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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2023
| | |
| BABCOCK & WILCOX ENTERPRISES, INC. |
| (Exact name of registrant as specified in its charter) |
| | | | | | | | |
| Delaware | 001-36876 | 47-2783641 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| | | | | | | | |
| 1200 East Market Street | |
| Suite 650 | |
| Akron, | Ohio | 44305 |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, including Area Code: (330) 753-4511
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered |
| Common stock, $0.01 par value per share | BW | New York Stock Exchange |
| 8.125% Senior Notes due 2026 | BWSN | New York Stock Exchange |
| 6.50% Senior Notes due 2026 | BWNB | New York Stock Exchange |
| 7.75% Series A Cumulative Perpetual Preferred Stock | BW PRA | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition
On November 9, 2023, the Company issued a press release announcing our financial results for the third quarter ended September 30, 2023. A copy of the press release is attached as Exhibit 99.1, and the information contained in Exhibit 99.1 is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of Director
On November 7, 2023, Dr. Naomi Boness was appointed to the board of directors (the “Board”) of the Company, effective November 9, 2023. The Board has determined that Dr. Boness qualifies as an “independent” director under applicable New York Stock Exchange rules. The size of the Board was increased from six to seven directors in connection with Dr. Boness’ appointment.
In connection with her appointment Dr. Boness is expected to receive an annual cash retainer and an annual stock award in accordance with the Company’s director compensation policy for non-employee directors, as described in the Company’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 7, 2023. Dr. Boness will also enter into the Company’s standard form of indemnification agreement, which is filed as Exhibit 10.24 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2023. Pursuant to the terms of the indemnification agreement, the Company may be required, among other things, to indemnify Dr. Boness for certain expenses, including attorneys’ fees, judgments, fines and settlement amounts incurred by her in any action or proceeding arising out of her service as a director.
Dr. Boness has no family relationship with any of the executive officers or directors of the Company. There are no arrangements or understandings between Dr. Boness and any other person pursuant to which she was appointed as a director of the Company. In addition, Dr. Boness has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
Departure of Officer
On November 6, 2023, the Company and Joseph Buckler, Senior Vice President, Clean Energy of the Company, agreed that Mr. Buckler will depart from the Company effective immediately. Mr. Buckler’s resignation did not result from any disagreement with the Company on any matters relating to the Company's operations, policies or practices.
Item 7.01 Regulation FD Disclosure
On November 9, 2023, the Company posted an investor presentation on the investor relations section of its website at babcock.com. A copy of the presentation is attached as Exhibit 99.2, and the information contained in Exhibit 99.2 is incorporated herein by reference.
The information furnished pursuant to this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| | | | | | | | |
| Exhibit No. | | Description |
| | |
| | |
| 104 | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | | | | | | | | | |
| BABCOCK & WILCOX ENTERPRISES, INC. | |
| | |
| | | |
| November 9, 2023 | By: | /s/ Louis Salamone | |
| | Louis Salamone | |
| | Executive Vice President, Chief Financial Officer and Chief Accounting Officer
(Principal Accounting Officer and Duly Authorized Representative) |
Babcock & Wilcox Enterprises Reports Third Quarter 2023 Results and Announces Strategic Business Realignment
•Improved continuing operations revenues and adjusted EBITDA compared to the third quarter of 2022, led by Thermal Revenues increasing 17%
•Announced a commitment for a $150 million Senior Secured Credit facility refinancing
•Signed memorandum of understanding “MoU” for up to 200 tonnes per day of Hydrogen offtake in Louisiana with CO2 capture over a 10-year period
•Appointed Dr. Naomi Boness (Ph.D.) to Board of Directors, strengthening the Company’s expertise in hydrogen generation and carbon capture
•Announced strategic business realignment focused on higher margin aftermarket businesses and more predictable cash flows to improve the balance sheet and better position the Company for future growth in BrightLoop™ and ClimateBright™
•Expected annualized cost savings of over $30 million related to strategic business realignment
•Company considering strategic alternatives regarding non-strategic assets
•Announced decision to reclassify B&W Solar out of continuing operations
Q3 2023 Continuing Operations Financial Highlights
–Revenues of $239.4 million, a 13% improvement compared to the third quarter of 2022
–Net loss of $12.3 million, compared to a net loss of $12.8 million in the third quarter of 2022
–Loss per share of $0.18, compared to a loss per share of $0.15 in the third quarter of 2022
–Consolidated adjusted EBITDA of $20.0 million, after $2.0 million in expenses from ClimateBright™, an improvement compared to $13.0 million in the third quarter of 2022
–Ending backlog of $507.0 million, in-line with our expectations
Updated Outlook
–Updated backlog growth to a range of $550.0 million to $650.0 million by year-end 2023
–Updated Full Year 2023 Adjusted EBITDA target of $85.0 million to $90.0 million, excluding BrightLoop™ and ClimateBright™
–Introduced Full Year 2024 Adjusted EBITDA target of $100.0 – $110.0 million, excluding BrightLoop™ and ClimateBright™
(AKRON, Ohio – November 9, 2023) – Babcock & Wilcox Enterprises, Inc. ("B&W" or the "Company") (NYSE: BW) announced results for the third quarter of 2023 and information regarding its strategic business realignment.
"Our third quarter results were highlighted by revenue growth, achieving another consecutive quarter of broad-based revenue expansion on a year-over-year basis, led by Thermal increasing 17%,” said Kenneth Young, B&W’s Chairman and Chief Executive Officer. “We are encouraged by the increased volumes for parts and services across our Renewable and Thermal segments, which drove the top-line performance during the third quarter. We are reducing the reliance on new build projects which require
high interest LCs and typically lower margins, which will in turn, allow us to reduce the associated overhead and interest costs. We are also expanding our BrightLoop™ and ClimateBright™ investments, which together, reinforce our updated full-year adjusted EBITDA target for 2023 and newly introduced 2024 target.”
“We continue to progress our strategy to deploy our hydrogen and decarbonization technologies at commercial scale. Most notably, we are pleased to announce several meaningful developments related to our current BrightLoop™ project portfolio,” continued Young. “Our dedicated BrightLoop™ organization has made exceptional progress in terms of securing an MoU for hydrogen offtake, advancing project financing, and permitting in the states where these facilities will be located. Furthermore, we are excited to announce the appointment of Dr. Naomi Boness (Ph.D.) to our Board of Directors. Dr. Boness’ expertise in the energy sector, particularly in hydrogen generation and carbon capture, will prove invaluable as we continue to develop our hydrogen strategy.”
“The Company also announced today a strategic business realignment which positions B&W for more predictable cash flow generation that leverages our aftermarket business across each segment, capitalizing on higher margin opportunities,” Young added. “In response to today’s market conditions, which include higher interest costs and limited new build capital expenditures by our customers, we see a growing global trend in extending the operational lifespans of existing power and industrial generation facilities. This presents us with an opportunity to shift our focus to the more predictable revenue streams generated from our aftermarket businesses. We plan to utilize these cash flows to strengthen our balance sheet and reduce our debt. We are also evaluating strategic alternatives related to non-strategic assets. We believe these actions, along with project financing, will position the Company to fund future growth through evolving BrightLoop™ and ClimateBright™ technology opportunities. Further, we expect to realize up to $30 million in annualized cost savings primarily through reducing the high overhead associated with seeking multiple new-build projects. Additionally, we have announced our decision to reclassify our solar division from continuing operations. We believe that this strategic business realignment is an important step forward to improve our cash flows as we continue to deploy our hydrogen technologies.”
“Looking ahead, keeping the current global energy landscape in mind and considering our shift in focus, we are optimistic about the potential for additional near-term bookings and our revised pipeline of over $8.5 billion in identified global project opportunities over the next three years. With the exclusion of Solar and based on our existing project visibility, we are revising our adjusted EBITDA targets for the full year 2023 to $85.0 million to $90.0 million, when excluding BrightLoop™ and ClimateBright™. Our strategic focus on promoting future growth aligns with the sustained demand we observe across all segments, paving the way for improved performance in 2024.”
