Babcock
BW Industrials Specialty Industrial Machinery
In the quarter to June 2026, revenue grew 130.3%, EPS grew 111.1%, free cash flow grew 14.3% and total debt fell 39.4%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Babcock (BW) Altman Z-score
Babcock's Altman Z-score for fiscal 2025 is −1.94, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −1.94 | 0.13 |
| FY2024 | −2.07 | (0.21) |
| FY2023 | −1.86 | (1.04) |
| FY2022 | −0.82 | (0.59) |
| FY2021 | −0.22 | 1.62 |
| FY2020 | −1.84 | 0.23 |
| FY2019 | −2.07 | 0.91 |
| FY2018 | −2.98 | (2.81) |
| FY2017 | −0.17 | (1.39) |
| FY2016 | 1.23 | (0.91) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.13 | — | 0.15 | |
| Retained earnings / total assets | (2.56) | — | −3.58 | |
| EBIT / total assets | 0.03 | — | 0.10 | |
| Market value of equity / total liabilities | 0.84 | — | 0.50 | |
| Sales / total assets | 0.89 | — | 0.89 | |
| Altman Z-score | Distress zone | −1.94 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −7.48 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| KRNT Kornit Digital Ltd. compare | 7.5× |
| PSIX Power Solutions International, Inc. compare | 6.4× |
| GHM Graham Corporation compare | 4.2× |
| AMSC American Superconductor Corporation compare | 3.8× |
| LXFR Luxfer Holdings PLC compare | 3.4× |
| TNC Tennant Company compare | 3.3× |
| PKOH Park-Ohio Holdings Corp. compare | 2.1× |
| BW Babcock | −1.9× |
| NNE Nano Nuclear Energy Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets