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Mar 31
Babcock & Wilcox Q1 2025 Earnings Report
Reported strong Q1 2025 results with increased revenue and Adjusted EBITDA, exceeding expectations.
Key Takeaways
Babcock & Wilcox reported a strong first quarter for 2025, with consolidated revenue of $181.2 million and Adjusted EBITDA of $14.3 million, both exceeding company and consensus expectations. The company saw significant growth in its Global Parts & Service business and a substantial increase in backlog, driven by strong demand in the thermal energy sector. Strategic debt refinancing efforts are underway, including a recent bond exchange that reduced debt and lowered interest expense.
First quarter 2025 consolidated revenue increased 10% to $181.2 million compared to the same period last year.
Adjusted EBITDA for Q1 2025 was $14.3 million, a 27% increase year-over-year.
Backlog increased 47% to $526.8 million in Q1 2025, reaching the largest in recent company history.
The company is actively pursuing debt refinancing and asset dispositions to improve its financial position and address going concern risk.
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 expects industry tailwinds and generation demand to continue increasing, providing a strong foundation for growth in 2025 and beyond, coupled with higher margins and improved cash flows. Management is focused on strategic investments in ClimateBright and BrightLoop technologies and continues to explore debt refinancing and asset dispositions.
Positive Outlook
- Strong global demand for technologies is expected to continue.
- Progress in converting the $7.6 billion global pipeline of identified project opportunities.
- Industry tailwinds and generation demand are expected to increase in the coming years.
- Expectations for higher margins and improved cash flows.
- Strategic investments in ClimateBright and BrightLoop platforms.
Challenges Ahead
- Financial condition raises substantial doubt about the ability to continue as a going concern.
- Need for additional financing to continue as a going concern.
- Potential negative reactions from customers, suppliers, vendors, employees, and third parties regarding the going concern doubt.
- Uncertainty regarding the finalization of plans to address current debt and alleviate going concern risk.
- Ongoing macroeconomic conditions, including inflation, higher interest rates, foreign exchange volatility, tariffs, geopolitical conflicts, and supply chain disruptions, could continue to have an adverse impact.
Revenue & Expenses
Visualization of income flow from segment revenue to net income