Strategic Business Realignment Plan
The following elements are integral to our strategy to realign our core competencies with sustainable and profitable growth:
–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
Q2 2023 Continuing Operations Financial Summary
Revenues in the third quarter of 2023 were $239.4 million, a 13% improvement compared to the third quarter of 2022, primarily attributable to higher volumes in our Renewable segment due to B&W Renewable Services and to Thermal segment volume increasing due to a higher level of construction and parts activity. Net loss in the third quarter of 2023 was $12.3 million, compared to a net loss of $12.8 million in the third quarter of 2022. Loss per share in the third quarter of 2023 was $0.18 compared to a loss per share of $0.15 in the third quarter of 2022. Operating income in the third quarter of 2023 was $5.5 million compared to operating loss of $2.7 million in the third quarter of 2022. Adjusted EBITDA was $20.0 million compared to $13.0 million in the third quarter of 2022. Bookings in the third quarter of 2023 were $198 million. Ending backlog was $507 million, which is a 9% decrease compared to backlog at the end of the third quarter of 2022. All amounts referred to in this release are on a continuing operations basis, unless otherwise noted. Reconciliations of net income, the most directly comparable GAAP measure, to adjusted EBITDA for the Company's segments, are provided in the exhibits to this release.
Babcock & Wilcox Renewable segment revenues were $87.1 million for the third quarter of 2023, an increase of 11% compared to $78.5 million in the third quarter of 2022. The increase in revenue is primarily due to higher volume associated with Renewable Service. Adjusted EBITDA in the third quarter of 2023 was $10.1 million compared to $4.5 million in the third quarter of 2022, primarily due to the higher revenue volume described above.
Babcock & Wilcox Environmental segment revenues were $46.4 million in the third quarter of 2023, an increase of 4% compared to $44.6 million in the third quarter of 2022. The increase is primarily driven by lower volume related to flue gas treatment projects offset by higher overall volume of cooling technology projects. Adjusted EBITDA in the third quarter of 2023 was $5.0 million, compared to $3.1 million in the third quarter of 2022, primarily driven by higher product mix as described above along with favorable close out of a flue gas treatment project.
Babcock & Wilcox Thermal segment revenues were $107.0 million in the third quarter of 2023, an increase of 17% compared to $91.3 million in the third quarter of 2022. The revenue increase is attributable to higher level of volume in our construction project business, parts and service and our package boiler business, partially offset by a decline in service projects. Adjusted EBITDA in the third quarter of 2023 was $11.3 million, an increase of 5% compared to $10.8 million in the third quarter of 2022, primarily driven by the higher revenue volume and product mix described above.
Liquidity and Balance Sheet
At September 30, 2023, the Company had total debt of $377.6 million and a cash, cash equivalents and restricted cash balance of $65.1 million.
Reclassifying Solar from Continuing Operations
As part of our strategic business realignment, the Company is actively marketing our Solar assets, resulting in the accounting of the Solar operations as held for sale. As a result, the Company has written off the entire balance of goodwill associated with the Solar business.
Significantly Reducing Cost of Debt
Subsequent to September 30, 2023, we obtained a commitment to refinance our Senior Credit facility. We also amended our existing Reimbursement Agreement, including updating certain financial covenants thereunder. The refinancing commitment upon closing is expected to reduce our interest cost by up to $5 million per year based on current interest rates.
Impacts of Market Conditions
We have experienced and may continue to experience, supply chain disruptions driven by any number of events globally, including pandemics, geopolitical conflicts (including the ongoing conflicts in Ukraine and the Middle East), climate change and others. We have also observed significant delays and disruptions of service and material providers and negative impacts to pricing of certain products. These delays and disruptions have had, and could continue to have, an adverse impact on our ability to meet customers’ demands and schedules. We are continuing to actively monitor the impact of these market conditions on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supplying our customers and their specific needs. The duration and scope of these conditions cannot be predicted, and therefore, any anticipated negative financial impact to our operating results cannot be reasonably estimated.
Earnings Call Information
B&W plans to host a conference call and webcast on Thursday, November 9, 2023 at 5 p.m. ET to discuss the Company’s third quarter 2023 results. The listen-only audio of the conference call will be broadcast live via the Internet on B&W’s Investor Relations site. The dial-in number for participants in the U.S. is (833) 470-1428; the dial-in number for participants in Canada is (833) 950-0062; the dial-in number for participants in all other locations is (929) 526-1599. The conference ID for all participants is 539487. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures internally to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results and the accompanying reconciliation, the Company believes that its presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting its financial condition and results of operations than GAAP measures alone. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s related financial results prepared in accordance with GAAP.
Adjusted EBITDA on a consolidated basis is a non-GAAP metric defined as the sum of the adjusted EBITDA for each of the segments, further adjusted for corporate allocations and research and development costs. At a segment level, the adjusted EBITDA presented is consistent with the way the Company's chief operating decision maker reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest expense, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment. The Company presents consolidated Adjusted EBITDA because it believes it is useful to investors to help facilitate comparisons of the ongoing, operating performance before corporate overhead and other expenses not attributable to the operating performance of the Company's revenue generating segments. This release also presents certain targets for the Company's Adjusted EBITDA in the future; these targets are not intended as guidance regarding how the Company believes the business will perform. The Company is unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation, including business transition costs.
Bookings and Backlog
Bookings and backlog are our measure of remaining performance obligations under our sales contracts. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies.
We generally include expected revenue from contracts in our backlog when we receive written confirmation from our customers authorizing the performance of work and committing the customers to payment for work performed. Backlog may not be indicative of future operating results, and contracts in our backlog may be canceled, modified or otherwise altered by customers. Backlog can vary significantly from period to period, particularly when large new build projects or operations and maintenance contracts are booked because they may be fulfilled over multiple years. Because we operate globally, our backlog is also affected by changes in foreign currencies each period. We do not include orders of our unconsolidated joint ventures in backlog. The Company is in the process of exiting its only remaining fixed fee Operational and Maintenance Contract in our Renewable segment. A similar contract was exited as of December 31, 2022. The company believes it is useful to exclude the impact of this contract on our operating results as well as our backlog in order to highlight the performance of the business.
Bookings represent changes to the backlog. Bookings include additions from booking new business, subtractions from customer cancellations or modifications, changes in estimates of liquidated damages that affect selling price and revaluation of backlog denominated in foreign currency. We believe comparing bookings on a quarterly basis or for periods less than one year is less meaningful than for longer periods, and that shorter-term changes in bookings may not necessarily indicate a material trend.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this release are forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements include words such as “expect,” “intend,” “plan,” “likely,” “seek,” “believe,” “project,” “forecast,” “target,” “goal,” “potential,” “estimate,” “may,” “might,” “will,” “would,” “should,” “could,” “can,” “have,” “due,” “anticipate,” “assume,” “contemplate,” “continue” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events.
These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the 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"); the refinancing of our senior debt; our ability to integrate acquired businesses and the impact of those acquired businesses on our cash flows, results of operations and financial condition, including our recent acquisitions of Babcock & Wilcox Renewable Service A/S, formerly known as VODA A/S ("VODA"), Fossil Power Systems, Inc. ("FPS"), Optimus Industries, LLC ("Optimus") and certain assets of Hamon Research-Cottrell, Inc; 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; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives, surety bonds, letters of credit and similar financing; our ability to comply with the requirements of, and to service the indebtedness under, our debt facility agreements; our ability to pay dividends on our 7.75% Series A Cumulative Perpetual Preferred Stock; our ability to make interest payments on our 8.125% senior notes due 2026 and our 6.50% notes due 2026; the highly competitive nature of our businesses and our ability to win work, including identified project opportunities in our
pipeline; general economic and business conditions, including changes in interest rates and currency exchange rates; cancellations of and adjustments to backlog and the resulting impact from using backlog as an indicator of future earnings; our ability to perform contracts on time and on budget, in accordance with the schedules and terms established by the applicable contracts with customers; failure by third-party subcontractors, partners or suppliers to perform their obligations on time and as specified; delays initiated by our customers; our ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; our ability to realize anticipated savings and operational benefits from our restructuring plans, and other cost savings initiatives; our ability to successfully address productivity and schedule issues in our B&W Renewable, B&W Environmental and B&W Thermal segments; our ability to successfully partner with third parties to win and execute contracts within our B&W Environmental, B&W Renewable and B&W Thermal segments; changes in our effective tax rate and tax positions, including any limitation on our ability to use our net operating loss carryforwards and other tax assets; our ability to successfully manage research and development projects and costs, including our efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to our lines of business, including professional liability, product liability, warranty and other claims against us; difficulties we may encounter in obtaining regulatory or other necessary permits or approvals; changes in actuarial assumptions and market fluctuations that affect our net pension liabilities and income; our ability to successfully compete with current and future competitors; our ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with our retirement benefit programs; social, political, competitive and economic situations in foreign countries where we do business or seek new business; the impact of the ongoing conflicts in Ukraine and the Middle East; the impact of pandemics or other global health crises, and the other factors specified and set forth under "Risk Factors" in our periodic reports filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed on March 16, 2023.
These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While we believe that these assumptions underlying the forward-looking statements are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect actual results.
The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
About B&W Enterprises, Inc.
Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.
# # #
| | | | | |
| Investor Contact: | Media Contact: |
| Lou Salamone, CFO | Ryan Cornell |
Babcock & Wilcox Enterprises, Inc. | Public Relations |
704.625.4944 | investors@babcock.com | Babcock & Wilcox Enterprises, Inc. |
| 330.860.1345 | rscornell@babcock.com |
Exhibit 1
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Statements of Operations(1)
(In millions, except per share amounts)
| | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, | |
| 2023 | 2022 | 2023 | 2022 | | |
| Revenues | $ | 239.4 | | $ | 211.7 | | $ | 772.2 | | $ | 611.5 | | | |
| Costs and expenses: | | | | | | |
| Cost of operations | 186.0 | | 164.3 | | 603.7 | | 478.2 | | | |
| Selling, general and administrative expenses | 45.0 | | 47.6 | | 144.7 | | 131.0 | | | |
| | | | | | |
| Advisory fees and settlement costs | 0.6 | | 1.2 | | (1.3) | | 10.3 | | | |
| Restructuring activities | 1.3 | | 0.4 | | 2.7 | | 0.4 | | | |
Research and development costs | 0.9 | | 1.0 | | 3.1 | | 2.9 | | | |
| Gain on asset disposals, net | — | | — | | — | | (7.1) | | | |
| Total costs and expenses | 233.9 | | 214.4 | | 753.0 | | 615.6 | | | |
| Operating income (loss) | 5.5 | | (2.7) | | 19.2 | | (4.1) | | | |
| Other (expense) income: | | | | | | |
| Interest expense | (13.4) | | (11.1) | | (37.2) | | (32.7) | | | |
| Interest income | 0.3 | | 0.1 | | 0.9 | | 0.2 | | | |
| | | | | | |
| | | | | | |
| Benefit plans, net | (0.1) | | 7.4 | | (0.3) | | 22.3 | | | |
| Foreign exchange | (4.9) | | (2.0) | | (4.2) | | (3.2) | | | |
| Other income (expense) - net | — | | 0.5 | | (0.7) | | (0.2) | | | |
| Total other expense | (18.1) | | (5.1) | | (41.6) | | (13.6) | | | |
| Loss before income tax (benefit) expense | (12.6) | | (7.8) | | (22.3) | | (17.7) | | | |
Income tax (benefit) expense | (0.3) | | 4.9 | | 2.0 | | 4.8 | | | |
| Net loss from continuing operations | (12.3) | | (12.8) | | (24.4) | | (22.5) | | | |
| Loss from discontinued operations, net of tax | (104.5) | | (7.8) | | (109.9) | | (9.8) | | | |
| Net loss | (116.8) | | (20.6) | | (134.2) | | (32.2) | | | |
| Net (income) loss attributable to non-controlling interest | (0.1) | | 2.8 | | (0.2) | | 3.6 | | | |
| Net loss attributable to stockholders | (116.9) | | (17.8) | | (134.5) | | (28.6) | | | |
| Less: Dividend on Series A preferred stock | 3.7 | | 3.7 | | 11.1 | | 11.1 | | | |
Net loss attributable to stockholders of common stock | $ | (120.6) | | $ | (21.5) | | $ | (145.6) | | $ | (39.7) | | | |
| | | | | | |
| Basic and diluted loss per share: | | | | | | |
| Continuing operations | $ | (0.18) | | $ | (0.15) | | $ | (0.40) | | $ | (0.34) | | | |
| Discontinued operations | (1.17) | | (0.09) | | (1.24) | | (0.11) | | | |
| $ | (1.35) | | $ | (0.24) | | $ | (1.64) | | $ | (0.45) | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Shares used in the computation of loss per share: | | | | | |
| Basic and diluted | 89.1 | | 88.3 | | 88.9 | | 88.1 | | | |
| | | | | | |
(1) Figures may not be clerically accurate due to rounding
Exhibit 2
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Balance Sheets(1)
| | | | | | | | |
| (In millions, except per share amount) | September 30, 2023 | December 31, 2022 |
| Cash and cash equivalents | $ | 48.4 | | $ | 76.2 | |
| Current restricted cash and cash equivalents | 6.5 | | 15.3 | |
| Accounts receivable – trade, net | 154.1 | | 158.4 | |
| Accounts receivable – other | 43.6 | | 38.5 | |
| Contracts in progress | 123.5 | | 118.2 | |
| Inventories, net | 113.5 | | 102.6 | |
| Other current assets | 22.8 | | 27.0 | |
| Assets held for sale | 29.9 | | 21.4 | |
| Total current assets | 542.3 | | 557.6 | |
| Net property, plant and equipment, and finance lease | 83.6 | | 84.9 | |
| Goodwill | 100.4 | | 100.4 | |
| Intangible assets, net | 46.1 | | 51.6 | |
| Right-of-use assets | 27.8 | | 28.4 | |
| Long-term restricted cash | 10.2 | | 21.4 | |
| Deferred income taxes | 4.7 | | 3.0 | |
| Other assets | 22.2 | | 27.4 | |
| Noncurrent assets held for sale | — | | 68.0 | |
| Total assets | $ | 837.3 | | $ | 942.7 | |
|
| Accounts payable | $ | 144.3 | | $ | 131.2 | |
| Accrued employee benefits | 12.2 | | 12.5 | |
| Advance billings on contracts | 95.4 | | 130.9 | |
| Accrued warranty expense | 8.5 | | 9.6 | |
| Financing lease liabilities | 1.3 | | 1.2 | |
| Operating lease liabilities | 3.6 | | 3.5 | |
| Other accrued liabilities | 72.3 | | 54.0 | |
| Loans payable | 5.3 | | 3.8 | |
| Current liabilities held for sale | 50.6 | | 24.8 | |
| Total current liabilities | 393.5 | | 371.5 | |
| Senior notes | 337.2 | | 335.5 | |
| Loans payable, net of current portion | 35.1 | | 13.2 | |
| Pension and other postretirement benefit liabilities | 134.5 | | 136.2 | |
| Finance lease liabilities, net of current portion | 26.6 | | 27.5 | |
| Operating lease liabilities, net of current portion | 25.2 | | 25.6 | |
| Deferred tax liability | 8.6 | | 10.1 | |
| Non-current liabilities held for sale | — | | 5.7 | |
| Other non-current liabilities | 18.2 | | 19.6 | |
| Total liabilities | 979.0 | | 944.7 | |
| Commitments and contingencies | | |
Stockholders' deficit: | | |
| Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares 7,669 at both September 30, 2023 and December 31, 2022 | 0.1 | | 0.1 | |
| Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 89,371 and 88,700 at September 30, 2023 and December 31, 2022, respectively | 5.1 | | 5.1 | |
| Capital in excess of par value | 1,544.8 | | 1,537.6 | |
| Treasury stock at cost, 2,135 and 1,868 shares at September 30, 2023 and December 31, 2022, respectively | (115.2) | | (113.8) | |
| Accumulated deficit | (1,504.5) | | (1,358.9) | |
| Accumulated other comprehensive loss | (72.7) | | (72.8) | |
| Stockholders' deficit attributable to shareholders | (142.3) | | (2.6) | |
| Non-controlling interest | 0.6 | | 0.5 | |
Total stockholders' deficit | (141.7) | | (2.1) | |
Total liabilities and stockholders' deficit | $ | 837.3 | | $ | 942.7 | |
| | |
(1) Figures may not be clerically accurate due to rounding.
