• Revenue: $233.6 million for Q2 2024, a decrease due to strategic reduction in lower-margin projects.

• Operating Income: $42.2 million in Q2 2024, up from $12.4 million in Q2 2023.

• Adjusted EBITDA: $24.6 million, excluding BrightLoop and ClimateBright expenses, ahead of expectations.

• Earnings Per Share: $0.24 in Q2 2024, compared to a loss of $0.10 in Q2 2023.

• Environmental Segment Revenue: $56.2 million, a 15% increase from Q2 2023.

• Environmental Segment Adjusted EBITDA: $6.7 million, nearly doubled from Q2 2023.

• Thermal Segment Revenue: $120 million, a decrease due to completion of a large project in 2023.

• Thermal Segment Adjusted EBITDA: $13 million, slightly decreased from Q2 2023.

• Total Debt: $476.8 million as of June 30, 2024.

• Cash and Equivalents: $202.1 million as of June 30, 2024.

• Cost Savings: Achieved $25 million to date, targeting over $30 million annually.

• Backlog and Implied Backlog: $472 million and $757 million, respectively, at the end of Q2 2024.

• Warning! GuruFocus has detected 10 Warning Signs with BW.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Babcock & Wilcox Enterprises Inc (NYSE:BW) reported strong second quarter results, driven by increased demand for their technologies supporting efficient and sustainable energy generation.

• The company is well-positioned to capitalize on growth in natural gas conversions, environmental solutions, carbon capture, and clean energy opportunities globally.

• Babcock & Wilcox Enterprises Inc (NYSE:BW) achieved $25 million in cost reductions to date, working towards a target of over $30 million in annualized savings.

• The environmental segment saw a 15% revenue increase and a 97% rise in adjusted EBITDA compared to the second quarter of 2023.

• The company has a global pipeline of identified project opportunities worth over $9 billion, including $1.5 billion in BrightLoop and ClimateBright opportunities alone.

Negative Points

• Consolidated revenues decreased to $233.6 million, primarily due to a strategic shift away from lower-margin projects and the completion of a large construction project in 2023.

• The Renewables segment experienced a decline in revenue year-over-year due to a strategic reduction in low-margin new-build projects.

• Thermal revenues declined compared to the second quarter of 2023 due to the completion of a large construction project in 2023.

• The backlog and implied backlog at the end of the second quarter showed a slight decrease in bookings compared to the previous year.

• The company continues to face challenges related to the timing of project starts, which could impact the achievement of their full-year adjusted EBITDA target range.