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Mar 31, 2023

Babcock & Wilcox Q1 2023 Earnings Report

Babcock & Wilcox exceeded first quarter expectations with strong results, driven by increased volumes across Renewable and Environmental segments, leading to consolidated revenue and adjusted EBITDA above expectations.

Key Takeaways

Babcock & Wilcox reported a 26% increase in consolidated revenues to $257.2 million, driven by higher volumes in the Renewable and Environmental segments. The company's net loss was $12.5 million, and GAAP operating income was $1.4 million. Adjusted EBITDA was $14.2 million, and bookings increased by 11% to $266 million.

Consolidated revenues increased by 26% to $257.2 million, primarily due to higher volumes in the Renewable and Environmental segments.

Net loss was $12.5 million, primarily related to foreign exchange losses and non-cash pension expenses.

GAAP operating income was $1.4 million, compared to an operating loss of $6.8 million in the first quarter of 2022.

Bookings increased by 11% to $266 million, and ending backlog increased by over 15% to $663 million.

Total Revenue
$257M
Previous year: $204M
+26.1%
EPS
-$0.18
Previous year: -$0.14
+28.6%
Adjusted EBITDA
$14.2M
Previous year: $12.5M
+13.6%
Gross Profit
$53.4M
Previous year: $41M
+30.3%
Cash and Equivalents
$62.8M
Previous year: $108M
-42.0%
Free Cash Flow
-$15.1M
Previous year: -$43M
-64.9%
Total Assets
$968M
Previous year: $955M
+1.4%

Babcock & Wilcox

Babcock & Wilcox

Forward Guidance

The company expects improved full-year performance, supported by strategic growth initiatives and a strong pipeline of global project opportunities.

Positive Outlook

  • Success in qualifying additional suppliers.
  • Capitalizing on growing customer demand across all business segments.
  • Advancement of strategic growth initiatives.
  • Significant traction with BrightLoop™ technology.
  • Expanded pipeline of $8 billion in identified global project opportunities.

Challenges Ahead

  • Continued supply chain pressures.
  • Rising inflation.
  • Higher interest rates.
  • Foreign exchange rate fluctuations.
  • Impact of the ongoing conflict in Ukraine and the COVID-19 pandemic.