Babcock & Wilcox Enterprises Reports Second Quarter 2024 Results, Earnings Growth Driven By Strong Operating Performance
Babcock & Wilcox Enterprises (NYSE: BW) reported Q2 2024 results with revenue of $233.6 million, net income of $25.4 million, and operating income of $42.2 million. The company achieved Adjusted EBITDA of $23.3 million, exceeding expectations. BW reiterated its full-year 2024 Adjusted EBITDA target range of $105-115 million, excluding BrightLoop and ClimateBright expenses.
Key highlights include:
- Improved balance sheet through sale of Denmark renewable service subsidiary for $83.5 million
- Announced backlog of $472.4 million and implied backlog of $757.8 million
- Total YTD bookings of $383.1 million, a 71% increase compared to H1 2023
- Achieved annualized cost savings of $25 million to date
BW remains focused on strengthening its balance sheet, improving liquidity, and strategically investing in future growth.
Babcock & Wilcox Enterprises (NYSE: BW) ha riportato i risultati del Q2 2024, con un fatturato di 233,6 milioni di dollari, un reddito netto di 25,4 milioni di dollari e un reddito operativo di 42,2 milioni di dollari. L'azienda ha raggiunto un EBITDA rettificato di 23,3 milioni di dollari, superando le aspettative. BW ha ribadito il suo obiettivo per l'EBITDA rettificato dell'intero anno 2024, fissato tra 105 e 115 milioni di dollari, escludendo le spese per BrightLoop e ClimateBright.
Tra i principali risultati si segnalano:
- Miglioramento del bilancio grazie alla vendita della filiale danese di servizi rinnovabili per 83,5 milioni di dollari
- Annuncio di un portafoglio ordini di 472,4 milioni di dollari e un portafoglio implicito di 757,8 milioni di dollari
- Totale ordini YTD di 383,1 milioni di dollari, con un incremento del 71% rispetto al primo semestre del 2023
- Risparmi annualizzati sui costi di 25 milioni di dollari fino ad oggi
BW rimane concentrata sul rafforzamento del proprio bilancio, sul miglioramento della liquidità e su investimenti strategici per la crescita futura.
Babcock & Wilcox Enterprises (NYSE: BW) reportó los resultados del Q2 2024, con ingresos de 233.6 millones de dólares, ingresos netos de 25.4 millones de dólares y un ingreso operativo de 42.2 millones de dólares. La compañía logró un EBITDA ajustado de 23.3 millones de dólares, superando las expectativas. BW reiteró su rango objetivo de EBITDA ajustado para todo el año 2024, establecido entre 105 y 115 millones de dólares, excluyendo los gastos de BrightLoop y ClimateBright.
Los puntos destacados incluyen:
- Mejora del balance general a través de la venta de la subsidiaria de servicios renovables de Dinamarca por 83.5 millones de dólares
- Anuncio de una cartera de pedidos de 472.4 millones de dólares y una cartera implícita de 757.8 millones de dólares
- Total de reservas YTD de 383.1 millones de dólares, un incremento del 71% en comparación con el primer semestre de 2023
- Ahorros de costos anuales de 25 millones de dólares hasta la fecha
BW sigue enfocada en fortalecer su balance general, mejorar la liquidez e invertir estratégicamente en el crecimiento futuro.
Babcock & Wilcox Enterprises (NYSE: BW)는 2024년 2분기 실적을 보고했으며, 수익은 2억 3,360만 달러, 순이익은 2,540만 달러, 운영 수익은 4,220만 달러에 달했습니다. 회사는 조정된 EBITDA 2,330만 달러를 달성하여 기대치를 초과했습니다. BW는 BrightLoop 및 ClimateBright 비용을 제외한 2024년 전체 조정 EBITDA 목표 범위를 1억 5천만 달러에서 1억 1,500만 달러로 재확인했습니다.
주요 하이라이트는 다음과 같습니다:
- 덴마크 재생 에너지 서비스 자회사 매각을 통해 8,350만 달러로 대차대조표 개선
- 4억 7,240만 달러의 백로그 발표 및 7억 5,780만 달러의 암시된 백로그
- 2023년 상반기 대비 71% 증가한 3억 8,310만 달러의 YTD 예약 총액
- 현재까지 연간 2,500만 달러의 비용 절감 성과
BW는 대차대조표 강화, 유동성 개선 및 미래 성장에 전략적으로 투자하는 데 집중하고 있습니다.
Babcock & Wilcox Enterprises (NYSE: BW) a annoncé ses résultats du T2 2024, avec des revenus de 233,6 millions de dollars, un bénéfice net de 25,4 millions de dollars et un bénéfice opérationnel de 42,2 millions de dollars. L'entreprise a réalisé un EBITDA ajusté de 23,3 millions de dollars, dépassant les attentes. BW a réitéré son objectif de plage d'EBITDA ajusté pour l'année complète 2024, fixé entre 105 et 115 millions de dollars, excluant les dépenses pour BrightLoop et ClimateBright.
