The following is a summary of the Babcock & Wilcox Enterprises Inc (BW) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Babcock & Wilcox reported significant year-over-year improvement in adjusted EBITDA, operating income, and net income for Q3 2024.

• Adjusted EBITDA was $22.3 million for the quarter, up from $20 million in Q3 2023. Excluding divested businesses, EBITDA grew by 78% compared to the same quarter last year.

• The company revised its full year 2024 EBITDA target to $91 million to $95 million, taking into account divestitures but excluding BrightLoop and ClimateBright expenses.

Business Progress:

• Babcock & Wilcox aims to leverage increasing baseload generation demand utilizing its range of technologies in fossil fuels, natural gas, and renewable energy.

• The company announced progress in its decarbonization efforts, particularly with the BrightLoop project in Ohio aimed at producing hydrogen by early 2026.

• They continued their strategy to divest non-strategic assets, enhancing the balance sheet, and constructively managing debt.

• Management discussed the ongoing development of over $9 billion of identified project opportunities across their business segments for the next three years.

Opportunities:

• Identified potential for significant growth in natural gas conversions, environmental solutions, carbon capture, and clean energy globally.

• The anticipated increase in front-end engineering design (FEED) studies presents over $1 billion in revenue opportunities, broadening their client engagement.

• The development of BrightLoop and ClimateBright technologies could lead to approximately $2.4 billion in opportunities, targeting $1 billion in revenues by 2030.

Risks:

• The company recognized potential risks from continuing high capital expenses for development projects such as BrightLoop, which could affect short-term profitability despite boosting long-term growth.

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