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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     

Commission File No. 001-36876 

BABCOCK & WILCOX ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
Delaware 47-2783641
(State or other Jurisdiction of Incorporation or Organization) (I.R.S. 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
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueBWNew York Stock Exchange
8.125% Senior Notes due 2026BWSNNew York Stock Exchange
6.50% Senior Notes due 2026BWNBNew York Stock Exchange
7.75% Series A Cumulative Perpetual Preferred StockBW PRANew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    
Yes  ☐    No  
1


The number of shares of the registrant's common stock outstanding at May 3, 2024 was 91,012,045.
2


TABLE OF CONTENTS
 PAGE
Item 1.
2


Definitions

In this Quarterly Report on Form 10-Q, or this “Quarterly Report”, unless the context otherwise indicates, “B&W,” “we,” “us,” “our” or the “Company” mean Babcock & Wilcox Enterprises, Inc. and its consolidated subsidiaries. Unless otherwise noted, discussion of our business and results of operations in this Quarterly Report on Form 10-Q refers to our continuing operations.
Abbreviation or acronymTerm
2021 PlanBabcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan
6.50% Senior Notes6.50% Senior Notes due December 31, 2026 issued by Babcock & Wilcox Enterprises, Inc. in 2021
8.125% Senior Notes8.125% Senior Notes due February 28, 2026 issued by Babcock & Wilcox Enterprises, Inc. in 2021
Amended Revolving Credit AgreementAmended Revolving Credit Agreement with PNC
AOCIAccumulated Other Comprehensive Income (loss)
ASCAccounting Standards Codification
ASUAccounting Standards Update
AxosAxos Bank, an affiliate of Axos Financial, Inc.
B&W Renewable A/SBabcock & Wilcox Renewable Service A/S, formerly known as VODA A/S
B&W SolarBabcock & Wilcox Solar Energy, Inc., formerly known as Fosler Construction Company, Inc.
B. RileyB. Riley Financial, Inc and its affiliates, a related party
CTACurrency Translation Adjustment
Debt DocumentsCollectively, the Revolving Credit Agreement, Letter of Credit Agreement and Reimbursement Agreement
Debt FacilitiesThe facilities available under the Debt Documents
EBITDAEarnings before interest, taxes, depreciation and amortization
Exchange ActThe Securities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
GAAPGenerally Accepted Accounting Principles in the United States of America
IRCU.S. Internal Revenue Code of 1986, as amended
Letter of Credit AgreementLetter of Credit agreement with PNC
MSDMSD Partners and affiliates, including MSD PCOF Partners XLV, LLC
MTMMark-to-Market
NOLNet operating losses
Notes Due 2026Collectively, the 8.125% Senior Notes due February 28, 2026 and the 6.50% Senior Notes due December 31, 2026
PNCPNC Bank, National Association
Preferred Stock7.75% Series A Cumulative Perpetual Preferred Stock
Revolving Credit AgreementRevolving Credit Agreement with PNC
SECUnited States Securities and Exchange Commission
SOFRThe Secured Overnight Financing Rate

***** Cautionary Statement Concerning Forward-Looking Information *****

This Quarterly Report on Form 10-Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E Exchange Act. All statements other than statements of historical or current fact included in this Quarterly Report 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.
3



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. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, but not limited to: our financial condition and ability to continue as a going concern; risks associated with contractual pricing in our industry; our relationships with customers, subcontractors and other third parties; our ability to comply with our contractual obligations; disruptions at our or manufacturing facilities or a third-party manufacturing facility that we have engaged; the actions or failures of our co-venturers; our ability to implement our growth strategy, including through strategic acquisitions, which we may not successfully consummate or integrate; our evaluation of strategic alternatives for certain businesses and non-core assets may not result in a successful transaction; the risks of unexpected adjustments and cancellations in our backlog; professional liability, product liability, warranty and other claims; our ability to compete successfully against current and future competitors; our ability to develop and successfully market new products; the impacts of macroeconomic downturns, industry conditions and public health crises; the cyclical nature of the industries in which we operate; changes in the legislative and regulatory environment in which we operate; supply chain issues, including shortages of adequate components; failure to properly estimate customer demand; our ability to comply with the covenants in our debt agreements; our ability to refinance our 8.125% Notes due 2026 and 6.50% Notes due 2026 prior to their maturity; our ability to maintain adequate bonding and letter of credit capacity; impairment of goodwill or other indefinite-lived intangible assets; credit risk; disruptions in, or failures of, our information systems; our ability to comply with privacy and information security laws; our ability to protect our intellectual property and use the intellectual property that we license from third parties; risks related to our international operations, including fluctuations in the value of foreign currencies, global tariffs, sanctions and export controls; could harm our profitability; volatility in the price of our common stock; B. Riley’s significant influence over us; changes in tax rates or tax law; our ability to use net operating loss and certain tax credits; our ability to maintain effective internal control over financial reporting; our ability to attract and retain skilled personnel and senior management; labor problems, including negotiations with labor unions and possible work stoppages; risks associated with our retirement benefit plans; natural disasters or other events beyond our control, such as war, armed conflicts or terrorist attacks; and the risks and uncertainties described under the heading "Risk Factors" in Part I, Item 1A of our Annual Report, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the SEC.