Les points clés comprennent :
- Amélioration du bilan grâce à la vente de la filiale de services renouvelables du Danemark pour 83,5 millions de dollars
- Annonce d'un carnet de commandes de 472,4 millions de dollars et d'un carnet de commandes implicite de 757,8 millions de dollars
- Total des réservations YTD de 383,1 millions de dollars, soit une augmentation de 71 % par rapport au premier semestre 2023
- Économies annuelles de coûts de 25 millions de dollars à ce jour
BW reste concentrée sur le renforcement de son bilan, l'amélioration de la liquidité et l'investissement stratégique dans la croissance future.
Babcock & Wilcox Enterprises (NYSE: BW) hat die Ergebnisse des Q2 2024 veröffentlicht, mit einem Umsatz von 233,6 Millionen US-Dollar, einem Nettogewinn von 25,4 Millionen US-Dollar und einem Betriebsergebnis von 42,2 Millionen US-Dollar. Das Unternehmen erzielte ein bereinigtes EBITDA von 23,3 Millionen US-Dollar, was die Erwartungen übertraf. BW bekräftigte die Zielspanne für das bereinigte EBITDA für das Gesamtjahr 2024 von 105 bis 115 Millionen US-Dollar, ohne die Ausgaben für BrightLoop und ClimateBright.
Wichtige Highlights sind:
- Verbesserung der Bilanz durch den Verkauf der dänischen Tochtergesellschaft für erneuerbare Energiedienstleistungen für 83,5 Millionen US-Dollar
- Bekanntgabe eines Auftragsbestands von 472,4 Millionen US-Dollar und eines implizierten Auftragsbestands von 757,8 Millionen US-Dollar
- Gesamtbuchungen YTD von 383,1 Millionen US-Dollar, was einem Anstieg von 71 % im Vergleich zum ersten Halbjahr 2023 entspricht
- Jährliche Kosteneinsparungen von 25 Millionen US-Dollar bis heute
BW bleibt darauf konzentriert, die Bilanz zu stärken, die Liquidität zu verbessern und strategisch in zukünftiges Wachstum zu investieren.
- Net income increased to $25.2 million from $0.6 million in Q2 2023
- Operating income rose to $42.2 million from $12.4 million in Q2 2023
- Earnings per share improved to $0.24 from a loss of $0.04 in Q2 2023
- Implied backlog increased by 51% compared to Q2 2023
- Environmental segment revenue grew by 15% year-over-year
- Environmental segment Adjusted EBITDA increased by 99% year-over-year
- Thermal segment bookings increased from $89.8 million in Q2 2023 to $111.7 million in Q2 2024
- New $150 million revolving credit facility expected to reduce interest costs by up to $5 million per year
- Overall revenue decreased compared to Q2 2023
- Adjusted EBITDA declined to $23.3 million from $26.1 million in Q2 2023
- Renewable segment revenue decreased from $85.2 million to $61.0 million year-over-year
- Thermal segment revenue decreased from $158.0 million to $120.2 million year-over-year
- Thermal segment Adjusted EBITDA decreased from $24.4 million to $13.0 million year-over-year
- Total debt remains high at $476.8 million as of June 30, 2024
Insights
Babcock & Wilcox's Q2 2024 results show a mixed performance. While revenue decreased to
The sale of B&W's Denmark renewable service subsidiary for
The company's backlog of
B&W's strategic realignment towards higher-value projects is showing promise, with improved margins despite lower revenues. The company's focus on efficient and sustainable energy solutions positions it well in the evolving energy market, particularly in areas like natural gas conversions and carbon capture.
The robust pipeline of over
The reiteration of the full-year Adjusted EBITDA guidance range of
B&W's investment in new technologies, particularly the BrightLoop™ projects for net-negative hydrogen production using solid fuels, demonstrates the company's commitment to innovation in clean energy. This aligns with the global energy transition trends and could provide a competitive edge in the evolving market.
The company's diverse portfolio of technologies supporting efficient and sustainable energy generation across various fuel sources positions it well to capitalize on the shifting energy landscape. The anticipated new bookings in hydrogen generation and carbon capture projects this year could be significant drivers for future growth.
However, the ongoing investment in BrightLoop™ and ClimateBright™ technologies is currently impacting the company's EBITDA. While this may pressure short-term financials, it could lead to long-term benefits if these technologies gain market traction and become commercially viable at scale.
