Q1 2026 Babcock & Wilcox Enterprises Inc Earnings Call

May 11, 2026

Ellen: Good afternoon. Thank you for attending the Babcock & Wilcox Enterprises First Quarter 2026 Conference Call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to turn the conference over to your host, Sharyn Brooks, B&W's Director of Communications. Thank you. You may proceed, Ms. Brooks.

Operator: Good afternoon. Thank you for attending the Babcock & Wilcox Enterprises Q1 2026 Conference Call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to turn the conference over to your host, Sharyn Brooks, B&W's Director of Communications. Thank you. You may proceed, Ms. Brooks.

Speaker #4: I would now like to turn the conference over to your host, Sharyn Brooks, B&W's Director of Communications. Thank you. You may proceed, Ms. Brooks.

Speaker #2: Thank you, Ellen. And thanks to everyone for joining us on Babcock & Wilcox Enterprises' first quarter 2026 earnings conference call. I'm Sharyn Brooks, Director of Communications.

Sharyn Brooks: Thank you, Ellen, and thanks to everyone for joining us on Babcock & Wilcox Enterprises Q1 2026 Earnings Conference Call. I'm Sharyn Brooks, Director of Communications. Joining the call today are Kenneth Young, B&W's Chairman and Chief Executive Officer, and Cameron Frymyer, Chief Financial Officer, to discuss our Q1 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 in our quarterly report on Form 10-Q that was filed with the SEC earlier today. Except as required by law, we undertake no obligation to update any forward-looking statement. We also provide non-GAAP information regarding certain historical and targeted results to supplement the results provided in accordance with GAAP.

Speaker #2: Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer, and Cameron Frymyer, Chief Financial Officer, to discuss our first quarter results.

Speaker #2: 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 State Harbor Provision for forward-looking statements that can be found at the end of our earnings press release and in our quarterly report on Form 10Q that was filed with the SEC earlier today.

Speaker #2: Additionally, acceptance required by law, we undertake no obligation to update any forward-looking statement. We also provide non-gap information regarding certain historical and targeted results to supplement the results provided in accordance with GAAP.

Speaker #2: This information, which includes our discussion of adjusted EBITDA, adjusted net income, and net debt, should not be considered superior to or as a substitute for the comparable GAAP measures.

Sharyn Brooks: This information, which includes our discussion of adjusted EBITDA, adjusted net income, and net debt, 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 Q1 2026 earnings release published earlier today and in our company overview presentation filed on Form 8-K, which is posted on the investor relations section of our website at babcock.com. Please also see our Q1 2026 earnings release published on 11 May 2026 for further information regarding our bookings and backlogs. I will now turn the call over to Kenny.

Speaker #2: A reconciliation of historical non-GAAP measures can be found in our first quarter 2026 earnings release, published earlier today, and in our company overview presentation filed on Form 8-K, which is posted on the Investor Relations section of our website at babcock.com.

Speaker #2: Please also see our first quarter 2026 earnings release published on May 11th, 2026, for further information regarding our bookings and backlog. I will now turn the call over to Kenny.

Speaker #3: Thanks, Sharyn. Well, good afternoon, everyone, and thanks for joining us on our first quarter 2026 earnings call. We are very pleased to report one of the strongest first quarter performances in recent company history.

Kenneth Young: Thanks, Sharyn. Well, good afternoon, everyone, and thanks for joining us on our Q1 2026 earnings call. We are very pleased to report one of the strongest Q1 performances in recent company history. Babcock & Wilcox continued to see significant growth in the quarter, driven by high demand for electrical generation from utility, industrial, and AI data center customers. In addition, we also achieved strong operating results supported by continued momentum in our core business and ongoing debt reductions as well. Our quarterly results were highlighted by revenue and adjusted EBITDA that exceeded company and street expectations. adjusted EBITDA was $16.1 million for the Q1, which was a 296% increase compared to the Q1 of 2025.

Kenny Young: Thanks, Sharyn. Well, good afternoon, everyone, and thanks for joining us on our Q1 2026 earnings call. We are very pleased to report one of the strongest Q1 performances in recent company history. Babcock & Wilcox continued to see significant growth in the quarter, driven by high demand for electrical generation from utility, industrial, and AI data center customers. In addition, we also achieved strong operating results supported by continued momentum in our core business and ongoing debt reductions as well. Our quarterly results were highlighted by revenue and adjusted EBITDA that exceeded company and street expectations. adjusted EBITDA was $16.1 million for the Q1, which was a 296% increase compared to the Q1 of 2025.

