Babcock & Wilcox Enterprises, Inc.

Long-history energy/boiler technology firm with thin operating margins but negative net income and refinancing overhang.

Strengths

• Positive operating margin (3.5%, ~55th pct) and large installed-base aftermarket franchise
• 160-year brand with diversified utility/industrial and emerging data-center demand

Risks

• Negative net margin (-6%), negative FCF (-$85.7M, ~10th pct) and short cash runway (~4.5 quarters)
• Must refinance 2026 senior notes; identified material weaknesses and prior going-concern history

Notable findings

• Going concern• In the past, we have identified conditions and events that raised substantial doubt about our ability to continue as a going concern and it is possible that we may identify conditions and events in
• Net lossNet loss (net margin -6.2%)
• Cash burnNegative free cash flow (-85.7M)
• Material weakness• Our business could be harmed if we fail to maintain effective internal control over financial reporting, and we have identified certain material weaknesses as of December 31, 2024 and December 31, 2
• Exec changeRecent 8-K item 5.02 8-K ↗
• Chronic dilutionShare count +30%/yr over 4y (dilution, book value/share -240%)
• Insider buyingInsider buying — 2 open-market buy(s) by 2 insider(s) (cluster of 2 insiders, ~$124,982, last 6mo) Form 4 ↗
• Insider sellingInsider selling — 1 open-market sale(s) by 1 insider(s) (~$10M, last 6mo) Form 4 ↗
• China exposure• Our business may be affected by sanctions and export controls targeting Russia and other responses to Russia's invasion of Ukraine; • We could be adversely affected by violations of the United Sta