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, forward-looking statements are subject to uncertainties and factors relating to our operations and business environment that are difficult to predict and may be beyond our control. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by the forward-looking statements.

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.

PART I

ITEM 1. Condensed Consolidated Financial Statements
4


BABCOCK & WILCOX ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(in thousands, except per share amounts)20242023
Revenues$207,556 $241,258 
Costs and expenses:
Cost of operations159,075 189,329 
Selling, general and administrative expenses41,438 48,014 
Restructuring activities1,580 384 
Research and development costs1,081 1,308 
Loss on asset disposals, net 53 937 
Total costs and expenses203,227 239,972 
Operating income4,329 1,286 
Other (expense) income:
Interest expense(12,834)(12,656)
Interest income307 113 
Loss on debt extinguishment(5,071) 
Benefit plans, net96 (109)
Foreign exchange(1,333)(461)
Other expense – net (369)
Total other expense, net
(18,835)(13,482)
Loss before income tax expense(14,506)(12,196)
Income tax expense1,293 490 
Loss from continuing operations(15,799)(12,686)
(Loss) income from discontinued operations, net of tax(992)211 
Net loss (16,791)(12,475)
Net income attributable to non-controlling interest(42)(21)
Net loss attributable to stockholders(16,833)(12,496)
Less: Dividend on Series A preferred stock3,714 3,715 
Net loss attributable to stockholders of common stock$(20,547)$(16,211)
Basic and diluted loss per share
Continuing operations$(0.22)$(0.18)
Discontinued operations(0.01) 
Loss per share$(0.23)$(0.18)
Basic and diluted shares used in the computation of loss per share89,479 88,733 

See accompanying notes to Condensed Consolidated Financial Statements.
5


BABCOCK & WILCOX ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Three Months Ended March 31,
(in thousands)20242023
Net loss$(16,791)$(12,475)
Other comprehensive (loss) income:
Currency translation adjustments ("CTA")(3,125)4,592 
Benefit obligations:
Pension and post retirement adjustments, net of tax231 223 
Other comprehensive (loss) income (2,894)4,815 
Total comprehensive loss(19,685)(7,660)
Comprehensive (income) loss attributable to non-controlling interest(67)14 
Comprehensive loss attributable to stockholders$(19,752)$(7,646)
See accompanying notes to Condensed Consolidated Financial Statements.
6


