Babcock & Wilcox Enterprises Reports Third Quarter 2024 Results
Babcock & Wilcox (BW) reported Q3 2024 results with revenue of $209.9 million, down from $239.4 million in Q3 2023. The company posted a net loss of $11.1 million ($0.16 per share), improving from a $12.3 million loss in Q3 2023. Adjusted EBITDA increased to $22.3 million from $20.0 million year-over-year.
Notable developments include receiving approval for a $246 million natural gas conversion project in Indiana and completing asset sales totaling $116 million in 2024. The company reported YTD implied bookings of $810.5 million, a 27% increase, and implied backlog of $628.2 million, up 48% compared to 2023.
Babcock & Wilcox (BW) ha riportato i risultati del terzo trimestre del 2024 con un fatturato di 209,9 milioni di dollari, in calo rispetto ai 239,4 milioni di dollari del terzo trimestre del 2023. L'azienda ha registrato una perdita netta di 11,1 milioni di dollari (0,16 dollari per azione), migliorando rispetto a una perdita di 12,3 milioni di dollari nel terzo trimestre del 2023. L'EBITDA rettificato è aumentato a 22,3 milioni di dollari rispetto ai 20,0 milioni di dollari dell'anno precedente.
Sono stati registrati sviluppi notevoli, tra cui l'approvazione di un progetto di conversione al gas naturale del valore di 246 milioni di dollari in Indiana e il completamento di vendite di attivi per un totale di 116 milioni di dollari nel 2024. L'azienda ha riportato booking impliciti da inizio anno pari a 810,5 milioni di dollari, con un incremento del 27%, e un backlog implicito di 628,2 milioni di dollari, con un incremento del 48% rispetto al 2023.
Babcock & Wilcox (BW) informó los resultados del tercer trimestre de 2024 con ingresos de 209,9 millones de dólares, una disminución respecto a los 239,4 millones de dólares en el tercer trimestre de 2023. La compañía informó una pérdida neta de 11,1 millones de dólares (0,16 dólares por acción), mejorando respecto a una pérdida de 12,3 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado aumentó a 22,3 millones de dólares desde 20,0 millones de dólares interanuales.
Desarrollos notables incluyen la aprobación de un proyecto de conversión a gas natural de 246 millones de dólares en Indiana y la finalización de ventas de activos por un total de 116 millones de dólares en 2024. La compañía reportó reservas implícitas acumuladas de 810,5 millones de dólares, un aumento del 27%, y una cartera implícita de 628,2 millones de dólares, un aumento del 48% en comparación con 2023.
Babcock & Wilcox (BW)는 2024년 3분기 실적을 발표하며 2억 9천 9백만 달러의 수익을 보고했으며, 이는 2023년 3분기의 2억 3천 9백 4십만 달러에서 감소한 수치입니다. 이 회사는 1천 1백 10만 달러의 순손실을 기록했으며 ($0.16 per 주식), 이는 2023년 3분기의 1천 2백 30만 달러 손실에서 개선된 수준입니다. 조정된 EBITDA는 전년 대비 2천 2백 30만 달러로 증가했습니다.
주요 개발 사항으로는 인디애나에서 2억 4천 6백만 달러 규모의 천연가스 전환 프로젝트 승인을 받은 것과 2024년에 1억 1천 6백만 달러의 자산 매각을 완료한 것입니다. 이 회사는 연초부터 8억 1천 5백만 달러의 암시적인 예약을 보고했으며, 이는 27% 증가한 수치이며, 2023년 대비 6억 2천 8백 20만 달러의 암시적 백로그가 발생했습니다, 이는 48% 증가한 것입니다.
Babcock & Wilcox (BW) a publié les résultats du 3ème trimestre 2024 avec un chiffre d'affaires de 209,9 millions de dollars, en baisse par rapport à 239,4 millions de dollars au 3ème trimestre 2023. La société a affiché une perte nette de 11,1 millions de dollars (0,16 dollar par action), améliorant ainsi sa situation par rapport à une perte de 12,3 millions de dollars au 3ème trimestre 2023. L'EBITDA ajusté a augmenté pour atteindre 22,3 millions de dollars contre 20,0 millions de dollars d'une année sur l'autre.
