AKRON, Ohio--(BUSINESS WIRE)---- $BW--B&W and Denham will jointly pursue opportunities to generate power to support the increased demand from data centers. ...

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Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $21.6 million for Q2 2025, which was over 70% greater than street expectations, primarily driven by a 31% increase in higher margin parts and services revenue [5][8] - Company-wide revenues, including Diamond Power, were $170.8 million, slightly ahead of street expectations, while revenues from continuing operations without Diamond Power were $144.1 million, roughly the same as Q2 2024 [7][13] - Adjusted EBITDA from continuing operations was $15.1 million in Q2 2025, a 90% increase compared to $8 million in Q2 2024 [8][16] Business Line Data and Key Metrics Changes - The parts and services business saw a 31% increase in revenues compared to 2024, driven by rising demand for power and electricity from AI-driven data centers and increased base load generation usage [4][14] - Global parts and service revenue increased by $15.4 million compared to 2024, reflecting the growing need for electricity from fossil fuels [14][16] Market Data and Key Metrics Changes - The company anticipates an increase in base load generation by up to 120 gigawatts over the next ten years, primarily driven by data centers [4][25] - The backlog at the end of Q2 was $418.1 million, a 49% increase compared to the same period in 2024, indicating strong demand for services [11] Company Strategy and Development Direction - The company is focusing on exiting certain large new build projects internationally while expanding its parts and services presence globally [6] - The strategic vision includes exploring the sale of non-strategic assets and refinancing options to reduce debt obligations [10][17] - The company is actively pursuing large upgrades and new builds in the U.S. to support power generation needs, with key announcements expected by the end of the year [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive cash flows in 2025, driven by asset sales, debt reduction, and improved cash flows [9][17] - The company is well-positioned to capitalize on the growing demand for baseload generation while supporting energy security and transition [19] Other Important Information - The sale of Diamond Power International for gross proceeds of $177 million significantly improved the company's balance sheet and net leverage ratios [9][10] - The company has entered into a private bond exchange to reduce annual interest expenses and extend debt maturity [10] Q&A Session Summary Question: Current demand for energy on the thermal side of the business - Management noted an expected increase in baseload generation demand in North America, with potential new coal-fired generation projects being explored [24][25] Question: Thoughts on the second half of the year - Management anticipates a strong year due to the higher margin parts and services aspect, with guidance to be provided before the end of the year [29] Question: Confidence in returning to positive free cash flow in 2025 - Management expressed confidence that the second half of the year will generate positive cash flow, supported by asset sales and growing parts and services revenue [30][31] Question: Dynamic of extending the life of plants on parts and service business - Extending the life of plants creates opportunities for increased parts and services revenue as plants require ongoing maintenance and efficiency improvements [37][38] Question: Bright Loop pipeline and potential projects - Management indicated that there are well over 10 projects in the BrightLoop pipeline, focusing on producing steam and hydrogen while offering CO2 capture options [40][42]

[PART I - FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the company's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the period [Item 1. Condensed Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025, and 2024, reflecting a decrease in Q2 2025 revenue but a significant improvement in operating income [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, revenues decreased to $144.1 million, while operating income significantly improved to $8.1 million from a prior-year loss, driven by reduced costs | Indicator (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $144,054 | $151,414 | $299,860 | $292,288 | | **Operating income (loss)** | $8,128 | $(4,448) | $8,362 | $(3,459) | | **Loss from continuing operations** | $(6,052) | $(20,547) | $(20,057) | $(38,169) | | **Net (loss) income attributable to stockholders** | $(58,492) | $25,406 | $(80,499) | $8,573 | | **Basic (loss) earnings per share** | $(0.63) | $0.24 | $(0.89) | $0.01 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $703.5 million, with a significant reclassification of $108.6 million in senior notes to current liabilities, widening the stockholders' deficit | Indicator (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $526,901 | $552,514 | | **Total assets** | $703,490 | $726,987 | | **Total current liabilities** | $529,293 | $406,651 | | **Total liabilities** | $1,012,176 | $1,010,159 | | **Total stockholders' deficit** | $(308,686) | $(283,172) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities increased to $33.8 million, while investing activities provided $10.6 million, primarily from asset sales | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(33,787) | $(26,745) | | **Net cash provided by investing activities** | $10,649 | $76,036 | | **Net cash provided by financing activities** | $2,580 | $81,620 | | **Net (decrease) increase in cash** | $(20,257) | $130,720 | | **Cash at end of period** | $110,807 | $202,089 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, divestitures, debt restructuring, and subsequent events, including going concern considerations and strategic actions to improve liquidity - Management acknowledges that operating losses and debt service costs raise substantial doubt about the company's ability to continue as a going concern, but believes strategic actions will provide sufficient liquidity for the next twelve months[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company is actively divesting non-core assets to reduce debt and improve liquidity, having sold its Vølund business and the Diamond Power business, which are now classified as discontinued operations[43](index=43&type=chunk)[47](index=47&type=chunk)[50](index=50&type=chunk) - In May 2025, the company exchanged **$131.8 million** of its 2026 Senior Notes for **$100.7 million** of new 8.75% Senior Secured Notes due 2030, extending a significant portion of its debt maturity[83](index=83&type=chunk)[85](index=85&type=chunk) - Subsequent to the quarter's end, the company closed the sale of its Diamond Power business for **$177 million** on July 31, 2025, and amended its Credit Agreement on August 8, 2025, to extend the maturity date to November 30, 2026[139](index=139&type=chunk)[144](index=144&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 5% decrease in Q2 2025 revenue but a significant turnaround in operating income, driven by improved margins and a favorable product mix, alongside its liquidity strategy and backlog [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Consolidated revenues for Q2 2025 decreased by $7.4 million year-over-year due to lower large project volume, offset by increased parts sales, leading to a $12.6 million improvement in operating income - Q2 2025 revenue decreased by **$7.4 million** YoY, driven by a **$20.0 million** decline in large project volume, partially offset by a **$15.5 million** increase in parts sales[160](index=160&type=chunk) - Operating income for Q2 2025 improved by **$12.6 million** to an **$8.1 million** profit, primarily due to lower cost of operations from a favorable product mix and reduced costs on certain projects[161](index=161&type=chunk)[163](index=163&type=chunk) | Segment | Q2 2025 Revenue (in millions) | Q2 2024 Revenue (in millions) | Q2 2025 Adj. EBITDA (in millions) | Q2 2024 Adj. EBITDA (in millions) | | :--- | :--- | :--- | :--- | :--- | | B&W Thermal | $104.3 | $107.3 | $17.5 | $9.9 | | B&W Renewable | $19.0 | $15.4 | $0.5 | $0.4 | | B&W Environmental | $20.8 | $28.7 | $2.3 | $1.7 | [Bookings and Backlog](index=47&type=section&id=Bookings%20and%20Backlog) The company's total backlog significantly increased to $418.1 million as of June 30, 2025, despite a decrease in Q2 2025 bookings compared to the prior year | Metric (in millions) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Backlog** | $418.1 | $280.8 | | B&W Thermal | $345.9 | $177.4 | | B&W Renewable | $33.9 | $20.2 | | B&W Environmental | $35.6 | $70.8 | - Bookings in Q2 2025 were **$112.9 million**, a decrease from **$135.9 million** in Q2 2024, with year-to-date bookings also lower than the prior year period[178](index=178&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company addresses its liquidity requirements for debt service and working capital, outlining strategic actions including asset sales, equity offerings, and debt exchanges to ensure sufficient funding despite going concern doubts - The company has implemented several strategies to improve liquidity, including: - Selling non-core businesses for **$197.1 million** in net proceeds - Selling **10.2 million** common shares for **$15.0 million** net proceeds - Exchanging **$131.8 million** of 2026 notes for new 2030 notes - Extending its credit facility maturity to November 2026[219](index=219&type=chunk)[223](index=223&type=chunk) | Metric (in millions) | June 30, 2025 | | :--- | :--- | | **Cash, cash equivalents, and restricted cash** | $110.8 | | **Total Debt** | $471.3 | | **Gross preferred stock outstanding** | $191.7 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes to its market risk exposures since