BABCOCK & WILCOX ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amount)March 31, 2024December 31, 2023
Cash and cash equivalents$43,881 $65,304 
Current restricted cash and cash equivalents16,935 5,737 
Accounts receivable – trade, net124,398 144,016 
Accounts receivable – other29,930 36,179 
Contracts in progress107,431 90,054 
Inventories, net112,407 113,890 
Other current assets22,975 23,918 
Current assets held for sale24,266 18,495 
Total current assets482,223 497,593 
Net property, plant and equipment and finance leases78,514 78,369 
Goodwill100,655 101,956 
Intangible assets, net42,816 45,627 
Right-of-use assets28,641 28,192 
Long-term restricted cash41,636 297 
Deferred tax assets2,094 2,105 
Other assets18,944 21,559 
Total assets$795,523 $775,698 
Accounts payable$129,535 $127,491 
Accrued employee benefits11,246 10,797 
Advance billings on contracts74,861 81,098 
Accrued warranty expense7,160 7,634 
Financing lease liabilities1,400 1,367 
Operating lease liabilities3,804 3,932 
Other accrued liabilities65,268 68,090 
Loans payable4,473 6,174 
Current liabilities held for sale35,179 43,614 
Total current liabilities332,926 350,197 
Senior notes338,388 337,869 
Loans payable, net of current portion98,727 35,442 
Pension and other postretirement benefit liabilities172,174 172,911 
Finance lease liabilities, net of current portion25,839 26,206 
Operating lease liabilities, net of current portion25,990 25,350 
Deferred tax liability12,991 12,991 
Other non-current liabilities10,955 15,082 
Total liabilities1,017,990 976,048 
Stockholders' deficit:
Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,669 at March 31, 2024 and December 31, 2023
77 77 
Common stock, par value $0.01 per share, authorized shares of 500,000; outstanding shares of 89,480 and 89,449 at March 31, 2024 and December 31, 2023, respectively
5,149 5,148 
Capital in excess of par value1,547,671 1,546,281 
Treasury stock at cost, 2,139 shares at March 31, 2024 and December 31, 2023
(115,164)(115,164)
Accumulated deficit(1,591,489)(1,570,942)
Accumulated other comprehensive loss(69,255)(66,361)
Stockholders' deficit attributable to shareholders(223,011)(200,961)
Non-controlling interest544 611 
Total stockholders' deficit
(222,467)(200,350)
Total liabilities and stockholders' deficit
$795,523 $775,698 

See accompanying notes to Condensed Consolidated Financial Statements.




























7


BABCOCK & WILCOX ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

Common StockPreferred StockCapital In
Excess of
Par Value
Treasury StockAccumulated DeficitAccumulated
Other
Comprehensive
(Loss)
Non-controlling
Interest
Total
Stockholders’
Equity (Deficit)
(in thousands)SharesPar
 Value
SharesPar Value
Balance at December 31, 202389,449 $5,148 7,669 $77 $1,546,281 $(115,164)$(1,570,942)$(66,361)$611 $(200,350)
Net loss— — — — — (16,833)— 42 (16,791)
Currency translation adjustments— — — — — — — (3,125)(109)(3,234)
Pension and post retirement adjustments, net of tax— — — — — — — 231 — 231 
Stock-based compensation charges31 1 — — 1,390 — — — — 1,391 
Dividends to preferred shareholders— — — — — — (3,714)— — (3,714)
Balance at March 31, 202489,480 $5,149 7,669 $77 $1,547,671 $(115,164)$(1,591,489)$(69,255)$544 $(222,467)



Common StockPreferred StockCapital In
Excess of
Par Value
Treasury StockAccumulated DeficitAccumulated
Other
Comprehensive
(Loss)
Non-controlling
Interest
Total
Stockholders’
(Deficit) Equity
(in thousands)SharesPar 
Value
SharesPar 
Value
Balance at December 31, 202288,700 $5,138 7,669 $77 $1,537,625 $(113,753)$(1,358,875)$(72,786)$485 $(2,089)
Net loss— — — — — — (12,496)— 21 (12,475)
Currency translation adjustments— — — — — — — 4,592 (35)4,557 
Pension and post retirement adjustments, net of tax— — — — — — — 223 — 223 
Stock-based compensation charges45 1 — — 3,357 (64)— — — 3,294 
Dividends to preferred stockholders— — — — — — (3,715)— — (3,715)
Dividends to non-controlling interest— — — — — — — — (1)(1)
Balance at March 31, 202388,745 $5,139 7,669 $77 $1,540,982 $(113,817)$(1,375,086)$(67,971)$470 $(10,206)

See accompanying notes to Condensed Consolidated Financial Statements.
8


BABCOCK & WILCOX ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,
(in thousands)20242023
Cash flows from operating activities:
Net loss from continuing operations(15,799)(12,686)
Net (loss) income from discontinued operations(992)211 
Net loss$(16,791)$(12,475)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of long-lived assets4,843 5,365 
Amortization of deferred financing costs and debt discount740 1,388 
Amortization of guaranty fee608 231 
Non-cash operating lease expense1,804 566 
Loss on debt extinguishment5,071  
Loss on asset disposals81 941 
Provision for (benefit from) deferred income taxes2,514 (1,870)
Prior service cost amortization for pension and postretirement plans231 223 
Stock-based compensation1,391 3,357 
Foreign exchange 1,333 461 
Changes in operating assets and liabilities:
Accounts receivable - trade, net and other17,997 (5,522)
Contracts in progress (21,515)(29,042)
Advance billings on contracts(6,350)3,581 
Inventories, net3,100 (7,594)
Income taxes2,889 2,055 
Accounts payable(1,758)29,639 
Accrued and other current liabilities(8,351)2,682 
Accrued contract loss(2,784)(665)
Pension liabilities, accrued postretirement benefits and employee benefits176 (4,328)
Other, net(167)(1,874)
Net cash used in operating activities:(14,938)(12,881)
Cash flows from investing activities:
Purchase of property, plant and equipment(3,394)(2,208)
Purchases of available-for-sale securities(1,624)(2,021)
Sales and maturities of available-for-sale securities2,147 2,072 
Other, net22  
Net cash used in investing activities(2,849)(2,157)


