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]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $209.9 million for Q3 2024, a decrease compared to Q3 2023, primarily due to the divestiture of the BWRS asset, which accounted for $7.4 million in 2023 revenues [23] - Adjusted EBITDA for Q3 2024 was $22.3 million, an increase of 78% year-over-year when excluding the impact of the divested BWRS business [17] - The company recorded an operating loss of $1.4 million in Q3 2024, compared to operating income of $5.5 million in Q3 2023, largely due to one-time charges related to divestitures [24] Business Line Data and Key Metrics Changes - In the Renewable segment, revenues were $38.2 million, a decrease attributed to the divestiture of BWRS, with adjusted EBITDA down 51% to $5 million [26] - The Environmental segment saw revenues increase by 22% to $56.6 million, driven by growth in domestic industrial and European businesses, with adjusted EBITDA at $4.7 million [27] - The Thermal segment reported revenues of $119.9 million, a 12% increase, with adjusted EBITDA rising to $18.4 million, reflecting favorable project margins [28] Market Data and Key Metrics Changes - The company noted a significant increase in implied bookings to $810.5 million and an ending implied backlog of $628.2 million at the end of Q3 2024 [25] - The demand for energy from various sectors, including artificial intelligence and electric vehicles, is expected to drive growth across the company's technologies [9][10] Company Strategy and Development Direction - The company is focused on divesting non-strategic assets to improve its balance sheet, having raised over $116 million from asset sales in 2024 [14] - Investments in the BrightLoop and ClimateBright technologies are expected to lead to higher margins and improved cash flows in the future [16] - The company anticipates a strong pipeline of over $9 billion in project opportunities over the next three years, including $2.4 billion in BrightLoop and ClimateBright opportunities [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in leveraging the increasing demand for baseload generation and the growth of clean energy technologies [8][11] - The company expects strong operating momentum in Q4 2024, driven by its Thermal and Environmental segments [31] - Management highlighted the importance of ongoing investments in decarbonization technologies and the anticipated growth in hydrogen production [19][20] Other Important Information - The company achieved $26.5 million in cost savings to date, with a target of over $30 million in annualized savings [15] - A tentative agreement for a $10 million forgivable loan from West Virginia for a BrightLoop project is expected to be signed soon [21] Q&A Session Summary Question: Can you talk about the new EBITDA guidance range relative to past guidance? - Management indicated that the new guidance of $91 million to $95 million reflects adjustments due to the divestitures of SPIG and GMAB, which impacted previous expectations [35] Question: What is the traditional conversion rate for the active FEED studies? - Management stated that the conversion rate for active FEED studies is typically around 40% to 50%, with a high likelihood of follow-on projects [36] Question: Can you provide details on the timing and revenue cadence for the natural gas conversion project? - Revenue from the natural gas conversion project is expected to ramp up in 2025 and continue into 2026 and 2027 [42] Question: What is the current status of letters of credit and free cash flow outlook? - Letters of credit stand at approximately $80 million, with a timeline for rolling off over the next 1.5 years, and free cash flow conversion is projected at around 40% [45][47] Question: When will the Massillon project start generating hydrogen? - The company targets to produce hydrogen by early 2026, with full commercial operations expected around Q2 2026 [51]

Company Performance - Babcock & Wilcox Enterprises reported a quarterly loss of $0.11 per share, missing the Zacks Consensus Estimate of $0.02, and showing an improvement from a loss of $0.18 per share a year ago, resulting in an earnings surprise of -650% [1] - The company posted revenues of $209.9 million for the quarter ended September 2024, which was 5.54% below the Zacks Consensus Estimate and a decrease from year-ago revenues of $239.4 million [2] - Over the last four quarters, Babcock & Wilcox has not surpassed consensus EPS or revenue estimates [2] Stock Performance - Babcock & Wilcox shares have increased approximately 80.