-
Revenue of
$233.6 million $25.4 million $42.2 million -
Adjusted EBITDA of
$23.3 million $24.6 million -
Reiterate Full Year 2024 Adjusted EBITDA target range of
$105.0 million $115.0 million -
Improved balance sheet and liquidity through sale of B&W's
Denmark renewable service subsidiary for net cash proceeds of$83.5 million -
Announced backlog of
$472.4 million $757.8 million -
Announced total YTD bookings of
$383.1 million $668.5 million 71% increase compared to the first half of 2023 -
Achieved annualized cost savings of approximately
$25.0 million $30.0 million
Q2 2024 Continuing Operations Financial Highlights
– Revenue of
– Operating income of
– Net income of
– Earnings per share of
"Our results in the second quarter reflect the increased demand for our diverse portfolio of technologies that support the generation of efficient and sustainable energy no matter the fuel source, and we believe that we are well positioned to capitalize on the continued growth in natural gas conversions, environmental solutions, carbon capture and new clean energy opportunities with utility and industrial customers. We also are excited about the advancement of our new technologies, including continuing to invest in several BrightLoop™ projects for the net negative production of hydrogen utilizing solid fuels, and we anticipate new bookings this year in both hydrogen generation and carbon capture projects as we further support the world’s energy transition," commented Kenneth Young, B&W’s Chairman and Chief Executive Officer.
“We have improved margins with lower revenues in our core business, through a more selective market approach of targeting higher-value projects and opportunities. We also generated strong operating results during the second quarter, highlighted by Adjusted EBITDA that exceeded our expectations and we believe positions us well to achieve our full-year Adjusted EBITDA targets,” Young continued. “During the quarter, we completed the sale of a
“Based on the combination of robust customer activity and stronger than expected Adjusted EBITDA for the second quarter, we are reiterating our full-year Adjusted EBITDA guidance to a range of
“As we look to the second half of 2024, we expect operating momentum driven by our Thermal and Environmental segments to continue, especially in the fourth quarter which historically is a seasonally strong period for B&W’s businesses, with increased services and project schedules from our customers," Young said. "Our global pipeline of over
Q2 2024 Continuing Operations Financial Summary
Revenues in the second quarter of 2024 were
Babcock & Wilcox Renewable segment revenues were
Babcock & Wilcox Environmental segment revenues were
Babcock & Wilcox Thermal segment revenues were
Liquidity and Balance Sheet
At June 30, 2024, the Company had total debt of
Reducing Cost of Debt
During 2024, we closed the financing of a
Impacts of Market Conditions
Management continues to adapt to macroeconomic conditions, including the impacts from inflation, higher interest rates and foreign exchange rate volatility, geopolitical conflicts (including the ongoing conflicts in
Earnings Call Information
B&W plans to host a conference call and webcast on Thursday, August 8, 2024 at 5 p.m. ET to discuss the Company's second quarter 2024 results. The listen-only audio of the conference call will be broadcast live via the Internet on B&W’s Investor Relations site. The dial-in number for participants in the
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures internally to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results and the accompanying reconciliation, the Company believes that its presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting its financial condition and results of operations than GAAP measures alone. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s related financial results prepared in accordance with GAAP.
Adjusted EBITDA on a consolidated basis is a non-GAAP metric defined as the sum of the Adjusted EBITDA for each of the segments, further adjusted for corporate allocations and research and development costs. At a segment level, the Adjusted EBITDA presented is consistent with the way the Company's chief operating decision maker reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest expense, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment. The Company presents consolidated Adjusted EBITDA because it believes it is useful to investors to help facilitate comparisons of the ongoing, operating performance before corporate overhead and other expenses not attributable to the operating performance of the Company's revenue generating segments. In addition, the Company presents the non-GAAP financial measure of Adjusted EBITDA excluding BrightLoop and ClimateBright. Management believes this measure is useful to investors because of the increasing importance of BrightLoop and ClimateBright to the future growth of the Company. Management uses EBITDA excluding BrightLoop and ClimateBright to assess the Company's performance independent of these technologies.
This release also presents certain targets for the Company's Adjusted EBITDA in the future; these targets are not intended as guidance regarding how the Company believes the business will perform. The Company is unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation, including business transition costs.
Bookings and Backlog
Bookings and backlog are our measure of remaining performance obligations under our sales contracts. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies. Implied backlog and implied bookings include projects awarded or under contract but not fully released for performance.
We generally include expected revenue from contracts in our backlog when we receive written confirmation from our customers authorizing the performance of work and committing the customers to payment for work performed. Backlog may not be indicative of future operating results, and contracts in our backlog may be canceled, modified or otherwise altered by customers. Backlog can vary significantly from period to period, particularly when large new build projects or operations and maintenance contracts are booked because they may be fulfilled over multiple years. Because we operate globally, our backlog is also affected by changes in foreign currencies each period. We do not include orders of our unconsolidated joint ventures in backlog.
