Babcock & Wilcox Enterprises, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024

Press release · 05/10 14:24
Babcock & Wilcox Enterprises, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024

Babcock & Wilcox Enterprises, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024

This financial report provides a quarterly update on Babcock & Wilcox Enterprises, Inc., a company incorporated in Delaware with the IRS Employer Identification Number 47-2783641. The report covers the period ending March 31, 2024, and offers insights into the company’s financial performance and developments during this time.

Overview of Company’s Financial Performance

Revenues decreased by $33.7 million in the first quarter of 2024 compared to 2023, primarily driven by fewer waste-to-energy projects as the company shifts focus to higher-margin European parts and services business. Operating income increased due to lower selling, general and administrative costs, but net loss increased due to debt extinguishment costs.

Liquidity Position

The company has recurring operating losses and negative cash flow from operations. Liquidity is sufficient to fund operations for the next 12 months due to cash on hand, expected proceeds from asset sales, and other liquidity improvement actions. However, there is doubt regarding the company’s ability to continue as a going concern long term.

Restructuring Efforts

The company is pursuing several strategies to obtain required funding for future operations, including the potential sale of non-strategic businesses, suspension of preferred stock dividends, and other alternative measures to improve cash flow.

Segment Analysis

B&W Renewable

  • Revenue decreased 38% due to fewer waste-to-energy projects as the company shifts focus to higher-margin parts and services business in Europe
  • Adjusted EBITDA decreased by $2.7 million due to reduced waste-to-energy project volume

B&W Environmental

  • Revenue increased 23% driven by higher volume for air-cooled condensers and ash handling equipment and services
  • Adjusted EBITDA increased by $1.4 million due to higher revenue and improved operating performance

B&W Thermal

  • Revenue decreased 8% due to large construction project completed in 2023 not fully replaced
  • Adjusted EBITDA unchanged as higher international sales offset decreased US construction business

Actions Taken & Outlook

The company is taking actions to address liquidity concerns and has concluded it is probable such actions will provide sufficient liquidity to fund operations for the next 12 months. However, material weaknesses still exist in internal controls over financial reporting. Remediation efforts are underway but the weaknesses are not yet fully addressed. The company continues to face uncertainty and will need to demonstrate improved financial performance.

”“”