AKRON, Ohio - Babcock & Wilcox Enterprises, Inc. (NYSE: BW), a global leader in energy and environmental technologies and services for the power and industrial markets, announced its financial results for the fourth quarter of 2023.
The company reported a fourth-quarter loss per share of -$0.22, which was notably below the analyst consensus estimate of -$0.06. Revenue for the quarter was $227.2 million, also falling short of the consensus estimate of $256.28 million.
The company's revenues from continuing operations increased by 18% YoY, driven by double-digit growth across all business segments. Despite this annual growth, the fourth quarter saw a decline in revenues compared to the same quarter last year, primarily due to the completion of several lower-margin renewable projects.
Babcock & Wilcox's net loss for the quarter stood at $54.3 million, which included non-cash items of $38.0 million, mainly related to pension mark-to-market adjustments. This compares to a net income of $2.5 million in the fourth quarter of 2022, which included a mark-to-market gain of $7.7 million. Adjusted EBITDA for the quarter was $19.5 million, a decrease from $21.0 million in the fourth quarter of 2022.
Kenneth Young, B&W's Chairman and Chief Executive Officer, commented on the results, "Our full year results displayed continued year-over-year improvement in Adjusted EBITDA which was in line with our 2023 Adjusted EBITDA target range, excluding BrightLoop™ and ClimateBright™ expenses.
We continue to make progress in converting our $9.0 billion global pipeline of identified project opportunities to bookings, as shown in the consolidated top-line improvement when compared to last year."
For the full year 2023, the company reported revenues of $999.4 million, an 18% improvement compared to 2022. The net loss for the year was $78.6 million, which included non-cash items of $38.0 million, primarily related to pension mark-to-market adjustments. Adjusted EBITDA for the year was $79.1 million, up from $67.5 million in 2022.
The company reiterated its full-year 2024 Adjusted EBITDA target of $100.0 million to $110.0 million, excluding BrightLoop™ and ClimateBright™ expenses. Babcock & Wilcox also highlighted the completion of a new $150 million Senior Secured Credit Facility and reaffirmed its credit rating of BB+.
As the company looks ahead, Young expressed confidence in the potential for strong performance in 2024, with particular growth expected in the Thermal and Environmental segments, and continued development of the company's decarbonization and hydrogen generation platforms.
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