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Mar 31, 2024
Babcock & Wilcox Q1 2024 Earnings Report
Babcock & Wilcox's first quarter performance in 2024 exceeded expectations with revenue and operating income.
Key Takeaways
Babcock & Wilcox reported a strong start to 2024, with revenue of $207.6 million and operating income of $4.3 million, exceeding expectations. The company's strategic shift towards higher-margin projects and strength in aftermarket parts and services contributed to improved Adjusted EBITDA margins. They've increased full-year Adjusted EBITDA guidance to a range of $105 million to $115 million, excluding BrightLoop and ClimateBright expenses.
Revenue was $207.6 million, lower than Q1 2023 due to strategic shift towards higher-margin projects.
Operating income was $4.3 million, up from $1.3 million in Q1 2023.
Net loss was $15.8 million, including a $5.1 million loss on debt extinguishment.
Approximately $500 million in new contracts and awards secured this year, nearly double the same period last year.
Babcock & Wilcox
Babcock & Wilcox
Babcock & Wilcox Revenue by Segment
Revenue by Segment
Thermal Revenue
CapyFin.comRenewable Revenue
CapyFin.comEnvironmental Revenue
CapyFin.com Forward Guidance
The Company increased its full-year Adjusted EBITDA guidance to a range of $105 million to $115 million, excluding BrightLoop and ClimateBright expenses, following stronger-than-expected signings and commitments during the first quarter of 2024.
Positive Outlook
- Expect strong operating momentum driven by Thermal and Environmental segments.
- Healthy demand pipeline across all business segments.
- Expect new bookings and stronger financial performance to continue throughout the year.
- Focus on balance sheet and expect continued improvements in cash and liquidity.
- B&W is actively working to capitalize on its $9 billion global pipeline of identified project opportunities.
Challenges Ahead
- Impacts from inflation, higher interest rates and foreign exchange rate volatility.
- Geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East).
- Global shipping and supply chain disruptions that have continued to have an impact in 2024.
- Cost increases and delays or disruptions that have had, and could continue to have, an adverse impact on our ability to meet customers’ demands.
- The duration and scope of these conditions cannot be predicted, and therefore, any anticipated negative financial impact on our operating results cannot be reasonably estimated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income