Babcock & Wilcox Q2 2025 Earnings Call Highlights: Strong Backlog, Increased Parts and Services Revenue, and Improved Adjusted EBITDA

Babcock & Wilcox Enterprises reported Q2 2025 revenues of $170.8 million, with a 31% increase in parts and services revenue. Adjusted EBITDA was $21.6 million, a 90% increase from Q2 2024. Backlog increased by 49% to $418.1 million. However, net loss from continuing operations was $6.1 million, and total debt stood at $471.3 million. The company completed the sale of Diamond Power International for $177 million, improving its balance sheet and net leverage ratios.

Babcock & Wilcox Enterprises, Inc. (NYSE: BW) reported mixed financial results for the second quarter of 2025, with a notable increase in Global Parts & Services revenues and a significant improvement in adjusted EBITDA. The company's Q2 2025 revenues totaled $170.8 million, representing a 31% increase compared to the same period in 2024. This growth was primarily driven by a 31% increase in Global Parts & Services revenues, reaching $64.8 million, up from $49.3 million in the second quarter of 2024 [1].

Adjusted EBITDA for the quarter was $21.6 million, a substantial 90% increase from the adjusted EBITDA of $12.3 million reported in the second quarter of 2024. This improvement was largely attributed to the increased demand for baseload generation and services from artificial intelligence, data centers, and expanding economies [1].

Despite the positive financial performance, Babcock & Wilcox reported a net loss from continuing operations of $6.1 million for the second quarter of 2025, compared to a net loss of $20.1 million in the same period last year. The company's continuing operations backlog increased by 49% to $418.1 million, reflecting strong demand for its services and technologies [1].

The company also completed the sale of Diamond Power International for $177 million in gross proceeds, which is approximately eight times the adjusted EBITDA of the business in Q2 2025. This sale improved the company's balance sheet and net leverage ratios, with total debt standing at $471.3 million as of June 30, 2025 [1].

Kenneth Young, Chairman and Chief Executive Officer of Babcock & Wilcox, stated, "The increasing need for power and electricity fueled by demand from artificial intelligence, data centers, and expanding economies are key drivers for growth across our broad range of technologies. Our utility and industrial clients are continuing to increase capacity utilizing our core technologies, driving increased revenues for our base business while they continue to evaluate opportunities to further augment their power generation capacity with biomass, hydrogen, and natural gas."

Looking ahead, the company expects to continue capitalizing on the growing demand for baseload generation and to maintain strong margins and cash flows. Babcock & Wilcox remains focused on its strategic vision and continues to explore the sale of non-strategic assets and potential refinancing options to further reduce its debt obligations [1].

References:

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