its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's market risk exposures since its 2024 Annual Report[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses, but a remediation plan is underway to address these issues - The CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2025, because of existing material weaknesses[232](index=232&type=chunk) - A remediation plan is in progress to address the material weaknesses, focusing on hiring, training, enhancing controls over accounting and IT, and implementing a monitoring program[234](index=234&type=chunk)[238](index=238&type=chunk) [PART II - OTHER INFORMATION](index=56&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and other significant corporate events and disclosures [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material changes or new litigation to disclose since its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in legal proceedings since the 2024 year-end report[239](index=239&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) A primary risk is the potential inability to obtain additional capital or refinance debt on commercially reasonable terms, which could materially harm the business and potentially lead to bankruptcy - A primary risk is the potential inability to obtain additional capital or refinance debt on commercially reasonable terms, which could materially harm the business and potentially lead to bankruptcy[241](index=241&type=chunk)[243](index=243&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares related to employee restricted stock plans during the quarter ended June 30, 2025, and does not have a general share repurchase program in place - No share repurchases were made during the quarter, and no general repurchase program is active[244](index=244&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) This section discloses the departure of the EVP and COO, significant executive bonus opportunities tied to asset sales, and an amendment to the Credit Agreement extending its maturity date - Chris Riker, Executive Vice President and Chief Operating Officer, announced he is stepping down, effective August 31, 2025[245](index=245&type=chunk) - The Compensation Committee approved bonus opportunities for executive officers related to the sale of Diamond Power, with the CEO eligible for up to **$2,750,000** and the CFO for up to **$1,500,000**[246](index=246&type=chunk)[247](index=247&type=chunk) - On August 8, 2025, the company amended its Credit Agreement, extending the maturity date to November 30, 2026, and deferring an increase in a key debt covenant ratio[248](index=248&type=chunk)

Exhibit 99.1 News Release Babcock & Wilcox Enterprises Reports Second Quarter 2025 Results Q2 2025 Continuing Operations Financial Highlights First Half 2025 Continuing Operations Financial Highlights • 31% increase in Global Parts & Services revenues compared to the second quarter of 2024, due to increased baseload generation usage and demand from artificial intelligence and data centers • Net Loss from Continuing Operations of $6.1 million • Adjusted EBITDA including Diamond Power International of $21.6 m ...

Company Overview and Strategy - Babcock & Wilcox Enterprises (B&W) is a global energy leader providing innovative technologies since 1867, focusing on clean energy solutions and energy security[5] - B&W aims to convert a global pipeline of over $76 billion of identified project opportunities into bookings, including over $26 billion in BrightLoop and ClimateBright opportunities[20] - The company is implementing up to $30 million in cost reductions associated with strategic realignment[20] - B&W is evaluating alternatives for non-strategic assets and potential refinancing to reduce current and long-term debt[20] Market Position and Opportunities - B&W has a vast global installation base, including more than 300 operating utility and industrial boiler units in the U S and nearly 200 units across 40 countries[25] - The company has a total anticipated pipeline of more than $76 billion over the next three years, with over $12 billion in opportunities[28] - Data center power demand is expected to soar to 176 GW by 2035, up from 33 GW in 2024, presenting opportunities for B&W[40] Financial Performance - B&W's LTM revenue as of June 30, 2025, was approximately $6267 million[26] - For the three months ended June 30, 2025, revenue was $1441 million, with a gross margin of $433 million and operating income of $81 million[48] - As of July 31, 2025, total debt was $4122 million, with cash, cash equivalents, and restricted cash of $2174 million, resulting in net debt of $1948 million[49]

