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Form 8-K Babcock & Wilcox Enterpr For: Aug 08

August 8, 2022 4:38 PM EDT

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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): August 8, 2022
BABCOCK & WILCOX ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)

Delaware001-3687647-2783641
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
1200 East Market Street
Suite 650
Akron,Ohio44305
(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 ClassTrading SymbolName of Each Exchange on which Registered
Common stock, $0.01 par value per shareBWNew 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 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 August 8, 2022, the Company issued a press release announcing our financial results for the second quarter ended June 30, 2022. 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.

Item 7.01 Regulation FD Disclosure.

On August 8, 2022, the Company posted a company overview 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
Press Release dated August 8, 2022.
Company Overview
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)



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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.
August 8, 2022
By:
/s/ Louis Salamone
Louis Salamone
Executive Vice President, Chief Financial Officer and Chief Accounting Officer
(Principal Accounting Officer and Duly Authorized Representative)

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Exhibit 99.1
News Release
Babcock & Wilcox Enterprises Reports Second Quarter 2022 Results
Revenues, Adjusted EBITDA, Bookings and Backlog have improved compared to the second quarter of 2021
Company remains positioned for milestone 2022


Q2 2022 Highlights:
Revenues of $221.0 million, a 9% improvement compared to the second quarter of 2021
B&W Renewable segment revenues of $75.2 million, a 96% increase compared to the second quarter of 2021
Bookings of $245 million, a 46% improvement compared to second quarter bookings in 2021
Ending backlog of $731 million, a 46% increase compared to backlog at the end of the second quarter of 2021
Net loss of $6.3 million, compared to net income of $1.4 million in the second quarter of 2021
Loss per share of $0.07, compared to earnings per share of $0.02 in the second quarter of 2021
Consolidated adjusted EBITDA of $20.6 million, a 35% increase compared to the second quarter of 2021
Establishes Senior P&L Leadership over Thermal and Renewable/Environmental Segments

(AKRON, Ohio – August 8, 2022) – Babcock & Wilcox Enterprises, Inc. ("B&W" or the "Company") (NYSE: BW) announced results for the second quarter of 2022.

"Our results for the second quarter demonstrate our continued progress against our plan and long-term growth strategy. These accomplishments, combined with our recent and anticipated bookings, position us for a milestone 2022, 2023 and beyond,” said Kenneth Young, B&W’s Chairman and Chief Executive Officer. “We’re expanding our presence globally, both organically and through recent strategic acquisitions, and remain intently focused on continuing to convert our global pipeline of identified project opportunities to bookings as reflected in the 46% improvement over the same quarter a year ago. The war in Ukraine and resurgence of COVID-19, along with the dynamic macroeconomic environment, present ongoing challenges to our supply chain and overall project timing, and while we continue efforts to effectively mitigate these challenges, we remain cognizant of the uncertainties they create.”

“We continue to make tremendous strides within our clean and renewable energy businesses, and as we advance the green initiatives within our environmental and renewable segments through technology development and strategic acquisitions, we believe we are uniquely positioned to lead the global clean energy transition. Our previously disclosed partnership with Fidelis and Kiewit to provide our ClimateBright™ decarbonization platform along with B&W’s 200-megawatt electric net-negative-carbon biomass power plant at the Port of Greater Baton Rouge, Louisiana, provides an outstanding example of the strides forward we are making in this space. Fidelis recently announced the start of construction for the Grön Fuels complex at this port, which using B&W’s biomass and BrightLoop™ technologies, would create the world’s largest net-negative CO2 biomass-to-energy facility.”

“Consistent with our strategic growth plan, we continue to evaluate additional acquisition opportunities for both emerging technologies and mature markets that provide attractive economics and significant synergistic potential,” Young stated. “As we look forward to the second half of 2022, based on our first-



half performance and combined with strong recent bookings and backlog, we are reiterating our 2022 target of $110 million to $120 million in adjusted EBITDA1. However, we acknowledge the uncertainty that remains with current macroeconomic and geopolitical headwinds such as the war in Ukraine, global supply chain constraints and potential project delays. Although we have largely mitigated these factors to date, these headwinds continue and have the potential to impact the timing of our revenue recognition on projects as we progress through the second half of 2022. Longer term, our robust pipeline of more than $7.5 billion of identified global project opportunities in the next three years positions us well for multi-year growth and we are preparing to capitalize on the positive impacts across our customer base as demand for long-term energy security and decarbonization technology grows.”

“To further drive our growth efforts, we have established senior leadership over our Global Thermal Segment and our Global Renewable & Environmental Segments, with direct reporting to Jimmy Morgan, Executive Vice President and Chief Operating Officer,” Young said. “Christopher Riker has been named Senior Vice President, Thermal, to lead our Thermal Business, while Joseph Buckler has been named Senior Vice President, Clean Energy, to lead our Renewable & Environmental Segments. The continued growth of our business makes it timely to put these changes in place to provide specific focus over these segments from a market-facing and P&L perspective, and to further unlock shareholder value in maximizing their long-term strategic growth plans.”

Additionally, Brandy Johnson has been named Chief Strategy and Technology Officer. She will report to Kenneth Young and will lead the research and development, demonstration and commercial implementation efforts for our mature and emerging technologies.

“We are excited to move Chris, Joe and Brandy into these new roles, which will further enhance our ability to react strongly and quickly to market changes and provide additional focus to not only drive development and implementation of our new technologies, but also as we continue to augment our mature Thermal technologies to support the growing needs of our customers,” said Mr. Young.


Q2 2022 Financial Summary

Consolidated revenues in the second quarter of 2022 were $221.0 million, a 9% improvement compared to the second quarter of 2021, primarily due to higher volume driven by new-build projects and the impact of acquisitions completed in the first quarter of 2022, in addition to a higher level of volume in the Renewable segment and partially offset by a lower level of construction activity in the Thermal segment. The negative impacts on the global economy as a result of the ongoing impact of COVID-19 and the Russia-Ukraine military conflict adversely impacted each of the Company's segments causing shortages of supplies and materials and affecting the timing of revenue on several projects. Net loss in the second quarter of 2022 was $6.3 million, a decrease of $7.7 million compared to net income of $1.4 million in the second quarter of 2021, primarily due to the effects of unfavorable foreign exchange rates and a legal settlement. Loss per share in the second quarter of 2022 was $0.07 compared to earnings per share of $0.02 in the second quarter of 2021.GAAP operating income in the second quarter of 2022 was $3.7 million compared to operating income of $2.8 million in the second quarter of 2021. Adjusted EBITDA was $20.6 million compared to $15.2 million in the second quarter of 2021. Bookings in the second quarter of 2022 were $245 million, a 46% increase compared to second quarter bookings in 2021. Ending backlog was $731 million, a 46% increase compared to backlog at the end of the second quarter of 2021. 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 $75.2 million for the second quarter of 2022, an increase of 96% compared to $38.3 million in the second quarter of 2021. The increase in revenue was
1 The most comparable GAAP financial measure is not available without unreasonable effort.
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primarily driven by higher volume of new-build projects as well as the acquisitions of Fosler Construction and VODA. Adjusted EBITDA in the quarter was $8.9 million compared to $3.4 million in the second quarter of 2021, primarily due to the higher revenue volume of new-build projects, as discussed above in addition to a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold, partially offset by higher levels of shared overhead and SG&A allocated to the segment.

Babcock & Wilcox Environmental segment revenues were $31.6 million in the second quarter of 2022, an increase of 11% compared to $28.4 million in the second quarter of 2021.The increase was primarily driven by an emissions control technologies contract for an industrial facility. Adjusted EBITDA was $0.6 million, compared to $2.7 million in the same period last year, primarily due to the lower volume of parts sales.

Babcock & Wilcox Thermal segment revenues were $116.3 million in the second quarter of 2022, a decrease of 15% compared to $136.3 million in the second quarter of 2021, primarily due to completion of a construction project during Q2 2021, offset partially by new acquisitions. Adjusted EBITDA in the second quarter of 2022 was $16.4 million, an increase of 30% compared to $12.6 million in the second quarter of 2021, primarily due to the mix of products.


Liquidity and Balance Sheet

At June 30, 2022, the Company had total debt of $334.3 million and a cash, cash equivalents and restricted cash balance of $80.2 million.


Impacts of COVID-19 and the Russia-Ukraine Military Conflict

The ongoing COVID-19 pandemic and Russia-Ukraine military conflict has disrupted business operations, including trade, commerce, financial and credit markets, and daily life throughout the world. Our business has been, and continues to be, adversely impacted by the measures taken and restrictions imposed in the countries in which we operate and by local governments and others to control the spread of this virus as well as the negative impact of the Russia-Ukraine military conflict.

The COVID-19 pandemic has also disrupted global supply chains including the manufacturing, supply, distribution, transportation and delivery of the Company's products. The Company has observed significant disruptions of the operations of logistics, service providers, delays in shipments and negative impacts to pricing of certain products. Disruptions and delays in the Company's supply chains as a result of the COVID-19 pandemic could continue to adversely impact the ability to meet customers’ demands. Additionally, the prioritization of shipments of certain products as a result of the pandemic could cause delays in the shipment or delivery of the Company's products. Such disruptions could result in reduced sales.

The impact of the COVID-19 pandemic and the Russia-Ukraine military conflict have caused many of the projects the Company had anticipated would begin during the prior two years to be delayed into 2022 and beyond. For example, customers and projects require B&W's employees to travel to customer and project worksites. Certain customers and significant projects are located in areas where travel restrictions have been imposed, certain customers have closed or reduced on-site activities, and timelines for completion of certain projects have, as noted above, been extended into 2022 and beyond. Additionally, out of concern for the Company's employees, even where restrictions permit employees to return to its offices and worksites, the Company has incurred additional costs to protect its employees as well as advised those who are uncomfortable returning to worksites due to the pandemic that they are not required to do so for an indefinite period of time. The resulting uncertainty concerning, among other things, the spread
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and economic impact of the virus has also caused significant volatility and, at times, illiquidity in global equity and credit markets.

The Russia-Ukraine military conflict has also disrupted the supply of materials that the Company and its customers source from the Ukraine, such as steel. In certain cases, customers have had to delay projects due to supply chain disruption. Such delays have negatively impacted the anticipated start date of projects. Additionally, supply chain disruptions caused by COVID-19 and the Russia-Ukraine military conflict have prompted the Company to seek alternative suppliers and could potentially result in indefinite delays in receiving materials. The full extent of the impact of these ongoing events on the Company’s operational and financial performance is uncertain, out of the Company’s control, and cannot be predicted.


Earnings Call Information

B&W plans to host a conference call and webcast on Monday, August 8, 2022 at 5 p.m. EDT to discuss the Company’s second quarter 2022 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 (844) 200-6205; 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 352537. 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. Additionally, the Company redefined its definition of adjusted EBITDA to eliminate the effects of certain items including the loss from a non-strategic business, interest on letters of credit included in cost of operations and loss on business held for sale. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation, including business transition costs. 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 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 presented 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 our 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.
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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.

