Babcock & Wilcox Enterprises, Inc. (NYSE:BW) announced the sale of its ash handling business and significant progress in expanding its artificial intelligence data center pipeline, alongside reporting improved financial results for the third quarter of 2025.
The company completed the sale of its Allen-Sherman-Hoff (ASH) business to Andritz AG for approximately $29 million on October 31, 2025. This divestiture is part of a strategy to strengthen its balance sheet and re-capitalize its businesses.
Concurrently, Babcock & Wilcox Enterprises signed a limited notice to proceed with Applied Digital for a project to deliver natural gas technology providing one gigawatt of efficient energy for an AI data center. This marks a key development in the company's pursuit of over $3 billion in AI data center project opportunities, contributing to a total global pipeline exceeding $10 billion. The company also announced a strategic partnership with Denham Capital to convert coal plants to natural gas for AI data centers.
For the third quarter ended September 30, 2025, Babcock & Wilcox Enterprises reported an operating income of $6.5 million, a 315% increase compared to $1.6 million in the same period of 2024. Adjusted EBITDA from continuing operations rose 59% to $12.6 million, compared to $8.0 million in the prior year. The company reported a net loss from continuing operations of $2.3 million, an improvement from a $7.9 million net loss in the third quarter of 2024. Revenue for the quarter was $149.0 million, compared to $152.6 million in the prior year. The company's continuing operations backlog increased 56% year-over-year to $393.5 million.
In addition, Babcock & Wilcox Enterprises announced on November 4, 2025, its intention to redeem approximately $26 million in aggregate principal amount of its outstanding 8.125% Senior Notes due 2026, with the redemption date set for December 5, 2025. The company had previously paid down $70 million of these notes on October 2, 2025.
“For the third quarter, we delivered strong operating results while displaying continued core business momentum and significant margin improvement,” said Kenneth Young, B&W Chairman and Chief Executive Officer. “Our growing backlog... benefited from increasing demand across Thermal projects... Our core parts, services and construction businesses continued to excel... We anticipate 2026 Adjusted EBITDA from our core business in the range of $70 million to $85 million... This range does not include any AI Data Center projects, which, when contracted, would serve as upside to this forecast.”
