Babcock & Wilcox Begins Work on a $130 Million Coal Plant Emissions Project as Litigation Over an Earlier Contract Continues

Babcock & Wilcox Enterprises, Inc. (NYSE: BW), a provider of energy and environmental products and services for power and industrial markets, announced on September 10, 2026 that it has received a limited notice to proceed on an approximately $130 million air quality control project at a U.S. coal-fired power plant. Under the notice, B&W will begin development, engineering, and long-lead procurement work. The company says the project will support continued reliable power generation and help the facility meet its emissions reduction goals. B&W expects its subsidiary, Babcock & Wilcox Construction Co., LLC, to execute the construction and installation scope.

A Limited Notice to Proceed Is a Starting Gun, Not a Signed Finish Line

The structure of this award deserves attention. A limited notice to proceed authorizes a contractor to begin early-stage work, typically engineering and procurement of long-lead equipment, while both parties finalize the full contract. It is a real commitment of scope and spend, but it is not the same as a fully executed contract for the entire $130 million. B&W has used this structure repeatedly, including on its SolveBright carbon capture project and on the Base Electron power generation agreement that converted from a limited notice in November 2025 to a full notice to proceed in March 2026. The distinction matters more than usual for B&W right now, because the gap between headline contract values and firm contractual commitments sits at the center of active securities litigation against the company.

Coal Retrofits Have Become a Growth Market as Power Demand Rises

The commercial logic behind a nine-figure emissions retrofit at a coal plant runs counter to the assumption that coal generation is simply winding down. Surging electricity demand, driven substantially by AI data center buildout, has extended the operating life of existing baseload coal capacity. Plants that now expect to run longer need emissions controls that keep them compliant. B&W has been explicit that higher demand from AI data center customers is lifting utilization of existing coal baseload generation and driving its core parts and services revenue. Its B&W Environmental segment has a consistent record of awards in this category, including a $40 million wet gas scrubbing contract for a Canadian refinery, roughly $30 million for a full suite of emissions technologies at a U.S. industrial facility, and more than $18 million in electrostatic precipitator rebuilds across the U.S. and Europe. Today’s project is materially larger than any of those.

The Base Electron Litigation Is the Risk Investors Should Understand

B&W faces a securities class action, Cho v. Babcock & Wilcox Enterprises, covering purchasers between November 5, 2025 and March 11, 2026. The complaint alleges the company made materially false or misleading statements about the $2.4 billion Base Electron power generation contract. According to the complaint and reporting by InvestmentNews, B&W did not disclose that its largest shareholder, BRC Group Holdings (formerly B. Riley Financial), had ties to the counterparty. BRC Co-CEO and Chairman Bryant Riley allegedly served as a Base Electron director. Base Electron’s registered address reportedly matched BRC’s headquarters rather than Applied Digital’s. And Base Electron allegedly did not incorporate until December 23, 2025, seven weeks after B&W announced the preliminary agreement.

The complaint also points to B&W’s own March 4 Form 8-K, which disclosed that the $2.4 billion headline figure included only $434 million in fixed fees, and to Applied Digital’s filing indicating it could terminate its guarantee for as little as $50 million. Short seller Wolfpack Research published its report on March 12, 2026. Shares fell 11.59% that day to $13.05 from a March 11 high of $14.76, then dropped a further 20.46% to $10.38 on March 13. These allegations remain unproven, and B&W has not issued a public rebuttal in the sources reviewed. The company’s most substantive answer has come through its financials: B&W recognized $100.7 million of Base Electron revenue in the second quarter and $131.7 million across the first half of 2026, actual recognized revenue rather than backlog.

Strategic Investment Summary

• The Award: Babcock & Wilcox (NYSE: BW) received a limited notice to proceed on September 10, 2026 for an approximately $130 million air quality control project at a U.S. coal-fired power plant, covering development, engineering, and long-lead procurement, with B&W Construction Co. expected to handle construction and installation.
• Structure Caveat: A limited notice to proceed authorizes early-stage work while both parties finalize the full contract. It does not equate to a fully executed $130 million contract, a distinction that carries added weight given active litigation over how B&W has characterized contract values.
• Q2 2026 Performance: Revenue reached $319.7 million against a $196.97 million consensus, adjusted EPS of $0.07 beat the $0.03 estimate, backlog rose 533% year over year to $2.6 billion, and B&W raised its full-year 2026 adjusted EBITDA target to $80 million to $105 million.
• Securities Class Action: Cho v. Babcock & Wilcox Enterprises alleges materially false or misleading statements about the $2.4 billion Base Electron contract, including undisclosed ties between largest shareholder BRC Group Holdings and the counterparty; the allegations are unproven and B&W has not publicly rebutted them in reviewed sources.
• Contract Is Generating Revenue: B&W recognized $100.7 million of Base Electron revenue in Q2 2026 and $131.7 million in the first half, offering concrete counter-evidence to allegations that the contract would not produce recognizable revenue, though a $64.4 million non-cash customer warrant remeasurement drove a $65.4 million first-half loss from continuing operations.
• Share Price Context: BW traded at $7.24 as of September 10, 2026, roughly 51% below its $14.76 intraday level on March 11, 2026, reflecting the market’s unresolved view of the Base Electron dispute despite improving reported results.

Find out more about the latest corporate developments and financial reports at the Babcock & Wilcox investor portal.