NYSE$BW
Babcock & Wilcox Enterprises Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Reported improved revenues and adjusted EBITDA compared to Q3 2022, driven by Thermal segment revenue increase of 17%, and announced strategic business realignment focused on higher margin aftermarket businesses.
Babcock & Wilcox reported a 13% increase in revenues to $239.4 million in Q3 2023 compared to Q3 2022. The company's net loss was $12.3 million, and adjusted EBITDA was $20.0 million. They announced a strategic business realignment focused on higher margin aftermarket businesses and more predictable cash flows.
- Revenues increased by 13% compared to the third quarter of 2022, reaching $239.4 million.
- Net loss was $12.3 million, nearly the same as the $12.8 million loss in the third quarter of 2022.
- Adjusted EBITDA improved to $20.0 million, compared to $13.0 million in the third quarter of 2022.
- Announced strategic business realignment focused on higher margin aftermarket businesses and more predictable cash flows.
Headline financials
Revenue & EPS history
Babcock & Wilcox · Revenue · Quarterly
$225M
Forward guidance
B&W updated its full year 2023 Adjusted EBITDA target to $85.0 million to $90.0 million, excluding BrightLoop™ and ClimateBright™, and introduced a full year 2024 Adjusted EBITDA target of $100.0 - $110.0 million, also excluding BrightLoop™ and ClimateBright™.
Tailwinds
- Greater focus on higher margin aftermarket parts and services across all three segments while reducing overhead associated with large new build projects
- Reducing required security packages with a targeted reduction of up to $20 million in posted Letters of Credit (“LCs”) by the end of fiscal year 2024
- Refinancing existing $150 million Senior Secured Credit facility to reduce our interest expense by up to $5 million
- Bolstering cash flow generation and strengthening the balance sheet along with project level financing to accelerate the deployment of our BrightLoop™ and ClimateBright™ technologies
- Revised pipeline of over $8.5 billion in identified global project opportunities over the next three years
Headwinds
- Impact of global macroeconomic conditions, including inflation and volatility in the capital markets
- The impact of our divestiture of Babcock & Wilcox Solar Energy, Inc.("Babcock & Wilcox Solar", "B&W Solar")
- Our ability to integrate acquired businesses and the impact of those acquired businesses on our cash flows, results of operations and financial condition
- Our recognition of any asset impairments as a result of any decline in the value of our assets or our efforts to dispose of any assets in the future
- General economic and business conditions, including changes in interest rates and currency exchange rates
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 Q3 2023
-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
| Quarter | Report date | Reaction (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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