Speaker #3: Babcock & Wilcox continued to see significant growth in the quarter driven by high demand for electrical generation from utility industrial and AI data center customers.

Speaker #3: In addition, we also achieved strong operating results supported by continued momentum in our core business and ongoing debt reductions as well. Our quarterly results were highlighted by revenue and adjusted EBITDA that exceeded company and street expectations.

Speaker #3: Adjusted EBITDA was $16.1 million for the first quarter, which was a 296% increase compared to the first quarter of 2025. Our revenues for the quarter came in at $214 million, which is a 44% increase compared to the first quarter of 2025.

Kenneth Young: Our revenues for Q1 came in at $214 million, which is a 44% increase compared to Q1 2025. We also achieved +adjusted net income from continued operations of $2.2 million after removing $81.8 million of costs associated with increased non-cash warrant and stock appreciation rights valuation, both of which are directly due to the significant stock price increase in Q1 2026. These top-line metrics captured the recent tailwinds we've seen across our business and illustrate B&W's growth trajectory moving forward as we continue to capitalize on strong global demand for parts and services, new baseload generation, and behind-the-meter AI data center projects. These recent tailwinds can also be seen in our pipeline, bookings, and backlog as well, which saw significant acceleration during Q1 2026.

Kenny Young: Our revenues for Q1 came in at $214 million, which is a 44% increase compared to Q1 2025. We also achieved +adjusted net income from continued operations of $2.2 million after removing $81.8 million of costs associated with increased non-cash warrant and stock appreciation rights valuation, both of which are directly due to the significant stock price increase in Q1 2026. These top-line metrics captured the recent tailwinds we've seen across our business and illustrate B&W's growth trajectory moving forward as we continue to capitalize on strong global demand for parts and services, new baseload generation, and behind-the-meter AI data center projects. These recent tailwinds can also be seen in our pipeline, bookings, and backlog as well, which saw significant acceleration during Q1 2026.

Speaker #3: We also achieved positive adjusted net income from continued operations of $2.2 million after removing 81.8 million of cost associated with increased non-cash warrant and stock appreciation rights valuation both of which are directly due to the significant stock price increase in the first quarter of 2026.

Speaker #3: These top-line metrics captured the recent tailwinds we've seen across our business and illustrate B&W's gross trajectory moving forward as we continue to capitalize on strong global demand for parts and services, new baseload generation, and behind-the-meter AI data center projects.

Speaker #3: These recent tailwinds can also be seen in our pipeline, bookings, and backlog as well, which saw significant acceleration during the first quarter of 2026.

Speaker #3: Our total pipeline grew by more than 17% to over 14 billion dollars including new AI data center opportunities. Our bookings and backlog values continue to surge, fueled by our core business growth and development of our base electron project in North Dakota as we are in further discussions with other hyperscaler customers as well.

Kenneth Young: Our total pipeline grew by more than 17% to over $14 billion, including new AI data center opportunities. Our bookings and backlog values continued to surge, fueled by our core business growth and development of our Base Electron project in North Dakota, as we are in further discussions with other hyperscaler customers as well. In Q1 2026, we had bookings of $2.5 billion, which is more than a 1,900% increase compared to Q1 2025. Additionally, our backlog was $2.7 billion in Q1 2026, which is a 483% increase compared to Q1 2025.

Kenny Young: Our total pipeline grew by more than 17% to over $14 billion, including new AI data center opportunities. Our bookings and backlog values continued to surge, fueled by our core business growth and development of our Base Electron project in North Dakota, as we are in further discussions with other hyperscaler customers as well. In Q1 2026, we had bookings of $2.5 billion, which is more than a 1,900% increase compared to Q1 2025. Additionally, our backlog was $2.7 billion in Q1 2026, which is a 483% increase compared to Q1 2025.

Speaker #3: In the first quarter of 2026, we had bookings of $2.5 billion which is more than a 1,900% increase compared to the first quarter of 2025.

Speaker #3: Additionally, our backlog was $2.7 billion in the first quarter of 2026 which is a 483% increase compared to the first quarter of 2025. We believe our results reflect strong global demand for B&W's technologies and combined with the increased demand for power generation gives us a solid foundation for continued growth this year and for many years to come.

