Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET

Company Participants

Sharyn Brooks - Director of Communications

Kenny Young - Chairman & Chief Executive Officer

Lou Salamone - Chief Financial Officer

Conference Call Participants

Aaron Spychalla - Craig-Hallum

Rob Brown - Lake Street Capital Markets

Brent Thielman - D.A. Davidson

Alex Rygiel - B. Riley Securities

Operator

Hello, all, and a warm welcome to Babcock & Wilcox Second Quarter 2023 Earnings Conference Call. My name is Louisa, and I’ll be your moderator for today. [Operator Instructions] I now have the pleasure of turning over to your host today, Sharyn Brooks. Sharon, please go ahead when you’re ready.

Sharyn Brooks

Thank you, Louisa, and thanks everyone for joining us on Babcock & Wilcox Enterprises second quarter 2023 earnings conference call. I’m Sharyn Brooks, Director of Communications. Joining the call today are Kenny Young, B&W’s Chairman and Chief Executive Officer; and Lou Salamone, Chief Financial Officer, to discuss our second quarter results.

During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our safe harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Form 10-Q that was filed today and our Form 10-K that is on file with the SEC and provide further detail about the risks related to our business.

Additionally, except as required by law, we undertake no obligation to update any forward-looking statements. We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our second quarter earnings release published this afternoon and in our company overview presentation that was filed on Form 8-K this afternoon and posted on the Investor Relations section of our website at babcock.com.

I will now turn the call over to Kenny.

Kenny Young

Thanks, Sharyn. And thanks everyone for joining us this afternoon. Well, as mentioned in our earnings release, we exceeded our company expectations in revenues and adjusted EBITDA for the second quarter of 2023, demonstrating the continued momentum we've experienced across all business segments.

Revenues across all segments posted a second consecutive quarter of double-digit revenue expansion on a year-over-year basis with renewable, environmental and thermal increasing by 31% and 54% and 36%, respectively. In tandem, we recognized an underlying improvement in revenue adjusted EBITDA and net loss on a year-over-year basis, despite increased spending in support of our emerging and new technologies in our renewable energy segment. These investments include sales, marketing, engineering, research and development and back office services and are all important to support future growth from our clean energy segments. We are seeing our pipeline increasing to $9 billion of new projects over the next three years, which again, does not include our continued strong parts and services platform. In fact, we are seeing more than $1 billion in Bright Lube opportunities alone, and we'll be sharing more about that later in this call.