Parmi les développements notables, on note l'approbation d'un projet de conversion au gaz naturel d'une valeur de 246 millions de dollars en Indiana et la réalisation de ventes d'actifs totalisant 116 millions de dollars en 2024. La société a rapporté des réservations implicites depuis le début de l'année de 810,5 millions de dollars, soit une augmentation de 27 %, et un carnet de commandes implicites de 628,2 millions de dollars, en hausse de 48 % par rapport à 2023.
Babcock & Wilcox (BW) berichtete über die Ergebnisse des 3. Quartals 2024 mit einem Umsatz von 209,9 Millionen Dollar, ein Rückgang von 239,4 Millionen Dollar im 3. Quartal 2023. Das Unternehmen verzeichnete einen Nettverlust von 11,1 Millionen Dollar (0,16 Dollar pro Aktie), was eine Verbesserung im Vergleich zu einem Verlust von 12,3 Millionen Dollar im 3. Quartal 2023 darstellt. Das bereinigte EBITDA stieg auf 22,3 Millionen Dollar von 20,0 Millionen Dollar im Jahresvergleich.
Bemerkenswerte Entwicklungen umfassen die Genehmigung eines 246 Millionen Dollar Projekts zur Umstellung auf Erdgas in Indiana sowie den Abschluss von Vermögensverkäufen in Höhe von insgesamt 116 Millionen Dollar im Jahr 2024. Das Unternehmen berichtete von implizierten Buchungen seit Jahresbeginn in Höhe von 810,5 Millionen Dollar, ein Anstieg um 27 %, und einem impliziten Auftragsbestand von 628,2 Millionen Dollar, was einem Anstieg von 48 % im Vergleich zu 2023 entspricht.
- Adjusted EBITDA increased to $22.3 million from $20.0 million YoY
- YTD implied bookings grew 27% to $810.5 million
- Implied backlog increased 48% to $628.2 million
- Asset sales generated $116 million to strengthen balance sheet
- Secured $246 million natural gas conversion project in Indiana
- Revenue declined to $209.9 million from $239.4 million YoY
- Operating loss of $1.5 million compared to $5.5 million income in Q3 2023
- Net loss of $11.1 million ($0.16 per share)
- $5.8 million non-cash impairment on SPIG divestiture
- $4.9 million settlement cost to exit loss-generating maintenance contract
Insights
The Q3 2024 results reveal a mixed but generally improving financial picture for B&W. Revenue declined to
Key positive indicators include a
However, concerns include ongoing operating losses (
B&W is strategically positioning itself to capitalize on increasing baseload power generation demand, particularly driven by AI data centers and EV growth. The company's diverse technology portfolio spanning fossil fuels, natural gas and renewables provides multiple growth avenues as energy demand increases.
The 12-15 active FEED studies representing over
The strategic exit from underperforming European O&M operations, which generated
- Announced divestiture of two assets as we continue to pursue strategic sales and debt refinancing to further improve the balance sheet and support future growth
-
Announced total YTD implied bookings of
, including$810.5 million of bookings, a$543.9 million 27% increase compared to same period of 2023
-
Excluding divestitures, announced implied backlog of
, which includes$628.2 million of backlog, a$361.6 million 48% increase compared to the same period of 2023
-
Received final approval to proceed on a previously announced
natural gas conversion project in$246 million Indiana as of November 2024
-
Began ramp up to BrightLoop™ project in
Massillon, Ohio targeted to produce hydrogen and sequester CO2 by early 2026