Kenneth Young: We believe our results reflect strong global demand for B&W's technologies, and combined with the increased demand for power generation, gives us a solid foundation for continued growth this year and for many years to come. Our core business, excluding data centers, continued to excel as our parts and services saw elevated demand from the increased operation of baseload generation in North America and beyond. Rising energy demand from consumers, industries, and grid-dependent AI data centers is prompting utilities to recondition and recommission coal-fired generation assets to help meet accelerating load growth. Existing coal plants in the US are currently operating at capacity factors of around 50%, highlighting a significant source of underutilized generation capacity available to support expanding electricity needs. At the same time, elevated natural gas prices are driving improved economics of coal-based generation. This has increased utilization and created additional demand for our core business offerings.

Kenny Young: We believe our results reflect strong global demand for B&W's technologies, and combined with the increased demand for power generation, gives us a solid foundation for continued growth this year and for many years to come. Our core business, excluding data centers, continued to excel as our parts and services saw elevated demand from the increased operation of baseload generation in North America and beyond. Rising energy demand from consumers, industries, and grid-dependent AI data centers is prompting utilities to recondition and recommission coal-fired generation assets to help meet accelerating load growth. Existing coal plants in the US are currently operating at capacity factors of around 50%, highlighting a significant source of underutilized generation capacity available to support expanding electricity needs. At the same time, elevated natural gas prices are driving improved economics of coal-based generation. This has increased utilization and created additional demand for our core business offerings.

Speaker #3: Our core business, excluding data centers, continued to excel as our parts and services saw elevated demand from the increased operation of baseload generation in North America and beyond.

Speaker #3: Rising energy demand from consumers' industries and grid-dependent AI data centers is prompting utilities to recondition and recommission coal-fired generation assets to help meet accelerating load growth.

Speaker #3: Existing coal plants in the US are currently operating at capacity factors of around 50%, highlighting a significant source of underutilized generation capacity available to support expanding electricity needs.

Speaker #3: At the same time, elevated natural gas prices are driving improved economics of coal-based generation. This is increased utilization, and created additional demand for our core business offerings.

Speaker #3: The rising demand for power across North America serves as a catalyst for B&W's continued growth, positioning us to play a critical role in supporting AI data center expansion and meeting increased baseload generation needs in the years ahead.

Kenneth Young: The rising demand for power across North America serves as a catalyst for B&W's continued growth, positioning us to play a critical role in supporting AI data center expansion and meeting increased baseload generation needs in the years ahead. Our project with Base Electron is progressing favorably as boiler manufacturing and steam turbines move forward. Siemens Energy continues to progress turbine fabrication and other long lead time items such as boiler pressure parts are advancing as planned. Most of the constructions, including civil and mechanical, is scheduled for 2027 and 2028. The impact of AI data center growth on B&W is truly profound as we added over $2 billion in additional AI data center opportunities in our pipeline from hyperscalers and utility customers. As I mentioned before, we remain in active discussions with different AI data center customers regarding potential bookings in 2026.

Kenny Young: The rising demand for power across North America serves as a catalyst for B&W's continued growth, positioning us to play a critical role in supporting AI data center expansion and meeting increased baseload generation needs in the years ahead. Our project with Base Electron is progressing favorably as boiler manufacturing and steam turbines move forward. Siemens Energy continues to progress turbine fabrication and other long lead time items such as boiler pressure parts are advancing as planned. Most of the constructions, including civil and mechanical, is scheduled for 2027 and 2028. The impact of AI data center growth on B&W is truly profound as we added over $2 billion in additional AI data center opportunities in our pipeline from hyperscalers and utility customers. As I mentioned before, we remain in active discussions with different AI data center customers regarding potential bookings in 2026.

Speaker #3: Our project with base electron is progressing favorably as boiler manufacturing and steam turbines move forward. Siemens Energy continues to progress turbine fabrication and other long lead time items such as boiler pressure parts are advancing as planned.

Speaker #3: Most of the constructions, including civil and mechanical, are scheduled for '27 or 2027 and 2028, and the impact of AI data center growth on B&W is truly profound.

Speaker #3: As we added over 2 billion in additional AI data center opportunities in our pipeline, from hyperscalers and utility customers, and as I mentioned before, we remain in active discussions with different AI data center customers regarding potential bookings in 2026.

Speaker #3: In the first quarter of 2026, we paid off $15 million in outstanding bonds that are due in December of 2026. This is the continuation of our bond buybacks, and we expect to fully pay off the remaining $69 million in outstanding December 2026 bonds in a timely fashion.

