Excluding these onetime provisions, we would have improved our operating income and net income by $10.3 million, both of which would have been on track with expectation.
— Kenny Young
03Detailed Report
BWSN
Company BWSN
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Babcock & Wilcox Enterprises I delivered a mixed Q3 2024, characterized by strong strategic progression and meaningful portfolio transformation, but GAAP results were pressured by onetime items and divestitures. Revenue for the quarter was $209.9 million, with a GAAP net loss of $5.33 million and an operating loss of $1.47 million. The quarter included two notable onetime charges: a $5.8 million noncash impairment related to the SPIG asset sale and a $4.9 million settlement to exit a loss-making biomass O&M contract. Excluding these items, management highlighted that a $10.3 million improvement in operating income and net income would have kept results on track with expectations. Management also noted that adjusted EBITDA, excluding BrightLoop and ClimateBright costs, was $23.3 million in Q3 2024, up 78% year-over-year (vs. $12.6 million in Q3 2023 when BWRS was still in the base year). The company remains in a divestiture-driven pivot to strengthen its balance sheet, with SPIG and GMAB divested for net proceeds of $33.7 million in the quarter and more than $116 million raised from asset sales in 2024 to date.
Key Performance Indicators
Revenue
Decreasing
209.86M
QoQ: -10.18% | YoY: -12.34%
Gross Profit
Decreasing
49.82M
23.74% margin
QoQ: -5.45% | YoY: -6.67%
Operating Income
Decreasing
-1.47M
QoQ: -103.49% | YoY: -126.59%
Net Income
Increasing
-5.33M
QoQ: -121.06% | YoY: 95.44%
EPS
Increasing
-0.10
QoQ: -140.88% | YoY: 92.51%
Revenue Trend
Margin Analysis
Financial Highlights
Key Q3 2024 metrics and trends include: Revenue $209.9M (YoY -12.34%; QoQ -10.18%); Gross Profit $49.82M (Gross Margin 23.74%); Operating Income -$1.47M (Operating Margin -0.70%); Net Income -$5.33M (Net Margin -2.54%); EPS -$0.098; EBITDA (GAAP) $3.93M (EBITDA Margin ~1.87%); Adjusted EBITDA (ex BrightLoop/ClimateBright) $23.3M (YoY change +78% vs Q3 2023 excluding BWRS); Implied bookings $810.5M; Ending backlog $628.2M; Debt $475.4M; Cash $127.9M; Net debt $502.9M; Free Cash Flow -$71.83M; Operating Cash Flow -$69.67M; Letters of Credit ~$80M, rolling off over ~1.5 years; 4Q seasonality expected to be stronger; Backlog including Indiana natural gas conversion project adds to visibility.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
209.86M
-12.34%
-10.18%
Gross Profit
49.82M
-6.67%
-5.45%
Operating Income
-1.47M
-126.59%
-103.49%
Net Income
-5.33M
95.44%
-121.06%
EPS
-0.10
92.51%
-140.88%
Key Financial Ratios
Gross Profit Margin
Fair
26.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.01%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.03%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.63%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.78
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-1.93
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-101.00x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-10.61x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
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