Core Insights - Babcock & Wilcox Enterprises, Inc. (NYSE: BW) is experiencing a significant recovery in its stock prices, with common shares increasing approximately 455% from their lows in April [1] Group 1: Company Performance - The common shares of Babcock & Wilcox have seen a remarkable rise of about 455% since April [1] - The preferred shares have also shown a strong recovery, although specific percentage changes are not detailed [1] Group 2: Market Context - The equity market is characterized by daily price fluctuations that can lead to substantial wealth creation or destruction over the long term [1] - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $181.2 million for Q1 2025, a 10% increase compared to Q1 2024 [11] - Net loss from continuing operations was $7.8 million, an improvement from a net loss of $12.8 million in Q1 2024 [12] - Operating income for Q1 2025 was $5.9 million, slightly above the $5.7 million reported in Q1 2024 [12] - Adjusted EBITDA increased to $14.3 million from $11.3 million in the same period last year [12] - Bookings for Q1 2025 were $167 million, an 11% increase compared to the previous year [12] - Ending backlog reached $526.8 million, a 47% increase from Q1 2024, marking the largest backlog in recent company history [7][12] Business Line Data and Key Metrics Changes - The global parts and services business achieved the highest Q1 bookings, revenue, gross profit, and EBITDA in the past decade [4] - The increase in bookings was supported by record high bookings from the global parts and services business [8] Market Data and Key Metrics Changes - The company noted strong global and North American demand for its technologies, with a global pipeline of identified project opportunities valued at $7.6 billion [4][7] - The Thermal segment performed well due to higher baseload generation demand in North America [7] Company Strategy and Development Direction - The company is focused on executing its strategic plan and improving its balance sheet, with ongoing efforts to reduce or refinance current debt [5][15] - Recent asset sales, including the sale of a Denmark-based waste energy subsidiary for $20 million, are part of the strategy to reduce debt [6] - The company is progressing with the BrightLoop project, aiming to produce low-cost green hydrogen and exploring new renewable energy projects in the U.S. [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive cash flows in 2025, despite caution regarding tariff negotiations and their potential impact on projects [10] - The company anticipates continued industry tailwinds and generation demand throughout 2025 [10] Other Important Information - Approximately 40% of outstanding bonds were exchanged into new five-year notes, significantly reducing current debt and annual interest expense [5][14] - The company is exploring further debt refinancing options and potential asset dispositions to enhance liquidity [6][14] Q&A Session Summary Question: Guidance for the year and impact of tariffs - Management reiterated that guidance remains unchanged, with ongoing monitoring of tariff negotiations that could impact project timing [20][21] Question: Timeline and costs for the Massillon project - The Massillon project requires an additional $40 to $50 million in financing, with hopes to complete financing in the next few months and begin construction in the fall [25][26] Question: Drivers of strong demand and bookings - Demand is driven by increased utilization of core technologies in coal and natural gas plants, with a global reach in bookings [37][39] Question: Expectations for seasonality in demand - Management expects normal seasonality in parts and services, with Q2 typically being lower and Q3 and Q4 performing better [41][42]

Financial Data and Key Metrics Changes - The company's consolidated revenues for Q1 2025 were $181.2 million, representing a 10% increase compared to Q1 2024 [11] - Net loss from continuing operations improved to $7.8 million in Q1 2025 from a net loss of $12.8 million in Q1 2024 [12] - Adjusted EBITDA increased to $14.3 million in Q1 2025 from $11.3 million in Q1 2024 [12] - Ending backlog reached $526.8 million, a 47% increase compared to the same period in 2024 [12] Business Line Data and Key Metrics Changes - The global parts and services business achieved the highest Q1 bookings, revenue, gross profit, and EBITDA in the past decade [4] - Bookings from continued operations were $167 million, an 11% increase compared to Q1 2024 [12] Market Data and Key Metrics Changes - The backlog of $526.8 million at the end of Q1 2025 reflects strong demand, particularly in North America, driven by higher baseload generation demand [7] - The company reported a robust global demand for its technologies, with a $7.6 billion global pipeline of identified project opportunities [4][7] Company Strategy and Development Direction - The company is focused on executing its strategic plan, which includes reducing debt and enhancing financial performance [16] - Recent strategic efforts include a bond exchange that reduced outstanding bonds and annual interest expenses [5][14] - The company is exploring further debt refinancing options and potential asset dispositions to reduce long-term debt obligations [6][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates industry tailwinds and continued generation demand throughout 2025, while monitoring tariff negotiations that may impact business [10] - The core business is performing ahead of expectations, with a return to positive cash flows anticipated in 2025 [10][13] Other Important Information - The company announced the sale of its Denmark-based waste energy subsidiary for $20 million, with part of the proceeds directed to fund the Bright Loop project in Ohio [6] - The Bright Loop project aims to produce low-cost green hydrogen, with production expected to commence by mid-2026 [9][30] Q&A Session Summary Question: Guidance for the year and impact of tariffs - Management reiterated that guidance remains unchanged, with a focus on monitoring tariff impacts on project timing [21][22] Question: Timeline and costs for the Massillon project - The Massillon project requires an additional $40-50 million in financing, with construction teams expected on-site in fall 2025 and hydrogen production anticipated by mid-2026 [26][30] Question: Drivers of strong demand and bookings - Increased base load generation demand globally is driving the strong bookings, with a notable uptick in parts and services due to maintenance needs [38][40]

Financial Performance - Consolidated revenue for Q1 2025 was $181.2 million, a 10% increase from $164.3 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $14.3 million, a 27% increase compared to $11.3 million in Q1 2024[6] - The company reported a net loss of $7.8 million in Q1 2025, an improvement from a net loss of $12.8 million in Q1 2024[6] - Revenues for Q1 2025 were $181.2 million, an increase of 10.5% compared to $164.3 million in Q1 2024[30] - Operating income for Q1 2025 was $5.9 million, slightly up from $5.7 million in Q1 2024[30] - Net loss for Q1 2025 was $22.0 million, compared to a net loss of $16.8 million in Q1 2024, reflecting a deterioration in performance[30] - Basic and diluted loss per share for continuing operations was $(0.11) in Q1 2025, an improvement from $(0.19) in Q1 2024[30] - The net loss for the company was $22.0 million in Q1 2025, compared to a net loss of $16.8 million in Q1 2024, representing a deterioration in financial performance[35] - The company incurred a loss from discontinued operations of $14.2 million in Q1 2025, compared to a loss of $4.0 million in Q1 2024[35] Revenue Segments - The Thermal segment revenues increased by 25% to $138.2 million, driven by a large natural gas project and higher parts sales[11] - The Renewable segment revenues were $28.5 million, a 4% increase from $27.5 million in Q1 2024[8] - The Environmental segment revenues decreased by 46% to $14.4 million due to larger projects completed in 2024[9] - The Babcock & Wilcox Thermal segment generated revenues of $138.2 million in Q1 2025, a significant increase of 25.5% compared to $110.2 million in Q1 2024[34] Backlog and Bookings - Continuing Operations backlog reached $526.8 million, representing a 47% increase compared to the same period in 2024[6] - Bookings from Continuing Operations were $167.0 million, an 11% increase compared to Q1 2024[6] - The backlog for Babcock & Wilcox Thermal reached $424.6 million as of March 31, 2025, compared to $209.1 million in the same period last year, indicating a growth of 103.5%[34] Debt and Financial Position - Total debt as of March 31, 2025, was $473.6 million, with cash and cash equivalents of $116.8 million[12] - Total current assets decreased to $482.9 million as of March 31, 2025, down from $490.2 million at the end of 2024[31] - Total liabilities increased to $1,022.2 million as of March 31, 2025, compared to $1,010.2 million at the end of 2024[31] - Cash and cash equivalents were $21.6 million as of March 31, 2025, down from $23.4 million at the end of 2024[31] - The company exchanged $131.8 million of bonds into $100.8 million of new five-year notes, reducing annual interest expense by $1.1 million[7] - Interest expense decreased slightly to $10.9 million in Q1 2025 from $11.9 million in Q1 2024[35] Impairment and Strategic Evaluation - The company reported an impairment of long-lived assets of $1.0 million in Q1 2025, compared to no impairment in Q1 2024[30] - The company is facing substantial doubt about its ability to continue as a going concern, necessitating additional financing[25] - The company is evaluating strategic alternatives for certain businesses and non-core assets, which may not result in successful transactions[25] Operational Performance - Adjusted EBITDA excluding BrightLoop and ClimateBright expenses was $15.0 million in Q1 2025, up from $12.0 million in Q1 2024, indicating a strong operational performance[35] - The company reported a significant increase in product development costs, with $1.2 million in Q1 2025 compared to $1.6 million in Q1 2024[35] - The amortization expense remained stable at $1.3 million for both Q1 2025 and Q1 2024[34]