9


Three Months Ended March 31,
(in thousands)20242023
Cash flows from financing activities:
Issuance of senior notes 8 
Borrowings on loan payable90,352  
Repayments on loan payable(28,802)(1,658)
Payment of holdback funds from acquisition(2,950) 
Finance lease payments(332)(286)
Payment of preferred stock dividends(3,714)(3,715)
Shares of common stock returned to treasury stock (64)
Debt issuance costs(3,146)(139)
Other, net(111) 
Net cash provided by (used in) financing activities51,297 (5,854)
Effects of exchange rate changes on cash(2,427)(1,500)
Net increase (decrease) in cash, cash equivalents and restricted cash31,083 (22,392)
Cash, cash equivalents and restricted cash at beginning of period71,369 113,460 
Cash, cash equivalents and restricted cash at end of period$102,452 $91,068 
Schedule of cash, cash equivalents and restricted cash:
Cash and cash equivalents$43,881 $62,760 
Current restricted cash16,935 6,911 
Long-term restricted cash41,636 21,397 
Total cash, cash equivalents and restricted cash at end of period(1)
$102,452 $91,068 
Supplemental cash flow information:
Income taxes paid, net$2,318 $1,551 
Interest paid$7,089 $6,382 
(1) Includes cash held at discontinued operations of $— million and $0.03 million at March 31, 2024 and 2023, respectively.
See accompanying notes to Condensed Consolidated Financial Statements.
10


BABCOCK & WILCOX ENTERPRISES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2024

NOTE 1 – BASIS OF PRESENTATION

These interim Condensed Consolidated Financial Statements of Babcock & Wilcox Enterprises, Inc. (“B&W,” “management,” “we,” “us,” “our” or the “Company”) have been prepared in accordance with GAAP and SEC instructions for interim financial information, and should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2023. The Notes to Condensed Consolidated Financial Statements are presented on the basis of continuing operations, unless otherwise stated.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. In the opinion of management, these Condensed Consolidated Financial Statements contain all estimates and adjustments, consisting of normal recurring adjustments, required to fairly present the financial position, results of operations, and cash flows for the periods presented. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2024.

There have been no material changes to our significant accounting policies included in the Annual Report on Form 10-K for the year ended December 31, 2023.

Non-controlling interests are presented in the Condensed Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (non-controlling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in non-controlling interests are reported as equity in the Condensed Consolidated Financial Statements. Additionally, the Condensed Consolidated Financial Statements include 100% of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and non-controlling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

Liquidity and Going Concern

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

We have recurring operating losses primarily due to losses recognized on our B&W Solar business as described in Note 4 to the Consolidated Financial Statements included in Part II, Item 8 of our Form 10-K filed on March 15, 2024 as well as higher debt service costs. Our assessment of our ability to fund future operations is inherently subjective, judgment-based and susceptible to change based on future events. Currently, with existing cash on hand and available liquidity, we are projecting insufficient liquidity to fund operations through one year following the date that this Quarterly Report is issued. These conditions and events raise substantial doubt about our ability to continue as a going concern.

In response to the conditions, we are implementing several strategies to obtain the required funding for future operations and are considering other alternative measures to improve cash flow, including suspension of the dividend on our Preferred Stock. The following actions occurred during the three months ended March 31, 2024:

entered into advanced negotiations related to the sale of one of our non-strategic businesses. Proceeds from the sale are expected to be approximately $40.0 million to $46.0 million, subject to due diligence and continuing negotiations. We cannot provide any assurances that such transaction will close or that proceeds will not be more or less than we anticipate;
initiated the process to sell certain of our other non-strategic businesses;
filed for a waiver of required minimum contributions to the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations (the "U.S. Plan"), that if granted, would reduce cash funding requirements in 2024 and would increase contributions annually over the subsequent five-year period. We cannot provide any assurances that such waiver will be granted;
initiated the process to sell several non-core real estate assets;
11


initiated the sale of common shares pursuant to our At-The-Market Offering; and
negotiated the settlement of a liability to the former owner of B&W Solar at a discount, resulting in future cash savings of $7.2 million.

