Babcock & Wilcox(US:BW)2025-05-12 20:40Financial 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].