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]

Babcock & Wilcox Enterprises (BW) Q1 2025 Earnings Call May 12, 2025 05:00 PM ET Company Participants Sharyn Brooks - Director - Communications & MarketingKenneth Young - Chair & CEOCameron Frymyer - EVP & CFO Conference Call Participants Aaron Spychalla - Research AnalystRob Brown - Founding Partner & Senior Research Analyst Operator Good afternoon. Thank you for attending the Babcock and Wilcox Enterprises First Quarter twenty twenty five Conference Call. All lines will be muted during the presentation po ...

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]

Financial Performance - Revenues for the three months ended March 31, 2025, were $181,194,000, an increase of 10.5% compared to $164,288,000 for the same period in 2024[18]. - Operating income for Q1 2025 was $5,850,000, slightly up from $5,722,000 in Q1 2024, reflecting a stable operational performance[18]. - The net loss for the three months ended March 31, 2025, was $21,989,000, compared to a net loss of $16,791,000 in the same period of 2024, indicating a deterioration in profitability[20]. - Basic and diluted loss per share for continuing operations was $(0.11) in Q1 2025, compared to $(0.19) in Q1 2024, showing an improvement in loss per share despite the overall net loss[18]. - The company reported a comprehensive loss of $21,462,000 for Q1 2025, compared to a comprehensive loss of $19,685,000 in Q1 2024, indicating worsening overall financial performance[20]. - The company reported a loss from continuing operations before income tax expense of $5,441 thousand for Q1 2025, an improvement from a loss of $11,888 thousand in Q1 2024[56][57]. - The net loss for the three months ended March 31, 2025, was $21,989,000, compared to a net loss of $16,791,000 in 2024, indicating ongoing financial challenges[153]. Assets and Liabilities - Total current assets decreased to $482,878,000 as of March 31, 2025, down from $490,185,000 at the end of 2024, indicating a reduction in liquidity[23]. - Total liabilities increased to $1,022,229,000 as of March 31, 2025, compared to $1,010,159,000 at the end of 2024, reflecting a rise in financial obligations[23]. - The accumulated deficit grew to $(1,671,438,000) as of March 31, 2025, from $(1,645,716,000) at the end of 2024, indicating ongoing challenges in achieving profitability[23]. - Cash and cash equivalents decreased to $21,628,000 as of March 31, 2025, down from $23,399,000 at the end of 2024, highlighting a decline in available cash resources[23]. - The total outstanding on the Credit Agreement as of March 31, 2025, is $123.4 million, which includes $45.0 million drawn on the revolving credit portion[84]. - The company has senior notes totaling $344,475,000 due in 2026, with a net debt balance of $340,883,000 as of March 31, 2025[74]. - As of March 31, 2025, total debt was $473.6 million, with a credit agreement providing for an asset-based credit facility of up to $150.0 million[183]. Cash Flow and Investments - Net cash used in operating activities decreased to $8.477 million in Q1 2025 from $14.938 million in Q1 2024, indicating improved cash flow management[28]. - Total cash used in investing activities was $3.906 million in Q1 2025, compared to $2.849 million in Q1 2024, suggesting increased investment activity[29]. - Cash flows used in operating activities were $8.5 million for the three months ended March 31, 2025, primarily due to a year-to-date net loss of $22.0 million[188]. - The company utilized proceeds from the sale of subsidiaries to support working capital needs and reduce outstanding debt[48]. Segment Performance - The B&W Renewable segment generated revenues of $28.541 million for the three months ended March 31, 2025, compared to $27.458 million in the same period of 2024[55]. - The B&W Environmental segment reported revenues of $14.407 million for the three months ended March 31, 2025, down from $26.708 million in the prior year[55]. - The B&W Thermal segment achieved revenues of $138.246 million for the three months ended March 31, 2025, an increase from $110.187 million in the same period of 2024[55]. - The Babcock & Wilcox Renewable segment reported revenue of $28.5 million for the three months ended March 31, 2025, an increase from $27.5 million in the same period of 2024[137]. - The Babcock & Wilcox Environmental segment experienced a revenue decline to $14.4 million for the three months ended March 31, 2025, down from $26.7 million in the same period of 2024[137]. - The Babcock & Wilcox Thermal segment saw revenue increase to $138.2 million for the three months ended March 31, 2025, compared to $110.2 million in the same period of 2024[137]. Strategic Initiatives - The company plans to continue focusing on operational efficiency and cost management strategies to improve future performance and reduce losses[18]. - The company sold its Vølund business for total proceeds of $20.1 million on April 29, 2025, as part of its strategy to divest non-core