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Mar 31, 2020

Babcock & Wilcox Q1 2020 Earnings Report

Babcock & Wilcox reported results for Q1 2020 with revenue decreasing but adjusted EBITDA improving.

Key Takeaways

Babcock & Wilcox Enterprises announced first quarter 2020 results, reporting a decrease in consolidated revenues to $148.6 million. However, the company saw improvements in GAAP operating income and adjusted EBITDA, achieving its fourth consecutive quarter of profitability on an adjusted EBITDA basis.

Consolidated revenues reached $148.6 million.

GAAP operating loss improved by $21.7 million year-over-year to a loss of $10.3 million.

Consolidated adjusted EBITDA improved by $5.1 million year-over-year.

Financing process completed successfully, providing a two-year credit extension and additional liquidity.

Total Revenue
$149M
Previous year: $232M
-35.9%
EPS
-$0.72
Previous year: -$2.9
-75.2%
Adjusted EBITDA
$700K
Previous year: -$4.4M
-115.9%
Gross Profit
$34M
Cash and Equivalents
$35.4M
Free Cash Flow
-$37.9M
Total Assets
$596M

Babcock & Wilcox

Babcock & Wilcox

Forward Guidance

Company expects deferrals and delays of certain projects to affect performance in the second quarter of 2020, and anticipates the majority of deferred projects to re-mobilize in late 2020 and through 2021.

Challenges Ahead

  • Deferrals and delays of certain projects are expected to affect the performance in the second quarter of 2020.
  • The full impact of COVID-19 on the company's business, liquidity, capital resources, or financial results is impossible to fully predict.
  • The company's headquarters are currently subject to lock-down or shelter-in-place orders under local ordinances.
  • Certain customers and significant projects are located in areas where travel restrictions have been imposed.
  • Timelines for completion of certain projects have been extended into next year.