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Jun 30, 2023
Babcock & Wilcox Q2 2023 Earnings Report
Babcock & Wilcox's Q2 2023 results were announced, showcasing revenue and adjusted EBITDA exceeding expectations, alongside year-over-year improvements in revenue, adjusted EBITDA, and net loss.
Key Takeaways
Babcock & Wilcox reported strong second-quarter results, with consolidated revenue and adjusted EBITDA exceeding expectations. The company saw improvements in revenue, adjusted EBITDA, and net loss compared to the previous year. They are making significant investments in renewable energy technologies to support future growth.
Consolidated revenues increased by 38% to $305.2 million compared to Q2 2022, driven by higher volumes in the Renewable segment and increased volume in the Environmental and Thermal segments.
Net loss was $5.0 million, compared to a net loss of $3.0 million in Q2 2022, representing a significant improvement in net income when adjusted for pension gains in Q2 2022.
GAAP operating income was $7.0 million compared to $3.7 million in the second quarter of 2022.
Adjusted EBITDA was $21.9 million, compared to $22.9 million in the second quarter of 2022 (or $15.9 million excluding a one-time asset sale), representing a significant improvement.
Forward Guidance
The outlook for new booking opportunities remains robust. The backlog is expected to experience significant growth.
Positive Outlook
- Expect significant growth in backlog.
- Projected backlog growth ranging between $850 million to $1.0 billion.
- Interest across our ClimateBright decarbonization platform continues to develop.
- Progress to commercialize our BrightLoop hydrogen generation technology.
- Targeted bookings of approximately $1.0 billion by 2028 for BrightLoop.
Challenges Ahead
- The Company has experienced and may continue to experience, supply chain disruptions driven by the lingering impacts of the pandemic.
- The Company has also observed significant delays and disruptions of its service and material providers.
- Negative impacts to pricing of certain products.
- Delays and disruptions have had, and could continue to have, an adverse impact on the Company’s ability to meet customers’ demands and schedules.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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