Bookings represent changes to the backlog. Bookings include additions from booking new business, subtractions from customer cancellations or modifications, changes in estimates of liquidated damages that affect selling price and revaluation of backlog denominated in foreign currency. We believe comparing bookings on a quarterly basis or for periods less than one year is less meaningful than for longer periods, and that shorter-term changes in bookings may not necessarily indicate a material trend.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this release are forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements include words such as “expect,” “intend,” “plan,” “likely,” “seek,” “believe,” “project,” “forecast,” “target,” “goal,” “potential,” “estimate,” “may,” “might,” “will,” “would,” “should,” “could,” “can,” “have,” “due,” “anticipate,” “assume,” “contemplate,” “continue” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events.
These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things: our financial condition and ability to continue as a going concern; the impact of global macroeconomic conditions, including inflation and volatility in the capital markets; the impact of our divestiture of Babcock & Wilcox Solar Energy, Inc.; risks associated with contractual pricing in our industry; our relationships with customers, subcontractors and other third parties; our ability to comply with our contractual obligations; disruptions at our or manufacturing facilities or a third-party manufacturing facility that we have engaged; the actions or failures of our co-venturers; our ability to implement our growth strategy, including through strategic acquisitions, which we may not successfully consummate or integrate; our evaluation of strategic alternatives for certain businesses and non-strategic assets may not result in a successful transaction; the risks of unexpected adjustments and cancellations in our backlog; professional liability, product liability, warranty and other claims; our ability to compete successfully against current and future competitors; our ability to develop and successfully market new products; the impacts of industry conditions and public health crises; the cyclical nature of the industries in which we operate; changes in the legislative and regulatory environment in which we operate; supply chain issues, including shortages of adequate components; failure to properly estimate customer demand; our ability to comply with the covenants in our debt agreements; our ability to refinance our
These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While we believe that these assumptions underlying the forward-looking statements are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect actual results. The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
About B&W Enterprises, Inc.
Headquartered in
Exhibit 1 Babcock & Wilcox Enterprises, Inc. Condensed Consolidated Statements of Operations(1) (In millions, except per share amounts) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
$ |
233.6 |
|
|
$ |
291.5 |
|
|
$ |
441.2 |
|
|
$ |
532.8 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of operations |
|
179.2 |
|
|
|
228.4 |
|
|
|
338.2 |
|
|
|
417.7 |
|
Selling, general and administrative expenses |
|
50.5 |
|
|
|
49.8 |
|
|
|
92.0 |
|
|
|
97.8 |
|
Restructuring activities |
|
0.8 |
|
|
|
1.0 |
|
|
|
2.3 |
|
|
|
1.4 |
|
Research and development costs |
|
1.2 |
|
|
|
0.9 |
|
|
|
2.3 |
|
|
|
2.2 |
|
Gain on sale of business |
|
(40.2 |
) |
|
|
— |
|
|
|
(40.2 |
) |
|
|
— |
|
(Gain) loss on asset disposals, net |
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
— |
|
Total costs and expenses |
|
191.4 |
|