Kenneth Young: In Q1 2026, we paid off $15 million in outstanding bonds that are due in December 2026. This is the continuation of our bond buybacks, and we expect to fully pay off the remaining $69 million in outstanding December 2026 bonds in a timely fashion. Including these bond repurchases, we have significantly reduced our secured debt and unsecured bonds by 87% in Q1 2026, resulting in net debt of $42.4 million at the end of the quarter. These recent debt payments bring our net debt to below 1x our trailing twelve-month adjusted EBITDA. Our efforts to progress our BrightLoop initiatives are moving forward as we further the commercial development of existing projects and continue working to improve the overall operational effectiveness of these technologies to produce low-cost hydrogen or steam.

Kenny Young: In Q1 2026, we paid off $15 million in outstanding bonds that are due in December 2026. This is the continuation of our bond buybacks, and we expect to fully pay off the remaining $69 million in outstanding December 2026 bonds in a timely fashion. Including these bond repurchases, we have significantly reduced our secured debt and unsecured bonds by 87% in Q1 2026, resulting in net debt of $42.4 million at the end of the quarter. These recent debt payments bring our net debt to below 1x our trailing twelve-month adjusted EBITDA. Our efforts to progress our BrightLoop initiatives are moving forward as we further the commercial development of existing projects and continue working to improve the overall operational effectiveness of these technologies to produce low-cost hydrogen or steam.

Speaker #3: Including these bond repurchases, we have significantly reduced our secured debt and unsecured bonds by 87% in the first quarter of 2026, resulting in net debt of $42.4 million at the end of the quarter.

Speaker #3: These recent debt payments bring our net debt to below one times our trailing 12-month adjusted EBITDA. Our efforts to progress our BrightLoop initiatives are moving forward as we further the commercial development of existing projects and continue working to improve the overall operational effectiveness of these technologies to produce low-cost hydrogen or steam.

Speaker #3: We are building momentum around the use of chemical looping as a means to convert solid and gas fuels to either hydrogen or steam generation while simultaneously capturing the CO2 that can be used for enhanced oil or methane recovery and other beneficial uses.

Kenneth Young: We are building momentum around the use of chemical looping as a means to convert solid and gas fuels to either hydrogen or steam generation while simultaneously capturing the CO2 that can be used for enhanced oil or methane recovery and other beneficial uses. The commercial scale demonstration of BrightLoop at our Massillon, Ohio project still remains a key priority for B&W as we continue to position the company for expanded growth opportunities in the years ahead. I'll now turn the call over to Cameron to discuss the financial details of Q1 2026. Cameron?

Kenny Young: We are building momentum around the use of chemical looping as a means to convert solid and gas fuels to either hydrogen or steam generation while simultaneously capturing the CO2 that can be used for enhanced oil or methane recovery and other beneficial uses. The commercial scale demonstration of BrightLoop at our Massillon, Ohio project still remains a key priority for B&W as we continue to position the company for expanded growth opportunities in the years ahead. I'll now turn the call over to Cameron to discuss the financial details of Q1 2026. Cameron?

Speaker #3: The commercial-scale demonstration of BrightLoop at our Massillon, Ohio project still remains a key priority for B&W as we continue to position the company for expanded growth opportunities in the years ahead.

Speaker #3: I'll now turn the call over to Cameron to discuss the financial details of the first quarter in 2026. Cameron?

Speaker #2: Thanks, Kenny. I am pleased to review our first quarter 2026 financial results, further details of which can be found in the 10-Q that was filed with the SEC this morning.

Cameron Frymyer: Thanks, Kenny. I am pleased to review our Q1 2026 financial results, further details of which can be found in the 10-Q that was filed with the SEC this morning. Our Q1 2026 consolidated revenues were $214.4 million, which is a significant increase compared to a revenue of $148.6 million in Q1 2025. The increase is primarily driven by large project volume, including $31 million from Base Electron and the increasing need for electricity from fossil fuels, driven by the demand from AI data centers and expanding economies. Our core parts and services continue to perform well, delivering the strongest Q1 revenues in recent history. This development comes as higher demand from consumers, industrials, and AI data centers drive increased coal baseload generation.

Speaker #2: Our first quarter 2026 consolidated revenues were $214.4 million, which is a significant increase compared to a revenue of $148.6 million in the first quarter of 2025.

Speaker #2: The increase is primarily driven by large project volume, including $31 million from base electron, and the increasing need for electricity from fossil fuels driven by the demand from AI data centers and expanding economies.

