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Babcock & Wilcox rated STRONG BUY on growth from data center power solutions and major contracts.

Market News
18 Aug 2026
Seeking Alpha
View Source
Bullish
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Babcock & Wilcox (BW) is rated a strong buy due to its strategic position in providing fast, modular power solutions for data centers amid rising demand and grid limitations. The company secured a $2.4 billion Base Electron contract and has a $14 billion sales pipeline, with expectations of a second major deal by year-end. A key partnership with Siemens under the FastPower deal includes 20 steam turbines, enabling BW to deliver 1GW of flexible power for multiple data center projects. While BW's positive cash position supports growth, risks remain around project execution and cost control as the company scales up.

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