Babcock & Wilcox Enterprises, Inc. Q4 FY2025 earnings call

Over the past year, Babcock & Wilcox saw growth due to higher electrical generation demand. 2026 adjusted EBITDA target range increased to 80 - 100 million. Core business excluding data centers grew with parts and services having elevated demand from baseload generation. Agreement with Base Electron is valued at 2.4 billion for 1.2 gigawatts of electricity. 2025 continuing operations operating income improved to 20.7 million from a loss in 2024. Net debt reduced to 119.7 million in 2025 from 337 million in 2024. Bright Loop advancements in Massillon and Wyoming, using chemical looping to convert fuels and capture CO2.

In 2025, core business excluding data centers saw growth. Parts and services revenues grew by over 17%. Consolidated revenues in 2025 were 587.7 million, slightly up from 581 million in 2024. Core parts and services revenues increased 17% in 2025. Operating income in 2025 was 20.7 million, an improvement from an operating loss of 6.3 million in 2024. Adjusted EBITDA from continuing operations in 2025 was 43.7 million, compared to 21.2 million in 2024.

Babcock & Wilcox increased 2026 adjusted EBITDA target range to between 80 and 100 million. 2025 continuing operations adjusted EBITDA was 43.7 million, compared to 21.2 million in 2024.

Q: First on the base electron project, talk about dynamics versus limited notice and timeline details.

A: From limited notice to proceed last November to final notice to proceed, with variability in scope and dollar amounts. Site visits underway, manufacturing processes ongoing. Some work to begin this year, bulk in 2027 - 2028.

Q: On guidance increase, visibility and cadence.

A: Contribution from power project is variable until costs to site are known. General parts services and upgrades also contribute to increase.

Q: Update on coal to gas project and pipeline.

A: On schedule, with other conversion projects in discussion due to factors like natural gas prices and utilities extending coal power generation.

Q: Pipeline sizing and timeline of other AI data center projects.

A: Base Electron interested in additional 1.2 gigawatt project, discussions with other projects in one to two gigawatt range.

Q: Catalyst of APLD project and market reaction.

A: Announcement brought significant inbound interest from hyperscalers, utilities, etc.

Q: Bifurcation of guide increase between core business and project.

A: Difficult to bifurcate in detail currently due to potential movement based on project details.