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Jun 30, 2020
Babcock & Wilcox Q2 2020 Earnings Report
Announced second quarter 2020 results and launched a strategic organizational and branding initiative.
Key Takeaways
Babcock & Wilcox Enterprises reported a GAAP loss from continuing operations of $18.1 million for Q2 2020, an improvement of $10.2 million compared to Q2 2019, with consolidated revenues of $135.4 million.
Consolidated revenues were $135.4 million; COVID-19 negatively impacted all segments by delaying anticipated projects
GAAP consolidated operating loss was $7.7 million; GAAP loss from continuing operations was $18.1 million, a $10.2 million improvement compared to second quarter 2019
Consolidated adjusted EBITDA was $1.4 million
Company launched B&W Environmental, B&W Renewable, and B&W Thermal brands as part of a strategic, market-focused organizational and re-branding initiative to accelerate growth
Babcock & Wilcox
Babcock & Wilcox
Forward Guidance
B&W expects growth from its expanding global pipeline and improved operational execution to drive significant earnings growth throughout 2021 and beyond.
Positive Outlook
- Company is moving forward with its strategy to achieve long-term growth and leverage market trends.
- Organizational re-alignment and re-branding reflect the mission to provide renewable energy and environmental solutions to customers around the world
- Expanding global pipeline represents over $5 billion of identified project opportunities that we expect to bid in the next 3 years
- Expanding sales and business development team in key international markets, including the Middle East, Africa and Asia-Pacific regions
- Majority of deferred projects to re-mobilize in late 2020 and through 2021
Challenges Ahead
- COVID-19 has negatively affected anticipated bookings and project timing, pushing projects expected to begin in 2020 into 2021 and beyond
- COVID-19 has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world.
- The Company's business has been adversely impacted by the measures taken and restrictions imposed in the locations in which it operates by local governments and others to control the spread of this virus.
- Expect deferrals and delays of certain projects to affect our performance throughout 2020
- GAAP operating loss