Q3 2024 Continuing Operations Financial Highlights
- Significantly improved margin performance, which helped meet adjusted EBITDA and net income expectations for the quarter when adjusted for one-time items
-
Revenue of
, compared to revenue of$209.9 million , in the third quarter of 2023 which included revenues of$239.4 million from a B&W Renewable Service A/S (BWRS) asset$34.2 million -
Operating loss of
, which includes a$1.5 million non-cash impairment on the recent SPIG divestiture and a$5.8 million settlement to exit a long-term loss-generating maintenance contract, compared to operating income of$4.9 million in the third quarter of 2023$5.5 million -
Net loss of
, including a$11.1 million non-cash impairment on the recent SPIG divestiture and$5.8 million settlement to exit a loss-generating maintenance contract that had 10 years remaining, compared to a net loss of$4.9 million in the third quarter of 2023$12.3 million -
Loss per share of
, compared to a loss per share of$0.16 in the third quarter of 2023$0.18 -
Adjusted EBITDA of
, compared to adjusted EBITDA of$22.3 million in the third quarter of 2023. Adjusted EBITDA in the third quarter of 2023 was$20.0 million excluding the BWRS divestiture or an increase of$12.5 million 78% . Adjusted EBITDA excluding BrightLoop™ and ClimateBright™ expenses was in the third quarter of 2024$23.3 million
Energy Demand
"We believe that we are in a unique position to leverage the significant increase in base-load generation demand in
"Overall, we continue to see strong demand for our diverse portfolio of technologies that help drive our increased backlog and higher implied bookings of over
BrightLoop and ClimateBright
"Our investments across our ClimateBright suite of decarbonization technologies to support the world’s energy transition are progressing well and notably we continued to move forward on our BrightLoop project in
Asset Sales and Debt Refinancing
“During the quarter, we completed the sale of our SPIG/GMAB business for net proceeds of
Increased Margin Performance
“Our third quarter results demonstrated significant margin improvement, reflecting our strategic direction as evidenced by strong year-over-year adjusted EBITDA and net income increases. These results include two one-time items, a non-cash impairment on the recent SPIG divestiture and a settlement on a maintenance contract to avoid 10 years of potential significant future losses. Excluding these two one-time charges, we met adjusted EBITDA and net income expectations for the quarter. Looking ahead, we continue to expect increasing operating momentum driven by our Thermal and Environmental segments, as the fourth quarter is historically a seasonally strong period for B&W’s businesses, with increased services and project schedules from our customers," Young said. “Our business as a whole prior to divestitures is on target to achieve our stated goals in 2024. When adjusting the targets to reflect the recent divestitures, our EBITDA target range is around
Q3 2024 Continuing Operations Financial Summary
Revenues in the third 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 September 30, 2024, the Company had total debt of
Earnings Call Information
