Babcock & Wilcox Enterprises, Inc. reported a decline in revenues for the third quarter and first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, revenues were $209.9 million, down from $239.4 million in 2023. For the nine months, revenues decreased to $651.1 million from $772.2 million. The revenue drop was attributed to a $48.1 million decrease in the B&W Thermal segment due to the completion of a large project, a $46.5 million decline in the B&W Renewable segment from fewer waste-to-energy projects, and a $35.3 million decrease related to the sale of Babcock & Wilcox Renewable Service (BWRS).

Despite the revenue decline, the company reported an operating income of $45.1 million for the nine months ended September 30, 2024, an increase of $25.8 million from the previous year, primarily due to a $40.2 million gain on the sale of BWRS. The net loss for the three months was $5.3 million, significantly improved from a net loss of $116.8 million in the same period of 2023. For the nine months, the company achieved a net income of $3.2 million, compared to a net loss of $134.2 million in 2023.

Babcock & Wilcox has undertaken several strategic initiatives to enhance liquidity and reduce costs. The company plans to cut annual cash spending by approximately $25 million by suspending the Preferred Stock dividend and delaying new product development. Significant asset sales included the sale of BWRS for $83.5 million and the sale of SPIG and GMAB for $33.7 million, which are expected to bolster cash reserves. As of September 30, 2024, total cash and cash equivalents, along with restricted cash, amounted to $127.9 million, up from $71.4 million at the end of 2023.

The company has also initiated a company-wide cost savings plan targeting annual savings of $31.5 million, with $26.5 million already achieved. Additionally, Babcock & Wilcox has negotiated a settlement of a liability related to B&W Solar, resulting in future cash savings of $7.2 million, and received a $6.8 million insurance recovery related to the acquisition of B&W Solar.

As of September 30, 2024, total liabilities stood at $1.008 billion, with stockholders' deficit attributable to shareholders at $(203.7 million). The company continues to face liquidity concerns, projecting insufficient liquidity to fund operations for one year following the report's issuance.