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $248.4 million, and for the current fiscal year, it is $0.27 on revenues of $911.8 million [7] Industry Outlook - The Electronics - Power Generation industry, to which Babcock & Wilcox belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Revenue for Q3 2024 was $209.9 million, down from $239.4 million in Q3 2023, which included $34.2 million from a divested asset[2] - Adjusted EBITDA for Q3 2024 was $22.3 million, an increase of 11.5% from $20.0 million in Q3 2023[2] - Operating loss for Q3 2024 was $1.5 million, compared to an operating income of $5.5 million in Q3 2023[2] - Net loss for Q3 2024 was $11.1 million, an improvement from a net loss of $12.3 million in Q3 2023[2] - Revenues for the three months ended September 30, 2024, were $209.9 million, a decrease of 12.3% compared to $239.4 million in the same period of 2023[29] - The operating loss for the three months ended September 30, 2024, was $(1.5) million, compared to an operating income of $5.5 million in the same period of 2023[29] - The net loss attributable to stockholders for the three months ended September 30, 2024, was $(5.3) million, compared to a net loss of $(116.9) million in the same period of 2023[29] - The company reported a gain of $5.7 million from discontinued operations for the three months ended September 30, 2024, compared to a loss of $(104.5) million in the same period of 2023[29] - Adjusted EBITDA for the nine months ended September 30, 2024, was $58.1 million, down from $59.6 million in the same period of 2023[35] - The company reported a net loss from continuing operations of $11.1 million for Q3 2024, compared to a loss of $12.3 million in Q3 2023[35] Bookings and Backlog - Total year-to-date implied bookings reached $810.5 million, with a 27% increase compared to the same period in 2023[1] - Implied backlog, excluding divestitures, was $628.2 million, reflecting a 48% increase year-over-year[1] - The company achieved bookings of $161 million in Q3 2024, a decrease from $198 million in Q3 2023, with implied backlog totaling $362 million compared to $507 million in the previous year[34] - Babcock & Wilcox's total bookings for the nine months ended September 30, 2024, were $544 million, compared to $628 million for the same period in 2023[34] Segment Performance - The Thermal segment revenues increased by 12% to $119.9 million in Q3 2024, driven by a large natural gas project[11] - The Environmental segment revenues rose by 22% to $56.6 million in Q3 2024, attributed to growth in domestic and European markets[10] - Babcock & Wilcox Renewable segment reported revenues of $38.2 million for Q3 2024, up from $34.2 million in Q3 2023, representing a 11.7% increase[34] - Babcock & Wilcox Thermal segment generated revenues of $119.9 million in Q3 2024, compared to $107.0 million in Q3 2023, marking an increase of 26.9%[34] - The Environmental segment's revenues were $56.6 million for Q3 2024, a significant increase from $46.4 million in Q3 2023, reflecting a 22% growth[34] Costs and Expenses - Total costs and expenses for the three months ended September 30, 2024, were $211.3 million, down from $233.9 million in the same period of 2023[29] - Research and development costs for the three months ended September 30, 2024, increased to $1.4 million from $0.9 million in the same period of 2023[29] - Corporate expenses were reported at $(5.7) million for Q3 2024, slightly improved from $(5.6) million in Q3 2023[34] - The company incurred research and development costs of $(0.2) million in Q3 2024, down from $(0.9) million in Q3 2023[34] Cash Flow and Liquidity - Cash and cash equivalents decreased from $65.3 million to $30.6 million, a decline of 53.2%[31] - Total current assets increased from $497.6 million to $530.2 million, an increase of 6.5%[31] - Net cash used in operating activities increased to $(96.3) million from $(50.5) million, a decline of 90.4%[32] - Net cash provided by investing activities was $78.0 million, compared to $(8.6) million in the previous period[32] - Net cash provided by financing activities was $70.8 million, up from $11.9 million[33] - Cash, cash equivalents, and restricted cash at the end of the period totaled $127.9 million, up from $65.1 million[33] Market Conditions and Guidance - The company continues to face challenges from macroeconomic conditions, including inflation and supply chain disruptions, impacting its ability to meet customer demands[22] - Management is actively monitoring market conditions and managing costs to maintain liquidity and support customer needs[22] - The company has not provided specific financial guidance due to the unpredictability of ongoing market conditions[22] Asset Management - The company completed the sale of its SPIG/GMAB business for net proceeds of $33.7 million, contributing to over $116 million raised from asset divestitures in 2024[6] - Goodwill decreased from $102.0 million to $84.6 million, a decline of 17.5%[31] - Total stockholders' deficit increased from $(200.4) million to $(203.1) million, a decline of 0.9%[31] - Total liabilities increased from $976.0 million to $1,007.8 million, an increase of 3.3%[31]