B&W plans to host a conference call and webcast on Tuesday, November 12, 2024 at 5 p.m. ET to discuss the Company's third 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, also referred to in this release as “adjusted” financial measures, 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 Adjusted EBITDA excluding BrightLoop and ClimateBright to assess the Company's performance independent of these technologies.
This release presents Adjusted Operating Income, Adjusted EBITDA without BWRS and Revenue without BWRS as additional non-GAAP financial measures. Management believes these measures are useful to investors to facilitate comparisons between years by excluding the impact from business divestitures in the current year and their related operating results from the prior year. Management uses these measures to preview and evaluate performance of retained businesses.
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.
Impacts of Market Conditions
Management continues to adapt to macroeconomic conditions, including the impacts from inflation, changing interest rates and foreign exchange rate volatility, geopolitical conflicts (including the ongoing conflicts in
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; 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, which 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 |
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Babcock & Wilcox Enterprises, Inc. |
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Condensed Consolidated Statements of Operations(1) |
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(In millions, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
209.9 |
|
|
$ |
239.4 |
|
|
$ |
651.1 |
|
|
$ |
772.2 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of operations |
|
160.0 |
|
|
|
186.0 |
|
|
|
498.3 |
|
|
|
603.7 |
|
Selling, general and administrative expenses |
|
43.1 |
|
|
|
45.7 |
|
|
|
135.1 |
|
|
|
143.4 |
|
Restructuring activities |
|
0.5 |
|
|
|
1.3 |
|
|
|
2.8 |
|
|
|
2.7 |
|
Research and development costs |
|
1.4 |
|
|
|
0.9 |
|
|
|
3.7 |
|
|
|
3.1 |
|
Gain on sale of business |
|
0.1 |
|
|
|
— |
|
|
|
(40.1 |
) |
|
|
— |
|
Impairment on long-lived assets |
|
5.8 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
Loss (gain) on asset disposals, net |
|
0.4 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
Total costs and expenses |
|
211.3 |
|
|
|
233.9 |
|
|
|
606.0 |
|
|
|
753.0 |
|
Operating (loss) income |
|
(1.5 |
) |
|
|
5.5 |
|
|
|
45.1 |
|
|
|
19.2 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(10.6 |
) |
|
|
(13.4 |
) |
|
|
(36.0 |
) |
|
|
(37.2 |
) |
Interest income |
|
0.3 |
|
|
|
0.3 |
|
|
|
0.9 |
|
|
|
0.9 |
|
Loss on debt extinguishment |
|
(0.7 |
) |
|
|
— |
|
|
|
(6.8 |
) |
|
|
— |
|
Benefit plans, net |
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
(0.3 |
) |
Foreign exchange |
|
2.3 |
|
|
|
(4.9 |
) |
|
|
1.4 |
|
|
|
(4.2 |
) |
Other expense, net |
|
(0.8 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
(0.7 |
) |
Total other expense, net |
|
(9.4 |
) |
|
|
(18.1 |
) |
|
|
(40.6 |
) |
|
|
(41.6 |
) |
(Loss) income before income tax expense |
|
(10.9 |
) |
|
|
(12.6 |
) |
|
|
4.5 |
|
|
|
(22.3 |
) |
Income tax expense (benefit) |
|
0.2 |
|
|
|
(0.3 |
) |
|
|
6.1 |
|
|
|
2.0 |
|
Loss from continuing operations |
|
(11.1 |
) |
|
|
(12.3 |
) |
|
|
(1.6 |
) |
|
|
(24.4 |
) |
Income (loss) from discontinued operations, net of tax |
|
5.7 |
|
|
|
(104.5 |
) |
|
|
4.9 |
|
|
|
(109.9 |
) |
Net (loss) income |
|
(5.3 |
) |
|
|
(116.8 |