Exhibit 3
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Statements of Cash Flows(1)
| | | | | | | | | | | | | | | | | |
| (In millions) | Nine Months Ended September 30, | | | |
| 2023 | 2022 | | | |
| Cash flows from operating activities: | | | | | |
| Net loss from continuing operations | $ | (24.4) | | $ | (22.5) | | | | |
| Loss from discontinued operations, net of tax | (109.9) | | (9.8) | | | | |
| Net loss | (134.2) | | (32.2) | | | | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | |
| Goodwill impairment | 56.6 | | 7.2 | | | | |
| Change in fair value of contingent consideration | — | | (9.6) | | | | |
| Depreciation and amortization of long-lived assets | 16.5 | | 13.2 | | | | |
| | | | | |
| | | | | |
| Amortization of deferred financing costs and debt discount | 3.7 | | 3.9 | | | | |
| Amortization of guaranty fee | 0.5 | | 0.5 | | | | |
| Non-cash operating lease expense | 4.4 | | 5.7 | | | | |
| | | | | |
| | | | | |
| Loss (gain) on asset disposals | 0.2 | | (7.2) | | | | |
| Benefit from deferred income taxes, including valuation allowances | (5.6) | | (2.6) | | | | |
| Prior service cost amortization for pension and postretirement plans | 0.7 | | 0.6 | | | | |
| Stock-based compensation | 7.2 | | 6.5 | | | | |
| Foreign exchange | 4.2 | | 3.2 | | | | |
| Changes in operating assets and liabilities: | | | | | |
| Accounts receivable - trade, net and other | 4.3 | | (26.2) | | | | |
| Contracts in progress | 2.5 | | (48.2) | | | | |
| Advance billings on contracts | (29.7) | | 28.9 | | | | |
| Inventories, net | (10.5) | | (15.1) | | | | |
| Income taxes | (0.2) | | (2.1) | | | | |
| Accounts payable | 28.1 | | 39.6 | | | | |
| Accrued and other current liabilities | (4.6) | | (10.8) | | | | |
| Accrued contract loss | 13.3 | | 3.5 | | | | |
| Pension liabilities, accrued postretirement benefits and employee benefits | (2.1) | | (27.1) | | | | |
| Other, net | (5.6) | | 1.0 | | | | |
| Net cash used in operating activities | (50.5) | | (67.4) | | | | |
| | | | | |
| Cash flows from investing activities: | | | | | |
| Purchase of property, plant and equipment | (10.5) | | (8.9) | | | | |
| Acquisition of business, net of cash acquired | — | | (64.9) | | | | |
| Proceeds from sale of business and assets, net | — | | 2.5 | | | | |
| Purchases of available-for-sale securities | (5.3) | | (5.0) | | | | |
| Sales and maturities of available-for-sale securities | 7.4 | | 8.5 | | | | |
| Other, net | (0.1) | | 0.3 | | | | |
| Net cash used in investing activities | (8.6) | | (67.6) | | | | |
| | | | | | | | |
| Cash flows from financing activities: | | |
| Issuance of senior notes | — | | 5.5 | |
| Borrowings on loan payable | 97.1 | | 1.3 | |
| Repayments on loan payable | (72.5) | | (13.9) | |
| Payment of holdback funds from acquisition | (2.8) | | — | |
| | |
| | |
| | |
| Payment of preferred stock dividends | (7.4) | | (11.1) | |
| Shares of common stock returned to treasury stock | (1.4) | | (2.8) | |
| | |
| Debt issuance costs | (0.2) | | 0.2 | |
| Other, net | (0.9) | | 1.7 | |
| Net cash provided by (used in) financing activities | 11.9 | | (19.1) | |
| Effects of exchange rate changes on cash | (0.7) | | (3.2) | |
| Net decrease in cash, cash equivalents and restricted cash | (47.9) | | (157.2) | |
| Cash, cash equivalents and restricted cash at beginning of period | 113.0 | | 226.7 | |
| Cash, cash equivalents and restricted cash at end of period | $ | 65.1 | | $ | 69.5 | |
(1) Figures may not be clerically accurate due to rounding.
Exhibit 4
Babcock & Wilcox Enterprises, Inc.
Segment Information(1)
(In millions)
| | | | | | | | | | | | | | | | |
| SEGMENT RESULTS | Three Months Ended September 30, | Nine Months Ended September 30, | |
| 2023 | 2022 | 2023 | 2022 | | |
| REVENUES: | | | | | | |
| Babcock & Wilcox Renewable | $ | 87.1 | | $ | 78.5 | | $ | 256.4 | | $ | 196.4 | | | |
| Babcock & Wilcox Environmental | 46.4 | | 44.6 | | 134.6 | | 111.2 | | | |
| Babcock & Wilcox Thermal | 107.0 | | 91.3 | | 384.2 | | 309.9 | | | |
| Other | (1.1) | | (2.8) | | (3.0) | | (6.0) | | | |
| $ | 239.4 | | $ | 211.7 | | $ | 772.2 | | $ | 611.5 | | | |
| | | | | | |
| ADJUSTED EBITDA: | | | | | | |
| Babcock & Wilcox Renewable | $ | 10.1 | | $ | 4.5 | | $ | 19.2 | | $ | 15.7 | | | |
| Babcock & Wilcox Environmental | 5.0 | | 3.1 | | 10.3 | | 5.1 | | | |
| Babcock & Wilcox Thermal | 11.3 | | 10.8 | | 49.4 | | 41.3 | | | |
| Corporate | (5.6) | | (4.4) | | (16.2) | | (13.0) | | | |
| Research and development costs | (0.9) | | (0.9) | | (3.1) | | (2.5) | | | |
| $ | 20.0 | | $ | 13.0 | | $ | 59.6 | | $ | 46.5 | | | |
| | | | | | |
| AMORTIZATION EXPENSE: | | | | | | |
| Babcock & Wilcox Renewable | $ | 0.5 | | $ | 0.5 | | $ | 1.6 | | $ | 1.7 | | | |
| Babcock & Wilcox Environmental | 0.8 | | 0.8 | | 2.3 | | 2.4 | | | |
| Babcock & Wilcox Thermal | 1.1 | | 1.1 | | 3.3 | | 3.6 | | | |
| $ | 2.4 | | $ | 2.3 | | $ | 7.2 | | $ | 7.7 | | | |
| | | | | | |
| DEPRECIATION EXPENSE: | | | | | | |
| Babcock & Wilcox Renewable | $ | 0.6 | | $ | 0.5 | | $ | 2.1 | | $ | 1.4 | | | |
| Babcock & Wilcox Environmental | 0.2 | | 0.2 | | 0.6 | | 0.6 | | | |
| Babcock & Wilcox Thermal | 1.4 | | 1.5 | | 5.0 | | 4.9 | | | |
| | | | | | |
| $ | 2.2 | | $ | 2.2 | | $ | 7.7 | | $ | 6.9 | | | |
| | | | | | |
| As of September 30, | | | |
| BACKLOG: | 2023 | 2022 | | | | |
| Babcock & Wilcox Renewable | $ | 133 | | $ | 199 | | | | | |
| Babcock & Wilcox Environmental | 173 | | 121 | | | | | |
| Babcock & Wilcox Thermal | 196 | | 233 | | | | | |
| Other/Eliminations | 5 | | 2 | | | | | |
| $ | 507 | | $ | 555 | | | | | |
(1) Figures may not be clerically accurate due to rounding.
Exhibit 5
Babcock & Wilcox Enterprises, Inc.
Reconciliation of Adjusted EBITDA(3)
(In millions)
| | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, | |
| 2023 | 2022 | 2023 | 2022 | | |
| Net loss from continuing operations | $ | (12.3) | | $ | (12.8) | | $ | (24.4) | | $ | (22.5) | | | |
| Interest expense | 13.4 | | 11.4 | | 37.1 | | 33.6 | | | |
| Income tax expense | (0.3) | | 4.9 | | 2.0 | | 4.8 | | | |
| Depreciation & amortization | 4.6 | | 4.5 | | 15.0 | | 14.6 | | | |
| EBITDA | 5.4 | | 8.1 | | 29.7 | | 30.4 | | | |
| | | | | | |
| Benefit plans, net | 0.1 | | (7.4) | | 0.3 | | (22.3) | | | |
| Gain on sales, net | — | | — | | — | | (0.1) | | | |
| Stock compensation | 0.4 | | 3.4 | | 5.9 | | 5.2 | | | |
| Restructuring activities and business services transition costs | 1.3 | | 1.7 | | 3.3 | | 6.2 | | | |
| Settlement and related legal costs | — | | 0.8 | | (3.0) | | 7.2 | | | |
| Advisory fees for settlement costs and liquidity planning | — | | — | | 0.5 | | 1.9 | | | |
| | | | | | |
| Acquisition pursuit and related costs | 0.3 | | 2.6 | | 0.6 | | 4.8 | | | |
Product development (1) | 0.9 | | 0.8 | | 3.3 | | 2.6 | | | |
| Foreign exchange | 4.9 | | 2.0 | | 4.2 | | 3.2 | | | |
| Financial advisory services | — | | 0.4 | | — | | 1.1 | | | |
Contract disposal (2) | 4.3 | | (0.1) | | 8.4 | | 2.6 | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Letter of credit fees | 2.0 | | 1.1 | | 5.6 | | 3.0 | | | |
| Other - net | 0.4 | | (0.4) | | 0.8 | | 0.6 | | | |
| Adjusted EBITDA | $ | 20.0 | | $ | 13.0 | | $ | 59.6 | | $ | 46.5 | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(1) Costs associated with development of commercially viable products that are ready to go to market.