assets[37]. - The company sold its Italy-based SPIG and Sweden-based GMAB subsidiaries for net cash proceeds of $33.7 million, recording a gain of $14.1 million related to CTA reclassification[48]. - The company is actively negotiating with holders of Senior Notes to extend their maturity date, indicating ongoing efforts to manage debt obligations[38]. - The company completed a refinancing of $100.8 million in senior secured second lien notes due 2030, enhancing its capital structure[122]. Tax and Compliance - Income tax expense from continuing operations for the three months ended March 31, 2025, was $2.3 million, resulting in an effective tax rate of (42.7)%, compared to $0.9 million and (7.6)% in the same period of 2024[98]. - The effective tax rate for the first three months of 2025 was (42.7)%, significantly higher than (7.6)% in 2024, influenced by foreign entities with higher tax rates and valuation allowances[143]. - The company is subject to federal income tax in the U.S. and various foreign jurisdictions, which may have different statutory tax rates[100]. Market and Backlog - The total backlog as of March 31, 2025, was $526.8 million, with expectations to recognize approximately 64% of this backlog as revenue in 2025[63]. - Bookings for the three months ended March 31, 2025, increased to $167.0 million from $149.8 million in 2024, with notable contributions from B&W Thermal segment[148]. - The company expects to recognize $335.0 million in revenue from backlog in 2025, with significant contributions from B&W Thermal and B&W Environmental segments[148]. Other Financial Metrics - Total interest expense for the three months ended March 31, 2025, was $11.163 million, a decrease of 7.1% from $12.014 million in the same period of 2024[93]. - The company incurred $1,356,000 in acquisition pursuit and related costs during the three months ended March 31, 2025, indicating ongoing strategic growth initiatives[153]. - The company recorded an impairment of long-lived assets of $8.783 million in Q1 2025, which was not present in Q1 2024, highlighting potential asset valuation issues[28].

Financial Data and Key Metrics Changes - In Q4 2024, the company's revenue was $200.8 million, a 15% increase from $174.7 million in Q4 2023 [8][10] - Operating income from continuing operations improved to $11.6 million in Q4 2024, compared to an operating loss of $3.3 million in Q4 2023 [9] - Adjusted EBITDA from continuing operations was $24.0 million in Q4 2024, reflecting a 55% year-over-year increase [10] - For the full year 2024, consolidated revenues were $717.3 million, stable compared to the previous year, with a net loss from continuing operations of $73 million, an improvement from a loss of $75.8 million in 2023 [21][22] Business Line Data and Key Metrics Changes - The environmental segment showed the largest positive impact on revenues, with strong demand for the company's diverse portfolio of technologies [12] - Bookings increased by 39% year-over-year to approximately $900 million in 2024, while backlog rose by 47% to over $540 million [13][22] - The parts and services core business remained strong despite coal plant closures and natural gas conversions [23] Market Data and Key Metrics Changes - The company anticipates increased demand for power and electricity driven by AI data centers, electric vehicles, and expanding economies [14] - There are currently 12 to 15 active front-end engineering design studies representing potential projects exceeding $1 billion in revenues [15] Company Strategy and Development Direction - The company is shifting focus towards predictable revenues and margins, particularly from thermal operations, and is investing in biomass energy plants [8][16] - Babcock & Wilcox is committed to expanding its Bright Loop commercial activities, targeting approximately $1 billion in bookings by 2028 [17] - The company is divesting non-strategic assets to improve its balance sheet and reduce corporate overhead [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic environment, particularly regarding tariffs and debt restructuring [36][37] - The company expects to return to positive cash flows in 2025 and is focused on refinancing current debt obligations [27][30] Other Important Information - The company completed the sale of its SPIG and GMAB businesses for net proceeds of $33.4 million in Q4 2024 [26] - Total debt as of December 31, 2024, was $464.6 million, raising concerns about the company's ability to continue as a going concern [24][25] Q&A Session Summary Question: Guidance for the year and factors affecting it - Management discussed the uncertainty surrounding tariffs and their potential impact on project timing and margins [36][38] Question: Update on the Wyoming project and IRA impact - Management indicated confidence in IRA credits moving forward and ongoing discussions with Black Hills for financing [45][46] Question: Impact of EPA reconsidering emissions regulations - Management noted that existing coal plants are likely to remain operational despite regulatory changes, with minimal impact on business [52][55] Question: Pipeline and bookings outlook for the year - Management expressed optimism about the pipeline, with expectations for continued strong bookings and opportunities in biomass and thermal projects [58][60]