|
|
279.1 |
|
|
|
394.7 |
|
|
|
519.1 |
|
Operating income |
|
42.2 |
|
|
|
12.4 |
|
|
|
46.5 |
|
|
|
13.7 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(12.5 |
) |
|
|
(11.2 |
) |
|
|
(25.4 |
) |
|
|
(23.8 |
) |
Interest income |
|
0.3 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
|
0.6 |
|
Loss on debt extinguishment |
|
(1.1 |
) |
|
|
— |
|
|
|
(6.1 |
) |
|
|
— |
|
Benefit plans, net |
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
(0.2 |
) |
Foreign exchange |
|
0.5 |
|
|
|
1.2 |
|
|
|
(0.8 |
) |
|
|
0.7 |
|
Other income (expense) - net |
|
0.4 |
|
|
|
(0.3 |
) |
|
|
0.4 |
|
|
|
(0.6 |
) |
Total other expense |
|
(12.3 |
) |
|
|
(9.9 |
) |
|
|
(31.1 |
) |
|
|
(23.4 |
) |
Income (loss) before income tax expense |
|
29.9 |
|
|
|
2.5 |
|
|
|
15.4 |
|
|
|
(9.7 |
) |
Income tax expense |
|
4.7 |
|
|
|
1.9 |
|
|
|
6.0 |
|
|
|
2.4 |
|
Income (loss) from continuing operations |
|
25.2 |
|
|
|
0.6 |
|
|
|
9.4 |
|
|
|
(12.1 |
) |
Income (loss) from discontinued operations, net of tax |
|
0.1 |
|
|
|
(5.6 |
) |
|
|
(0.9 |
) |
|
|
(5.4 |
) |
Net income (loss) |
|
25.4 |
|
|
|
(5.0 |
) |
|
|
8.6 |
|
|
|
(17.5 |
) |
Net income attributable to non-controlling interest |
|
— |
|
|
|
(0.1 |
) |
— |
|
(0.1 |
) |
|
|
(0.1 |
) |
Net income (loss) attributable to stockholders |
|
25.3 |
|
|
|
(5.1 |
) |
|
|
8.5 |
|
|
|
(17.6 |
) |
Less: Dividend on Series A preferred stock |
|
3.7 |
|
|
|
3.7 |
|
|
|
7.4 |
|
|
|
7.4 |
|
Net income (loss) attributable to stockholders of common stock |
$ |
21.6 |
|
|
$ |
(8.8 |
) |
|
$ |
1.1 |
|
|
$ |
(25.0 |
) |
|
|
|
|
|
|
|
|
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Basic earnings (loss) per share: |
|
|
|
|
|
|
|
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Continuing operations |
$ |
0.24 |
|
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.22 |
) |
Discontinued operations |
|
— |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
Basic earnings (loss) per share |
$ |
0.24 |
|
|
$ |
(0.10 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
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Diluted earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.24 |
|
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
|
$ |
(0.22 |
) |
Discontinued operations |
|
— |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
Diluted earnings (loss) per share |
$ |
0.24 |
|
|
$ |
(0.10 |
) |
|
$ |
0.01 |
|
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
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Shares used in the computation of earnings (loss) per share: |
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|
|
|
|
|
|||||||||
Basic |
|
91.0 |
|
|
|
88.8 |
|
|
|
90.3 |
|
|
|
88.8 |
|
Diluted |
|
91.2 |
|
|
|
88.8 |
|
|
|
90.3 |
|
|
|
88.8 |
|
(1) Figures may not be clerically accurate due to rounding |
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Exhibit 2 Babcock & Wilcox Enterprises, Inc. Condensed Consolidated Balance Sheets(1) |
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(In millions, except per share amount) |
June 30, 2024 |
|
December 31, 2023 |
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Cash and cash equivalents |
$ |
95.5 |
|
|
$ |
65.3 |
|
Current restricted cash |
|
75.3 |
|
|
|
5.7 |
|
Accounts receivable – trade, net |
|
125.0 |
|
|
|
144.0 |
|
Accounts receivable – other |
|
25.9 |
|
|
|
36.2 |
|
Contracts in progress |
|
88.6 |
|
|
|
90.1 |
|
Inventories, net |
|
110.3 |
|
|
|
113.9 |
|
Other current assets |
|
25.0 |
|
|
|
23.9 |
|
Current assets held for sale |
|
28.9 |
|
|
|
18.5 |
|
Total current assets |
|
574.6 |
|
|
|
497.6 |
|
Net property, plant and equipment and finance leases |
|
78.2 |
|
|
|
78.4 |
|
Goodwill |
|
83.8 |