(2) Impacts of the disposal of our O&M contracts has been adjusted in the prior period to ensure uniform presentation with the current period.
(3) Figures may not be clerically accurate due to rounding.
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. N O V E M B E R 9 , 2 0 2 3 COMPANY OVERVIEW
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 S A F E H A R B O R S TAT E M E N T B&W Enterprises cautions that this presentation contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical or current fact included in this presentation are forward-looking statements, including, without limitation, statements relating to the company's business outlook and expected financial performance, including adjusted EBITDA and sales targets, expectations regarding future growth, expansion and profitability, outlook and expectations regarding B&W’s BrightLoop™ technologies, as well as statements about B&W’s future pipeline of new projects and business within its Renewable, Environmental and Thermal operating segments and their impact on future shareholder value. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the 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" or “B&W Solar”); the refinancing of our senior debt; our ability to integrate acquired businesses and the impact of those acquired businesses on our cash flows, results of operations and financial condition, including our acquisitions of Babcock & Wilcox Renewable Service A/S, formerly known as VODA A/S ("VODA"), Fossil Power Systems, Inc. ("FPS"), Optimus Industries, LLC ("Optimus") and certain assets of Hamon Holdings Corporation ("Hamon"); 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; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives, surety bonds, letters of credit and similar financing; our ability to comply with the requirements of, and to service the indebtedness under, our debt facility agreements; our ability to pay dividends on our 7.75% Series A Cumulative Perpetual Preferred Stock; our ability to make interest payments on our 8.125% senior notes due 2026 and our 6.50% notes due 2026; the highly competitive nature of our businesses and our ability to win work, including identified project opportunities in our pipeline; general economic and business conditions, including changes in interest rates and currency exchange rates; cancellations of and adjustments to backlog and the resulting impact from using backlog as an indicator of future earnings; our ability to perform contracts on time and on budget, in accordance with the schedules and terms established by the applicable contracts with customers; failure by third-party subcontractors, partners or suppliers to perform their obligations on time and as specified; delays initiated by our customers; our ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; our ability to realize anticipated savings and operational benefits from our restructuring plans, and other cost-savings initiatives; our ability to successfully address productivity and schedule issues in our B&W Renewable, B&W Environmental and B&W Thermal segments; our ability to successfully partner with third parties to win and execute contracts within our B&W Environmental, B&W Renewable and B&W Thermal segments; changes in our effective tax rate and tax positions, including any limitation on our ability to use our net operating loss carryforwards and other tax assets; our ability to successfully manage research and development projects and costs, including our efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to our lines of business, including professional liability, product liability, warranty and other claims against us; difficulties we may encounter in obtaining regulatory or other necessary permits or approvals; changes in actuarial assumptions and market fluctuations that affect our net pension liabilities and income; our ability to successfully compete with current and future competitors; our ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with our retirement benefit programs; social, political, competitive and economic situations in foreign countries where we do business or seek new business; the impact of the ongoing conflicts in Ukraine and the Middle East, the impact of pandemics or other global health crises, and the other factors specified and set forth under "Risk Factors" in our periodic reports filed with the Securities and Exchange Commission, including, without limitation, the risks described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 under the caption "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). These factors should be considered carefully, and B&W Enterprises cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law. Non-GAAP Financial Measures Adjusted EBITDA on a consolidated basis is a non-GAAP metric defined as the sum of the adjusted EBITDA for each of the segments, further adjusted for corporate allocations and research and development costs. At a segment level, adjusted EBITDA presented is consistent with the way our chief operating decision maker reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest expense, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment. We present consolidated Adjusted EBITDA because we believe it is useful to investors to help facilitate comparisons of our ongoing, operating performance before corporate overhead and other expenses not attributable to the operating performance of our revenue generating segments. In this presentation, we also present certain targets for our adjusted EBITDA in the future; these targets are not intended as guidance regarding how we believe the business will perform. We are unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense due to the aspirational nature of these targets.
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 W E ’ R E A G L O B A L E N E R G Y L E A D E R C R E AT I N G A B R I G H T E R F U T U R E WE PROVIDE PROVEN, BEST-IN- CLASS POWER PRODUCTION TECHNOLOGIES AND ARE LEADING THE WAY TO A NET-ZERO FUTURE. • From our first patent for a more efficient boiler to more than 17,000 patents since, we continue to drive innovation and change • Today, we are a globally recognized technology leader and innovator at the forefront of the energy transition • Helping utility and industrial customers with the technical challenges of moving from current to future energy sources • Delivering systems, parts and field services to help utility and industrial plants operate more effectively and efficiently • Our hydrogen production, carbon capture, waste- and biomass-to-energy, and environmental technologies support the reduction of greenhouse gases, including CO2 and methane, in an environmentally friendly way Ensuring energy security for customers and the world Making net-zero ambitions a reality today Providing high quality and innovative technologies since 1867
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 4 W E ’ R E H E L P I N G C U S TO M E R S C R E AT E C L E A N A N D R E L I A B L E E N E R G Y SUPPORTING A CIRCULAR ECONOMY Ecologically sound ways of using and recycling resources like biomass and municipal waste to create clean, renewable baseload power while reducing greenhouse gas emissions. REDUCING THE IMPACT OF GREENHOUSE GAS EMISSIONS Hydrogen production, carbon capture, ash handling, cooling systems, energy recovery and storage, and advanced emissions control solutions to help preserve the world’s natural resources. CREATING RELIABLE AND EFFICIENT STEAM GENERATION Providing boilers and related equipment, aftermarket parts, service and upgrades to help utilities and industries generate reliable thermal energy from a wide range of fuels and bridge the gap during the global transition to new energy sources. CL EA N E N ER G Y SO LU TI O N S TR AD IT IO N AL DELIVERING VALUE THROUGH TECHNOLOGY-DRIVEN PRODUCTS AND SERVICES, WITH CONTINUAL PRODUCT IMPROVEMENT AND ROBUST R&D EFFORTS TO SUPPORT FUTURE ENERGY NEEDS
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 5 T H E F O U N D AT I O N O F O U R C O M PA N Y Our Vision: Advancing energy and environmental solutions that bring power and progress to our world. Our Mission: B&W delivers environmentally conscious, technology-driven solutions and services to energy and industrial customers worldwide – safely, ethically and as promised. Our Core Values: Safety • Integrity • Quality • Respect • Agility
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 6 • Continue to expand geographical presence in Thermal and Renewable aftermarket parts and services • Increase focus on higher-margin aftermarket parts and services across all three business segments while reducing overhead associated with large new build projects • Targeting up to $30 million in cost reductions associated with strategy re-alignment • Continue to reduce interest expense associated with our letters of credit facility and revolving lines of debt • Evaluate strategic alternatives for non-strategic assets • Utilize state and SPV project-level financing to accelerate deployment of BrightLoop™ • Increase FEED studies to promote ClimateBright™ technologies • Achieve full-year 2024 adjusted EBIDTA of $100M to $110M, excluding BrightLoop™ and ClimateBright™ expenses W E ’ R E S T R E N G T H E N I N G O U R B U S I N E S S TO A C H I E V E P R O F I TA B L E G R O W T H A S W E C O N T I N U E TO P R OV I D E E N E R GY T EC H N O LO G I E S