Based on our ability to raise funds through the actions noted above and our Cash and cash equivalents as of March 31, 2024, we have concluded it is probable that such actions would provide sufficient liquidity to fund operations for the next twelve months following the date of this Quarterly Report. As a result, it is probable that our cash flow improvement plans and anticipated proceeds from the sale of non-strategic assets alleviate the substantial doubt about our ability to continue as a going concern.
Operations

Our operations are assessed based on three reportable market-facing segments consistent with our strategic initiative to accelerate growth and provide stakeholders improved visibility into our renewable and environmental growth platforms. Our reportable segments are as follows:

Babcock & Wilcox Renewable: Technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, biomass-to-energy and black liquor systems for the pulp and paper industry. Our technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.
Babcock & Wilcox Environmental: A full suite of emissions control and environmental technology solutions for utility, waste-to-energy, biomass-to-energy, carbon black, and industrial steam generation applications around the world. Our broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.
Babcock & Wilcox Thermal: Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. We have an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

For financial information about our segments see Note 4 to the Condensed Consolidated Financial Statements.

12


NOTE 2 – LOSS PER SHARE

The following table sets forth the computation of basic and diluted loss per share of our common stock, net of non-controlling interest and dividends on preferred stock:

Three Months Ended March 31,
(in thousands, except per share amounts)20242023
Loss from continuing operations$(15,799)$(12,686)
Net loss attributable to non-controlling interest(42)(21)
Less: Dividend on Series A preferred stock3,714 3,715 
Loss from continuing operations attributable to stockholders of common stock(19,555)(16,422)
(Loss) income from discontinued operations, net of tax(992)211 
Net loss attributable to stockholders of common stock$(20,547)$(16,211)
Weighted average shares used to calculate basic and diluted loss per share89,479 88,733 
Basic and diluted loss per share:
Continuing operations$(0.22)$(0.18)
Discontinued operations(0.01)$ 
Basic and diluted loss per share$(0.23)$(0.18)
Basic and diluted weighted average shares are the same because we incurred a net loss in the three months ended March 31, 2024 and 2023.

For the three months ended March 31, 2024 if we had net income, we would have had no additional dilutive shares. If we had net income for the three months ended March 31, 2023 we would have included 0.4 million in diluted shares.

We would have excluded 2.4 million and 2.2 million shares related to stock options from the diluted share calculation for the three months ended March 31, 2024 and 2023, respectively, because their effect would have been anti-dilutive.

NOTE 3 - ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

During the third quarter of 2023, we committed to a plan to sell our B&W Solar business resulting in a significant change that would impact our operations. As of September 30, 2023, we met all of the criteria for the assets and liabilities of this business, formerly part of our B&W Renewable segment, to be accounted for as held for sale. In addition, we also determined that the operations of the B&W Solar business qualified as a discontinued operation, primarily based upon its significance to our current and historic operating losses.

We continued to meet the criteria to account for the B&W Solar business as held for sale and discontinued operations as of March 31, 2024.

The following table summarizes the operating results of the disposal group included in discontinued operations in the Condensed Consolidated Statements of Operations:
13


Three Months Ended March 31,
(in thousands)20242023
Revenues$11,373 $15,989 
Cost of operations10,366 14,442 
Selling general and administrative expenses1,699 1,468 
Restructuring expenses35  
Total costs and expenses12,100 15,910 
   Operating (loss) income(727)79 
Other (expense) income(265)132 
(Loss) income from discontinued operations(992)211 
(Loss) income from discontinued operations, net of tax$(992)$211 

The following table provides the major classes of assets and liabilities of the disposal group included in assets held for sale and liabilities held for sale in the Condensed Consolidated Balance Sheets:

