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Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 58% compared to Q3 2024, while operating income surged by 315% year-over-year [5] - Consolidated revenues for Q3 2025 were $149 million, roughly in line with Q3 2024 [11] - Adjusted EBITDA for Q3 2025 was $12.6 million, up from $8 million in Q3 2024, exceeding street expectations [12] Business Line Data and Key Metrics Changes - Global parts and services revenue reached $68.4 million in Q3 2025, compared to $61.7 million in Q3 2024, driven by increased electricity demand from fossil fuels [11] - The backlog rose by 56% quarter-over-quarter to over $393 million, reflecting strong demand for projects, upgrades, and construction [5] Market Data and Key Metrics Changes - The company is experiencing increasing demand for power generation in North America, particularly due to the needs of AI data centers and industrial utilities [4][6] - The company anticipates a significant growth in EBITDA for 2026, projecting a range of $70 million to $85 million, representing an 80% increase year-over-year from 2025 [6][12] Company Strategy and Development Direction - The company is focusing on expanding its global parts and services business while divesting non-core assets to reduce debt [4] - Babcock & Wilcox is positioning itself to support AI data center expansion and increased baseload generation needs [4] - The company is pursuing opportunities in the AI data center space, with a potential pipeline of $3 to $5 billion in projects [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth prospects, citing improved margins and a strong backlog [5][6] - The company is in discussions for several AI data center projects, which are expected to drive higher power demands [6][9] - Management highlighted the importance of proven technology in reducing project risks and ensuring timely execution [43] Other Important Information - The company has improved its balance sheet significantly, with total debt at $379.3 million as of September 30, 2025 [12] - Recent equity raises have strengthened the balance sheet, allowing for the planned paydown of bonds due in 2026 [13] Q&A Session Summary Question: Can you discuss the $1.5 billion project and its potential contribution? - Management is working with Applied Digital to finalize project details and anticipates a full notice to proceed in the coming months, with minimal engineering required due to the use of proven technology [19][20] Question: What is the status of the additional pipeline opportunities? - Management indicated that the pipeline has grown to $3 to $5 billion, with several projects in various stages of maturity expected to move forward within the next year [26][27] Question: What is the company's capacity for the power generation segment? - Management stated that they are evaluating internal and external manufacturing capacities and are confident in their ability to meet demand for boiler fabrication and steam turbine supply [29][30]