) |
|
|
3.2 |
|
|
|
(134.2 |
) |
Net income attributable to non-controlling interest |
|
— |
|
|
|
(0.1 |
) |
— |
|
(0.1 |
) |
|
|
(0.2 |
) |
Net (loss) income attributable to stockholders |
|
(5.3 |
) |
|
|
(116.9 |
) |
|
|
3.2 |
|
|
|
(134.5 |
) |
Less: Dividend on Series A preferred stock |
|
3.7 |
|
|
|
3.7 |
|
|
|
11.1 |
|
|
|
11.1 |
|
Net loss attributable to stockholders of common stock |
$ |
(9.0 |
) |
|
$ |
(120.6 |
) |
|
$ |
(8.0 |
) |
|
$ |
(145.6 |
) |
|
|
|
|
|
|
|
|
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Basic and diluted loss per share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
(0.16 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.40 |
) |
Discontinued operations |
|
0.06 |
|
|
|
(1.17 |
) |
|
|
0.05 |
|
|
|
(1.24 |
) |
Basic and diluted loss per share |
$ |
(0.10 |
) |
|
$ |
(1.35 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.64 |
) |
|
|
|
|
|
|
|
|
||||||||
Shares used in the computation of earnings (loss) per share: |
|
|
|
|
|
|
|||||||||
Basic and diluted |
|
92.3 |
|
|
|
89.1 |
|
|
|
90.9 |
|
|
|
88.9 |
|
(1) Figures may not be clerically accurate due to rounding |
Exhibit 2 |
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Babcock & Wilcox Enterprises, Inc. |
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Condensed Consolidated Balance Sheets(1) |
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(In millions, except per share amount) |
September 30, 2024 |
|
December 31, 2023 |
|
||||
Cash and cash equivalents |
$ |
30.6 |
|
|
$ |
65.3 |
|
|
Current restricted cash |
|
63.4 |
|
|
|
5.7 |
|
|
Accounts receivable – trade, net |
|
143.0 |
|
|
|
144.0 |
|
|
Accounts receivable – other |
|
26.7 |
|
|
|
36.2 |
|
|
Contracts in progress |
|
101.3 |
|
|
|
90.1 |
|
|
Inventories, net |
|
116.6 |
|
|
|
113.9 |
|
|
Other current assets |
|
21.8 |
|
|
|
23.9 |
|
|
Current assets held for sale |
|
26.9 |
|
|
|
18.5 |
|
|
Total current assets |
|
530.2 |
|
|
|
497.6 |
|
|
Net property, plant and equipment, and finance leases |
|
73.6 |
|
|
|
78.4 |
|
|
Goodwill |
|
84.6 |
|
|
|
102.0 |
|
|
Intangible assets, net |
|
23.9 |
|
|
|
45.6 |
|
|
Right-of-use assets |
|
29.7 |
|
|
|
28.2 |
|
|
Long-term restricted cash |
|
33.9 |
|
|
|
0.3 |
|
|
Deferred tax assets |
|
6.3 |
|
|
|
2.1 |
|
|
Other assets |
|
22.4 |
|
|
|
21.6 |
|
|
Total assets |
$ |
804.6 |
|
|
$ |
775.7 |
|
|
|
|
|||||||
Accounts payable |
$ |
122.4 |
|
|
$ |
127.5 |
|
|
Accrued employee benefits |
|
11.6 |
|
|
|
10.8 |
|
|
Advance billings on contracts |
|
58.8 |
|
|
|
81.1 |
|
|
Accrued warranty expense |
|
6.8 |
|
|
|
7.6 |
|
|
Financing lease liabilities |
|
1.5 |
|
|
|
1.4 |
|
|
Operating lease liabilities |
|
3.8 |
|
|
|
3.9 |
|
|
Other accrued liabilities |
|
53.1 |
|
|
|
68.1 |
|
|
Loans payable |
|
3.0 |
|
|
|
6.2 |
|
|
Current liabilities held for sale |
|
36.9 |
|
|
|
43.6 |
|
|
Total current liabilities |
|
297.9 |
|
|
|
350.2 |
|
|
Senior notes |
|
339.7 |
|
|
|
337.9 |
|
|
Loans payable, net of current portion |
|
132.8 |
|
|
|
35.4 |
|
|
Pension and other postretirement benefit liabilities |
|
163.8 |
|
|
|
172.9 |
|
|
Finance lease liabilities, net of current portion |
|
25.8 |
|
|
|
26.2 |
|
|
Operating lease liabilities, net of current portion |
|
27.1 |
|
|
|
25.4 |
|
|
Deferred tax liability |
|
10.7 |
|
|
|
13.0 |
|
|
Other noncurrent liabilities |
|
10.0 |
|
|
|
15.1 |
|
|
Total liabilities |