14


(in thousands)March 31, 2024December 31, 2023
Cash $ $31 
Contracts in progress5,957 4,538 
Accounts receivable - trade7,558 3,272 
Other assets, net67 62 
Total current assets13,582 7,903 
Net property, plant and equipment and finance leases2,780 2,683 
Intangible assets, net7,833 7,833 
Right-of-use assets71 76 
Total non-current assets10,684 10,592 
Total assets of disposal group$24,266 $18,495 
Loans payable, current$489 $502 
Operating lease liabilities, current24 23 
Accounts payable20,976 26,298 
Accrued employee benefits284 231 
Advance billings on contracts5,452 5,961 
Accrued warranty expense1,067 1,078 
Other current liabilities4,420 8,101 
Total current liabilities32,712 42,194 
Loans payable, net of current portion1,296 1,308 
Other non-current liabilities1,171 112 
Total non-current liabilities2,467 1,420 
Total liabilities of disposal group$35,179 $43,614 
Reported as:
Current assets of discontinued operations$24,266 $18,495 
Current liabilities of discontinued operations$35,179 $43,614 

The significant components included in the Condensed Consolidated Statements of Cash Flows for the discontinued operations are as follows:

Three Months Ended March 31,
(in thousands)20242023
Depreciation and amortization of long-lived assets$ $96 
Changes in operating assets and liabilities:
Accounts receivable(4,286)(4,515)
Contracts in progress(1,419)(3,473)
Accounts payable(5,322)7,452 
Purchase of property, plant and equipment(127)(15)

15


Contracts

During the three months ended March 31, 2024, seven contracts were terminated, resulting in gross profit of $1.2 million. There were no new loss contracts during the three months ended March 31, 2024. During the three months ended March 31, 2023, one B&W Solar project became a loss contract, and the related loss was immaterial to the condensed consolidated financial statements.

Changes in Contract Estimates

During the three months ended March 31, 2024 and 2023 B&W Solar recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized below:
Three Months Ended March 31,
(in thousands)20242023
Increases in gross profit for changes in estimates (1)
$2,212 $824 
Decreases in gross profit for changes in estimates (147)(1,510)
Net changes in gross profit for changes in estimates $2,065 $(686)
(1) Includes the $1.2 million contract termination benefit noted above.

Backlog

B&W Solar backlog was $72.4 million and $99.0 million at March 31, 2024 and December 31, 2023, respectively. The decrease was primarily driven by contract terminations of $17.0 million and revenue recognized of $11.4 million, partially offset by new bookings during the quarter. We expect to recognize substantially all of the remaining performance obligations as revenue during the year ended December 31, 2024.
16


NOTE 4 – SEGMENT REPORTING

We assess our operations based on three reportable segments as described in Note 1 to the Condensed Consolidated Financial Statements. An analysis of our operations by segment is as follows:
Three Months Ended March 31,
(in thousands)20242023
Revenues:
B&W Renewable segment
B&W Renewable$29,590 $49,132 
B&W Renewable Services 18,461 16,310 
Vølund4,230 18,681 
52,281 84,123 
B&W Environmental segment
B&W Environmental26,708 20,361 
SPIG18,561 16,605 
GMAB3,085 2,474 
48,354 39,440 
B&W Thermal segment
B&W Thermal110,187 119,236 
110,187 119,236 
Eliminations(3,266)(1,541)
Total Revenues$207,556 $241,258 

At a segment level, the adjusted EBITDA presented below is consistent with the manner in which our chief operating decision maker ("CODM") reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest, 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 activities, impairments, gains and losses on debt extinguishment, legal and settlement costs, costs related to financial consulting, research and development costs, product development costs, costs and operating income from contracts being terminated, and other costs that may not be directly controllable by segment management and are not allocated to the segment. The following table is provided to reconcile our segment performance metrics to loss before income tax expense.
17


Three Months Ended March 31,
(in thousands)2024
2023(1)
B&W Renewable segment adjusted EBITDA$1,658 $4,322 
B&W Environmental segment adjusted EBITDA3,326 1,906 
B&W Thermal segment adjusted EBITDA13,672 13,733 
Corporate(6,005)(5,080)
R&D expenses(116)(1,307)
Interest expense(12,527)(12,543)
Depreciation & amortization(4,409)(5,269)
Benefit plans, net96 (109)
Loss on sales, net(53)(937)
Settlements and related legal costs, net4,087 2,463 
Loss on debt extinguishment(5,071) 
Stock compensation(1,350)(3,227)
Restructuring expense and business services transition (1,580)(960)
Acquisition pursuit and related costs(84)(134)
Product development(1,619)(1,370)
Foreign exchange(1,333)(461)
Financial advisory services(214) 
Contract disposal(585)(1,387)
Letter of credit fees(2,388)(1,643)
Other- net(11)(193)
Loss before income tax expense(14,506)(12,196)
(1) Certain 2023 amounts have been reclassified in the reconciliation to conform to the 2024 presentation.

