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) Beneish M-score
Babcock's Beneish M-score for fiscal 2025 is −1.78; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −1.78 | 0.93 |
| FY2024 | −2.70 | 0.69 |
| FY2023 | −3.39 | (1.21) |
| FY2022 | −2.18 | (0.89) |
| FY2021 | −1.29 | 1.01 |
| FY2020 | −2.30 | 0.91 |
| FY2019 | −3.21 | (2.05) |
| FY2017 | −1.16 | 1.17 |
| FY2016 | −2.33 | 0.59 |
| FY2015 | −2.92 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.28 | — | 1.17 | |
| Gross margin index | 0.89 | — | 0.47 | |
| Asset quality index | 1.23 | — | 0.50 | |
| Sales growth index | 1.01 | — | 0.90 | |
| Depreciation index | 1.70 | — | 0.20 | |
| SG&A index | 0.95 | — | −0.16 | |
| Total accruals to total assets | 0.05 | — | 0.25 | |
| Leverage index | 0.82 | — | −0.27 | |
| Beneish M-score | Flagged by the model | −1.78 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| LXFR Luxfer Holdings PLC compare | −2.9× |
| KRNT Kornit Digital Ltd. compare | −2.7× |
| TNC Tennant Company compare | −2.5× |
| PKOH Park-Ohio Holdings Corp. compare | −2.5× |
| GHM Graham Corporation compare | −2.2× |
| BW Babcock | −1.8× |
| AMSC American Superconductor Corporation compare | −0.8× |
| PSIX Power Solutions International, Inc. compare | −0.7× |
| NNE Nano Nuclear Energy Inc. compare | — |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI