Babcock & Wilcox Reports 10.5% Revenue Increase in Q1 2025 Amid Net Loss

Babcock & Wilcox Enterprises, Inc. reported a revenue increase of 10.5% for the first quarter of 2025, reaching $181.2 million compared to $164.3 million in the same period last year. The company’s operating income rose slightly to $5.9 million from $5.7 million, despite a net loss of $22.0 million, which was higher than the $16.8 million loss reported in the prior year. The loss was attributed to a combination of increased operational costs and a significant impairment charge of $8.8 million related to long-lived assets.

The company experienced notable changes in its operational performance, particularly in its B&W Thermal segment, which saw revenues increase by 25% to $138.2 million, driven by a large natural gas project and higher construction volumes. Conversely, the B&W Environmental segment faced a 46% decline in revenue, dropping to $14.4 million, primarily due to the completion of larger projects in 2024 that were not replaced in the current quarter. The B&W Renewable segment reported a modest revenue increase of 4% to $28.5 million, reflecting growth in the pulp and paper business.

Strategically, Babcock & Wilcox has been divesting non-core assets to improve liquidity and reduce debt. The company sold its Vølund business for $20.1 million in April 2025 and has been actively negotiating with senior noteholders to extend the maturity of its debt. As of March 31, 2025, the company had a total debt of $473.6 million, raising concerns about its ability to continue as a going concern. The company is also exploring additional financing options, including the potential suspension of dividends on preferred stock and further equity offerings.

Operationally, Babcock & Wilcox reported a total backlog of $526.8 million as of March 31, 2025, a significant increase from $359.1 million a year earlier. This backlog is expected to contribute to future revenues, with approximately 64% anticipated to be recognized in 2025. The company’s workforce has also expanded, with an increase in employee headcount to support its ongoing projects and strategic initiatives.

Looking ahead, Babcock & Wilcox remains focused on addressing its liquidity challenges while continuing to execute its growth strategy through targeted acquisitions and divestitures. The company is actively working to enhance its operational efficiency and financial stability, although it acknowledges the uncertainties posed by market conditions and the need for additional financing to meet its obligations.