Financial Performance - Revenues for Q3 2025 were $149,011,000, a decrease of 2.1% compared to $152,631,000 in Q3 2024[19] - Operating income for Q3 2025 was $6,500,000, significantly up from $1,567,000 in Q3 2024, marking a 314.4% increase[19] - Net income attributable to stockholders for Q3 2025 was $31,377,000, compared to a net loss of $9,047,000 in Q3 2024[19] - Total comprehensive income for Q3 2025 was $53,367,000, compared to a loss of $1,860,000 in Q3 2024[20] - Basic and diluted earnings per share for Q3 2025 were $0.30, compared to a loss of $0.10 in Q3 2024[19] - For the nine months ended September 30, 2025, Babcock & Wilcox reported a net loss of $45.4 million, compared to a net income of $3.2 million for the same period in 2024[28] - The company experienced a net loss from continuing operations of $22.4 million for the nine months ended September 30, 2025, compared to a net loss of $43.6 million for the same period in 2024[28] - The company reported a significant gain on the sale of business amounting to $17.3 million for the nine months ended September 30, 2025[28] - The company reported a net loss of $(56,552) thousand attributable to stockholders of common stock for the nine months ended September 30, 2025, compared to a net loss of $(7,902) thousand in 2024, indicating ongoing challenges[42] Cash and Liquidity - Cash and cash equivalents increased to $24,393,000 as of September 30, 2025, up from $23,400,000 at December 31, 2024[22] - Current restricted cash increased to $165,527,000 as of September 30, 2025, compared to $94,167,000 at December 31, 2024[22] - Cash, cash equivalents, and restricted cash at the end of the period increased to $201,085 thousand as of September 30, 2025, up from $127,919 thousand in 2024, reflecting improved liquidity[30] - The company completed divestitures resulting in net proceeds of $187.5 million in 2025, which were used to reduce outstanding debt and support working capital needs[39] - The company incurred interest paid of $24,803 thousand for the nine months ended September 30, 2025, down from $27,796 thousand in 2024, indicating a reduction in interest expenses[30] Assets and Liabilities - Total assets decreased to $657,884,000 as of September 30, 2025, down from $726,987,000 at December 31, 2024[22] - Total liabilities decreased to $890,091,000 as of September 30, 2025, compared to $1,010,159,000 at December 31, 2024[22] - Total stockholders' deficit increased to $308.7 million as of September 30, 2025, from $283.2 million at the end of the previous fiscal year[24] - The company reported stock-based compensation charges of $367,000 for the quarter ended June 30, 2025[24] Segment Performance - The total revenue for the nine months ended September 30, 2025, was $448,871,000, slightly up from $444,919,000 in the same period of 2024[66] - B&W Thermal segment revenue for Q3 2025 was $95.9 million, up from $88.5 million in Q3 2024, representing a 4% increase[186] - B&W Renewable segment revenue for Q3 2025 was $15.193 million, up from $9.526 million in Q3 2024, a 59% increase[206] - The total revenue for the B&W Thermal segment for the three months ended September 30, 2025, was $118,271,000, an increase from $109,376,000 in the same period of 2024[66] - For the nine months ended September 30, 2025, B&W Thermal segment revenues increased by 11%, or $33.5 million, to $345.8 million, driven primarily by an increase in boiler-related parts[210] Discontinued Operations - The company divested its BWRS, SPIG, GMAB, Vølund, and Diamond Power businesses to reduce debt and improve liquidity as of September 30, 2025[52] - Revenues from discontinued operations for the three months ended September 30, 2025, totaled $12,965,000, with an operating loss of $12,857,000[57] - The company reported a gain on divestiture of $53,166,000 from discontinued operations for the three months ended September 30, 2025[57] - The loss attributable to stockholders from discontinued operations for the three months ended September 30, 2025, was $37,434,000[57] Debt and Financing - The company has signed the Ninth Amendment to the Credit Agreement to extend the maturity date of the Credit Facility to November 30, 2026, enhancing its financial flexibility[44] - The company issued 15.0 million common shares for net proceeds of $32.5 million as of September 30, 2025, as part of its At-The-Market offering[39] - The company recognized a loss on debt extinguishment of $0.7 million and $6.8 million for the three and nine months ended September 30, 2024, respectively, related to exiting previous Debt Facilities[112] - The company completed privately negotiated exchange transactions, issuing $100.7 million of new 8.75% Senior Secured Second Lien Notes due 2030[90] Tax and Regulatory - The effective tax rate for the nine months ended September 30, 2025, was (44.3)%, compared to (6.4)% for the same period in 2024[124] - The company is evaluating the impact of new accounting standards, including ASU 2023-09, which requires more detailed income tax disclosures effective after December 15, 2024[145] Market Conditions - The company continues to adapt to macroeconomic conditions, including inflation and higher interest rates, which have resulted in cost increases and potential disruptions[157]

Company Overview - Babcock & Wilcox (B&W) is a global energy leader providing innovative technologies for nearly 160 years[9, 11] - B&W leverages a vast installed base with over 300 operating utility and industrial boiler units in the U S and nearly 200 units across 40 countries[12] - B&W has more than 400 Gigawatts of installed global capacity at utility and industrial plants[15] Financial Performance and Pipeline - B&W's Last Twelve Months (LTM) revenue as of September 2025 was approximately $623 1 million[36, 50] - The company has a solid global pipeline of $10 to $12 billion, including AI data center opportunities of over $3 to $5 billion and BrightLoop/ClimateBright opportunities of $2 6 billion[20, 39] - Capital expenditure is expected to exceed $1 trillion within the next five years for electric and gas utilities, and also reach $1 trillion within the next three years for data centers[25] Growth Opportunities - B&W is capitalizing on significant opportunities for profitable growth, including delivering power generation technologies for AI data centers[16] - The company is involved in a $1 5 billion project to deliver one gigawatt of power for an Applied Digital AI Factory, with full notice to proceed expected in January 2026[25, 29] - The company has a pipeline of more than $5 billion in Europe, more than $11 billion in Americas, more than $6 billion in Asia-Pacific, and more than $3 billion in Middle East & Africa[40]

Group 1 - The company B&W has successfully raised $67.5 million through its ATM offering [1] - Approximately $50 million of the total raised came from a single fundamental global institutional investor [1]

Core Insights - Babcock & Wilcox Enterprises, Inc. (BW) stock has experienced a significant increase of 2,080% since its lows in April, suggesting a strong recovery in its market performance [1] Group 1 - The stock may not have rallied enough despite the substantial increase, indicating potential for further growth [1] - The author has been involved in investment analysis since 2011, focusing on value investing, which may provide context for the analysis of BW [1] Group 2 - The article does not provide any specific financial metrics or forecasts related to BW's future performance [2][3]