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 7 W E ' R E L E V E R A G I N G A VA S T I N S TA L L E D B A S E A N D P R O V E N T E C H N O L O G I E S More than 500 waste-to-energy and biomass-to-energy units at 300+ facilities globally (consuming over 61 million tonnes of waste per year) and a leader in plant availability Serving utility, waste management, municipality and investment firm customers Large worldwide installed base of wet and dry scrubbers for SOX reduction, particulate control equipment, NOX reduction technologies, and mercury control systems to meet environmental regulations Flue gas pre-treatment technologies for use with CO2 capture Nearly 2,000 wet, dry and hybrid cooling system units (10,000+ cells) installed globally More than 300 operating utility and industrial boiler units in the U.S. and nearly 200 operating utility and industrial boiler units across 40 countries around the world More than 5,000 industrial water-tube package boilers and other waste heat recovery products installed in a variety of facilities Average approximately 500,000 Boilermakers’ construction manhours per year over last five years A VAST GLOBAL INSTALLATION OF B&W’S CORE TECHNOLOGIES AT UTILITY AND INDUSTRIAL PLANTS CREATE LARGE GROWTH OPPORTUNITIES FOR PARTS, SERVICES AND RETROFITS
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 8 CORPORATE SNAPSHOT B A B C O C K & W I L C OX P R O F I L E Notes: All charts based on LTM September 30, 2023 revenues, unless otherwise noted. 1. Backlog does not include shorter lead-time parts and services. 2. The most comparable GAAP target is not available without unreasonable effort. Target is based on continuing operations excluding BrightLoop™ and ClimateBright™ expenses. Disclaimer: B&W Enterprises cautions not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation and may be impacted by the risks described in our SEC reports. We undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law. Headquarters: Akron OH, USA Founded: 1867 Ownership: Public (NYSE:BW) Employees: ~2,300 LTM Revenue September 2023: ~$1,008.6M LTM Adjusted EBITDA: $83.2M 2024 EBITDA Target: $100M to $110M2 B&W RENEWABLE Power Generation 71% Industrial 29% Aftermarket & Upgrades 11% Parts & Services 54% North America 25% Europe 63% Asia & Other 12% New Build 35% B&W THERMAL Industrial 34% Power Generation 66% Aftermarket & Upgrades 46% Parts & Services 43% North America 87% Europe 2% Asia & Other 11% New Build 11% B&W ENVIRONMENTAL Industrial 39% Power Generation 61% Aftermarket & Upgrades 33% Parts & Services 30% North America 42% Europe 19% New Build 37% Asia & Other 39% CONSOLIDATED 34% 18% 48% 27% 34% 39% Industrial 33% Power Generation 67% Aftermarket & Upgrades 32% Parts & Services 44% New Build 24% North America 58% Europe 25% Asia & Other 17% Backlog1 as of September 30, 2023 B&W Renewable LTM Revenue B&W Environmental B&W Thermal
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 9 55-60% 15-20% 20-25% PIPELINE REVENUE SPLIT 2024-2026 A S O L I D P I P E L I N E O F G L O B A L O P P O R T U N I T I E S Manufacturing Service Facilities Construction Sales/Support Future Sales/Support Sales Reps Future Sales Reps Future Service Facilities Americas APAC Europe ME/A $1,813 $958 $1,354 $729 $ M IL LI O N S B&W RENEWABLE Americas APAC Europe ME/A $1,063 $200 $797 $63$ M IL LI O N S B&W ENVIRONMENTAL Americas APAC Europe ME/A $793 $237 $11 $318 $ M IL LI O N S B&W THERMAL 3- YE AR P IP EL IN E Total pipeline more than $8.5 billion over the next 3 years excluding parts and services Disclaimer: B&W Enterprises cautions not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation and may be impacted by the risks described in our SEC reports. We undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law. 2024-2026 Addressable Market Europe More than $8.5B 2024-2026 Addressable Market Americas Other: More than $9B 2024-2026 Addressable Market Asia-Pacific More than $8.5B A WIDE FOOTPRINT AND ONGOING EXPANSION POSITIONS B&W TO LEVERAGE MARKET TRENDS AROUND THE WORLD 2024-2026 Addressable Market Middle East & Africa More than $4B Total $4.9B Total $2.1B Total $1.5B
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 0 G L O B A L A N N U A L C A P I TA L I N V E S T M E N T I N C A R B O N C A P T U R E A N D H Y D R O G E N I S G R O W I N G Tr ill io ns U SD (2 01 9) 0 1 2 3 4 5 2016-20 2030 2040 2050 By technology area Technology area Other Fossil fuels CCUS Hydrogen Electricity system Electrification Efficiency Other renewables Bioenergy ANNUAL AVERAGE CAPITAL INVESTMENT IN THE NET-ZERO EMISSIONS (NZE) SCENARIO Source: IEA $224B $150B $158B $390B $240B $428B
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 1 B R I G H T L O O P ™ H Y D R O G E N P R O D U C T I O N SIGNIFICANT ADVANTAGES: • Hydrogen from solid fuels – can utilize a variety of solid or gaseous fuels as feedstock • High rate of carbon captured – inherent CO2 isolation supports sequestration or utilization without the expensive post combustion capture equipment and operation • Competitive hydrogen cost – lower levelized cost of hydrogen when compared to other hydrogen production methods • High quality hydrogen – production from steam produces higher quality as compared to separating hydrogen from fuel • Scalable for a range of applications – accommodates both large and small applications BIOMASS FEEDSTOCK OPTIONS OUTPUT OPTIONSNitrogen for Beneficial Use BIOGAS COAL NATURAL GAS STEAM SYNGAS HYDROGEN ELECTRICITY PETROLEUM COKE CO2 for Storage/Beneficial Use BrightLoop™ Technology
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 2 B R I G H T L O O P ™ H Y D R O G E N P R O D U C T I O N P R O G R E S S B R I G H T L O O P ™ E V O L U T I O N Sub-Pilot with The Ohio State University and B&W MEDIUM SCALE 10-50 Tonnes Per Day Hydrogen Output LARGE SCALE 100-250 Tonnes Per Day Hydrogen Output SUB-PILOT SCALE (Complete) 2008 2026 2028 IN PROGRESS Laboratory Scale RESEARCH STAGE (Complete) 1994-2004 PILOT SCALE (Complete) Steam & Hydrogen National Carbon Capture Center in Alabama 2014 SMALL SCALE 1-3 Tonnes Per Day Hydrogen Output IN PROGRESS 2024 PILOT SCALE (Complete) Coal Direct Chemical Looping Barberton, Ohio 2017
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 3 L E V E R A G I N G D E C A D E S O F F U N D I N G AWA R D S A N D I N V E S T M E N T S C O N T I N U E T O S C A L E T H I S I N D U S T R Y – C H A N G I N G T E C H N O L O G Y C O A L D I R E C T C H E M I C A L L O O P I N G ( C D C L ) N A T I O N A L C A R B O N C A P T U R E C E N T E R ( N C C C ) T H E O H I O S T A T E U N I V E R S I T Y OPERATING HOURS 2,000 STARTUP / SHUTDOWNS 50 OPERATING HOURS 1,000 STARTUP / SHUTDOWNS 20 $275M+ PATENTED IRON OXIDE PARTICLETGA TESTING TEST RUNS HOURS OF TESTING 500 10,000 BENCH SCALE TEST RUNS HOURS OF TESTING 200 5000+ 3 Reactor SUB-PILOT TEST RUNS HOURS OF TESTING 50 1,000 SUB-PILOT TEST RUNS 50+ HOURS OF TESTING 2,000+ STARTUP / SHUTDOWNS 75 TOTAL R&D INVESTMENT CYCLE TIMES 10,000+ HOURS OF TESTING 3,000+ TOTAL TESTING HOURS 10,000+ DOE GRANTS – STATE GRANTS – OSU – B&W to study impact of various feedstocks on hydrogen production and advance the technology OSU CL RESULTED PHDs GRAD STUDENTS 70 100 OTHER STUDENTS AND STAFF250Experts Trained 2016 – 2018 DOE Pre-FEED CDCL 2009 CL with OSU 2010 NCCC Testing 2012 – 2014 CDCL DOE Techno-Economic Analysis 2010 NCCC Design & Construction 2022 - Present Commercialization
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 4 U N L O C K I N G F U T U R E R E V E N U E P O T E N T I A L O F B R I G H T L O O P A N D P O S I T I O N B A S E D O N M A R K E T W I T H S I G N I F I C A N T G R O W T H O F H Y D R O G E N P R O J E C T E D Achieving only 1% market share of a $130-220B market 3-5 Large Unit Projects 2-4 Medium Unit Projects 3-8 Small Unit Projects annual revenues at 25%+ Gross Margin B&W Project Timeline: • 2024 – Producing hydrogen from the first small unit • 2025 – Producing hydrogen from the first medium unit • 2030 – Booking multiple units of each size per year ~$1 Billion Target Market Share Assumed Mix of Projects 2030 Approximate Revenue *Market Data from IEA Net Zero by 2050 A Roadmap for the Global Energy Sector B & W c u r r e n t l y h a s 8 p r o j e c t s i n p i p e l i n e w h i c h a l o n e t o t a l o v e r $ 1 B i l l i o n
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 5 H Y D R O G E N P R O D U C T I O N A N D C O S T S Note: BLH Projections based on $1 / MMBTU feedstock; Source: DNV 2020 2030 2050 Coal gasification 2020 2030 2050 Coal gasification with CCS 2020 2030 2050 Methane reforming 2020 2030 2050 Methane reforming with CCS 2020 2030 2050 Dedicate renewable electrolysis 2020 2030 2050 Grid-based electrolysis 2020 2030 2050 Dedicated nuclear electrolysis weighted world average 0 1 2 3 4 5 6 7 Levelized cost of hydrogen after support by production route U SD /k gH 2 Medium BrightLoop Large BrightLoop BrightLoop™ produces low-cost hydrogen compared to the competition
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 6 G L O B A L L E A D E R I N C L E A N P O W E R P R O D U C T I O N T E C H N O L O G I E S — O U R C L I M AT E B R I G H T ™ S U I T E • B&W is at the forefront of developing CO2 capturing technologies • Multiple technologies ready for commercial demonstration • 93 active patents related to carbon capture technology • Positioned to provide critical solutions to meet global climate goals BrightLoop™ HYDROGEN PRODUCTION OxyBright™ OXYGEN-FUEL COMBUSTION SolveBright™ POST-COMBUSTION CARBON CAPTURE BrightGen™ HYDROGEN COMBUSTION Long Duration Energy Storage Green Steam Direct Air Capture HOT SAND SILO COLD SAND SILO EMERGING TECHNOLOGIES B&W’S PORTFOLIO OF CLEAN POWER PRODUCTION SOLUTIONS CONTINUES TO EVOLVE TO REACH CUSTOMERS AT ALL STAGES OF THEIR ENERGY TRANSITION.
