BWBabcock & Wilcox Enterprises, Inc.

Heating Equipment, Except Electric & Warm Air Furnaces

Revenue: $588M; 1.1% YoY
Operating margin: 3.5%; 424% YoY
EBITDA: $31M; 198% YoY
Market cap: $636M
Employees: 1,650; $356K revenue each
Net debt / EBITDA: -4.1×; −$127M net debt
AI in 10-K: 0.5; mentions per 10K words

Takeover score 8 of 13

Fixable underperformance 2 of 7

TSR below peersYes
3 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$2M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
-1% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
5% of assets
Over 40% of assets
Shareholder dissentYes
76% lowest support
Any vote under 80% support

Buyer economics 4 of 4

Low revenue per employeeYes
$356K · 22nd pct
Bottom quartile of its SIC industry
Quiet on AIYes
0.5 per 10K words · 23rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 4.1× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedYes
$636M market cap
Market cap $500M–$5B

Catalysts 2 of 2

Active 13DYes
1 filing
Active-intent 13D in 18 months
Net insider sellingYes
−$10M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$711M	$609M	$587M	$581M	$588M	1.1%
Operating income	$19M	−$1M	−$20M	−$6M	$21M	427%
Net income	$32M	−$14M	−$76M	−$73M	−$33M	55%
Operating cash flow	−$111M	−$31M	−$42M	−$119M	−$69M	42%
Capex	$7M	$13M	$10M	$11M	$17M	50%
Buybacks	$5M	$3M	$1M	$336K	$386K	15%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Feb 13, 2026	BRC Group Holdings, Inc.	SCHEDULE 13D/A	24.9%	Passive
Jun 2, 2025	Galloway Capital Partners, LLC	SCHEDULE 13D	4.3%	Active
Apr 2, 2025	B. Riley Securities, Inc.	SCHEDULE 13D	15.8%	Passive
Apr 2, 2025	B. Riley Financial, Inc.	SCHEDULE 13D/A	13.5%	Passive
Sep 25, 2024	B. Riley Financial, Inc.	SC 13D/A	—	Passive
Jul 15, 2024	B. Riley Financial, Inc.	SC 13D/A	30.2%	Passive
Apr 17, 2024	B. Riley Financial, Inc.	SC 13D/A	32.2%	Passive
Jan 22, 2024	B. Riley Financial, Inc.	SC 13D/A	30.7%	Passive
Dec 26, 2023	B. Riley Financial, Inc.	SC 13D/A	30.7%	Passive
Nov 1, 2021	B. Riley Financial, Inc.	SC 13D/A	30.4%	Passive

Insider trading

Open-market buys, 12 mo: $283K · 7
Open-market sells, 12 mo: $10M · 1
Net: −$10M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$2M	$4M	179	283
FY2024	$3M	$3M	45	222
FY2023	$1M	−$469K	40	163
FY2022	$3M	$3M	158	128
FY2021	$2M	$5M	247	121