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 the 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 COVID-19 and the invasion of Ukraine by Russia on the Company, the capital markets and global economic climate generally; the Company's ability to integrate acquired businesses and the impact of those acquired businesses on the Company's cash flows, results of operations and financial condition, including the Company's acquisitions of Fosler Construction, VODA, FPS and Optimus; the Company’s recognition of any asset impairments as a result of any decline in the value of its assets or efforts to dispose of any assets in the future; the Company’s ability to obtain and maintain sufficient financing to provide liquidity to meet its business objectives, including surety bonds, letters of credit and similar financing; the Company’s 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 the Company’s businesses and ability to win work, including identified project opportunities in the 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; the Company’s 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
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their obligations on time and as specified; the Company’s ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; the Company’s ability to realize anticipated savings and operational benefits from its restructuring plans, and other cost-saving initiatives; the Company’s ability to successfully address productivity and schedule issues in its B&W Renewable, B&W Environmental and B&W Thermal segments; the Company’s ability to successfully partner with third parties to win and execute contracts within its B&W Renewable, B&W Environmental and B&W Thermal segments; changes in the Company’s effective tax rate and tax positions, including any limitation on its ability to use its net operating loss carryforwards and other tax assets; the Company’s ability to successfully manage research and development projects and costs, including its efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to its lines of business, including professional liability, product liability, warranty and other claims against the Company; difficulties the Company may encounter in obtaining regulatory or other necessary permits or approvals; changes in actuarial assumptions and market fluctuations that affect its net pension liabilities and income; the Company’s ability to successfully compete with current and future competitors; the Company’s ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with its retirement benefit programs; social, political, competitive and economic situations in foreign countries where it does business or seeks new business; and the other factors specified and set forth under "Risk Factors" in the Company’s periodic reports filed with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and its quarterly report on Form 10-Q for the quarter ended June 30, 2022.

These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While the Company believes that these assumptions underlying the forward-looking statements are reasonable, the Company cautions that it is very difficult to predict the impact of known factors, and it is impossible for the Company to anticipate all factors that could affect actual results. The forward-looking statements included herein are made only as of the date hereof. The Company undertakes 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 global leader in energy and environmental technologies and services for the power and industrial markets. Follow B&W on LinkedIn and learn more at www.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

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Exhibit 1
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Statements of Operations(1)
(In millions, except per share amounts)
Three Months Ended June 30,Six months ended June 30,
2022202120222021
Revenues$221.0 $202.9 $425.1 $371.1 
Costs and expenses:
Cost of operations173.3 158.8 336.4 290.2 
Selling, general and administrative expenses45.0 33.7 88.0 74.2 
Advisory fees and settlement costs5.1 4.5 9.1 7.8 
Restructuring activities(0.1)2.4 — 3.4 
Research and development costs
1.1 0.6 1.9 1.2 
(Gain) loss on asset disposals, net
(7.1)— (7.1)(2.0)
Total costs and expenses217.4 200.1 428.2 374.8 
Operating income (loss)
3.7 2.8 (3.1)(3.7)
Other (expense) income:
Interest expense(10.7)(8.0)(21.9)(22.2)
Interest income0.1 0.1 0.2 0.3 
Gain (loss) on debt extinguishment— 6.5 — 6.5 
Loss on sale of business
— (2.6)— (2.2)
Benefit plans, net7.4 5.9 14.9 15.0 
Foreign exchange(4.3)1.8 (1.2)0.6 
Other expense – net(0.6)0.1 (0.6)(0.2)
Total other (expense) income
(8.0)3.9 (8.7)(2.2)
(Loss) income before income tax expense
(4.3)6.7 (11.8)(5.9)
Income tax (benefit) expense
(1.4)3.5 (0.1)6.4 
Net (loss) income
(3.0)3.1 (11.7)(12.3)
Net loss (income) attributable to non-controlling interest
0.4 — 0.8 — 
Net (loss) income attributable to stockholders
(2.6)3.1 (10.8)(12.3)
Less: Dividend on Series A preferred stock3.7 1.7 7.4 1.7 
Net (loss) income attributable to stockholders of common stock
$(6.3)$1.4 $(18.3)$(14.1)
Basic (loss) earnings per share
$(0.07)$0.02 $(0.21)$(0.18)
Diluted (loss) earnings per share
$(0.07)$0.02 $(0.21)$(0.18)
Shares used in the computation of earnings (loss) per share:
Basic88.0 85.7 88.0 78.6 
Diluted 88.0 87.0 88.0 78.6 
(1) Figures may not be clerically accurate due to rounding
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Exhibit 2
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Balance Sheets(1)
(In millions, except per share amount)June 30, 2022December 31, 2021
Cash and cash equivalents$71.5 $224.9 
Restricted cash and cash equivalents8.7 1.8 
Accounts receivable – trade, net147.5 132.1 
Accounts receivable – other49.3 34.6 
Contracts in progress111.9 80.2 
Inventories, net99.1 79.5 
Other current assets27.6 29.4 
Total current assets515.6 582.4 
Net property, plant and equipment, and finance lease80.5 85.6 
Goodwill164.8 116.5 
Intangible assets, net63.6 43.8 
Right-of-use assets29.9 30.2 
Other assets59.6 54.8 
Total assets$913.9 $913.3 
Accounts payable$109.5 $85.9 
Accrued employee benefits13.2 13.0 
Advance billings on contracts95.7 68.4 
Accrued warranty expense11.1 12.9 
Financing lease liabilities1.5 2.4 
Operating lease liabilities3.9 4.0 
Other accrued liabilities63.9 54.4 
Loans payable3.8 12.4 
Total current liabilities302.5 253.4 
Senior notes330.0 326.4 
Long term loans payable0.6 1.5 
Pension and other postretirement benefit liabilities166.1 182.7 
Non-current finance lease liabilities28.8 29.4 
Non-current operating lease liabilities26.8 26.7 
Other non-current liabilities27.5 34.6 
Total liabilities882.2 854.6 
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,669 and 7,669 at June 30, 2022 and December 31, 2021, respectively0.1 0.1 
Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 86,392 and 86,286 at June 30, 2022 and December 31, 2021, respectively 5.1 5.1 
Capital in excess of par value1,521.9 1,518.9 
Treasury stock at cost, 1,552 and 1,525 shares at June 30, 2022 and December 31, 2021, respectively(111.2)(110.9)
Accumulated deficit(1,339.4)(1,321.2)
Accumulated other comprehensive loss(69.3)(58.8)
Stockholders' equity attributable to shareholders7.2 33.1 
Non-controlling interest24.5 25.5 
Total stockholders' equity
31.7 58.6 
Total liabilities and stockholders' equity
$913.9 $913.3 
(1) Figures may not be clerically accurate due to rounding.

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Exhibit 3
Babcock & Wilcox Enterprises, Inc.
Condensed Consolidated Statements of Cash Flows(1)
(In millions)Six Months Ended June 30,
20222021
Cash flows from operating activities:
Net loss$(11.7)$(12.3)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of long-lived assets11.9 8.4 
Amortization of deferred financing costs and debt discount2.3 6.5 
Amortization of guaranty fee0.4 0.9 
Non-cash operating lease expense3.9 2.2 
(Gain) loss on sale of business— 2.2 
(Gain) loss on debt extinguishment— (6.5)
Gains on asset disposals(7.0)(2.0)
(Benefit from) provision for deferred income taxes(3.1)2.0 
Prior service cost amortization for pension and postretirement plans0.4 0.4 
Stock-based compensation, net of associated income taxes3.1 5.7 
Foreign exchange 1.2 (0.6)
Changes in assets and liabilities:
Accounts receivable(13.8)(0.6)
Contracts in progress (31.3)(5.0)
Advance billings on contracts24.6 (10.5)
Inventories(13.7)(4.8)
Income taxes(2.0)(2.0)
Accounts payable23.7 10.2 
Accrued and other current liabilities(17.9)(34.7)
Accrued contract loss1.5 (0.3)
Pension liabilities, accrued postretirement benefits and employee benefits(17.5)(40.3)
Other, net(18.6)(5.0)
Net cash used in operating activities(63.6)(86.1)
Cash flows from investing activities:
Purchase of property, plant and equipment(2.7)(2.2)
Acquisition of business, net of cash acquired(64.9)— 
Proceeds from sale of business and assets, net— 7.2 
Purchases of available-for-sale securities(3.2)(6.7)
Sales and maturities of available-for-sale securities5.0 8.3 
Other, net0.2 — 
Net cash (used in) from investing activities(65.6)6.6 
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(In millions)Six Months Ended June 30,
20222021
Cash flows from financing activities:
Issuance of senior notes2.4 138.3 
Borrowings on loan payable1.3 2.6 
Repayments on loan payable(13.4)— 
Repayments under last out term loans— (75.4)
Borrowings under U.S. revolving credit facility— 14.5 
Repayments of U.S. revolving credit facility— (178.8)
Issuance of preferred stock, net— 106.0 
Payment of preferred stock dividends(7.4)(1.7)
Shares of common stock returned to treasury stock(0.2)(3.3)
Issuance of common stock, net— 161.0 
Debt issuance costs— (10.9)
Other, net1.6 (0.9)
Net cash (used in) from financing activities(15.6)151.3 
Effects of exchange rate changes on cash(1.7)4.4 
Net (decrease) increase in cash, cash equivalents and restricted cash(146.5)76.2 
Cash, cash equivalents and restricted cash, beginning of period226.7 67.4 
Cash, cash equivalents and restricted cash, end of period$80.2 $143.6 

(1) Figures may not be clerically accurate due to rounding.
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Exhibit 4
Babcock & Wilcox Enterprises, Inc.
Segment Information(1)
(In millions)
SEGMENT RESULTSThree Months Ended June 30,Six Months Ended June 30,
2022202120222021
REVENUES:
Babcock & Wilcox Renewable$75.2 $38.3 $143.2 $67.2 
Babcock & Wilcox Environmental 31.6 28.4 66.6 59.5 
Babcock & Wilcox Thermal116.3 136.3 218.5 244.6 
Other(2.1)(0.2)(3.2)(0.2)
$221.0 $202.9 $425.1 $371.1 
ADJUSTED EBITDA:
Babcock & Wilcox Renewable (5)
$8.9 $3.4 $10.3 $3.6 
Babcock & Wilcox Environmental0.6 2.7 2.0 3.8 
Babcock & Wilcox Thermal16.4 12.6 30.5 23.1 
Corporate(4.2)(3.0)(8.6)(5.7)
Research and development costs(1.0)(0.5)(1.6)(1.1)
$20.6 $15.2 $32.6 $23.8 
AMORTIZATION EXPENSE:
Babcock & Wilcox Renewable (2)
$0.8 $0.2 $2.9 $0.3 
Babcock & Wilcox Environmental0.7 0.8 1.4 1.6 
Babcock & Wilcox Thermal (3)
1.6 0.9 2.8 1.4 
$3.1 $1.9 $7.1 $3.3 
DEPRECIATION EXPENSE:
Babcock & Wilcox Renewable$0.5 $0.7 $1.1 $1.4 
Babcock & Wilcox Environmental0.2 0.4 0.4 0.9 
Babcock & Wilcox Thermal1.9 1.3 3.3 2.8 
$2.6 $2.4 $4.8 $5.1 
As of June 30,
BACKLOG:20222021
Babcock & Wilcox Renewable (4)
$412 $221 
Babcock & Wilcox Environmental127 117 
Babcock & Wilcox Thermal193 166 
Other/Eliminations(1)(4)
$731 $500 

(1) Figures may not be clerically accurate due to rounding.
(2) Amortization expense in the Babcock & Wilcox Renewable segment includes $0.2 million and $0.4 million in finance lease amortization for the three and six months ended June 30, 2022, respectively. Amortization expense in the Babcock & Wilcox Renewable segment includes $0.2 million and $0.3 million in finance lease amortization for the three and six months ended June 30, 2021, respectively.
(3) Amortization expense in the Babcock & Wilcox Thermal segment includes $0.7 million and $1.5 million in finance lease amortization for the three and six months ended June 30, 2022, respectively. Amortization expense in the Babcock & Wilcox Thermal segment includes $0.9 million and $1.3 million in finance lease amortization for the three and six months ended June 30, 2021, respectively.
(4)    Babcock & Wilcox Renewable backlog at June 30, 2022, includes $129.7 million related to long-term operation and maintenance contracts for renewable energy plants, with remaining durations extending until 2034. Generally, such contracts have a duration of 10-20 years and include options to extend.
(5)    Adjusted EBITDA for the three and six months ended June 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold.
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Exhibit 5
Babcock & Wilcox Enterprises, Inc.
Reconciliation of Adjusted EBITDA(3)
(In millions)

Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net (loss) income$(3.0)$3.1 $(11.7)$(12.3)
Interest expense12.1 8.3 24.4 22.9 
Income tax (benefit) expense(1.4)3.5 (0.1)6.4 
Depreciation & amortization5.7 4.3 11.9 8.4 
EBITDA13.4 19.3 24.5 25.3 
Benefit plans, net(7.4)(5.9)(14.9)(15.0)
(Gain) loss on sales, net(0.1)2.6 (0.1)0.3 
Stock compensation0.5 0.1 1.8 7.9 
Restructuring activities and business services transition costs1.8 2.4 4.4 3.4 
Advisory fees for settlement costs and liquidity planning0.9 2.1 1.9 4.0 
Litigation costs3.9 1.2 6.4 1.5 
Gain on debt extinguishment— (6.5)— (6.5)
Acquisition pursuit and related costs1.4 — 2.2 — 
Product development (1)
1.0 0.3 1.8 0.3 
Foreign exchange4.3 (1.8)1.2 (0.6)
Financial advisory services 0.4 1.3 0.7 2.2 
Contract step-up purchase price adjustment— — 1.7 — 
Loss from business held for sale— — — 0.5 
Other - net0.7 0.3 0.8 0.5 
Adjusted EBITDA(2)
$20.6 $15.2 $32.6 $23.8 

(1) Costs associated with development of commercially viable products that are ready to go to market.
(2)    Adjusted EBITDA for the three and six months ended June 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold.
(3) Figures may not be clerically accurate due to rounding.











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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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 1 Company Overview August 8, 2022


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 2 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 adjusted EBITDA and sales targets, expectations regarding future growth, expansion and profitability, 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 COVID-19 and the ongoing conflict in Ukraine and the capital markets and global economic climate generally; 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 Fosler Construction Company Inc., VODA A/S, Fossil Power Systems, Inc., and Optimus Industries, LLC; 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; 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 Renewable, B&W Environmental 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; 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, 2021 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 under the captions "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 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. Safe Harbor Statement


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 3 After achieving ~$79 million in adjusted EBITDA in the 12 months ended June 30,2022, B&W is targeting1 FY2022 adjusted EBITDA of $110-$120 million. Building Toward the Future Executive Summary B&W’s transformation is gaining momentum, with a pipeline of more than $7.5 billion in identified project opportunities in high-growth markets over the next three years, and recent significant awards including six renewable new-build waste-to-energy projects booked since September 2021. B&W is continuing to reinforce its long history of innovation and growth: • Launched ClimateBright™ decarbonization and hydrogen production technologies platform; currently 93 active patents for carbon capture technology • Seeking sites and partners for commercial demonstration projects for BrightLoop™ platform that converts carbon- based fuels to electricity, hydrogen, syngas, chemicals or liquid fuels • Actively deploying technology that curbs the global warming impact of methane • Expanding manufacturing capabilities for hydrogen, natural gas and renewable pulp & paper combustion equipment • Expanding global parts and services presence • Partnering with Kiewit Industrial to develop and deliver world’s largest net-negative CO2 biomass-to-energy facility • Successfully converting global pipeline of identified project opportunities to bookings; highest backlog since 2018 Babcock & Wilcox provides high-quality, innovative renewable, environmental and thermal technologies and has served critical power generation and industrial applications for more than 150 years. 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 including, without limitation, the impact of COVID-19 on us and the capital markets and global economic climate generally. We undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law. A Leader and Innovator in the World’s Energy Transition Strong Global Brand Positioned for Growth (1) The most comparable GAAP target information is not available without unreasonable effort


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 4 Next Generation B&W The next generation Babcock & Wilcox is providing innovative environmental, renewable and energy transition solutions, generating recurring revenues from a broad thermal installed base and expanding globally Global Brand Equity Supporting a Circular Economy For our economy and future generations, we continually develop ecologically sound ways of utilizing and recycling valuable resources like biomass, municipal waste, and solar energy to create clean, renewable baseload power while reducing greenhouse gas emissions. The Clear Choice for Our Climate As an industry leader in providing advanced air emissions control, energy recovery, carbon capture and hydrogen production technologies, our engineered solutions are designed to reduce the environmental impact of industrial processes. Efficient. Safe. Reliable. From the initial patent for the water-tube safety boiler to the world’s first supercritical boiler to technologies using the latest advanced steam cycles, our robust thermal energy designs deliver availability and long-term operation. B&W FOUNDATION DRIVES GROWTH STRATEGY Research & Innovation Vast Installed Base Advanced Technologies High-Growth End Markets


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 5 Waste-to-energy and biomass-to-energy baseload power, chemical recovery boilers for pulp & paper, long duration energy storage, solar power installation & services Technologies for Renewable Power & Resource Recovery Emissions control, ash handling systems for bottom and fly ash, wet/dry/hybrid cooling systems, energy recovery, ClimateBrightTM hydrogen production and decarbonization technologies Technologies for a Clean Environment Boilers, ancillary equipment and global aftermarket parts, service and upgrade offerings to effectively utilize a wide range of fuels for power or industrial applications Technologies for Efficient Steam Generation Delivering value to our customers through technology-driven products and services, with 600 active patents worldwide; continual product improvement and research and development to support future energy needs, including carbon capture What We Do ENVIRONMENTAL THERMAL RENEWABLE


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 6 B&W is positioned to capitalize on global trends driving the need for environmental and renewable solutions Key Market Drivers & Opportunities Potential for carbon legislation benefits emergent carbon- capture technologies Water scarcity and regulations drive need for custom cooling solutions An aging utility boiler installed base drives stable aftermarket in the U.S. while growth in international power generation continues Increasing global regulatory restrictions on landfilling and methane benefit waste-to-energy Global drive toward renewable and reusable energy sources to limit carbon and methane emissions Increasing investment in clean energy infrastructure and the hydrogen economy


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 7 Key Growth Strategies Core growth strategies focused on driving innovative environmental, renewable and energy transition technologies, growing aftermarket sales by leveraging the installed base, and expanding internationally in key regions Leverage a vast installed base and stable U.S. market to drive aftermarket parts and service sales and generate strong cash flow Provide best-in-class environmental technologies to customers across a broad array of markets to meet growing environmental regulations Meet the global need for carbon reduction with patented renewable waste-to-energy, biomass, hydrogen production, solar and carbon-capture solutions Accelerate growth by expanding sales, service and business development teams in key international regions to serve the broad renewable, environmental and thermal markets


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 8 A vast global installation of B&W’s core technologies at utility and industrial plants, renewable plants and pulp & paper facilities create a large growth opportunity for parts, services and retrofits Installed & Proven Technologies Nearly 2,000 wet, dry and hybrid cooling system units (7,000+ cells) installed across the globe More than 300 operating baseload power generation boilers in the U.S. and nearly 200 operating utility and industrial boiler units across 38 countries outside of North America (excluding waste- to-energy and biomass) More than 500 waste-to-energy and biomass-to-energy units at more than 300 facilities in more than 30 countries, serving a wide range of utility, waste management, municipality and investment firm customers More than 5,000 industrial water-tube package boilers and other waste heat recovery products installed in a variety of facilities, including refining, petrochemical, food processing, metals and mining, carbon black and wood products Large worldwide installed base of wet and dry scrubbers, particulate control equipment, NOx reduction technologies, and mercury control systems to meet environmental regulations at a wide range of utility and industrial installations More than 100 MW of clean solar power production installed


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 9 Company Profile Babcock & Wilcox is a global leader in advanced environmental, renewable and thermal technologies and services for power and industrial applications. B&W Renewable Power Generation 68% Industrial 32% Aftermarket & Upgrades 14% Parts & Services 51% North America 45% Europe 45% Asia & Other 10% New Build 35% Industrial 35% Power Generation 65% Aftermarket & Upgrades 33% Parts & Services 45% North America 63% Europe 19% New Build 22% Asia & Other 18% Headquarters: Akron OH, USA Founded: 1867 Ownership: Public (NYSE: BW) LTM Revenue June 2022: ~$777M Employees: ~2,115 Corporate Snapshot Notes: All charts based on LTM June 30, 2022 revenues, unless otherwise noted. 1. Backlog does not include shorter lead-time parts and services Consolidated B&W Thermal Industrial 36% Power Generation 64% Aftermarket & Upgrades 45% Parts & Services 43% North America 80% Europe 2% Asia & Other 18% New Build 12% B&W Environmental Industrial 38% Power Generation 62% Aftermarket & Upgrades 31% Parts & Services 40% North America 41% Europe 27% New Build 29% Asia & Other 32% 30% 18% 52% LTM Revenue Backlog1 as of June 30, 2022 56% 17% 27% B&W Renewable B&W Environmental B&W Thermal


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 10 55-65% 10-15% 20-30% Global Expansion Europe More than $8B 2022-2024 Addressable Market Americas Solar: More than $27B Other: More than $8B 2022-2024 Addressable Market Middle East & Africa More than $4B 2022-2024 Addressable Market Asia-Pacific More than $8B 2022-2024 Addressable Market Manufacturing Service Facilities Construction Sales/Support Future Sales/Support Sales Reps Future Sales Reps Future Service Facilities Americas APAC Europe ME/A $266 $60 $428 $90 $ M IL LI O N S Americas APAC Europe ME/A $1,904 $1,475 $1,121 $345$ M IL LI O N S Americas APAC Europe ME/A $977 $102 $4 $917 $ M IL LI O N S B&W RENEWABLE B&W ENVIRONMENTAL B&W THERMAL 3- Ye ar P ip el in e Global footprint and ongoing expansion positions B&W to leverage market trends around the world 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 including, without limitation, the impact of COVID-19 on us and the capital markets and global economic climate generally. We undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law. Total pipeline more than $7.5 billion over the next 3 years excluding parts & services Target Revenue Split 2023


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 11 B&W’s ClimateBrightTM Decarbonization Technologies are Ready B&W has successfully tested three carbon capture technologies applicable to a wide range of fuels and processes  Jointly developed with The Ohio State University  Can simultaneously produce hydrogen  Pilot testing complete on both syngas and coal at 250 kWth input  Pilot testing complete  Post-combustion amine-based solvent process  First solvent demonstrated at National Carbon Capture Center (NCCC) Southern Company’s Plant Gaston  Reference plant design ready  Testing complete at 30 MWth  168 MWe full-scale design ready  B&W is at the forefront of developing CO2 capturing technologies, and has 93 active patents related to carbon capture technology  Positioned to provide critical solutions to meet global climate goals, with multiple technologies ready for commercial demonstration OxyBright OXYGEN-FUEL COMBUSTION ™BrightLoop CHEMICAL LOOPING ™ DECARBONIZATION TECHNOLOGIES SolveBright POST-COMBUSTION CARBON CAPTURE ™ FUELS: Coal, pet coke, natural gas and any syngas ClimateBrightTM BrightGen HYDROGEN COMBUSTION ™  Commercially ready and currently in operation  A combustion technology that produces no CO2  Can be retrofitted to fire hydrogen FUELS: Natural gas and solid fuels (biomass, coal) FUELS: Any combustion, gasification and industrial process that produces a flue gas stream with CO2 FUELS: Hydrogen, alone or in combination with natural gas, oil, or other gaseous fuelsREADY FOR COMMERCIAL DEMONSTRATION


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 12 Carbon Capture Technology for the 1000 GW of Global Coal Installed Base OxyBright™ oxygen-fuel combustion  Oxy-coal combustion technology  “Near-zero” emissions  30 MW demonstration complete  Full-scale design ready SolveBright™ post-combustion carbon capture  Post-combustion technology  Patented amine-based solvent process  Pilot commissioning complete  Installed base retrofit application Key Technologies: Carbon Capture Solutions Ready for Deployment


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 13 Key Technologies: BrightLoop™ Chemical Looping Combustion Platform  Advanced process for clean power generation and CO2 capture  A flameless, oxy-combustion process using oxidation-reduction reactions to process fuel and produce energy for power generation  Produces a concentrated CO2 stream that can be captured, cleaned and compressed for use or permanent storage  Lower cost, higher efficiency  Working in collaboration with The Ohio State University Potential extension beyond power generation Process can be modified to convert carbon-based fuels—coal, biomass and natural gas—to electricity, syngas, chemicals, liquid fuels or hydrogen


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 14 BrightLoop Scale-Up Plan Sub-Pilot 25 kWth Pilot Scale 250 kWth Laboratory 2.5 kWth Commercial Demo 15 TPD H2/25 MWth Large-Scale Commercial 200 TPD H2/250 MWth COMPLETED Critical Dimension Scale up Factor: x1 Critical Dimension Scale up Factor: x4 Critical Dimension Scale up Factor: x21 Critical Dimension Scale-up Factor: x18 Critical Dimension Scale-up Factor: x1 Reducer Reactor Critical Dimension: 1.5 in. Reducer Reactor Gas Distribution Distance: 3 in. Reducer Reactor Gas Distribution Distance: 14 in Reducer Reactor Gas Distribution Distance: 10 ft Reducer Reactor Gas Distribution Distance: 32 ft x10 x10 >x10>x100 Area = 2.25 in2 Area = 9 in2 Area = 196 in2 Area = 3,600 in2 Area = 3,600 in2 TARGET OPERATION END OF 2023 TARGET COMPLETION END OF 2025


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 15 B&W is actively deploying technology that curbs the global warming impact of methane B&W’s Waste-to-Energy Technology Reduces Methane Emissions  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 in the world (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 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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 16 Financial Information


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 17 ($ in Millions) Twelve Months Ended June 30, 2022 Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Reported Pro Forma Exc. Non-Recurring Insurance Revenue $ 777.4 $ 723.4 $ 566.3 $ 566.3 Operating Income (Loss) $ 21.4 $ 20.8 $ (1.7) $ (27.7) Net Income (loss) $ 32.1 $ 31.5 $ (10.3) $ (36.3) Net income (loss) attributable to stockholders of common stock $ 20.1 $ 21.8 $ (10.3) $ (36.3) Adjusted EBITDA $ 79.4 $ 70.6 $ 45.7 $ 19.7 Adjusted EBITDA Margin % 10.2% 9.8% 8.1% 3.5% Building on milestone results from 2021, and positioning for an outstanding 2022 Consolidated Financial Summary Note: 2020 Reported results include the recognition in Q3 2020 of a $26.0 million non-recurring loss recovery settlement related to certain historical EPC loss contracts; 2020 Pro Forma results exclude the non-recurring $26.0 million loss recovery settlement; figures may not be clerically accurate due to rounding; see SEC financial filings and/or slides in Appendix for reconciliation of non-GAAP measures; COVID-19 adversely impacted all segments in 2020 and 2021.


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 18 Capital Structure Note: Figures may not be clerically accurate due to rounding. (1) See SEC financial filings and/or slides in Appendix for reconciliation of non-GAAP measures. (2) Net Debt compared to LTM 6/30/2022 Adjusted EBITDA


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 19 Appendix


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 20 Leadership Team Chairman and Chief Executive Officer Kenny Young General Counsel John Dziewisz Chief Operating Officer Jimmy Morgan Chief Financial Officer Lou Salamone Chief People Officer Jacqueline Opal Clean Energy, SVP Joe Buckler Chief Strategy and Technology Officer Brandy Johnson Megan Wilson Strategic Advisor Chris Riker Thermal, SVP


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 21 Joseph Tato Philip MoellerAlan Howe Rebecca Stahl Corporate Governance Board of Directors Advisory Board Chairman and Chief Executive Officer Kenny Young Henry Bartoli Rod O’Connor Phillip Piddington Peter O’Keefe Eric Powell Homaira Akbari


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 22 Twelve Months Ended Twelve Months ended June 30, 2022 (4) Dec 31, 2021 Dec 31, 2020 (3) Net income (loss) $ 32.2 $31.5 $ (10.3) Interest expense 42.9 41.4 60.7 Income tax (benefit) expense (8.7) (2.2) 8.2 Depreciation & amortization 21.9 18.3 16.8 EBITDA 88.2 89.0 75.4 Benefit plans, net (48.0) (48.1) (5.6) Gain on sales, net (14.4) (14.0) (3.2) (Gain) loss on debt extinguishment — (6.5) 6.2 Stock compensation 4.4 10.5 4.6 Restructuring activities and business services transition costs 11.8 10.7 11.8 Advisory fees for settlement costs and liquidity planning 3.4 5.5 6.4 Litigation legal costs 9.8 4.9 2.1 Acquisition pursuit and related costs 7.0 4.8 — Product development (2) 6.3 4.7 — Foreign exchange 6.1 4.3 (58.8) Financial advisory services 1.2 2.7 4.4 Contract step-up purchase price adjustment 1.7 — — Loss from business held for sale — 0.5 0.5 Other – net 1.9 1.6 3.7 Income from discontinued operations — — (1.8) Adjusted EBITDA $79.4 $70.6 $45.7 Adjusted EBITDA Reconciliation(1) $ in Millions 1) 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, 2020, include the recognition of a $26.0 million loss recovery settlement related to certain historical EPC loss contracts in the third quarter, as previously disclosed. Adjusted EBITDA for the twelve months ended June 30, 2022 include a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold.