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 7 I N F L AT I O N R E D U C T I O N A C T F O R C L I M AT E B R I G H T ™ Clean Hydrogen Production Tax Credit (PTC): 45V • New 10-year incentive for clean hydrogen production with four tiers and a maximum of 4 kilograms of CO2 equivalent per kilogram of hydrogen • Green hydrogen awards: $3/kg Carbon Capture and Sequestration Tax Credit: 45Q • Increases the tax credits, lowers the threshold to be applicable, and adds direct air capture making carbon capture affordable • CO2 increases to $85/ton and DAC increases to $180/ton; 12-year term Clean Electricity Investment Tax Credit (ITC): 48C • New, tech-neutral ITC replaces Energy ITC after 2024, emissions-based and flexible between clean technologies • Renewable energy offsets CapEx at 30%, with potential for multiple 10-20% bonuses Clean energy wins with the Inflation Reduction Act, propelling hydrogen production and carbon reduction markets forward, creating further opportunities for ClimateBright solutions
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 8 B & W ’ S WA S T E - TO - E N E R G Y T E C H N O L O G Y R E D U C E S M E T H A N E E M I S S I O N S • Methane has 84 times the Global Warming Potential (GWP) of CO2 i • Annual additions to landfills in the U.S.ii produce emissions equivalent to 10 million cars • Landfills in the U.S.iii emit more than 330 million tons of 20- year basis GWP each year, roughly equal to 70 million carsiv • Waste-to-Energy (WTE) avoids landfilling while producing baseload clean energy WTE TECHNOLOGIES • Boiler/steam generation island • DynaGrate® combustion grate • Fuel handling systems • Emissions control equipment • B&W’s state-of-the-art technology has been installed in more than 500 units in more than 30 countries, including: • The most recent WTE facility in the U.S. (Palm Beach Renewable Energy Facility, Florida) • One of the world’s largest waste treatment facilities (Shenzhen East, China) i Anthropogenic and Natural Radiative Forcing. In: Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor, S.K. Allen, J. Boschung, A. Nauels, Y. Xia, V. Bex and P.M. Midgley (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. https://www.ipcc.ch/site/assets/uploads/2018/02/WG1AR5_Chapter08_FINAL.pdf; 20-year basis ii EIA Biomass Explained: Waste-to-energy (Municipal Solid Waste), November 29, 2020 https://www.eia.gov/energyexplained/biomass/waste-to-energy.php iii EPA Landfill Methane Outreach Program: Project and Landfill Data by State; https://www.epa.gov/lmop/project-and-landfill-data-state#:~:text=The%20LMOP%20Landfill%20and%20Landfill,more%20than%202%2C600%20MSW%20landfills and EPA U.S. Greenhouse Gas Inventory 2020, Chapter 7: Waste, Section 7.1 Landfills (CRF Source Category 5A1) iv Equivalent car emissions calculated using EPA metric of 4.6 metric tons of CO2 per year per passenger car B&W IS ACTIVELY DEPLOYING TECHNOLOGY THAT CURBS THE GLOBAL WARMING IMPACT OF METHANE
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 1 9 G L O B A L L E A D E R I N C O M P R E H E N S I V E WA S T E - TO - E N E R G Y S O L U T I O N S FIELD SERVICES COMPONENT & SYSTEM UPGRADES CONTROL SYSTEMS REPLACEMENT & SPARE PARTS RENEWABLE SERVICES DynaGrate® combustion grate DynaDischarger® ash removal Water-cooled wear zones and Inconel® corrosion protection VoluMix® system for improved combustion Fabric filter baghouse Wet scrubber with ADIOX® including energy recovery On-line boiler washing system Selective non-catalytic reduction (SNCR) NOx control DynaFeeder® waste fuel feeder system Energy storage systems Carbon capture solutions Dry cooling systems
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 0 B I O E N E R G Y W I T H C A R B O N C A P T U R E A N D S E Q U E S T R AT I O N ( B E C C S ) OxyBright with B&W’s biomass-fired BFB boiler produces carbon negative electricity with a -2,500gCO2e/kWh carbon intensity OxyBright with B&W’s WtE solution could produce carbon negative electricity with a -1,000 gCO2e/kWh carbon intensity Our negative carbon intensity (-2500 gCO2e/kWh) is nearly seven times more negative than the US grid is positive (+373 gCO2e/kWh)
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 1 F I N A N C I A L I N F O R M AT I O N
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 2 C O N S O L I D AT E D F I N A N C I A L S U M M A R Y - C O N T I N U I N G O P E R AT I O N S ($ in millions) Twelve Months Ended September 30, 2023 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Revenue $ 1,008.6 $ 847.9 $ 710.9 Operating Income (loss) $ 25.6 $ 2.2 $ 19.4 Income (loss) from continuing operations $ (21.8) $ (19.8) $ 29.3 Adjusted EBITDA(1) $ 83.2 $ 67.6 $ 67.2 Adjusted EBITDA Margin %(1) 8.3% 8.0% 9.5% Note: Figures may not be clerically accurate due to rounding. (1) Adjusted EBITDA for 2022 was $65.4 million when excluding a $7.0 million non-recurring gain on sale related to development rights of a future solar project. Adjusted EBITDA Margin for 2022 was 7.3% when excluding the impact of the $7.0 million non-recurring gain on sale. Adjusted EBITDA for 2021 was $62.1 million when excluding a $8.5 million non-recurring settlement. Adjusted EBITDA Margin for 2021 was 8.6% when excluding the impact of the $8.5 million non-recurring settlement. (2) Net income (loss) attributable to stockholders of common stock for the twelve months ended September 30, 2023 includes Loss from discontinued operations of ($109.8) million.
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 3 A P P E N D I X
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 4 C A P I TA L S T R U C T U R E ($ in millions) As of September 30, 2023 CAPITALIZATION: Total Debt $ 377.6 Cash, cash equivalents and restricted cash 65.1 Net Debt $ 312.5 Note: Figures may not be clerically accurate due to rounding.