Financial Data and Key Metrics Changes - In Q4 2024, the company's revenue was $200.8 million, a 15% increase from $174.7 million in Q4 2023 [8][10] - Operating income from continuing operations improved to $11.6 million in Q4 2024, compared to an operating loss of $3.3 million in Q4 2023 [9] - Adjusted EBITDA from continuing operations was $24.0 million in Q4 2024, reflecting a 55% year-over-year increase [10] - For the full year 2024, consolidated revenues were $717.3 million, stable compared to the previous year [21] - The net loss from continuing operations was $73 million in 2024, an improvement from a loss of $75.8 million in 2023 [21] Business Line Data and Key Metrics Changes - The environmental segment showed the largest positive impact on revenues, contributing to the overall stability of revenues throughout the year [12] - Bookings for 2024 reached approximately $900 million, a 39% increase from $638.7 million in 2023, while backlog increased by 47% to over $540 million [13][22] Market Data and Key Metrics Changes - The company noted strong demand for its technologies driven by sectors such as AI data centers and electric vehicles, which are expected to be key growth drivers [14] - The company has 12 to 15 active front-end engineering design studies representing potential projects worth over $1 billion [15] Company Strategy and Development Direction - The company is shifting focus towards predictable revenues and margins, particularly from thermal operations, and is investing in biomass energy plants [8][10] - The strategic plan includes divesting non-core assets to improve the balance sheet and reduce reliance on low-margin new-build projects [17][26] - The company aims for targeted bookings of approximately $1 billion by 2028 within its Bright Loop hydrogen production initiative [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving adjusted EBITDA performance trend and anticipated continued growth in 2025 [12][30] - The company is actively negotiating to refinance current debt obligations and is optimistic about returning to positive cash flows in 2025 [25][27] Other Important Information - The company completed the sale of its SPIG and GMAB businesses for net proceeds of $33.4 million, which improved its balance sheet [26] - The company has a total debt of $464.6 million as of December 31, 2024, raising concerns about its ability to continue as a going concern [24][25] Q&A Session Summary Question: Guidance for the year and factors affecting it - Management discussed the uncertainty surrounding new tariffs and their potential impact on project timing and margins [36][38] Question: Update on the Wyoming project and IRA impacts - Management indicated confidence in IRA credits moving forward and ongoing discussions with Black Hills for financing [45][46] Question: Impact of EPA reconsidering emissions regulations - Management noted that existing coal plants are likely to remain operational despite regulatory changes, with minimal impact on business [52][55] Question: Pipeline and bookings outlook for the year - Management expressed optimism about the pipeline, with expectations for continued strong bookings and opportunities in biomass and thermal sectors [58][60]

Revenue Performance - Revenue from Continuing Operations in Q4 2024 was $200.8 million, a 15% increase year over year compared to $174.7 million in Q4 2023[5] - Revenues for Q4 2024 were $200.8 million, an increase from $174.7 million in Q4 2023, while total revenues for the year decreased to $717.3 million from $727.3 million[36] - Total revenues for the year ended December 31, 2024, were $717.3 million, a slight decrease from $727.3 million in 2023[39] - The Renewable segment revenues in Q4 2024 were $33.6 million, an 18% increase compared to $28.5 million in Q4 2023[11] - The Thermal segment revenues in Q4 2024 were $148.2 million, a 29% increase compared to $115.0 million in Q4 2023[13] - The Babcock & Wilcox Renewable segment generated revenues of $110.1 million in 2024, down from $140.8 million in 2023, representing a decline of about 21.9%[39] - The Babcock & Wilcox Thermal segment reported revenues of $497.9 million for 2024, nearly flat compared to $499.2 million in 2023[39] Operating Income and Loss - Operating Income from Continuing Operations in Q4 2024 was $11.6 million, an increase of $14.8 million compared to an operating loss of $3.3 million in Q4 2023[5] - Operating income for Q4 2024 was $11.5 million, compared to a loss of $3.3 million in Q4 2023, with a total operating income of $25.1 million for the year, up from $16.6 million[36] - Net loss from Continuing Operations in Q4 2024 was reduced to $45.0 million, compared to