Babcock & Wilcox Raises $67.5 Million to Strengthen Growth in AI Power and Energy Markets
Babcock & Wilcox Enterprises, Inc. (“B&W” or the “Company”) (NYSE: BW), a global leader in energy technology and environmental solutions, announced that it has successfully raised $67.5 million through its at-the-market (ATM) equity offering, which commenced on November 5, 2025. The raise includes a $50 million investment from a single leading global institutional investor, highlighting strong market confidence in B&W’s strategy, technology portfolio, and growth potential.
This funding milestone follows closely after the Company received a Limited Notice to Proceed (LNTP) for a landmark project valued at over $1.5 billion, which will deliver one gigawatt of electric power to a major AI factory and data center. The pairing of the new capital and the recent large-scale contract underscores B&W’s growing prominence in serving the rapidly evolving artificial intelligence and data center power generation sectors.
Institutional Confidence in B&W’s Strategic Vision
Kenneth Young, Chairman and Chief Executive Officer of Babcock & Wilcox, emphasized that the success of the ATM offering reflects strong institutional trust in the company’s long-term vision and operational performance.
“The results of the offering demonstrate strong institutional confidence in B&W’s strategic direction and growth trajectory, particularly in the rapidly expanding AI data center and power generation markets,” said Young. “The capital raise significantly enhances the company’s balance sheet and provides substantial capital to execute on our robust pipeline of opportunities.”
The transaction marks a critical step in reinforcing B&W’s financial flexibility. The new capital will support continued investment in clean and reliable energy technologies while positioning the company to deliver large-scale solutions tailored to new high-demand markets such as AI computing, data processing, and industrial electrification.
Focused Execution and Financial Discipline
After the successful completion of the ATM offering, B&W announced that it has paused further sales under the program, having achieved its near-term capital objectives. This decision reflects a disciplined financial approach—raising funds strategically without diluting shareholder value beyond immediate necessity.
Young highlighted the significance of the institutional investment that anchored the raise, noting the investor’s confidence in B&W’s growth path and ability to execute on complex, high-value projects.
“The participation of this new institutional investor with a $50 million commitment demonstrates exceptional confidence in B&W’s strategy and execution capabilities,” said Young. “This capital raise, combined with our recent major contract wins, positions B&W to capitalize on the unprecedented growth in AI data center power demand and the global energy transition.”
Accelerating Growth in the AI Power Market
Babcock & Wilcox has strategically positioned itself at the intersection of clean energy innovation and the surging global demand for AI-related power infrastructure. As artificial intelligence models become more sophisticated and data centers grow increasingly power-intensive, energy efficiency, reliability, and scalability have become top priorities for operators and investors alike.
B&W’s advanced energy technologies—including flexible steam generation systems, waste-to-energy solutions, hydrogen production, and carbon capture technologies—are now being leveraged to meet these new challenges. The company’s involvement in the $1.5 billion AI factory project is a prime example of how its capabilities are being applied to deliver large-scale, sustainable energy solutions that meet both industrial and digital infrastructure needs.
Strengthened Balance Sheet for Future Projects
With the successful completion of this $67.5 million capital raise, B&W significantly enhances its financial strength. The proceeds will help the company fund working capital needs, accelerate project execution, and invest in emerging technology platforms that align with its long-term growth strategy.
This improved balance sheet also provides B&W with additional flexibility to pursue new strategic opportunities, including joint ventures, technology licensing, and global expansion in key markets. The company’s diversified portfolio—spanning clean power generation, environmental emissions control, and energy recovery systems—positions it as a key player in the transition to a low-carbon economy.
Young further noted that the rapid pace of the fundraising reflects growing market recognition of B&W’s ability to deliver results and maintain momentum even in dynamic energy markets.
“The rapid execution of this offering—raising $67.5 million in just two days—reflects the market’s recognition of B&W’s unique position to provide technology, services, and solutions to meet the growing energy needs of AI factories and data centers, utilities, and industrial customers around the world,” Young said. “With our strong financial position, we are well-positioned to execute on our significant project pipeline and continue to deliver value to our shareholders.”
Building on Momentum and Market Opportunity
The success of the ATM offering comes at a time when B&W is seeing increasing demand for its suite of clean energy and emissions control technologies. The company’s expertise spans multiple segments, including waste-to-energy, biomass energy, carbon capture and sequestration (CCS), hydrogen production, and thermal energy solutions. These technologies are central to supporting industries and utilities aiming to meet ambitious decarbonization targets.
The raised capital will also help B&W scale its ClimateBright™ platform, which integrates solutions for CO₂ capture and hydrogen generation, as well as enhance its Renewable segment focused on waste and biomass conversion. Together, these initiatives align with global trends toward sustainability and grid modernization.
Confidence Backed by Regulatory Transparency
The ATM offering was conducted pursuant to B&W’s existing shelf registration statement on Form S-3, which had previously been filed with the U.S. Securities and Exchange Commission (SEC). This ensured full regulatory compliance and transparency for investors participating in the program.
By leveraging this framework, B&W was able to efficiently access capital markets, attracting high-quality institutional investors without delay. The successful completion of this offering not only strengthens B&W’s financial foundation but also signals to the market that investors are aligned with the company’s forward-looking vision.
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