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 5 L E A D E R S H I P T E A M Chairman and Chief Executive Officer Kenny Young Executive Vice President and Chief Financial Officer Lou Salamone Executive Vice President and Chief Operating Officer Jimmy B. Morgan Executive Vice President, General Counsel and Corporate Secretary John J. Dziewisz Chief Strategy and Technology Officer Brandy Johnson Senior Vice President, Thermal Chris Riker Vice President, Corporate Operations Gillianne Hetrick Vice President, Corporate Development Sarah Serafin
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 6 Joseph Tato C O R P O R AT E G O V E R N A N C E Rebecca StahlHenry Bartoli B O A R D O F D I R E C T O R S Alan Howe Philip Moeller Phillip PiddingtonPeter O’Keefe Rod O’ConnorHomaira Akbari A D V I S O R Y B O A R D Eric Powell Chairman and Chief Executive Officer Kenny Young Naomi Boness
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 7 A D J U S T E D E B I T D A R E C O N C I L I AT I O N – C O N T I N U I N G O P E R AT I O N S (1) ($ in millions) Twelve Months Ended September 30, 2023 Twelve Months Ended December 31, 2022 (3) Twelve Months Ended Dec 31, 2021 (4) Income (loss) from continuing operations $ (21.8) $ (19.8) $29.3 Interest expense 50.7 50.8 41.4 Income tax (benefit) expense 8.3 11.0 (2.2) Depreciation & amortization 22.1 21.6 16.3 EBITDA 59.3 63.6 84.8 Benefit plans, net (14.9) (37.5) (48.1) Gain on sales, net (2.5) (2.6) (14.0) Gain on debt extinguishment — — (6.5) Stock compensation 9.3 8.7 10.5 Restructuring activities and business services transition costs 5.6 8.5 10.7 Advisory fees for settlement costs and liquidity planning 0.1 1.5 5.5 Litigation legal costs 0.5 10.7 4.9 Acquisition pursuit and related costs 1.3 5.5 4.8 Contract disposal (O&M) 11.3 3.0 — Product development(2) 4.8 4.1 4.7 Foreign exchange 1.6 0.6 2.3 Financial advisory services 0.3 1.4 2.7 Loss from business held for sale — — 0.5 Letter of credit fees 7.8 5.2 1.5 Other – net (1.3) (5.1) 0.9 Income from discontinued operations — — — Adjusted EBITDA $83.2 $67.6 $67.2 Adjusted EBITDA Pro Forma Exc. Non-Recurring Items (3) (4) $83.2 $60.6 $58.7 1) Adjusted EBITDA is a non-GAAP Measure; figures may not be clerically accurate due to rounding. 2) Cost associated with development of commercially viable products that are ready to go to market. 3) 4) Adjusted EBITDA for the twelve months ended December 31, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold. Adjusted EBITDA for the twelve months ended December 31, 2021 includes a $8.5 million non-recurring settlement.
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 8 K E Y T E C H N O LO G I E S A N D C A PA B I L I T I E S
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 2 9 K E Y T E C H N O L O G I E S : S T E A M G E N E R AT I O N Utility Boilers High pressure, high efficiency, high capacity, low emissions Fuel: Coal, oil, natural gas, multi-fuel Natural Gas-Fired and Other Industrial Water-Tube and Fire-Tube Boilers Bottom- or top-supported, shop- or field-assembled Fuel: Natural gas, oil, CO, waste heat and gases Heat Recovery Steam Generator Components Pressure parts, casing, ducting, drums, housing and frames Fuel: Waste heat and gases Waste-to-Energy Boilers Reduces dependency on landfills and reduces methane gas emissions Fuel: MSW, RDF Biomass-Fired Boilers Carbon-neutral technology Fuel: Wood, wood waste, straw, sludge Process Recovery Boilers Single-drum, industry-standard unit for improved mill operation Fuel: Black liquor
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 0 K E Y T E C H N O L O G I E S : R E N E WA B L E C O M B U S T I O N G R AT E S • Large installed base with diverse set of customers • Grate design allows for high availability and long operational time, leading to reduced O&M cost • High thermal efficiency and low emissions • Fuel flexibility • Factory assembled modules reduce field construction D Y N A G R A T E ® C O M B U S T I O N G R A T E A MARKET LEADER WITH DIFFERENTIATING TECHNOLOGY IN WASTE-TO-ENERGY SOLUTIONS
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 1 K E Y T E C H N O L O G I E S : E M I S S I O N S C O N T R O L S • Wet ESPs • Dry Sorbent Injection (DSI) SO3 / Acid Mist Control PURPOSE TECHNOLOGY SOLUTION Particulate Control • Pulse Jet Fabric Filters (PJFF) / Baghouses • Wet and Dry Electrostatic Precipitators (ESPs) • Wet Particulate Scrubbers • Multiclone® Dust Collectors • Selective Catalytic and Non-catalytic Reduction (SCR/SNCR) • Low NOX Burners and Combustion Systems NOx Control • Wet or Seawater Flue Gas Desulfurization (FGD) Systems • Semi-dry FGDs (Spray Dry Absorbers, Circulating Dry Scrubbers) • Wet ESPs and Dry Sorbent Injection (DSI) SO2 / Acid Gas Control PURPOSE TECHNOLOGY SOLUTION • Powdered Activated Carbon Injection • Absorption Plus™, MercPlus™, Mitagent™ Additives • GMAB™ ADIOX® and MERCOX™ technologies Mercury, Dioxins, Furans • Wastewater Evaporation System (WES) via Spray Drying • Air-Cooled Condensers Wastewater Elimination Pre-treatment for Post- Combustion Carbon Capture • Wet and Dry Scrubbers, Sorbent Injection, ESP Fabric Filters, SCRs • Complements SolveBright process, other post-combustion technologies
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 2 K E Y T E C H N O L O G I E S : F L U E G A S T R E AT M E N T F O R C A R B O N C A P T U R E • To optimize carbon capture on solvent-based scrubbing technologies, reductions in various pollutants found in the incoming flue gas are required • Our solutions include technologies for acid gases, particulate and acid mist, NOx , mercury, and flue gas moisture THE WORLDWIDE LEADER IN FLUE GAS PRE-TREATMENT TECHNOLOGIES FOR POST-COMBUSTION CARBON CAPTURE
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 3 K E Y T E C H N O L O G I E S : S U B M E R G E D G R I N D C O N V E YO R A S H H A N D L I N G • Lower equipment cost • Lower installation cost • Ability to utilize existing hoppers and gate valves • No hopper modifications • Short outage time • Short lead time • Available redundancy under the boiler • Lower O&M costs Designated to meet current and future U.S. regulatory requirements for ash handling with: AN INNOVATIVE SOLUTION TO ELIMINATE ASH PONDS
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 4 K E Y T E C H N O L O G I E S : C O O L I N G S Y S T E M S MATERIAL OPTIONS: WOOD | CONCRETE | FIBER-REINFORCED POLYMER (FRP) NATURAL DRAFT/HYPERBOLIC Fanless design provides low power, noise and maintenance, as well as long operating lifecycle MECHANICAL DRAFT Counterflow for cost-effective thermal performance; crossflow for low energy consumption and operating costs W ET AIR-COOLED CONDENERS Water preservation technology customized for high-performance, long-life, low noise, corrosion- resistant applications AIR FIN COOLERS Cost-effective designs using embedded or wrapped tubes to meet required thermal, mechanical, noise, and space requirements DR Y OPTIMIZATION SERVICES Specialized services to maximize plant performance and minimize costs and maintenance
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 5 K E Y C A PA B I L I T I E S : A F T E R M A R K E T S E R V I C E S Adding value through constructability: Safe execution of new installation, retrofits, system maintenance/repair, plant modificationsCONSTRUCTION OPTIMIZATION SYSTEMS Enhancing efficiency with proven technology: Diagnostic, monitoring, tuning and control systems for combustion, cleaning and cooling equipment UPGRADES & RETROFITS Maintaining/improving plant operation: Projects for extending the life of power, process and environmental equipment ENGINEERING SERVICES Evaluating options for improved performance: Expert people, tools and processes to measure, model, design, deliver, train, and project manage REPLACEMENT PARTS Supplying components for system reliability: High-quality standard or custom-engineered pressure and non- pressure parts
© 2023 Babcock & Wilcox Enterprises, Inc. All rights reserved. B A B C O C K & W I L C O X E N T E R P R I S E S , I N C . 3 6 K E Y T E C H N O L O G I E S : I G N I TO R S , F L A M E S C A N N E R S A N D C O N T R O L S • Natural gas conversions from oil- or coal-firing • Alternative energy fuels such as hydrogen, bio-diesel, methanol, and bio-gas • Burner management and controls for complete turnkey system capability • Flame scanning capability can be effectively implemented on any industrial application • Technologies can be utilized for new construction or retrofit projects • Safety standards conforming to National Fire Protection Association (NFPA) classes Designed for safety, reliability and fuel flexibility PROVEN TECHNOLOGIES WITH INSTALLATIONS IN MORE THAN 70 COUNTRIES, INCLUDING MORE THAN 11,000 IGNITORS
v3.23.3
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| Namespace Prefix: |
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| Balance Type: |
na |
| Period Type: |
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| X |
- DefinitionCode for the postal or zip code
| Name: |
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| Namespace Prefix: |
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| X |
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- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| X |
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| Namespace Prefix: |
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| X |
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| Balance Type: |
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| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| X |
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| Balance Type: |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
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-Publisher SEC
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-Publisher SEC
-Name Exchange Act
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-Section 12
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-Publisher SEC
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-Subsection 12
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-Publisher SEC
-Name Securities Act
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-Section 425
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- Details
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| Namespace Prefix: |
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Babcock and Wilcox Enter... (NYSE:BW-A)
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