a net loss of $58.3 million in Q4 2023[5] - The company reported a net loss of $63.0 million in Q4 2024, slightly higher than the loss of $62.2 million in Q4 2023, with a total net loss of $59.8 million for the year compared to $197.0 million in the previous year[36] - For the year ended December 31, 2024, Babcock & Wilcox reported a net loss of $59.8 million, an improvement from a net loss of $197.0 million in 2023[38] Bookings and Backlog - Full Year 2024 Bookings from Continuing Operations reached $889.6 million, a 39% increase compared to the same period in 2023[5] - Continuing Operations Backlog at the end of 2024 was $540.1 million, a 47% increase compared to the end of 2023[5] - Bookings for the Babcock & Wilcox Thermal segment surged to $717 million in 2024, a significant increase from $410 million in 2023, marking a growth of approximately 75.6%[39] - The total backlog as of December 31, 2024, was $540 million, up from $369 million in 2023, indicating a growth of about 46.3%[39] Financial Position - Cash and cash equivalents decreased to $23.4 million as of December 31, 2024, down from $39.9 million a year earlier[37] - Total assets decreased to $727.0 million as of December 31, 2024, from $775.7 million in 2023[37] - The company’s total liabilities increased to $1,010.2 million in 2024, compared to $976.1 million in 2023[37] - Current borrowings rose significantly to $125.1 million in 2024 from $6.2 million in 2023, indicating increased financial leverage[37] - Cash flows from operating activities for the year ended December 31, 2024, were negative at $118.7 million, compared to negative $42.3 million in 2023[38] - Net cash provided by investing activities was $110.0 million in 2024, a significant recovery from a cash outflow of $7.9 million in 2023[38] - The company ended the period with cash, cash equivalents, and restricted cash totaling $131.1 million, up from $71.4 million at the beginning of the year[38] Future Outlook - The company anticipates a Full Year 2025 adjusted EBITDA target range of $70 million to $85 million[9] - The company continues to face challenges from macroeconomic conditions, including inflation and supply chain disruptions, which may impact future performance[29] - Management is actively monitoring market conditions and managing costs to maintain liquidity and support customer needs[29] - The company has not provided specific financial guidance due to uncertainties in market conditions and operational performance[30] Adjusted EBITDA - Adjusted EBITDA from Continuing Operations for the full year 2024 was $68.9 million, a 13% increase compared to $60.8 million in 2023[14] - Adjusted EBITDA for the year ended December 31, 2024, increased to $68.9 million, compared to $60.8 million in 2023, reflecting a growth of approximately 13.4%[40]

Company Overview - Babcock & Wilcox has over 155 years of experience providing diversified energy and emissions control solutions[24]. - The company has a vast installed base of steam generation equipment, generating stable cash flows to fund investments in new clean energy initiatives[26]. - Babcock & Wilcox holds a large number of U.S. and foreign patents, although no single patent is deemed critical to the business[48]. - Babcock & Wilcox's competitive advantages include its extensive experience and technical capabilities in converting a wide range of fuels to steam[41]. Financial Performance - The company has experienced losses from operations in each of the past three years and had negative operating cash flows for the years ended December 31, 2024 and 2023[61]. - Total revenue for 2024 decreased by $10.0 million to $717.3 million compared to $727.3 million in 2023, primarily due to a decline in the B&W Renewable segment[212]. - Operating income increased by $8.5 million from $16.6 million in 2023 to $25.1 million in 2024, driven by higher volume from natural gas conversion and environmental projects[213]. - Net loss from continuing operations decreased by $2.8 million to $73.0 million in 2024 from $75.8 million in 2023, influenced by increased operating income and a loss on debt extinguishment of $7.3 million[214]. - The company utilizes non-GAAP financial measures to provide greater transparency and understanding of its financial performance, which should be viewed alongside GAAP results[222]. Debt and Financing - The company currently has approximately $5.0 million available to borrow under its Credit Agreement and expects to require additional financing to fund working capital[60]. - The company completed offerings of $151.2 million aggregate principal amount of 8.125% Senior Notes due February 2026 and $151.4 million aggregate principal amount of 6.50% Senior Notes due December 2026[64]. - The company has entered into a number of amendments and waivers to its Debt Facilities since December 2022 to provide relief under certain financial covenants[58]. - The company faces substantial doubt about its ability to continue as a going concern due to its financial