|
|
|
102.0 |
|
Intangible assets, net |
|
30.5 |
|
|
|
45.6 |
|
Right-of-use assets |
|
27.6 |
|
|
|
28.2 |
|
Long-term restricted cash |
|
31.3 |
|
|
|
0.3 |
|
Deferred tax assets |
|
2.1 |
|
|
|
2.1 |
|
Other assets |
|
21.0 |
|
|
|
21.6 |
|
Total assets |
$ |
849.1 |
|
|
$ |
775.7 |
|
|
|||||||
Accounts payable |
$ |
147.4 |
|
|
$ |
127.5 |
|
Accrued employee benefits |
|
11.9 |
|
|
|
10.8 |
|
Advance billings on contracts |
|
63.3 |
|
|
|
81.1 |
|
Accrued warranty expense |
|
6.7 |
|
|
|
7.6 |
|
Financing lease liabilities |
|
1.4 |
|
|
|
1.4 |
|
Operating lease liabilities |
|
3.5 |
|
|
|
3.9 |
|
Other accrued liabilities |
|
53.7 |
|
|
|
68.1 |
|
Loans payable |
|
3.5 |
|
|
|
6.2 |
|
Current liabilities held for sale |
|
42.6 |
|
|
|
43.6 |
|
Total current liabilities |
|
333.9 |
|
|
|
350.2 |
|
Senior notes |
|
339.0 |
|
|
|
337.9 |
|
Loans payable, net of current portion |
|
134.3 |
|
|
|
35.4 |
|
Pension and other postretirement benefit liabilities |
|
168.0 |
|
|
|
172.9 |
|
Finance lease liabilities, net of current portion |
|
25.5 |
|
|
|
26.2 |
|
Operating lease liabilities, net of current portion |
|
25.3 |
|
|
|
25.4 |
|
Deferred tax liability |
|
10.5 |
|
|
|
13.0 |
|
Other non-current liabilities |
|
10.9 |
|
|
|
15.1 |
|
Total liabilities |
|
1,047.5 |
|
|
|
976.0 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' deficit: |
|
|
|
||||
Preferred stock, par value 0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,669 at June 30, 2024 and December 31, 2023 |
|
0.1 |
|
|
|
0.1 |
|
Common stock, par value |
|
5.2 |
|
|
|
5.1 |
|
Capital in excess of par value |
|
1,551.0 |
|
|
|
1,546.3 |
|
Treasury stock at cost, 2,154 shares and 2,139 shares at June 30, 2024 and December 31, 2023, respectively |
|
(115.2 |
) |
|
|
(115.2 |
) |
Accumulated deficit |
|
(1,569.9 |
) |
|
|
(1,570.9 |
) |
Accumulated other comprehensive loss |
|
(70.1 |
) |
|
|
(66.4 |
) |
Stockholders' deficit attributable to shareholders |
|
(198.9 |
) |
|
|
(201.0 |
) |
Non-controlling interest |
|
0.6 |
|
|
|
0.6 |
|
Total stockholders' deficit |
|
(198.3 |
) |
|
|
(200.4 |
) |
Total liabilities and stockholders' deficit |
$ |
849.1 |
|
|
$ |
775.7 |
|
(1) Figures may not be clerically accurate due to rounding. |
|||||||
Exhibit 3 Babcock & Wilcox Enterprises, Inc. Condensed Consolidated Statements of Cash Flows(1) |
|||||||
(In millions) |
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) from continuing operations |
$ |
9.4 |
|
|
$ |
(12.1 |
) |
Loss from discontinued operations, net of tax |
|
(0.9 |
) |
|
|
(5.4 |
) |
Net income (loss) |
|
8.6 |
|
|
|
(17.5 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization of long-lived assets |
|
9.5 |
|
|
|
11.3 |
|
Amortization of deferred financing costs and debt discount |
|
2.5 |
|
|
|
2.8 |
|
Amortization of guaranty fee |
|
1.4 |
|
|
|
0.5 |
|
Non-cash operating lease expense |
|
3.7 |
|
|
|
3.3 |
|
Loss on debt extinguishment |
|
6.1 |
|
|
|
— |
|
Gain on sale of business |
|
(40.2 |
) |
|
|
— |
|
Loss on asset disposals |
|
— |
|
|
|
0.3 |
|
Provision for (benefit from) deferred income taxes |
|
2.5 |
|
|
|
(1.7 |
) |
Prior service cost amortization for pension and postretirement plans |
|
0.5 |
|
|
|
0.4 |
|
Stock-based compensation |
|
2.7 |
|
|
|
5.6 |
|
Foreign exchange |
|
0.8 |
|
|
|
(0.7 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable - trade, net and other |
|
(7.5 |
) |
|
|
(10.5 |
) |
Contracts in progress |
|
(17.4 |
) |
|
|
(40.8 |
) |
Advance billings on contracts |
|
(15.0 |
) |
|
|
6.4 |
|
Inventories, net |
|
0.5 |
|
|
|
(15.7 |
) |
Income taxes |
|
4.6 |
|
|
|
(4.3 |
) |
Accounts payable |
|
35.3 |
|
|
|
40.5 |
|
Accrued and other current liabilities |
|
(12.0 |
) |
|
|
