Babcock & Wilcox Enterprises

Babcock & Wilcox Enterprises (BW) Q1 2025 Earnings

Reported May 12, 2025 at 4:42 PM ET · SEC Source

Q1 25 EPS

$-0.11

BEAT +31.25%

Est. $-0.16

Q1 25 Revenue

$181.2M

BEAT +11.44%

Est. $162.6M

vs S&P Since Q1 25

+1,818.3%

BEATING MARKET

BW +1,844.6% vs S&P +26.3%

Market Reaction

Did BW Beat Earnings? Q1 2025 Results

Babcock & Wilcox Enterprises delivered a stronger-than-expected first quarter, posting a loss per share of $0.11 from continuing operations against a consensus estimate of $0.16, a 31.25% beat, while revenue of $181.20 million topped estimates by 11.… Read more Babcock & Wilcox Enterprises delivered a stronger-than-expected first quarter, posting a loss per share of $0.11 from continuing operations against a consensus estimate of $0.16, a 31.25% beat, while revenue of $181.20 million topped estimates by 11.44% and grew 10.3% year-over-year. The primary engine behind the top-line strength was the Thermal segment, where revenue jumped 25% to $138.20 million, boosted by a large natural gas project, higher construction volume, and record parts sales that also drove Global Parts & Service to its best Q1 bookings in company history. Total backlog surged 47% to $526.80 million, the largest in recent history, underpinning management's confidence in a $7.60 billion global pipeline of identified project opportunities. On the balance sheet, the company exchanged $131.80 million of bonds due 2026 for $100.80 million in new five-year second lien notes due 2030, trimming annual interest expense by $1.10 million, though going concern uncertainty tied to $108.40 million of current debt and a November 2025 credit facility remains a key overhang as refinancing efforts continue.

Key Takeaways

  • Large natural gas project contributing $8.5 million in revenue
  • Higher construction volume of $6.0 million
  • Increase in parts sales of $10.0 million
  • Record Q1 bookings, revenue, gross profit and EBITDA for Global Parts & Service business
  • Increased demand for boiler components as clients upgrade thermal infrastructure
  • Pulp and paper business growth driving Renewable segment improvement
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BW YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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BW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q3 25
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BW Revenue by Geography

Regional revenue distribution

“We are pleased to report a strong start to 2025, highlighted by first quarter consolidated revenue and Adjusted EBITDA that exceeded Company and consensus expectations. We are excited to announce that approximately 40% of our bonds have been exchanged into new five year notes at discount to par, which significantly reduces our current and overall debt and lowers our annual interest expense. Operationally, our Global Parts & Service business posted the highest Q1 bookings, revenue, gross profit and EBITDA metrics on record.”

— Kenneth Young, Q1 2025 Earnings Press Release