We do not separately identify or report assets by segment as our CODM does not consider assets by segment to be a critical measure by which performance is measured.
NOTE 5 – REVENUE RECOGNITION AND CONTRACTS

Revenue Recognition

We generate the vast majority of our revenues from the supply of, and aftermarket services for, steam-generating, environmental and auxiliary equipment. We also earn revenue from the supply of custom-engineered cooling systems for steam applications and related aftermarket services.

A performance obligation is a contractual promise to transfer a distinct product or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Revenue from products and services transferred to customers at a point in time, which includes certain aftermarket parts and services, accounted for 22% and 17% of revenue for the three months ended March 31, 2024 and 2023, respectively. Revenue from products and services transferred to customers over time, which primarily relates to customized, engineered solutions and construction services, accounted for 78% and 83% of revenue for the three months ended March 31, 2024 and 2023, respectively.

Refer to Note 4 to the Condensed Consolidated Financial Statements for further disaggregation of revenue.

18


Contract Balances

The following represents the components of the Contracts in progress and Advance billings on contracts included in the Condensed Consolidated Balance Sheets:
(in thousands)March 31, 2024December 31, 2023$ Change% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized$47,431 $37,556 $9,875 26 %
Revenues recognized less billings to customers60,000 52,498 7,502 14 %
Contracts in progress$107,431 $90,054 $17,377 19 %
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized$68,393 $76,032 $(7,639)(10)%
Costs of revenue recognized less cost incurred 6,468 5,066 1,402 28 %
Advance billings on contracts$74,861 $81,098 $(6,237)(8)%
Net contract balance$32,570 $8,956 $23,614 264 %
Accrued contract losses$363 $522 $(159)(30)%

Backlog

At March 31, 2024 we had $650.4 million of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 64%, 17% and 19% of the remaining performance obligations as revenue in 2024, 2025 and thereafter, respectively.

Changes in Contract Estimates

During each of the three months ended March 31, 2024 and 2023, we recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:
Three Months Ended March 31,
(in thousands)20242023
Increases in gross profit for changes in estimates for over time contracts$6,964 $5,401 
Decreases in gross profit for changes in estimates for over time contracts(3,891)(4,243)
Net changes in gross profit for changes in estimates for over time contracts$3,073 $1,158 







NOTE 6 – INVENTORIES
19



Inventories are stated at the lower of cost or net realizable value. The components of inventories are as follows:
(in thousands)March 31, 2024December 31, 2023
Raw materials and supplies$91,394 $90,116 
Work in progress4,834 6,604 
Finished goods16,179 17,170 
Total inventories$112,407 $113,890 

NOTE 7 – PROPERTY, PLANT & EQUIPMENT & FINANCE LEASES

Property, plant and equipment less accumulated depreciation is as follows:
(in thousands)March 31, 2024December 31, 2023
Land$2,579 $2,608 
Buildings34,577 34,832 
Machinery and equipment152,858 152,700 
Property under construction16,097 13,780 
206,111 203,920 
Less accumulated depreciation149,452 147,929 
Net property, plant and equipment56,659 55,991 
Finance leases30,653 30,656 
Less finance lease accumulated amortization8,798 8,278 
Net property, plant and equipment, and finance leases$78,514 $78,369 

NOTE 8 - GOODWILL

Goodwill represents the excess of the consideration transferred over the fair value of net assets, including identifiable intangible assets, at the acquisition date. Goodwill is assessed for impairment annually on October 1 or more frequently if events or changes in circumstances indicate a potential impairment exists.

There were no indicators of goodwill impairment identified for the quarter ended March 31, 2024.

