Babcock & Wilcox Enterprises, Inc. Q1 FY2025 earnings call

• Strong start to 2025 with robust first quarter results across the entire business, driven by global and North American demand for technologies and conversion of $7.6 billion global pipeline into new bookings.
• Global parts and services business had highest Q1 bookings, revenue, gross profit, and EBITDA in past decade.
• Announced approximately 40% of outstanding bonds exchanged into new five-year notes, reducing debt and interest expense; also sold majority assets of Denmark-based waste energy subsidiary for $20 million.
• Backlog at end of first quarter was $526.8 million, a 47% increase compared to same period in 2024; bookings from continued operations were $167 million, an 11% increase.
• Progress on BrightLoop projects, with engineering work ongoing, Massillon, Ohio project nearing financing and expected to produce hydrogen by mid-2026; opportunities for new renewable energy projects in US.
• Anticipate industry tailwinds and generation demand to continue in 2025 but monitor tariff negotiations and their impact.

Consolidated revenues for the first quarter were $181.2 million, a 10% increase compared to the first quarter of 2024. Bookings in the first quarter were $167 million, an 11% increase compared to the same period last year, and the ending backlog was $526.8 million, a 47% increase since the first quarter of 2024. The global parts and services business posted the highest Q1 bookings, revenue, gross profit, and EBITDA in the past decade, contributing significantly to the overall performance.

• Haven't updated guidance, keeping it as is and monitoring tariffs and project timing.
• Natural gas project in Indiana is proceeding on schedule.
• Bulk of inbound technology shipment for natural gas project to happen later in 2025 and early 2026, with potential tariff impact not realized until then.

• Tariff negotiations and potential impact on project timing and business operations in 2025, as any delays in projects due to tariffs could affect overall business performance.

Q: Reiterating guidance for the year and update on coal to gas conversion project?

A: Haven't touched on guidance, keeping it as is; monitoring tariffs and project timing; natural gas project in Indiana is on schedule with bulk shipment later in 2025/early 2026.

Q: Drivers of strong demand environment?

A: Baseload generation worldwide increase, need for parts and services due to plant wear and tear and outage work shifts, global in reach including international and North American markets