Financial Performance - Revenues for the three months ended September 30, 2024, were $209.859 million, a decrease of 12.4% compared to $239.414 million for the same period in 2023[13] - Operating loss for the three months ended September 30, 2024, was $(1.474) million, compared to an operating income of $5.543 million for the same period in 2023[13] - Net loss attributable to stockholders of common stock for the three months ended September 30, 2024, was $(9.047) million, compared to a net loss of $(120.598) million for the same period in 2023[13] - Total costs and expenses for the three months ended September 30, 2024, were $211.333 million, down from $233.871 million in the same period in 2023, a decrease of 9.7%[13] - Total comprehensive loss income for the three months ended September 30, 2024, was $(1.859) million, compared to $(125.206) million for the same period in 2023[15] - The company reported a net loss of $(16,833) thousand for the period, contributing to the overall accumulated deficit[19] - The company reported a net loss attributable to stockholders of common stock of $9.0 million for the three months ended September 30, 2024, compared to a loss of $120.6 million in the same period of 2023[40] - The company incurred total costs and expenses of $21.4 million for the three months ended September 30, 2024, significantly lower than $99.5 million in the same period of 2023[48] Research and Development - Research and development costs increased to $1.420 million for the three months ended September 30, 2024, from $0.898 million in the same period in 2023, reflecting a 58% increase[13] Assets and Liabilities - Total current assets increased to $530,223 thousand as of September 30, 2024, up from $497,593 thousand at December 31, 2023, representing a growth of 6.5%[18] - Total assets rose to $804,633 thousand, compared to $775,698 thousand at the end of 2023, indicating an increase of 3.5%[18] - Total liabilities increased to $1,007,751 thousand from $976,048 thousand, reflecting a rise of 3.2%[18] - The accumulated deficit grew to $(1,578,936) thousand as of September 30, 2024, compared to $(1,570,942) thousand at December 31, 2023, marking an increase of 0.5%[19] - Cash and cash equivalents decreased to $30,629 thousand from $65,304 thousand, a decline of 53%[18] - Current liabilities decreased to $297,928 thousand from $350,197 thousand, a reduction of 14.8%[18] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $96,258,000 for the nine months ended September 30, 2023, compared to $50,473,000 in the same period of 2022[23] - The company experienced a significant increase in cash provided by investing activities, totaling $78,005,000 for the nine months ended September 30, 2023, compared to a net cash used of $8,589,000 in the prior year[26] - Borrowings on loan payable amounted to $184,806,000 for the nine months ended September 30, 2023, compared to $97,140,000 in the same period of 2022[26] - The total cash, cash equivalents, and restricted cash at the end of the period was $127,919,000, up from $65,106,000 at the end of September 30, 2022[26] Business Operations and Strategy - The company expects to reduce annual cash spending by approximately $25 million through strategies such as suspending dividends on Preferred Stock and delaying new product development[34] - The company initiated a cost savings plan with targeted annual savings of $31.5 million, of which $26.5 million has been achieved to date[35] - The company has classified its B&W Solar business as held for sale and discontinued operations as of September 30, 2024, due to significant operating losses[46][47] Sales and Revenue Recognition - Revenue from products and services transferred to customers at a point in time accounted for 21% of total revenue for the three months ended September 30, 2024, compared to 26% for the same period in 2023[62] - Revenue from products and services transferred to customers over time accounted for 79% of total revenue for the three months ended September 30, 2024, compared to 74% for the same period in 2023[62] Debt and Credit Agreements - The Credit Agreement provides for an up to $150 million asset-based revolving credit facility, including a $100 million letter of credit sublimit[88] - The interest rates applicable under the Credit Agreement include SOFR plus 5.25% for loans up to $100 million[91] - The company entered into the Second Amendment to the Credit Agreement, agreeing to apply net cash proceeds from specified transactions to repay $10.0 million in revolving loans, $15.0 million in pension liabilities, and $193.0 million in Senior Notes due 2026[97] - As of September 30, 2024, the company had $124.2 million outstanding on the Axos Credit Agreement, including $30.5 million drawn on the revolving credit portion and $93.7 million on the letter of credit portion[101] Taxation - For the three months ended September 30, 2024, the income tax expense from continuing operations was $0.2 million, resulting in an effective tax rate of (1.5)%[118] - In the nine months ended September 30, 2024, the income tax expense from continuing operations was $6.1 million, resulting in an effective tax rate of 136.5%[119] Shareholder Information - The company has sold 2.4 million shares of common stock for net proceeds of $2.0 million as part of an At-the-Market offering with an aggregate offering price of up to $50.0 million[112] - B. Riley beneficially owns approximately 31.3% of the company's outstanding common stock as of September 30, 2024, and has the right to nominate one member of the Board of Directors[137]