The following summarizes the changes in the net carrying amount of goodwill as of March 31, 2024:
(in thousands)B&W
Renewable
B&W EnvironmentalB&W
Thermal
Total
Balance at December 31, 2023$25,805 $5,637 $70,514 $101,956 
Currency translation adjustments(262)(236)(803)(1,301)
Balance at March 31, 2024$25,543 $5,401 $69,711 $100,655 



20


NOTE 9 INTANGIBLE ASSETS

Intangible assets are as follows:
(in thousands)March 31, 2024December 31, 2023
Definite-lived intangible assets
Customer relationships$58,952 $59,543 
Unpatented technology18,258 18,416 
Patented technology3,645 3,677 
Tradename13,479 13,595 
All other9,680 9,763 
Gross value of definite-lived intangible assets104,014 104,994 
Customer relationships amortization(31,011)(29,820)
Unpatented technology amortization(12,141)(11,764)
Patented technology amortization(3,070)(3,030)
Tradename amortization(7,044)(6,892)
All other amortization(9,462)(9,391)
Accumulated amortization(62,728)(60,897)
Net definite-lived intangible assets $41,286 $44,097 
Indefinite-lived intangible assets
Trademarks and trade names$1,530 $1,530 
Total intangible assets, net$42,816 $45,627 


The following summarizes the changes in the carrying amount of intangible assets, net:
Three Months Ended March 31,
(in thousands)20242023
Balance at beginning of period $45,627 $51,564 
Amortization expense(1,831)(1,839)
Currency translation adjustments(980)554 
Balance at end of the period$42,816 $50,279 


Amortization of intangible assets is included in Cost of operations and Selling, general and administrative expenses in the Condensed Consolidated Statement of Operations but is not allocated to segment results.

Estimated future intangible asset amortization expense as of March 31, 2024 is as follows:
(in thousands)Amortization Expense
Year ending December 31, 20245,668 
Year ending December 31, 20256,685 
Year ending December 31, 20265,530 
Year ending December 31, 20274,916 
Year ending December 31, 20284,633 
Thereafter13,854 

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NOTE 10 – ACCRUED WARRANTY EXPENSE

We may offer assurance type warranties on products and services sold to customers. Changes in the carrying amount of accrued warranty expense are as follows:
Three Months Ended March 31,
(in thousands)20242023
Balance at beginning of period$7,634 $9,568 
Additions515 1,901 
Expirations and other changes(392)(1,358)
Payments(460)(253)
Translation and other(137)52 
Balance at end of period$7,160 $9,910 

We record estimated expense included in Cost of operations on the Condensed Consolidated Statements of Operations to satisfy contractual warranty requirements when we recognize the associated revenues on the related contracts, or in the case of a loss contract, the full amount of the estimated warranty cost is accrued when the contract becomes a loss contract. In addition, we record specific adjustments when we expect the actual warranty costs to significantly differ from the estimates. Such changes could have a material effect on our financial position, results of operations and cash flows.
NOTE 11 – RESTRUCTURING ACTIVITIES

We incurred restructuring charges (benefits) in each of the three months ended March 31, 2024 and 2023. The charges (benefits) primarily consist of legal fees and costs related to actions taken as part of our ongoing strategic, market-focused organizational and re-branding initiative.

The following table summarizes the restructuring activity incurred by segment:

Three Months Ended March 31,Three Months Ended March 31,
20242023
(in thousands)TotalSeverance and related costs
Other (1)
TotalSeverance and related costs (benefit)
Other(1)
B&W Renewable $834 $159 $675 $(89)$(89)$ 
B&W Environmental 185 59 126 20 1 19 
B&W Thermal560 200 360 3 3  
Corporate 1  1 450  450 
$1,580 $418 $1,162 $384 $(85)$469 
(1) Other amounts consist primarily of facility closure costs and other costs that are not considered as severance.

Restructuring liabilities are included in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities is as follows:
Three Months Ended March 31,
(in thousands)20242023
Balance at beginning of period
$2,505 $1,615 
Restructuring expense 1,580 384 
Payments and other(1,966)37 
Balance at end of period$2,119 $2,036 

The payments shown above for the three months ended March 31, 2024 and 2023 relate primarily to severance and facility closure costs. Accrued restructuring liabilities at March 31, 2024 and 2023 relate primarily to employee termination benefits.
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NOTE 12 – PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of net periodic benefit cost (benefit) included in net loss are as follows:
Pension BenefitsOther Benefits
Three Months Ended March 31,Three Months Ended March 31,
(in thousands)2024202320242023
Interest cost$10,808 $11,489 $70 $92 
Expected return on plan assets(11,200)(11,697)  
Amortization of prior service cost53 52 173 173 
Benefit plans, net (1)
(339)(156)243 265 
Service cost included in COS (2)
171 144 4 4 
Net periodic benefit cost (benefit)$(168)$(12)$