In This Article:
Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Babcock & Wilcox Enterprises Inc (NYSE:BW) reported a 15% increase in fourth-quarter revenue, reaching $200.8 million compared to $174.7 million in the same quarter of 2023.
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Operating income from continuing operations improved significantly, moving from a loss of $3.3 million in Q4 2023 to a gain of $11.6 million in Q4 2024.
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The company achieved a 55% year-over-year increase in adjusted EBITA from continuing operations, reaching $24.0 million in Q4 2024.
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Bookings and backlog showed strong performance, with a 39% increase in bookings and a 47% increase in backlog year-over-year.
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Babcock & Wilcox Enterprises Inc (NYSE:BW) is making progress on its Brightloop project, with a target of producing hydrogen by early 2026, and received $10 million in funding for a hydrogen production and carbon capture facility in West Virginia.
Negative Points
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The company reported a net loss from continuing operations of $73 million in 2024, although this was an improvement from the $75.8 million loss in 2023.
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There is substantial doubt about the company's ability to continue as a going concern due to the size and classification of its debt as current.
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The company faces uncertainties related to tariffs, which could impact project margins and lead to potential delays in project starts.
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Babcock & Wilcox Enterprises Inc (NYSE:BW) is in discussions with bondholders and lenders to refinance its current debt obligations, indicating financial pressure.
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The company is exposed to potential impacts from changing emissions regulations, which could affect its thermal business and coal-to-gas conversion opportunities.
Q & A Highlights
Q: Can you discuss the wider guidance range for 2025 and what factors might influence reaching the high or low end of this range? A: Kenny Young, CEO: The wider range is due to uncertainties such as the impact of tariffs and the ongoing debt restructuring. Tariffs could affect project timelines and margins, while debt restructuring could influence costs. We're monitoring these factors closely to understand their potential impact on our business throughout the year.
Q: Are you seeing any delays in project timing due to tariffs or other factors compared to previous expectations? A: Kenny Young, CEO: We are in discussions with customers about potential tariff impacts, which vary by project. Some tariffs could be minor, while others might be more significant. It's too early to determine specific project delays, but we are actively engaging with customers to address these issues.