condition and ongoing discussions with lenders[60]. - The company must refinance its 8.125% Notes and 6.50% Notes due 2026 prior to their maturity to avoid adverse effects on its financial condition[66]. Operational Risks - The company is exposed to various operational risks, including equipment failures and natural disasters, which could disrupt production and increase costs[72]. - The company’s financial performance could be adversely affected by macroeconomic downturns and industry conditions, leading to potential contract delays or cancellations[96]. - Supply chain issues, including component shortages and geopolitical conflicts, could adversely affect business operations and customer relationships[98]. - The company is subject to risks associated with contractual pricing, which may lead to reduced profitability or losses on fixed-price contracts[68]. Strategic Initiatives - The company is evaluating strategic alternatives for its business lines, including the decision to sell B&W Solar in Q3 2023, but there is no assurance that these evaluations will result in successful transactions[79]. - The company’s growth strategy includes strategic acquisitions, but successful execution may be impacted by macroeconomic conditions and competition for acquisition targets[76]. - The company continues to explore cost-saving initiatives to improve cash generation and evaluate non-core business sales to strengthen liquidity[197]. Backlog and Bookings - The company’s backlog was $540.1 million as of December 31, 2024, compared to $368.2 million at December 31, 2023, indicating a significant increase in backlog[81]. - Total bookings increased significantly to $889.6 million in 2024 from $638.7 million in 2023, with notable growth in the B&W Thermal segment[220]. - Expected revenue recognition from backlog for 2025 is projected at $353.2 million, with significant contributions from the B&W Thermal segment[221]. Regulatory and Compliance - The company is required to obtain various permits and licenses for operations and believes it is currently in compliance with all relevant regulations[50]. - The company is subject to various environmental laws and regulations, which may impose significant liabilities and costs for compliance[125]. - Compliance with evolving privacy and data protection laws, such as GDPR and the California Consumer Privacy Act, is critical to avoid significant fines and operational impacts[114]. Employee and Labor Relations - As of December 31, 2024, Babcock & Wilcox employed approximately 1,950 employees, with about 1,900 being full-time[43]. - The company has successfully renegotiated four union contracts in 2024, with two contracts set to expire in 2025[43]. - The company relies on key personnel and may face disruptions if it fails to attract and retain qualified staff[164]. Market and Customer Dynamics - Demand for the company's products and services is influenced by spending in cyclical industries, particularly electric power generating companies[93]. - Approximately 35% of total revenues for continuing operations in 2024 came from international sales, up from 31% in 2023 and 26% in 2022[137]. - Customers may face difficulties in raising capital due to credit market limitations and increased interest rates, potentially impacting future cash flows and liquidity[97]. Intellectual Property and Cybersecurity - The company relies on intellectual property law and confidentiality agreements to protect its proprietary information, which may be vulnerable to theft or misappropriation[116]. - The company has implemented a cybersecurity risk management program informed by recognized industry frameworks[170]. - The company maintains a Security Operations Center to support visibility to cybersecurity incidents in real time[174]. Miscellaneous - The company has a history of paying cash dividends, with future distributions at the discretion of the Board of Directors[187]. - The company has identified certain material weaknesses in internal control over financial reporting as of December 31, 2024[161]. - The company may issue preferred stock, which could dilute the voting power or reduce the value of its common stock[149].

Financial Performance - Babcock & Wilcox Enterprises, Inc. is expected to report a quarterly loss of 5 cents per share for the fourth quarter, an improvement from a loss of 18 cents per share a year ago [1] - The projected quarterly revenue is $213.07 million, down from $227.2 million a year earlier [1] Recent Contracts - The construction subsidiary of Babcock & Wilcox was awarded $35 million in contracts for maintenance and service work at power plants and industrial facilities in North America [2] Stock Performance - Babcock & Wilcox shares experienced a decline of 7.6%, closing at $0.74 [2] Analyst Ratings - Lake Street analyst Rob Brown maintained a Buy rating but reduced the price target from $11 to $8 [5] - DA Davidson analyst Brent Thielman also maintained a Buy rating, cutting the price target from $4 to $3.5 [5]