Core Insights - Babcock & Wilcox Enterprises, Inc. (BW) stock has experienced a significant increase of 2,080% since its lows in April, suggesting a strong upward momentum in its valuation [1] Group 1 - The stock may not have rallied enough despite the substantial increase, indicating potential for further growth [1] - The author has been involved in investment analysis since 2011, focusing on value investing, which may provide context for the analysis of BW [1] Group 2 - The author holds a beneficial long position in BW shares, indicating a personal investment interest in the company's performance [2]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SMX (Security Matters) Public Limited Company (SMX) increased by 52% to $2.24 [3] - Entravision Communications Corporation (EVC) rose by 33% to $2.66 [3] - Babcock & Wilcox Enterprises, Inc. (BW) saw a 28% increase to $4.79 [3] - NeuroPace, Inc. (NPCE) gained 24% reaching $11.71 [3] - Kennedy-Wilson Holdings, Inc. (KW) also increased by 24% to $9.30 [3] - Rigel Pharmaceuticals, Inc. (RIGL) rose by 22% to $34.72 [3] - Digital Turbine, Inc. (APPS) increased by 21% to $7.20 [3] - Lumentum Holdings Inc. (LITE) saw a 15% increase to $218.06 [3] - AsiaStrategy (SORA) rose by 14% to $3.63 [3] - Marine Petroleum Trust (MARPS) increased by 7% to $5.05 [3] Premarket Losers - Biohaven Ltd. (BHVN) decreased by 42% to $7.96 [4] - Trex Company, Inc. (TREX) fell by 34% to $30.65 [4] - Soleno Therapeutics, Inc. (SLNO) saw a 23% decline to $49.00 [4] - Axon Enterprise, Inc. (AXON) decreased by 19% to $572.00 [4] - Clover Health Investments, Corp. (CLOV) fell by 19% to $2.82 [4] - Pinterest, Inc. (PINS) decreased by 18% to $26.91 [4] - SSR Mining Inc. (SSRM) saw a 17% decline to $17.91 [4] - Upstart Holdings, Inc. (UPST) decreased by 16% to $38.81 [4] - WF International Limited (WXM) fell by 12% to $2.25 [4] - Corsair Gaming, Inc. (CRSR) decreased by 11% to $6.66 [4]

Core Viewpoint - Babcock & Wilcox Enterprises Inc. (BW) experienced a significant stock price increase of 31.82% to $4.93 in after-hours trading following multiple announcements, including a major AI data center contract and strong third-quarter earnings results [1]. Group 1: Major Announcements - The company secured a $1.5 billion contract with Applied Digital Corp. to supply and install natural gas technology for an AI data center project, which includes designing and building four 300-megawatt power plants [1][3]. - Babcock & Wilcox reported third-quarter revenues of $149.0 million, with operating income increasing by 306% to $6.5 million year-over-year [5]. - The company announced the sale of its Allen-Sherman-Hoff business for $29 million and plans to redeem all remaining February 2026 bonds [1][6]. Group 2: Financial Performance - Adjusted EBITDA for the third quarter was $12.6 million, up from $8.0 million, exceeding both company and consensus expectations [5]. - The loss per common share improved to $0.06 compared to $0.13 in the prior year period [5]. Group 3: Debt Management - Babcock & Wilcox completed asset sales totaling $206 million, including $177 million from Diamond Power International and $29 million from Allen-Sherman-Hoff [6]. - The company plans to redeem $26 million in principal amount of its 8.125% Senior Notes due in 2026 on December 5, 2025 [7]. Group 4: Market Performance - Year-to-date, Babcock & Wilcox shares have gained 116.18%, with a market capitalization of $378.1 million [8]. - The stock has traded between $0.22 and $4.12 over the past 52 weeks, indicating strong momentum in the 99th percentile [8].