|
1,007.8 |
|
|
|
976.0 |
|
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders' deficit: |
|
|
|
|
||||
Preferred stock, par value |
|
0.1 |
|
|
|
0.1 |
|
|
Common stock, par value |
|
5.2 |
|
|
|
5.1 |
|
|
Capital in excess of par value |
|
1,552.0 |
|
|
|
1,546.3 |
|
|
Treasury stock at cost, 2,339 and 2,139 shares at September 30, 2024 and December 31, 2023, respectively |
|
(115.4 |
) |
|
|
(115.2 |
) |
|
Accumulated deficit |
|
(1,578.9 |
) |
|
|
(1,570.9 |
) |
|
Accumulated other comprehensive loss |
|
(66.6 |
) |
|
|
(66.4 |
) |
|
Stockholders' deficit attributable to shareholders |
|
(203.7 |
) |
|
|
(201.0 |
) |
|
Non-controlling interest |
|
0.6 |
|
|
|
0.6 |
|
|
Total stockholders' deficit |
|
(203.1 |
) |
|
|
(200.4 |
) |
|
Total liabilities and stockholders' deficit |
$ |
804.6 |
|
|
$ |
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) |
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss from continuing operations |
$ |
(1.6 |
) |
|
$ |
(24.4 |
) |
Net income (loss) from discontinued operations |
|
4.9 |
|
|
|
(109.9 |
) |
Net income (loss) |
|
3.2 |
|
|
|
(134.2 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization of long-lived assets |
|
13.7 |
|
|
|
16.5 |
|
Goodwill impairment |
|
— |
|
|
|
56.6 |
|
Amortization of deferred financing costs and debt discount |
|
3.7 |
|
|
|
3.7 |
|
Amortization of guaranty fee |
|
2.1 |
|
|
|
0.5 |
|
Non-cash operating lease expense |
|
5.2 |
|
|
|
4.4 |
|
Loss on debt extinguishment |
|
6.8 |
|
|
|
— |
|
Gain on sale of business |
|
(40.1 |
) |
|
|
— |
|
Impairment on long-lived assets |
|
5.8 |
|
|
|
— |
|
Loss on asset disposals |
|
0.4 |
|
|
|
0.2 |
|
Benefit from deferred income taxes |
|
(6.5 |
) |
|
|
(5.6 |
) |
Prior service cost amortization for pension and postretirement plans |
|
0.7 |
|
|
|
0.7 |
|
Stock-based compensation |
|
3.8 |
|
|
|
7.2 |
|
Foreign exchange |
|
(1.4 |
) |
|
|
4.2 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable - trade, net and other |
|
(17.7 |
) |
|
|
4.3 |
|
Contracts in progress |
|
(30.4 |
) |
|
|
2.5 |
|
Advance billings on contracts |
|
(20.7 |
) |
|
|
(29.7 |
) |
Inventories, net |
|
(3.4 |
) |
|
|
(10.5 |
) |
Income taxes |
|
2.7 |
|
|
|
(0.2 |
) |
Accounts payable |
|
5.1 |
|
|
|
28.1 |
|
Accrued and other current liabilities |
|
(5.8 |
) |
|
|
(4.6 |
) |
Accrued contract loss |
|
(6.0 |
) |
|
|
13.3 |
|
Pension liabilities, accrued postretirement benefits and employee benefits |
|
(7.6 |
) |
|
|
(2.1 |
) |
Other, net |
|
(9.9 |
) |
|
|
(5.6 |
) |
Net cash used in operating activities |
|
(96.3 |
) |
|
|
(50.5 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchase of property, plant and equipment |
|
(10.1 |
) |
|
|
(10.5 |
) |
Proceeds from sale of business and assets, net |
|
87.6 |
|
|
|
— |
|
Purchases of available-for-sale securities |
|
(4.5 |
) |
|
|
(5.3 |
) |
Sales and maturities of available-for-sale securities |
|
5.0 |
|
|
|
7.4 |
|
Other, net |
|
— |
|
|
|
(0.1 |
) |
Net cash provided by (used in) investing activities |
|
78.0 |
|
|
|
(8.6 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings on loan payable |
|
184.8 |
|
|
|
97.1 |
|
Repayments on loan payable |
|
(91.1 |
) |
|
|
(72.5 |
) |
Finance lease payments |
|
(1.0 |
) |
|
|
— |
|
Payment of holdback funds from acquisition |
|
(3.0 |
) |
|
|
(2.8 |
) |
Payment of preferred stock dividends |
|
(14.9 |
) |
|
|
(7.4 |
) |