Group 1 - Babcock & Wilcox Enterprises, Inc. (BW) has been added to the Zacks Rank 5 (Strong Sell) List due to a 10% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Central Garden & Pet Company (CENT) is also on the Zacks Rank 5 (Strong Sell) List, with a 5.7% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Coca-Cola FEMSA, S.A.B. de C.V. (KOF) has seen a 5.6% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 (Strong Sell) List [2]

Financial Data and Key Metrics Changes - The company's consolidated revenues for Q2 2024 were $233.6 million, a decrease compared to the same period in 2023, primarily due to a strategic shift to reduce reliance on lower-margin projects and the completion of a large construction project in 2023 [18] - Operating income for Q2 2024 was $42.2 million, significantly higher than $12.4 million in Q2 2023, driven by a gain on the sale of a subsidiary and reduced selling, general, and administrative expenses [18] - Adjusted EBITDA for Q2 2024 was $24.6 million, exceeding expectations, while earnings per share improved to $0.24 from a loss of $0.10 in Q2 2023 [19] Business Line Data and Key Metrics Changes - The Environmental segment saw revenues increase by 15% to $56.2 million in Q2 2024, with adjusted EBITDA nearly doubling to $6.7 million, driven by a higher margin product mix [20] - The Renewables segment experienced a revenue decline year-over-year, but adjusted EBITDA increased by 40% due to cost reduction efforts [10] - Thermal segment revenues were $120 million, in line with expectations despite a decrease from Q2 2023, with adjusted EBITDA at $13 million [21] Market Data and Key Metrics Changes - The company reported a global pipeline of over $9 billion in identified project opportunities, including $1.5 billion in BrightLoop and ClimateBright opportunities [11][12] - The backlog and applied backlog at the end of Q2 2024 were $472 million and $757 million, respectively, representing a 39% increase compared to the same period in 2023 [12] Company Strategy and Development Direction - The company is focused on advancing its ClimateBright Decarbonization Technologies and has seen increased demand for hydrogen generation and carbon capture projects [5][6] - A strategic shift to be more selective in pursuing higher-value projects has led to improved margins and reduced reliance on low-margin new build projects [9][10] - The company plans to invest $10 million to $15 million in BrightLoop projects in 2024, aiming for commercial demonstration and operational effectiveness [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for new bookings and strong financial performance in the second half of 2024, driven by Thermal and Environmental segments [24][25] - The company anticipates continued growth in coal to natural gas and coal to biomass projects in the U.S. due to new EPA requirements [13] - Management reiterated the full-year adjusted EBITDA target range of $105 million to $115 million, excluding BrightLoop and ClimateBright [13] Other Important Information - The sale of the Danish renewable services subsidiary improved the company's balance sheet and liquidity, with ongoing negotiations for additional non-strategic asset sales [7][22] - The company achieved $25 million in cost reductions to date, with a target of over $30 million in annualized savings [8] Q&A Session Summary Question: Update on BrightLoop projects in Ohio - Management explained that the construction period for the Ohio project will take 12 to 18 months, with financing offsetting cash outflows during this time [27] Question: Progress on larger projects in Wyoming and Baton Rouge - Management confirmed full engineering mode for the Wyoming project and ongoing discussions for the Baton Rouge project, with potential for significant hydrogen production [28][29] Question: Guidance and risks associated with EBITDA targets - Management indicated that timing on larger gas conversion projects could impact the EBITDA range, emphasizing the importance of order timing [31] Question: Timing of additional non-core asset sales - Management is in discussions for one or two additional non-core asset sales expected this year [33] Question: Clarification on the leaseback arrangement for the Ohio project - Management detailed that the total project cost is estimated at $60 million to $65 million, with B&W's upfront investment being around $5 million to $10 million [36]