Babcock & Wilcox (BW) Misses Q1 EPS by 21c, Revenues Beat

Babcock & Wilcox (NYSE: BW) reported Q1 EPS of ($0.22), $0.21 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $168.2 million versus the consensus estimate of $151.75 million.

Q1 2021 Highlights:

• Revenues of $168.2 million, a 13.3% improvement compared to first quarter 2020
• Net loss of $15.5 million, compared to net loss of $31.5 million in first quarter 2020
• Loss per share of $0.22, compared to loss per share of $0.68 in first quarter 2020
• Consolidated adjusted EBITDA of $8.5 million, compared to $1.0 million in first quarter 2020
• Positive adjusted EBITDA reported by all segments
• Strong bookings of $169 million
• Reduced minimum required pension funding contributions by $26 million, in addition to the $107 million reduction previously disclosed

"Our results for the first quarter of 2021 reflect the ongoing strength of our turnaround efforts including cost reductions and growth strategies, and put us in a strong position to achieve our adjusted EBITDA targets of $70-$80 million and $95-$105 million, in 2021 and 2022, respectively1," said Kenneth Young, B&W's Chairman and Chief Executive Officer. "With all segments generating positive adjusted EBITDA, we ended the first quarter well, with $169 million in bookings and $535 million in backlog at March 31, 2021, despite continued adverse effects of COVID-19 across our segments. Combined with our strategic actions in the last year, including launching new segments, expanding internationally, implementing additional cost savings initiatives, reducing our secured debt and focusing on smaller projects, we have positioned the Company to leverage market demands while preserving cost structure flexibility."

"As we pursue a robust pipeline of more than $5 billion of identified project opportunities over the next three years, our leading-edge waste-to-energy and carbon capture technologies are well-positioned to meet the critical global demand for carbon dioxide and methane reductions," Young continued. "We are seeing increased interest in our advanced carbon capture solutions across various industries and utilities globally, including our technology with the potential to capture carbon while simultaneously producing hydrogen."

"We are also seeing a significant number of attractive targets for investments or acquisitions in both emerging technology and mature markets, including small add-ons and transformative opportunities," Young added. "We are establishing capital-raising mechanisms to enable us to pursue such opportunities as they arise, including our $150 million at-the-market ("ATM") senior note offering that commenced on April 1, 2021, our $350 million universal shelf registration statement declared effective on April 30, 2021, and our recent $100 million preferred stock offering under the shelf registration statement which closed on May 7, 2021. We are focused on opportunities that generate strong cash flow, leverage the strength of our proven management team to improve margins and generate synergies, or expand our clean energy technology portfolio, all of which we expect to drive shareholder value."

For earnings history and earnings-related data on Babcock & Wilcox (BW) click here.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• Whirlpool (WHR) to cut 1,000 jobs - CFO Jim Peters
• TAL Education (TAL) Tops Q1 EPS by 10c