NYSE$BW

Babcock & Wilcox Enterprises Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Babcock & Wilcox's first quarter performance in 2024 exceeded expectations with revenue and operating income.

Babcock & Wilcox reported a strong start to 2024, with revenue of $207.6 million and operating income of $4.3 million, exceeding expectations. The company's strategic shift towards higher-margin projects and strength in aftermarket parts and services contributed to improved Adjusted EBITDA margins. They've increased full-year Adjusted EBITDA guidance to a range of $105 million to $115 million, excluding BrightLoop and ClimateBright expenses.

  • Revenue was $207.6 million, lower than Q1 2023 due to strategic shift towards higher-margin projects.
  • Operating income was $4.3 million, up from $1.3 million in Q1 2023.
  • Net loss was $15.8 million, including a $5.1 million loss on debt extinguishment.
  • Approximately $500 million in new contracts and awards secured this year, nearly double the same period last year.

Headline financials

Total Revenue

$208M

Previous: $252M-17.6%
EPS (adj)

-$0.22

Previous: -$0.18-22.2%
Adjusted EBITDA

$11.3M

Previous: $14.2M-20.4%
Interest Expense

$12M

No prior period
Total Backlog

$359M

No prior period
Capital Expenditures

-$3.39M

Previous: -$2.21M-53.7%
Net Income

-$15.80

Previous: -$12.5M+100.0%
Operating Income

$4.30

Previous: $1.36M-100.0%
Gross Profit

$46.7M

Previous: $48.1M-3.0%
R&D Expense

$1.08M

No prior period

Revenue & EPS history

Babcock & Wilcox · Revenue · Quarterly

$208M

Q1 2024-17.6%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The Company increased its full-year Adjusted EBITDA guidance to a range of $105 million to $115 million, excluding BrightLoop and ClimateBright expenses, following stronger-than-expected signings and commitments during the first quarter of 2024.

Tailwinds

  • Expect strong operating momentum driven by Thermal and Environmental segments.
  • Healthy demand pipeline across all business segments.
  • Expect new bookings and stronger financial performance to continue throughout the year.
  • Focus on balance sheet and expect continued improvements in cash and liquidity.
  • B&W is actively working to capitalize on its $9 billion global pipeline of identified project opportunities.

Headwinds

  • Impacts from inflation, higher interest rates and foreign exchange rate volatility.
  • Geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East).
  • Global shipping and supply chain disruptions that have continued to have an impact in 2024.
  • Cost increases and delays or disruptions that have had, and could continue to have, an adverse impact on our ability to meet customers’ demands.
  • The duration and scope of these conditions cannot be predicted, and therefore, any anticipated negative financial impact on our operating results cannot be reasonably estimated.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-3.9%

Avg return

Earnings day

-1.7%

Avg return

5 days after

+2.3%

Avg return

30 days after

46%

21 / 46 earnings

Positive

+45.8%

Q1 2025

Best reaction

-72.5%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+29.6%+49.9%+0.6%
Q4 2025+45.7%+66.5%+94.1%
Q3 2025+28.5%+84.5%+51.9%
Q1 2025+45.8%+21.9%+72.8%
Q4 2024-31.9%-51.0%-31.4%
Q3 2024-31.2%-32.7%-31.2%
Q2 2024+6.3%-4.5%+2.7%
Q1 2024+10.3%-2.6%+1.7%
Q4 2023-19.5%-6.3%+15.2%
Q3 2023-55.1%-44.0%-28.2%
Q2 2023+4.4%+6.5%+1.2%
Q1 2023-9.6%-7.6%-4.0%
Q4 2022+1.7%-3.3%+11.1%
Q3 2022+1.6%+11.4%+19.7%
Q2 2022-9.7%-2.0%-3.4%
Q1 2022-27.2%-14.0%+2.3%
Q4 2021+11.9%+16.3%+16.5%
Q3 2021+21.4%+31.9%+15.7%
Q2 2021+1.2%-7.2%-14.8%
Q1 2021+5.8%+11.4%+16.6%
Q4 2020+4.0%+9.5%+32.0%
Q3 2020+2.6%+14.2%+74.3%
Q2 2020-8.3%-4.7%-16.3%
Q4 2019-14.2%-26.7%-26.0%
Q3 2019-5.5%-5.9%-34.2%
Q2 2019-1.1%+1.4%-5.2%
Q1 2019-6.7%-14.4%-10.4%
Q4 2018-31.0%-15.6%+22.9%
Q3 2018+6.3%-9.1%-10.6%
Q2 2018-28.1%-27.0%-31.1%
Q1 2018-0.7%+1.1%-10.7%
Q4 2017-13.1%-9.4%-31.3%
Q3 2017+8.5%+8.2%+16.9%
Q2 2017-72.5%-70.5%-71.9%
Q1 2017+12.4%+8.1%+15.4%
Q4 2016-40.3%-39.4%-45.8%
Q3 2016-11.4%-15.9%-1.8%
Q2 2016+3.3%+7.6%+11.7%
Q1 2015-3.9%
Q1 2016-3.9%
Q4 2013-7.9%
Q4 2015-7.9%
Q3 2014-0.8%
Q3 2015-0.8%
Q2 2014+5.3%
Q2 2015+5.3%
Q1 2014

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