Financial Performance - Operating income for Q3 2025 was $6.5 million, a 315% increase compared to Q3 2024, exceeding street expectations [4]. - Adjusted EBITDA from Continuing Operations in Q3 2025 was $12.6 million, a 59% increase compared to Q3 2024, also ahead of street expectations [4]. - Net loss from continuing operations was $2.3 million in Q3 2025, significantly improved from a loss of $7.9 million in Q3 2024 [4]. - Revenues for the three months ended September 30, 2025, were $149.0 million, a decrease of 4.3% compared to $152.6 million for the same period in 2024 [25]. - Operating income for the three months ended September 30, 2025, was $6.5 million, compared to an operating income of $1.6 million for the same period in 2024 [25]. - Net income attributable to stockholders for the three months ended September 30, 2025, was $35.1 million, compared to a net loss of $5.3 million for the same period in 2024 [25]. - Basic and diluted earnings per share for the three months ended September 30, 2025, were $0.30, compared to a loss of $0.10 for the same period in 2024 [25]. - Total costs and expenses for the three months ended September 30, 2025, were $142.5 million, a decrease of 5.7% from $151.1 million in the same period in 2024 [25]. - Research and development costs for the three months ended September 30, 2025, were $0.3 million, down from $1.2 million in the same period in 2024 [25]. - The company reported a gain on debt extinguishment of $1.7 million for the three months ended September 30, 2025 [25]. - The company experienced a total other expense, net of $7.8 million for the three months ended September 30, 2025, compared to $10.0 million for the same period in 2024 [25]. - The company reported a net loss of $45.4 million for the nine months ended September 30, 2025, compared to a net income of $3.2 million in 2024 [27]. - Net cash used in operating activities was $65.9 million, compared to $96.2 million in the previous year, indicating a reduction in cash outflow [27]. - Net cash provided by investing activities increased to $172.4 million from $78.0 million, primarily due to proceeds from the sale of business and assets [27]. - Cash, cash equivalents, and restricted cash at the end of the period stood at $201.1 million, up from $127.9 million at the beginning of the period [27]. - Depreciation and amortization of long-lived assets decreased to $7.8 million from $13.7 million year-over-year [27]. - The impairment of long-lived assets increased to $9.9 million from $5.8 million, reflecting challenges in asset valuation [27]. - Borrowings on loan payable amounted to $75.4 million, while repayments on loan payable were $126.8 million, indicating a net cash outflow in financing activities [27]. - The company experienced a foreign exchange loss of $5.7 million, compared to a loss of $1.4 million in the previous year [27]. - Stock-based compensation expenses decreased to $2.2 million from $3.8 million, reflecting a reduction in equity-based incentives [27]. Revenue and Backlog - Backlog reached $393.5 million, a 56% increase compared to Q3 2024, with Global Parts and Services achieving the highest revenue and gross profit results in recent history [4]. - Global Parts & Services revenue in Q3 2025 was $68.4 million, up from $61.7 million in Q3 2024, driven by increased electricity demand [8]. - Babcock & Wilcox Thermal segment revenues increased to $118.3 million in Q3 2025 from $109.4 million in Q3 2024, representing a growth of 8.2% [29]. - Babcock & Wilcox Renewable segment revenues rose to $15.2 million in Q3 2025, up from $9.5 million in Q3 2024, marking a significant increase of 60.0% [29]. - Babcock & Wilcox Environmental segment revenues decreased to $15.5 million in Q3 2025 from $33.7 million in Q3 2024, a decline of 54.0% [29]. - Total revenues for Babcock & Wilcox were $149.0 million in Q3 2025, slightly down from $152.6 million in Q3 2024, a decrease of 2.4% [30]. - The backlog for Babcock & Wilcox Thermal segment surged to $334 million in September 2025, up from $169 million in September 2024, reflecting a growth of 97.0% [29]. - Total bookings for Babcock & Wilcox reached $130 million in Q3 2025, compared to $120 million in Q3 2024, an increase of 8.3% [29]. Strategic Initiatives - Signed a limited notice to proceed for a contract exceeding $1.5 billion with Applied Digital to deliver one gigawatt of efficient energy for an AI Data Center project [4]. - Introduced a full-year 2026 Adjusted EBITDA target range of $70 million to $85 million, representing approximately 80% year-over-year growth, excluding AI Data Center projects [4]. - Company plans to convert coal plants to natural gas in partnership with Denham Capital to support data center power demands in North America and Europe [7]. - The company is focused on improving its financial position and exploring strategic acquisitions to implement its growth strategy [21]. Asset and Liability Management - Cash and cash equivalents increased to $24.4 million from $23.4 million year-over-year [26]. - Accounts receivable – trade, net rose to $101.7 million compared to $94.5 million in the previous year [26]. - Total current assets increased to $479.7 million from $552.5 million year-over-year [26]. - Total assets decreased to $657.9 million from $727.0 million year-over-year [26]. - Accounts payable decreased to $75.6 million from $92.1 million year-over-year [26]. - Current borrowings increased to $70.3 million from $125.1 million year-over-year [26]. - Total current liabilities decreased to $401.0 million from $406.7 million year-over-year [26]. - Operating lease liabilities increased to $3.4 million from $3.2 million year-over-year [26]. - Pension and other post-retirement benefit liabilities increased to $179.0 million from $192.7 million year-over-year [26]. - Total liabilities decreased to $401.0 million from $406.7 million year-over-year [26].