NYSE$BW

Babcock & Wilcox Enterprises Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Babcock & Wilcox's Q2 2024 earnings were reported, demonstrating revenue of $233.6 million, net income of $25.4 million, and operating income of $42.2 million, which exceeded expectations.

Babcock & Wilcox reported strong Q2 2024 results, driven by increased demand for their technologies and a strategic shift towards higher-value projects. The company reiterated its full-year Adjusted EBITDA target and improved its balance sheet through the sale of a Denmark-based subsidiary.

  • Revenue reached $233.6 million with a net income of $25.4 million and operating income of $42.2 million, surpassing expectations.
  • Adjusted EBITDA stood at $23.3 million, or $24.6 million excluding BrightLoop and ClimateBright expenses, exceeding expectations.
  • Full-year 2024 Adjusted EBITDA target range reiterated at $105.0 million to $115.0 million, excluding BrightLoop and ClimateBright expenses.
  • Balance sheet and liquidity improved through the sale of the Denmark renewable service subsidiary for $83.5 million net cash proceeds.

Headline financials

Total Revenue

$234M

Previous: $300M-22.1%
EPS (adj)

-$0.13

Previous: -$0.10-30.0%
Capital Expenditures

-$7.97M

Previous: -$5.59M-42.5%
Free Cash Flow

$17.3M

Previous: -$10.7M+262.4%
Net Income

$25.3M

Previous: -$5.09M+597.5%
Operating Income

$42.2M

Previous: $6.98M+504.7%
Gross Profit

$54.5M

Previous: $55.8M-2.4%
Cash & Equivalents

$95.5M

Previous: $55M+73.5%
Total Assets

$849M

Previous: $987M-14.0%
R&D Expense

$1.18M

No prior period

Revenue & EPS history

Babcock & Wilcox · Revenue · Quarterly

$234M

Q2 2024-22.1%vs Q2 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The company is reiterating its full-year Adjusted EBITDA guidance to a range of $105 million to $115 million, excluding BrightLoopTM and ClimateBrightTM expenses.

Tailwinds

  • Operating momentum expected to continue, driven by Thermal and Environmental segments.
  • Fourth quarter historically a seasonally strong period for B&W.
  • Global pipeline of over $9 billion in identified project opportunities remains healthy across all business segments.
  • Anticipate prospects for new bookings and stronger financial performance throughout the second half of 2024.
  • Expect additional sales of non-strategic businesses to drive further improvements in cash, liquidity and leverage ratio positions.

Headwinds

  • Macroeconomic conditions, including inflation, higher interest rates, and foreign exchange rate volatility, continue to have an impact.
  • Geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East) and global shipping and supply chain disruptions continue to have an impact.
  • Cost increases and delays or disruptions could adversely impact ability to meet customers’ demands.
  • Anticipated negative financial impact on operating results cannot be reasonably estimated due to unpredictable duration and scope of these conditions.
  • Backlog may not be indicative of future operating results, and contracts in backlog may be canceled, modified or otherwise altered by customers.

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 Q2 2024

Historical avgQ2 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro