Babcock & Wilcox Enterprises Q2 2025 Earnings Call Highlights: Strong Backlog Growth, Strategic Moves, and Future Prospects Boosted

Babcock & Wilcox Enterprises reported a 31% increase in revenues from its parts and services business in Q2 2025, driven by rising demand for power and electricity. The company completed the sale of Diamond Power International for $177 million, improving its balance sheet and net leverage ratios. However, consolidated revenues for the quarter were $144.1 million, slightly lower compared to Q2 2024. The company has a backlog of $418.1 million, a 49% increase compared to the same period in 2024.

Babcock & Wilcox Enterprises, Inc. (NYSE: BW) has reported its second-quarter 2025 financial results, showcasing a mixed performance with notable improvements in certain areas. The company reported a 31% increase in revenues from its Global Parts & Services business, driven primarily by rising demand for power and electricity, especially from artificial intelligence and data centers. This increase was reflected in the company's adjusted EBITDA, which was 76% greater than street expectations, totaling $21.6 million.

Despite the strong performance in the parts and services segment, consolidated revenues for the quarter were $144.1 million, slightly lower compared to the $151.4 million reported in the same period last year. This decrease was primarily driven by the timing of closing and starting of a select few large projects. The company also reported a net loss from continuing operations of $6.1 million, compared to a net loss of $20.1 million in the second quarter of 2024, indicating a significant improvement in operating income.

Babcock & Wilcox Enterprises also completed the sale of Diamond Power International for $177 million in gross proceeds, which further improved its balance sheet and net leverage ratios. The sale was approximately eight times the adjusted EBITDA of Diamond Power International for the second quarter of 2025.

The company's continuing operations backlog increased to $418.1 million in the second quarter of 2025, a 49% increase compared to the same period in 2024. This backlog is expected to benefit from increasing demand across Thermal projects, upgrades, and construction, driven by higher baseload generation demand in North America.

Overall, while the company's financial performance in the second quarter of 2025 was mixed, the improvements in the parts and services business and the sale of Diamond Power International indicate a positive outlook for the company's future growth. The company's strategic focus on decarbonization technologies and its ability to capitalize on the growing demand for base-load generation position it well for sustained success.

References:
[1] https://www.babcock.com/home/about/corporate/news/babcock-and-wilcox-enterprises-reports-second-quarter-2025-results