Babcock & Wilcox Enterprises I Stock Price, News & Analysis

Babcock & Wilcox (NYSE: BW) has announced the sale of its Diamond Power International business to ANDRITZ for $177 million, with the deal expected to close within 30 days. Diamond Power, which generates annual revenues of approximately $110 million, provides boiler cleaning and monitoring solutions globally. The transaction includes the transfer of about 400 employees to ANDRITZ. B&W reports strong performance in Q1 2025, achieving the highest bookings and backlog in decades from parts and services, along with robust Thermal projects backlog. The company is experiencing increased demand driven by data centers, industrial, and utility markets. B&W highlights its BrightLoop technologies for steam generation and hydrogen production as key growth drivers, positioning itself for gas conversions, plant upgrades, and data center projects in North America and beyond.

Galloway Capital Partners and Diveroli Investment Group have announced a 4.31% stake in Babcock & Wilcox Enterprises (NYSE: BW), citing significant undervaluation. The investment firm highlighted three key factors supporting their thesis: 1) Record backlog of $540.1M (up 47% YoY) and strong 2024 bookings of $889.6M (up 39% YoY), 2) The potential of BrightLoop hydrogen and carbon capture technology, targeting ~$1B in bookings by 2028, and 3) Operational improvements with 13% YoY Adjusted EBITDA growth in 2024. The company maintains a manageable Net Debt to EBITDA ratio of 3x and is well-positioned to benefit from increasing power infrastructure demand driven by AI data centers.

Babcock & Wilcox (NYSE: BW) reported Q1 2025 results with revenue of $181.2 million, up 10% year-over-year, and operating income of $5.9 million. The company achieved Adjusted EBITDA of $14.3 million, a 27% increase from Q1 2024. Key highlights include a bond exchange of $131.8 million into $100.8 million of new five-year notes, record Q1 performance in Global Parts & Service, and bookings of $167.0 million (up 11% YoY). The company's backlog reached $526.8 million, a 47% increase YoY. However, B&W reported a net loss of $7.8 million ($0.11 per share) and faces substantial debt concerns, with $473.6 million in total debt against $116.8 million in cash and equivalents. The company sold Denmark-based A/S subsidiary assets for $20 million, with $5 million allocated to the Massillon BrightLoop project.

Babcock & Wilcox (NYSE: BW) has announced private bond exchanges that will significantly restructure its debt profile. The company will exchange $131.8 million of its outstanding Senior Notes due 2026 for $100.8 million in newly issued 8.75% Senior Secured Second Lien Notes due 2030.

The exchange includes approximately $84 million in 8.125% Senior Notes due February 2026 and $48 million in 6.50% Senior Notes due December 2026. This restructuring will result in an annual interest expense reduction of $1.1 million. The exchanges are subject to customary closing conditions and have not been registered under the Securities Act.

Babcock & Wilcox (NYSE:BW) has scheduled its first quarter 2025 earnings conference call and webcast for Monday, May 12, 2025, at 5:00 PM ET. Chairman and CEO Kenneth Young and CFO Cameron Frymyer will lead the discussion of the company's Q1 2025 results. The earnings release is expected to be published after market close on the same day.

The conference call will be accessible via dial-in numbers: (833) 470-1428 for U.S. participants, (833) 950-0062 for Canadian participants, and (929) 526-1599 for international participants, using conference ID 848055. A live webcast will be available on B&W's Investor Relations website, with a replay accessible for a limited time after the call.

Babcock & Wilcox (NYSE: BW) announced plans to utilize funds from the sale of its Danish subsidiary's assets to Kanadevia Inova for deploying a BrightLoop™ hydrogen production facility in Massillon, Ohio. The facility will produce 3-5 tons of hydrogen daily from water while capturing carbon dioxide. Additionally, B&W signed a Memorandum of Understanding with Kanadevia Inova to explore potential cooperation on BrightLoop projects using waste and biomass feedstocks.

The company's BrightLoop technology uses proprietary iron-oxide TranspO2rt™ particles to produce hydrogen by splitting water molecules and capturing carbon emissions more efficiently and cost-effectively than other technologies, compatible with both solid and gaseous fuels.

Babcock & Wilcox (NYSE: BW) has sold the majority of assets of its Denmark-based subsidiary B&W A/S to Kanadevia Inova Denmark A/S for $20 million. The transaction includes the DynaGrate® combustion grate and waste-to-energy combustion technologies, along with the transfer of approximately 50 employees primarily located in Denmark. A portion of the proceeds will be used for B&W's BrightLoop™ hydrogen production and carbon capture facility in Massillon, Ohio.

Under the agreement, Kanadevia Inova will take over certain European projects, while B&W will retain other contracts with support from Kanadevia Inova. B&W will continue serving the waste-to-energy market in North America with its boiler, environmental, and energy solutions. The sale aligns with B&W's strategy to divest certain assets to reduce debt and secure working capital.

Babcock & Wilcox (NYSE: BW) has received a notice from the New York Stock Exchange (NYSE) on April 4, 2025, indicating non-compliance with continued listing standards due to its average closing stock price falling below $1.00 over a consecutive 30 trading-day period.

The company has a six-month cure period to regain compliance with the minimum share price requirement. During this period, BW's stock will continue trading on the NYSE, subject to other listing requirements. Compliance can be restored if the stock achieves a closing price of at least $1.00 and maintains an average closing price of $1.00 over any 30 trading-day period ending on the last trading day of any calendar month during the cure period.

The notice does not impact BW's business operations, SEC reporting obligations, or trigger any debt obligation violations.

Babcock & Wilcox (NYSE: BW) reported Q4 2024 results with revenue from continuing operations of $200.8 million, up 15% year-over-year. Operating income increased to $11.6 million compared to a loss of $3.3 million in Q4 2023.

Full year 2024 highlights include stable revenues of $717.3 million, improved bookings of $889.6 million (up 39%), and backlog growth to $540.1 million (up 47%). The company reduced its net loss to $73.0 million from $75.8 million in 2023.

Key developments include:

• Completed asset sales of $120.9 million in 2024
• Progressing BrightLoop hydrogen project in Massillon, Ohio, targeting production by early 2026
• Received $10 million support from West Virginia for BrightLoop facility
• Anticipates positive net cash flow in 2025 (excluding BrightLoop)
• 2025 adjusted EBITDA target range: $70-85 million

However, with total debt of $473.9 million and ongoing refinancing discussions, the company faces substantial doubt about its ability to continue as a going concern.