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Sep 30, 2021

Babcock & Wilcox Q3 2021 Earnings Report

Reported strong results with accelerating bookings entering the fourth quarter.

Key Takeaways

Babcock & Wilcox Enterprises reported better-than-anticipated results for the third quarter of 2021, driven by recent and anticipated bookings, positioning the company for a robust fourth quarter and an even stronger 2022. The company is targeting at least $70 million of adjusted EBITDA for full year 2021 and raised its 2022 adjusted EBITDA target to $110 million to $120 million.

Revenues of $160.0 million

Net income of $13.6 million

Earnings per share of $0.12

New bookings of $194 million in third quarter 2021

Total Revenue
$160M
Previous year: $133M
+20.8%
EPS
$0.11
Previous year: $0.69
-84.1%
Adjusted EBITDA
$18.7M
Gross Profit
$45.3M
Previous year: $57.3M
-20.9%
Cash and Equivalents
$107M
Previous year: $38.9M
+175.2%
Free Cash Flow
-$23.8M
Previous year: -$18.6M
+28.2%
Total Assets
$729M
Previous year: $606M
+20.4%

Babcock & Wilcox

Babcock & Wilcox

Forward Guidance

The company is targeting at least $70 million of adjusted EBITDA for full year 2021 and raised its 2022 adjusted EBITDA target to $110 million to $120 million.

Positive Outlook

  • Anticipated fourth quarter 2021 bookings of $250 million to $300 million
  • Full-year 2021 bookings at the highest level of annual bookings since 2017
  • Ongoing international expansion
  • Expanding interest in decarbonization technologies
  • Acquisition of Fosler Construction Company Inc.

Challenges Ahead

  • Continued adverse effects of COVID-19 on customers
  • Global supply chain challenges
  • COVID-19 Delta variant impact on customers
  • Supply chain disruptions
  • Potential reimposition of restrictions due to COVID-19 resurgence