3.2 |
|
Accrued contract loss |
|
(4.7 |
) |
|
|
(1.3 |
) |
Pension liabilities, accrued postretirement benefits and employee benefits |
|
(2.4 |
) |
|
|
(4.7 |
) |
Other, net |
|
(6.3 |
) |
|
|
0.6 |
|
Net cash used in operating activities |
|
(26.6 |
) |
|
|
(22.3 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchase of property, plant and equipment |
|
(8.0 |
) |
|
|
(5.6 |
) |
Proceeds from sale of business and assets, net |
|
83.5 |
|
|
|
— |
|
Purchases of available-for-sale securities |
|
(3.2 |
) |
|
|
(3.9 |
) |
Sales and maturities of available-for-sale securities |
|
3.7 |
|
|
|
5.4 |
|
Other, net |
|
(0.2 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
75.8 |
|
|
(4.2 |
) |
|
Cash flows from financing activities: |
|
||||||
Borrowings on loan payable |
|
139.0 |
|
|
16.2 |
|
|
Repayments on loan payable |
|
(43.2 |
) |
|
(12.0 |
) |
|
Finance lease payments |
|
(0.7 |
) |
|
(0.6 |
) |
|
Payment of holdback funds from acquisition |
|
(3.0 |
) |
|
— |
|
|
Payment of preferred stock dividends |
|
(7.4 |
) |
|
(7.4 |
) |
|
Shares of common stock returned to treasury stock |
|
— |
|
|
(0.1 |
) |
|
Issuance of common stock, net |
|
2.0 |
|
|
— |
|
|
Debt issuance costs |
|
(5.1 |
) |
|
— |
|
|
Other, net |
|
(0.1 |
) |
|
(0.3 |
) |
|
Net cash provided by (used in) financing activities |
|
81.6 |
|
|
(4.2 |
) |
|
Effects of exchange rate changes on cash |
|
(0.2 |
) |
|
1.1 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
130.7 |
|
|
(29.6 |
) |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
71.4 |
|
|
113.5 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
202.1 |
|
$ |
83.9 |
|
|
(1) Figures may not be clerically accurate due to rounding. |
|||||||
Exhibit 4 Babcock & Wilcox Enterprises, Inc. Segment Information(1) (In millions) |
|||||||||||||||
| SEGMENT RESULTS | Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||
|
2024 |
|
2023 |
2024 |
|
2023 |
|||||||||
REVENUES: |
|
|
|
|
|
|
|||||||||
Babcock & Wilcox Renewable |
$ |
61.0 |
|
|
$ |
85.2 |
|
$ |
113.2 |
|
|
$ |
169.3 |
|
|
Babcock & Wilcox Environmental |
|
56.2 |
|
|
|
48.7 |
|
|
104.6 |
|
|
|
88.1 |
|
|
Babcock & Wilcox Thermal |
|
120.2 |
|
|
|
158.0 |
|
|
230.4 |
|
|
|
277.2 |
|
|
Eliminations |
|
(3.7 |
) |
|
|
(0.4 |
) |
|
(7.0 |
) |
|
|
(1.9 |
) |
|
|
$ |
233.6 |
|
|
$ |
291.5 |
|
$ |
441.2 |
|
|
$ |
532.8 |
|
|
|
|
|
|
|
|
|
|||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|||||||||
Babcock & Wilcox Renewable |
$ |
7.7 |
|
|
$ |
4.7 |
|
$ |
9.3 |
|
|
$ |
9.0 |
|
|
Babcock & Wilcox Environmental |
|
6.7 |
|
|
|
3.4 |
|
|
10.1 |
|
|
|
5.3 |
|
|
Babcock & Wilcox Thermal |
|
13.0 |
|
|
|
24.4 |
|
|
26.7 |
|
|
|
38.1 |
|
|
Corporate |
|
(4.0 |
) |
|
|
(5.5 |
) |
|
(10.0 |
) |
|
|
(10.6 |
) |
|
Research and development costs |
|
(0.2 |
) |
|
|
(0.9 |
) |
|
(0.3 |
) |
|
|
(2.2 |
) |
|
|
$ |
23.3 |
|
|
$ |
26.1 |
|
$ |
35.8 |
|
|
$ |
39.7 |
|
|
|
|
|
|
|
|
|
|||||||||
AMORTIZATION EXPENSE: |
|
|
|
|
|
|
|||||||||
Babcock & Wilcox Renewable |
$ |
0.5 |
|
|
$ |
0.5 |
|
$ |
0.9 |
|
|
$ |
1.1 |
|
|
Babcock & Wilcox Environmental |
|
0.8 |
|
|
|
0.8 |
|
|
1.6 |
|
|
|
1.5 |
|
|
Babcock & Wilcox Thermal |
|
1.1 |
|
|
|
1.2 |
|
|
2.1 |
|
|
|
2.2 |
|
|
|
$ |
2.3 |
|
|
$ |
2.4 |
|
$ |
4.7 |
|
|
$ |
4.8 |
|
|
|
|
|
|
|
|
|
|||||||||
DEPRECIATION EXPENSE: |
|
|
|
|
|
|
|||||||||
Babcock & Wilcox Renewable |
$ |
0.6 |
|
|
$ |
0.6 |
|
$ |
0.9 |
|
|
$ |
1.5 |
|
|
Babcock & Wilcox Environmental |
|
0.4 |
|
|
|
0.2 |
|
|
0.9 |
|
|
|
0.4 |
|
|
Babcock & Wilcox Thermal |
|
1.2 |
|
|
|
1.8 |
|
|
2.6 |
|
|
|
3.7 |
|
|
|
$ |
2.3 |
|
|
$ |
2.7 |
|
$ |
4.3 |
|
|
$ |
5.6 |
|
|
|
|
|
|
|
|
|
|||||||||
|
As of June 30, |
|
|
|
|||||||||||
BACKLOG: |
2024 |
|
2023 |
|
|
|
|||||||||