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 23 Key Technologies


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 24 Reduces dependency on landfills and reduces methane gas emissions Fuels: MSW, RDF Waste-to-Energy Boilers Single-drum, industry-standard unit for improved mill operation Fuels: Black liquor Process Recovery Boilers High pressure, high efficiency, high capacity, low emissions Fuel: Coal, oil, natural gas, multi-fuel Utility Boilers Bottom- or top-supported, shop- or field-assembled Fuel: Natural gas, oil, CO, waste heat and gases Natural Gas-Fired and Other Industrial Water-Tube and Fire-Tube Boilers Carbon-neutral technology Fuels: Wood, wood waste, straw, sludge Biomass-Fired Boilers Key Technologies: Steam Generation Pressure parts, casing, ducting, drums, housing and frames Fuel: Waste heat and gases Heat Recovery Steam Generator Components


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 25  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 A Market Leader with Differentiating Technology in Waste-to-Energy Solutions DynaGrate® Pivoting Combustion Grate Key Technologies: Renewable Combustion Grates


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 26 Emission 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  Dry Sorbent Injection (DSI) SO2 / Acid Gas Control  Wet ESPs  Dry Sorbent Injection (DSI)SO3 / Acid Mist Control  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 CondensersWastewater Elimination Key Technologies: Emissions Controls


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 27 Key Technologies: Steam Generation & Environmental Solutions Across a Utility Plant Steam Generator Technology  Pulverizers  Furnace  Burners and ignitors  Sootblowers  Pressure parts  Air heaters and air heating cleaning systems  Bottom ash handling systems B&W provides a comprehensive array of proprietary technology and experience to utility power generation customers Environmental Solutions  Particulate control  Nitrogen oxides (NOx) removal  Sulfur removal  Mercury, dioxin and furan removal  Fly ash handling systems  Wastewater elimination Dry Scrubbing Technologies Particulate Control Technologies Particulate Control Technologies Fly Ash Handling Wet Scrubbing Technologies Fly Ash Handling Bottom Ash Handling Boiler Auxiliary Components: Fans, Air Heaters, etc. Boiler Pressure Parts Boiler Cleaning Equipment Burners Pulverizers SCR NOx Control Technologies


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 28 Field Services Component & System Upgrades Control Systems Replacement & Spare Parts Operation & Maintenance 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 Cooling towers Battery storage systems Carbon capture solutions Key Technologies: Comprehensive Waste-to-Energy Solutions


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 29 An innovative solution to eliminate ash ponds Key Technologies: Submerged Grind Conveyor Ash Handling Designed to meet current and future U.S. regulatory requirements for ash handling with:  Lower equipment cost  Lower installation cost • Utilize existing hoppers and gate valves • No modification to hopper  Short outage required  Short lead time  Available redundancy under the boiler  Lower O&M costs


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 30 Proven technologies with installations in more than 70 countries, including more than 11,000 ignitors Key Technologies: Ignitors, Flame Scanners and Controls Designed for safety, reliability and fuel flexibility  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  New construction or retrofit projects  Safety standards conforming to National Fire Protection Association (NFPA) classes


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 31 Proven experience in heat transfer and steam generating equipment for use in a wide range of applications. Key Technologies: Engineered Products and HRSG Components Engineered products and solutions, quality manufacturing  Comprehensive mechanical and process design upgrades  Chanute, Kansas, manufacturing facility has produced more HRSG components than any other facility in North America • Pressure part modules and coils, superheaters, economizers • Finned tubing • Casing • Ducting • Steam drums • Housing and frames  Firetube and watertube package boilers  Sulfuric acid plant capabilities


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 32 Benefits of a solar addition: 1. Powering up/down operations 2. Supplemental/plant energy source 3. Additional MW/GW output Key Technologies: Solar Installation High efficiency. Low emissions. Integrated solutions for clean power production.  Engineering & Procurement • Project Cost Analysis • Grid Integration and Interconnection • Technical Evaluation • AC and DC Engineering Industry-leading EPC Services  Construction • Subcontractor Management • On-Site Construction Management • Coordination and Supervision of Projects • Utility Interconnections • Quality and Commissioning Control • Electrical and Structural QA/QC • Permitting and AHJ Permissions • Logistics • Strategic Procurement of Structural Components and Electrical BOE


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 33 Key Technologies: Long Duration Energy Storage Long duration energy storage smooths renewable energy peaks and bridges weather events NREL Enduring: (8-100 hours storage)  Electric heater (stores heat in sand)  Air Brayton Combined Cycle  B&W offers Pressurized or Atmospheric Fluidized Bed technology for long duration energy storage  B&W also has an exclusive option to license NREL’s Enduring long duration energy storage technology


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 34 Specialized services to maximize plant performance and minimize costs and maintenance Optimization Services Water preservation technology customized for high-performance, long-life, low noise, corrosion-resistant applications Air-Cooled Condensers Cost-effective designs using embedded or wrapped tubes to meet required thermal, mechanical, noise and space requirements Air Fin Coolers Counterflow for cost-effective thermal performance; crossflow for low energy consumption and operating costs Mechanical Draft Fanless design provides low power, noise and maintenance, as well as long operating lifecycle Natural Draft/Hyperbolic WET MATERIAL OPTIONS: WOOD | CONCRETE | FIBER-REINFORCED POLYMER (FRP) Key Technologies: Cooling Systems DRY


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 35 Key Technologies: Global Parts & Service Upgrades & Retrofits Replacement Parts Optimization Systems Engineering Services Adding value through constructability: Safe execution of new installation, retrofits, system maintenance/repair, plant modifications Construction Evaluating options for improved performance: Expert people, tools and processes to measure, model, design, deliver, train and project manage Enhancing efficiency with proven technology: Diagnostic, monitoring, tuning and control systems for combustion, cleaning and cooling equipment Supplying components for system reliability: High-quality standard or custom-engineered pressure and non-pressure parts Maintaining/improving plant operation: Projects for extending the life of power, process and environmental equipment


 
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 .© 2022 Babcock & Wilcox Enterprises, Inc. All rights reserved. 36


 


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