Babcock & Wilcox Awarded $13 Million Boiler Cleaning Equipment and Installation Contract for Southeast Asia Coal Power Plant

Rhea-AI Summary

Babcock & Wilcox (NYSE: BW) has secured a $13 million contract to retrofit boiler cleaning equipment for a power plant in Southeast Asia. The project, awarded to B&W's Thermal business segment, encompasses the design, supply, installation, integration, and commissioning of Diamond Power® boiler cleaning equipment.

The scope includes retractable and standard HydroJet® boiler cleaning systems, sootblowers, and a Titanium® advanced intelligent boiler cleaning control system. The customer selected this technology to maintain stable, full-capacity power generation, improve operational efficiency, reduce coal consumption, and lower carbon emissions.

The project is currently in progress and is expected to be completed in the first quarter of 2026. B&W will execute the project through its Philippines Service Center, which serves customers throughout Southeast Asia.

Positive

• Secured new $13 million contract for boiler cleaning equipment
• Project strengthens presence in Southeast Asian market
• Technology helps reduce customer's coal consumption and carbon emissions

Negative

• Long project timeline extending to Q1 2026

Insights

Industrial Technology Analyst

The $13 million contract represents a strategic win in B&W's core thermal business segment, strengthening its position in the Southeast Asian power generation market. The Diamond Power® technology suite, particularly the Titanium® control system, offers clear operational advantages through AI-driven optimization that directly impacts the bottom line. The retrofit project's scope encompasses critical efficiency improvements that should generate recurring revenue through maintenance and parts.

The timing is particularly relevant as Southeast Asian markets continue to rely heavily on coal power while seeking efficiency improvements to reduce environmental impact. This contract demonstrates B&W's ability to capture modernization opportunities in existing coal plants, which remain essential to the region's baseload power generation. The technology's focus on reducing coal consumption while maintaining full capacity addresses both economic and environmental concerns, potentially serving as a blueprint for similar retrofits across the region's aging coal fleet.

The project's completion timeline extending to Q1 2026 suggests a complex implementation schedule but provides revenue visibility for the next several quarters. With B&W's established Philippines Service Center, the company is well-positioned to leverage this contract for additional regional opportunities, potentially leading to a stronger market presence and recurring service revenue.

Financial Analyst

This contract is notable given B&W's current market capitalization of $170 million - the $13 million deal represents approximately 7.6% of their market value. The project's nature suggests healthy margins typical of specialized industrial technology implementations, likely contributing positively to both top and bottom lines through 2026.

The strategic value extends beyond the immediate contract value through:

• Potential recurring revenue from maintenance and parts
• Enhanced competitive positioning in the Southeast Asian market
• Demonstration of B&W's ability to win significant contracts despite market challenges

The deal's structure, focusing on efficiency improvements and operational optimization, aligns with regional utilities' capital expenditure patterns, suggesting potential for similar contracts. The established local service infrastructure through their Philippines center indicates lower execution risk and better margin preservation potential compared to remote project management scenarios.

AKRON, Ohio--(BUSINESS WIRE)-- Babcock & Wilcox (B&W) (NYSE: BW) announced today that its B&W Thermal business segment has been awarded a contract valued at approximately $13 million to retrofit boiler cleaning equipment for a power plant in Southeast Asia.

B&W Thermal’s scope includes equipment design and supply, installation, integration and commissioning of its Diamond Power^® boiler cleaning equipment, including retractable and standard HydroJet^® boiler cleaning systems, sootblowers, and a Titanium^® advanced intelligent boiler cleaning control system.

The customer selected B&W’s advanced boiler cleaning technology to help achieve its objectives of enabling the plant to maintain stable, full-capacity power generation, improving operational efficiency, reducing coal consumption, and lowering associated carbon emissions.

“B&W Thermal has a broad range of Diamond Power boiler cleaning technologies, cameras and monitoring equipment, replacement parts, sootblowing equipment and more that can help plant owners improve the performance and longevity of their coal-fired power assets,” said Chris Riker, B&W Executive Vice President and Chief Operating Officer. “B&W’s technologies are proven solutions for boiler cleaning, environmental and efficiency improvements and can be tailored to meet each plant’s needs based on fuel type and other factors.”

“Our dedicated Philippines Service Center team allows us to work closely with our customers throughout Southeast Asia,” Riker said. “We’ve successfully designed and installed similar boiler cleaning and sootblower upgrade solutions to customers throughout the region, and we’re excited about the opportunity to once again serve this important market.”

The project is currently underway and anticipated to complete in the first quarter of 2026.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements in connection with a boiler equipment cleaning and installation contract in Southeast Asia. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107946465/en/

Investor Contact:

Investor Relations

Babcock & Wilcox

704.625.4944

investors@babcock.com

Media Contact:

Ryan Cornell

Public Relations

Babcock & Wilcox

330.860.1345

rscornell@babcock.com

Source: Babcock & Wilcox Enterprises, Inc.

FAQ

What is the value of BW's new Southeast Asian power plant contract?

Babcock & Wilcox (BW) has been awarded a contract valued at approximately $13 million for boiler cleaning equipment retrofit.

When will BW complete the Southeast Asian power plant project?

The project is expected to be completed in the first quarter of 2026.

What equipment will BW supply in the $13M Southeast Asian contract?

BW will supply Diamond Power® boiler cleaning equipment, including retractable and standard HydroJet® systems, sootblowers, and a Titanium® advanced intelligent boiler cleaning control system.

How will BW's technology benefit the Southeast Asian power plant?

The technology will help maintain stable, full-capacity power generation, improve operational efficiency, reduce coal consumption, and lower carbon emissions.

Which BW business segment won the $13M Southeast Asian contract?

The contract was awarded to B&W's Thermal business segment.