.8 million. During the third quarter, the company repurchased its remaining $61.8 million of outstanding December 2026 bonds.<\/p>\n
Technical indicators paint a mixed picture for the stock. At around $12.12 in premarket trading, BW shares were 24% above the 20-day simple moving average of $9.81, but 5.7% below the 50-day SMA of $12.90 and 18.2% below the 100-day SMA of $14.86. The stock remained 8.3% above the 200-day SMA of $11.23, keeping the longer-term uptrend intact. MACD momentum has turned positive, with the indicator above its signal line and a positive histogram suggesting improving upside pressure.<\/p>\n
The near-term moving-average structure remains mixed, with the 20-day SMA below the 50-day SMA indicating bearish near-term alignment, while the 50-day SMA above the 200-day SMA maintains a golden-cross backdrop that began in August 2025. Key support sits around the $10.00 level, where buyers previously stepped in.<\/p>\n
The Siemens agreement and strong quarterly results reinforce B&W’s positioning in the AI data center power market, but the company still faces execution risk on large power and decarbonization contracts. Whether the stock can sustain its momentum depends on converting its growing pipeline into delivered projects and improving margins.<\/p>\n","protected":false},"excerpt":{"rendered":"Babcock & Wilcox Enterprises (BW) has signed an agreement with Siemens Energy to begin work on 20 steam…\n","protected":false},"author":2,"featured_media":71529,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21002],"tags":[1730,53247,53246,53250,52370,53251,53248,23394,6487,3844,53249],"class_list":["post-71528","post","type-post","status-publish","format-standard","has-post-thumbnail","category-siemens","tag-amazon","tag-applied-digital","tag-babcock-wilcox-enterprises","tag-base-electron","tag-brandy-johnson","tag-denham-capital","tag-kenneth-young","tag-meta","tag-siemens","tag-siemens-energy","tag-tobias-panse"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/71528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=71528"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/71528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/71529"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=71528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=71528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=71528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}