Babcock & Wilcox Renewable |
$ |
90 |
|
|
$ |
143 |
|
|
|
|
|||||
Babcock & Wilcox Environmental |
|
163 |
|
|
|
162 |
|
|
|
|
|||||
Babcock & Wilcox Thermal |
|
205 |
|
|
|
191 |
|
|
|
|
|||||
Other/Eliminations |
|
15 |
|
|
|
(3 |
) |
|
|
|
|||||
|
$ |
472 |
|
|
$ |
493 |
|
|
|
|
|||||
|
As of June 30, |
|
|||||||||||||
IMPLIED BACKLOG(2): |
2024 |
2023 |
|
||||||||||||
Babcock & Wilcox Renewable |
$ |
90 |
|
$ |
143 |
|
|
||||||||
Babcock & Wilcox Environmental |
|
182 |
|
|
170 |
|
|
||||||||
Babcock & Wilcox Thermal |
|
471 |
|
|
191 |
|
|
||||||||
Other/Eliminations |
|
15 |
|
|
(3 |
) |
|
||||||||
|
$ |
758 |
|
$ |
501 |
|
|
||||||||
(1) Figures may not be clerically accurate due to rounding. (2) Implied backlog is backlog plus projects that are awarded or under contract but not fully released for performance. |
|||||||||||||||
Exhibit 5 Babcock & Wilcox Enterprises, Inc. Reconciliation of Adjusted EBITDA(3) (In millions) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Income (loss) from continuing operations |
$ |
25.2 |
|
|
$ |
0.6 |
|
|
$ |
9.4 |
|
|
$ |
(12.1 |
) |
Interest expense |
|
12.2 |
|
|
|
10.7 |
|
|
|
24.8 |
|
|
|
23.2 |
|
Income tax expense |
|
4.7 |
|
|
|
1.9 |
|
|
|
6.0 |
|
|
|
2.4 |
|
Depreciation & amortization |
|
4.6 |
|
|
|
5.1 |
|
|
|
9.0 |
|
|
|
10.4 |
|
EBITDA |
|
46.8 |
|
|
|
18.3 |
|
|
|
49.2 |
|
|
|
23.9 |
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of business |
|
(40.2 |
) |
|
|
— |
|
|
|
(40.2 |
) |
|
|
— |
|
Benefit plans, net |
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
Gain on asset sales, net |
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
— |
|
Stock compensation |
|
1.3 |
|
|
|
2.3 |
|
|
|
2.7 |
|
|
|
5.5 |
|
Restructuring activities and business services transition costs |
|
0.8 |
|
|
|
1.0 |
|
|
|
2.3 |
|
|
|
2.0 |
|
Settlement and related legal costs |
|
7.4 |
|
|
|
— |
|
|
|
3.3 |
|
|
|
(2.5 |
) |
Loss on debt extinguishment |
|
1.1 |
|
|
|
— |
|
|
|
6.1 |
|
|
|
— |
|
Product development (1) |
|
1.4 |
|
|
|
1.0 |
|
|
|
3.1 |
|
|
|
2.4 |
|
Foreign exchange |
|
(0.5 |
) |
|
|
(1.2 |
) |
|
|
0.8 |
|
|
|
(0.7 |
) |
Contract disposal (2) |
|
3.5 |
|
|
|
2.7 |
|
|
|
4.1 |
|
|
|
4.1 |
|
Letter of credit fees |
|
2.3 |
|
|
|
2.0 |
|
|
|
4.6 |
|
|
|
3.7 |
|
Other - net |
|
(0.4 |
) |
|
|
0.7 |
|
|
|
(0.1 |
) |
|
|
1.1 |
|
Adjusted EBITDA |
$ |
23.3 |
|
|
$ |
26.1 |
|
|
$ |
35.8 |
|
|
$ |
39.7 |
|
Product development (1) |
|
(1.1 |
) |
|
|
(0.5 |
) |
|
|
(2.1 |
) |
|
|
(1.2 |
) |
BrightLoopTM and ClimateBrightTM expenses |
|
2.5 |
|
|
|
1.7 |
|
|
|
4.2 |
|
|
|
3.5 |
|
Adjusted EBITDA excluding BrightLoopTM and ClimateBrightTM expenses |
$ |
24.6 |
|
|
$ |
27.3 |
|
|
$ |
37.9 |
|
|
$ |
42.0 |
|
(1) Costs associated with development of commercially viable products that are ready to go to market. (2) Impacts of the disposal of our O&M contracts has been adjusted in the prior period to ensure uniform presentation with the current period. (3) Figures may not be clerically accurate due to rounding. |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808728017/en/
Investor Contact:
Lou Salamone, CFO
Babcock & Wilcox Enterprises, Inc.
704.625.4944 | investors@babcock.com
Media Contact:
Ryan Cornell
Public Relations
Babcock & Wilcox Enterprises, Inc.
330.860.1345 | rscornell@babcock.com
Source: Babcock & Wilcox Enterprises, Inc.
FAQ
What was Babcock & Wilcox's (BW) revenue in Q2 2024?
How much did Babcock & Wilcox (BW) earn in net income for Q2 2024?
What is Babcock & Wilcox's (BW) Adjusted EBITDA guidance for full-year 2024?
How much did Babcock & Wilcox (BW) receive from the sale of its Denmark renewable service subsidiary?
What was Babcock & Wilcox's (BW) implied backlog as of Q2 2024?
