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Sep 30, 2024

Babcock & Wilcox Q3 2024 Earnings Report

Babcock & Wilcox announced third quarter results, reporting improved margin performance and progress on strategic sales and debt refinancing.

Key Takeaways

Babcock & Wilcox reported Q3 2024 results with revenue of $209.9 million and a net loss of $11.1 million. The company highlighted improved margin performance and progress on strategic sales and debt refinancing. Adjusted EBITDA was $22.3 million.

Announced divestiture of two assets to improve balance sheet and support future growth

Total YTD implied bookings of $810.5 million, including $543.9 million of bookings, a 27% increase compared to same period of 2023

Excluding divestitures, announced implied backlog of $628.2 million, which includes $361.6 million of backlog, a 48% increase compared to the same period of 2023

Received final approval to proceed on a previously announced $246 million natural gas conversion project in Indiana as of November 2024

Total Revenue
$210M
Previous year: $239M
-12.3%
EPS
-$0.16
Previous year: -$0.18
-11.1%
Adjusted EBITDA
$22.3M
Previous year: $20M
+11.5%
Gross Profit
$49.8M
Previous year: $53.4M
-6.7%
Cash and Equivalents
$94M
Previous year: $48.4M
+94.2%
Free Cash Flow
-$71.8M
Previous year: -$33.2M
+116.5%
Total Assets
$805M
Previous year: $837M
-3.9%

Babcock & Wilcox

Babcock & Wilcox

Forward Guidance

The company expects increasing operating momentum driven by its Thermal and Environmental segments, as the fourth quarter is historically a seasonally strong period for B&W’s businesses, with increased services and project schedules from our customers.

Positive Outlook

  • Increasing operating momentum driven by Thermal and Environmental segments
  • Fourth quarter is historically a seasonally strong period for B&W’s businesses
  • Increased services and project schedules from customers
  • Business as a whole prior to divestitures is on target to achieve stated goals in 2024
  • Global pipeline of over $9 billion in identified project opportunities remains healthy across all business segments

Challenges Ahead

  • Impacts from inflation
  • Changing interest rates and foreign exchange rate volatility
  • Geopolitical conflicts
  • Global shipping and supply chain disruptions
  • Cost increases and delays or disruptions