Shares of common stock returned to treasury stock |
|
(0.3 |
) |
|
|
(1.4 |
) |
Issuance of common stock, net |
|
2.0 |
|
|
|
— |
|
Debt issuance costs |
|
(5.6 |
) |
|
|
(0.2 |
) |
Other, net |
|
(0.2 |
) |
|
|
(0.9 |
) |
Net cash provided by financing activities |
|
70.8 |
|
|
|
11.9 |
|
Effects of exchange rate changes on cash |
|
4.0 |
|
|
|
(0.7 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
56.6 |
|
|
|
(47.9 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
71.4 |
|
|
|
113.0 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
127.9 |
|
|
$ |
65.1 |
|
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
REVENUES: |
|
|
|
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
38.2 |
|
|
$ |
87.1 |
|
|
$ |
151.4 |
|
|
$ |
256.4 |
|
Babcock & Wilcox Environmental |
|
56.6 |
|
|
|
46.4 |
|
|
|
161.2 |
|
|
|
134.6 |
|
Babcock & Wilcox Thermal |
|
119.9 |
|
|
|
107.0 |
|
|
|
350.3 |
|
|
|
384.2 |
|
Eliminations |
|
(4.8 |
) |
|
|
(1.1 |
) |
|
|
(11.8 |
) |
|
|
(3.0 |
) |
|
$ |
209.9 |
|
|
$ |
239.4 |
|
|
$ |
651.1 |
|
|
$ |
772.2 |
|
|
|
|
|
|
|
|
|
||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
5.0 |
|
|
$ |
10.1 |
|
|
$ |
14.3 |
|
|
$ |
19.2 |
|
Babcock & Wilcox Environmental |
|
4.7 |
|
|
|
5.0 |
|
|
|
14.8 |
|
|
|
10.3 |
|
Babcock & Wilcox Thermal |
|
18.4 |
|
|
|
11.3 |
|
|
|
45.1 |
|
|
|
49.4 |
|
Corporate |
|
(5.7 |
) |
|
|
(5.6 |
) |
|
|
(15.6 |
) |
|
|
(16.2 |
) |
Research and development costs |
|
(0.2 |
) |
|
|
(0.9 |
) |
|
|
(0.5 |
) |
|
|
(3.1 |
) |
|
$ |
22.3 |
|
|
$ |
20.0 |
|
|
$ |
58.1 |
|
|
$ |
59.6 |
|
|
|
|
|
|
|
|
|
||||||||
AMORTIZATION EXPENSE: |
|
|
|
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
0.1 |
|
|
$ |
0.5 |
|
|
$ |
1.0 |
|
|
$ |
1.6 |
|
Babcock & Wilcox Environmental |
|
0.8 |
|
|
|
0.8 |
|
|
|
2.4 |
|
|
|
2.3 |
|
Babcock & Wilcox Thermal |
|
1.1 |
|
|
|
1.1 |
|
|
|
3.2 |
|
|
|
3.3 |
|
|
$ |
2.0 |
|
|
$ |
2.4 |
|
|
$ |
6.7 |
|
|
$ |
7.2 |
|
|
|
|
|
|
|
|
|
||||||||
DEPRECIATION EXPENSE: |
|
|
|
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
0.3 |
|
|
$ |
0.6 |
|
|
$ |
1.2 |
|
|
$ |
2.1 |
|
Babcock & Wilcox Environmental |
|
0.6 |
|
|
|
0.2 |
|
|
|
1.4 |
|
|
|
0.6 |
|
Babcock & Wilcox Thermal |
|
1.4 |
|
|
|
1.4 |
|
|
|
3.9 |
|
|
|
5.0 |
|
|
$ |
2.2 |
|
|
$ |
2.2 |
|
|
$ |
6.5 |
|
|
$ |
7.8 |
|
|
|
|
|
|
|
|
|
||||||||
BOOKINGS AND BACKLOG |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
BOOKINGS: |
|
|
|
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
41 |
|
|
$ |
33 |
|
|
$ |
108 |
|
|
$ |
180 |
|
Babcock & Wilcox Environmental |
|
17 |
|
|
|
54 |
|
|
|
118 |
|
|
|
154 |
|
Babcock & Wilcox Thermal |
|
103 |
|
|
|
105 |
|
|
|
321 |
|
|
|
299 |
|
Other/Eliminations |
|
0 |
|
|
|
6 |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
$ |
161 |
|
|
$ |
198 |
|
|
$ |
544 |
|
|
$ |
628 |
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
IMPLIED BOOKINGS(2): |
|
|
|
|
|
|
|
||||||||
Babcock & Wilcox Renewable |
$ |
41 |
|
|
$ |
33 |
|
|
$ |
108 |
|
|
$ |
180 |
|
Babcock & Wilcox Environmental |
|
33 |
|
|
|
54 |
|
|
|
154 |
|
|
|
162 |
|
Babcock & Wilcox Thermal |
|
68 |
|
|
|
105 |
|
|
|
552 |
|
|
|
299 |
|
Other/Eliminations |
|
— |
|
|
|
6 |
|
|
|
(3 |
) |
|
|
(5 |
) |
|
$ |
142 |
|
|
$ |
198 |
|
|
$ |
811 |
|
|
$ |
636 |
|
|
|
|
|
|
|
|
|
||||||||
|
BACKLOG |
|
IMPLIED BACKLOG(3) |
||||||||||||
|
As of September 30, |
|
