Babcock & Wilcox Construction Co., LLC Awarded $35 Million for Power Plant and Industrial Maintenance and Service Work

Rhea-AI Summary

Babcock & Wilcox Construction Co. (BWCC) has secured $35 million in contracts for maintenance and service work at power plants and industrial facilities across North America. The company reports a substantial backlog of over $160 million in construction services heading into 2025.

The contracts demonstrate strong market demand for maintenance and service work in North America, as customers prioritize optimal facility performance. BWCC emphasizes the importance of maintaining thermal power fleet operations for energy security and grid reliability. The company's services include outage services, installation, refurbishment, mechanical repair and maintenance services, and equipment and plant installations.

Positive

• Secured $35 million in new maintenance and service contracts
• Strong construction services backlog of over $160 million for 2025
• Robust market demand for maintenance services in North America

Negative

• None.

Insights

Industrial Services Analyst

The $35 million in new maintenance contracts secured by B&W Construction, combined with their $160 million backlog, represents a significant positive development for several reasons. First, these contracts typically generate predictable, recurring revenue streams with historically higher margins compared to new construction projects. The maintenance service sector for power infrastructure is experiencing increased demand due to aging facilities and the critical need to maintain grid reliability during the energy transition period.

The substantial backlog heading into 2025 provides enhanced revenue visibility and operational planning capabilities. For context, this backlog represents a significant portion of B&W's market capitalization of $134 million, suggesting strong business fundamentals despite current market valuation. The focus on thermal power fleet maintenance is particularly strategic, as these facilities remain important for baseload power generation and grid stability, even as renewable energy adoption increases.

The contracts also reflect B&W's strong competitive position in the specialized power plant maintenance sector, where barriers to entry are high due to technical expertise requirements and safety certifications. The company's comprehensive service offering - spanning outage services, refurbishment and mechanical repairs - positions them well to capture additional market share in a sector where reliability and experience are paramount.

AKRON, Ohio--(BUSINESS WIRE)-- Babcock & Wilcox (B&W) (NYSE: BW) announced today that its Babcock & Wilcox Construction Co., LLC (BWCC) subsidiary was awarded $35 million in contracts for maintenance and service work at power plants and industrial facilities in North America, contributing to a backlog of more than $160 million in construction services heading into 2025.

“We continue to see a robust market for maintenance and service work in North America as our customers look to keep their power generation, industrial, and manufacturing facilities operating at peak performance,” said BWCC Vice President and General Manager Mike Hidas. “Maintaining the thermal power fleet also is essential to energy security and grid reliability.”

“We’re proud to play a key role in helping utilities and manufacturers serve their customers and ensure the stability of power grids,” Hidas added.

BWCC’s broad capabilities include outage services, installation, refurbishment, mechanical repair and maintenance services and equipment and plant installations.

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, including, without limitation, statements relating to maintenance and service contracts awarded to Babcock & Wilcox Construction Co., LLC for industrial and power plants in North America. 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/20250206496423/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 new contracts awarded to Babcock & Wilcox (BW) in 2024?

Babcock & Wilcox (BW) was awarded $35 million in contracts for maintenance and service work at power plants and industrial facilities in North America.

How large is BW's construction services backlog for 2025?

BW reports a construction services backlog of more than $160 million heading into 2025.

What types of services does Babcock & Wilcox Construction Co. provide under these contracts?

BWCC provides outage services, installation, refurbishment, mechanical repair and maintenance services, and equipment and plant installations.

What markets does BW serve with these maintenance contracts?

BW serves power plants and industrial facilities across North America, focusing on power generation, industrial, and manufacturing facilities.