Babcock & Wilcox Q4 revenue beats expectations on parts & services strength

Reuters03-04
Babcock & Wilcox Q4 revenue beats expectations on parts & services strength

Overview

  • Energy services firm's Q4 revenue beats analyst expectations

  • Adjusted EBITDA from cont ops for Q4 increased 53% yr/yr, driven by strategic advancements

  • Company signed $2.4 bln AI data center project

Outlook

  • Company sees strong demand for AI data center power solutions

  • Babcock & Wilcox's global pipeline exceeds $12 bln in project opportunities, driven by power demand

  • Company expects continued growth in coal power generation demand

Result Drivers

  • COAL GENERATION USAGE - Increased coal generation usage and higher baseload demand in North America boosted parts & services revenues by 17%

  • DEBT REDUCTION - Company significantly reduced debt, resulting in net debt of $119.7 mln

Company press release: ID:nBw1hBfSsa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$161 mln

$155.60 mln (4 Analysts)

Q4 EPS from cont ops

-$0.05

Q4 Net Income

$9.20 mln

Q4 Operating Income

$12.20 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the heavy electrical equipment peer group is "buy"

  • Wall Street's median 12-month price target for Babcock & Wilcox Enterprises Inc is $9.50, about 17.3% above its March 3 closing price of $8.10

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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