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Jun 30, 2024
Babcock & Wilcox Q2 2024 Earnings Report
Babcock & Wilcox's Q2 2024 earnings were reported, demonstrating revenue of $233.6 million, net income of $25.4 million, and operating income of $42.2 million, which exceeded expectations.
Key Takeaways
Babcock & Wilcox reported strong Q2 2024 results, driven by increased demand for their technologies and a strategic shift towards higher-value projects. The company reiterated its full-year Adjusted EBITDA target and improved its balance sheet through the sale of a Denmark-based subsidiary.
Revenue reached $233.6 million with a net income of $25.4 million and operating income of $42.2 million, surpassing expectations.
Adjusted EBITDA stood at $23.3 million, or $24.6 million excluding BrightLoop and ClimateBright expenses, exceeding expectations.
Full-year 2024 Adjusted EBITDA target range reiterated at $105.0 million to $115.0 million, excluding BrightLoop and ClimateBright expenses.
Balance sheet and liquidity improved through the sale of the Denmark renewable service subsidiary for $83.5 million net cash proceeds.
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 is reiterating its full-year Adjusted EBITDA guidance to a range of $105 million to $115 million, excluding BrightLoopTM and ClimateBrightTM expenses.
Positive Outlook
- Operating momentum expected to continue, driven by Thermal and Environmental segments.
- Fourth quarter historically a seasonally strong period for B&W.
- Global pipeline of over $9 billion in identified project opportunities remains healthy across all business segments.
- Anticipate prospects for new bookings and stronger financial performance throughout the second half of 2024.
- Expect additional sales of non-strategic businesses to drive further improvements in cash, liquidity and leverage ratio positions.
Challenges Ahead
- Macroeconomic conditions, including inflation, higher interest rates, and foreign exchange rate volatility, continue to have an impact.
- Geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East) and global shipping and supply chain disruptions continue to have an impact.
- Cost increases and delays or disruptions could adversely impact ability to meet customers’ demands.
- Anticipated negative financial impact on operating results cannot be reasonably estimated due to unpredictable duration and scope of these conditions.
- Backlog may not be indicative of future operating results, and contracts in backlog may be canceled, modified or otherwise altered by customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income