As of September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Babcock & Wilcox Renewable |
$ |
96 |
|
|
$ |
133 |
|
|
$ |
96 |
|
|
$ |
133 |
|
Babcock & Wilcox Environmental |
|
66 |
|
|
|
173 |
|
|
|
101 |
|
|
|
181 |
|
Babcock & Wilcox Thermal |
|
185 |
|
|
|
196 |
|
|
|
416 |
|
|
|
196 |
|
Other/Eliminations |
|
15 |
|
|
|
5 |
|
|
|
15 |
|
|
|
5 |
|
|
$ |
362 |
|
|
$ |
507 |
|
|
$ |
628 |
|
|
$ |
515 |
|
(1) Figures may not be clerically accurate due to rounding. |
|||||||||||||||
(2) Implied bookings are bookings plus projects that are awarded but not contracted or are under contract but not fully released for performance. |
|||||||||||||||
(3) 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income (loss) from continuing operations |
$ |
(11.1 |
) |
|
$ |
(12.3 |
) |
|
$ |
(1.6 |
) |
|
$ |
(24.4 |
) |
Interest expense |
|
10.3 |
|
|
|
13.4 |
|
|
|
35.1 |
|
|
|
37.1 |
|
Income tax expense |
|
0.2 |
|
|
|
(0.3 |
) |
|
|
6.1 |
|
|
|
2.0 |
|
Depreciation & amortization |
|
4.2 |
|
|
|
4.6 |
|
|
|
13.2 |
|
|
|
15.0 |
|
EBITDA |
|
3.6 |
|
|
|
5.4 |
|
|
|
52.8 |
|
|
|
29.7 |
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of business |
|
— |
|
|
|
— |
|
|
|
(40.2 |
) |
|
|
— |
|
Benefit plans, net |
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.3 |
) |
|
|
0.3 |
|
Gain on asset sales, net |
|
0.4 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
Impairment on long-lived assets |
|
5.8 |
|
|
|
— |
|
|
|
5.8 |
|
|
|
— |
|
Stock compensation |
|
0.9 |
|
|
|
0.4 |
|
|
|
3.6 |
|
|
|
5.9 |
|
Restructuring activities and business services transition costs |
|
0.5 |
|
|
|
1.3 |
|
|
|
2.8 |
|
|
|
3.3 |
|
Settlement and related legal costs |
|
(0.1 |
) |
|
|
— |
|
|
|
3.2 |
|
|
|
(2.5 |
) |
Loss on debt extinguishment |
|
0.7 |
|
|
|
— |
|
|
|
6.8 |
|
|
|
— |
|
Acquisition pursuit and related costs |
|
0.2 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.6 |
|
Product development (1) |
|
2.1 |
|
|
|
0.9 |
|
|
|
5.1 |
|
|
|
3.3 |
|
Foreign exchange |
|
(2.3 |
) |
|
|
4.9 |
|
|
|
(1.4 |
) |
|
|
4.2 |
|
Financial advisory services |
|
1.1 |
|
|
|
— |
|
|
|
1.3 |
|
|
|
— |
|
Contract disposal (2) |
|
6.1 |
|
|
|
4.3 |
|
|
|
10.1 |
|
|
|
8.4 |
|
Letter of credit fees |
|
1.3 |
|
|
|
2.0 |
|
|
|
5.9 |
|
|
|
5.6 |
|
Other - net |
|
2.2 |
|
|
|
0.4 |
|
|
|
1.7 |
|
|
|
0.8 |
|
Adjusted EBITDA |
$ |
22.3 |
|
|
$ |
20.0 |
|
|
$ |
58.1 |
|
|
$ |
59.6 |
|
Product development (1) |
|
(1.7 |
) |
|
|
(0.5 |
) |
|
|
(3.9 |
) |
|
|
(2.6 |
) |
BrightLoopTM and ClimateBrightTM expenses |
|
2.7 |
|
|
|
1.7 |
|
|
|
6.9 |
|
|
|
5.9 |
|
Adjusted EBITDA excluding BrightLoopTM and ClimateBrightTM expenses |
$ |
23.3 |
|
|
$ |
21.2 |
|
|
$ |
61.1 |
|
|
$ |
62.9 |
|
(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. |
Exhibit 6 | |||||
Babcock & Wilcox Enterprises, Inc. | |||||
Other Non-GAAP Reconciliations(1) | |||||
(in millions) |
Three months ended
|
|
|
||
Revenue |
$ |
239.4 |
|
|
|
Less: |
|
|
|
||
BWRS Revenue |
|
34.2 |
|
|
|
Revenue, less BWRS |
$ |
205.2 |
|
|
|
|
|
|
|
||
(in millions) |
Three months ended
|
|
|
||
Adjusted EBITDA |
$ |
20.0 |
|
|
|
Less: |
|
|
|
||
BWRS Adjusted EBITDA |
|
7.4 |
|
|
|
Adjusted EBITDA, less BWRS |
$ |
12.6 |
|
|
|
(1) Figures may not be clerically accurate due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112543518/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
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