Speaker #2: Our core parts and services continue to perform well, delivering the strongest first quarter revenues in recent history. This development comes as higher demand from consumers' industrials and AI data centers drive increased coal-based load generation.

Speaker #2: Continued growth in our parts and services is expected throughout 2026. Our operating loss in the first quarter of 2026 was $1.7 million. Which is relatively flat compared to an operating loss of $1.8 million in the first quarter of 2025.

Cameron Frymyer: Continued growth in our parts and services is expected throughout 2026. Our operating loss in Q1 of 2026 was $1.7 million, which is relatively flat compared to an operating loss of $1.8 million in Q1 of 2025. Net loss from continuing operations in Q1 of 2026 was $79.6 million, compared to a net loss of $15.6 million in Q1 of 2025. This increase in net loss is attributed to $81.8 million of non-cash warrants and other stock-related costs that were recorded this quarter due to the increase in our stock performance. Excluding the impact of these stock warrants and other stock-related costs, B&W reported adjusted net income from continuing operations of $2.2 million.

Speaker #2: Net loss from continuing operations in the first quarter of 2026 was $79.6 million, compared to a net loss of $15.6 million in the first quarter of 2025.

Speaker #2: This increase in net loss is attributed to $81.8 million of non-cash warrants and other stock-related costs that were recorded this quarter due to the increase in our stock performance.

Speaker #2: Excluding the impact of these stock warrants and other stock-related costs, B&W reported adjusted net income from continuing operations of $2.2 million. Adjusted EBITDA from continuing operations was $16.1 million in the first quarter of 2026, compared to $4.0 million in the first quarter of 2025.

Cameron Frymyer: Adjusted EBITDA from continuing operations was $16.1 million in Q1 2026, compared to $4 million in Q1 2025. I'll now turn to the balance sheet, cash flow, and liquidity. Total debt on our balance sheet at 31 March 2026 was $275.9 million, which includes unamortized fees, unamortized gains from the bond swap done in 2025. Excluding these fees, gains, and leases, our secured debt and senior notes total $237.2 million, of which $69.1 million is current, which, as Kenny stated earlier, we will be paid off within the year.

Speaker #2: I'll now turn to the balance sheet cash flow and liquidity. Total debt on our balance sheet at March 31st, 2026, was $275.9 million, which includes unamortized fees, unamortized gains, from the bond swap done in 2025.

Speaker #2: Excluding these fees, gains, and leases, our secured debt and senior notes total $237.2 million, of which $69.1 million is current, which, as Kenny stated earlier, will be paid off within the year.

Speaker #2: The company had cash, cash equivalents, and restricted cash balance of $194.8 million. Giving us net debt as of March 31st, 2026, of $42.4 million against our secured debt and senior notes.

Cameron Frymyer: The company had cash equivalents, and restricted cash balance of $194.8 million, giving us net debt as of 31 March 2026 of $42.4 million against our secured debt and senior notes. With that, I'll now turn the call back over to Kenny.

Speaker #2: With that, I'll now turn the call back over to Kenny.

Speaker #3: Thanks, Cameron. Well, in closing, we are encouraged by a strong start to 2026. Our core business continues to see sustained opportunity, fueled by the evolving need for power generation and growth in areas such as the AI data center space.

Kenneth Young: Thanks, Cameron. Well, in closing, we are encouraged by a strong start to 2026. Our core business continues to see sustained opportunity fueled by the evolving need for power generation and growth in areas such as the AI data center space. B&W remains focused on our objectives and uniquely positioned to capitalize on this current landscape. Our pipeline remains robust, exceeding 14 billion in project opportunities, with significant tailwinds bolstered by the growing impact of AI data centers. Meanwhile, our bookings and backlog continue to convert at a strong pace, we expect that momentum to continue throughout 2026. As we celebrate B&W's 160th year, I would like to recognize our employees around the world, past and present, who have made this a milestone possible.

Kenny Young: Thanks, Cameron. Well, in closing, we are encouraged by a strong start to 2026. Our core business continues to see sustained opportunity fueled by the evolving need for power generation and growth in areas such as the AI data center space. B&W remains focused on our objectives and uniquely positioned to capitalize on this current landscape. Our pipeline remains robust, exceeding 14 billion in project opportunities, with significant tailwinds bolstered by the growing impact of AI data centers. Meanwhile, our bookings and backlog continue to convert at a strong pace, we expect that momentum to continue throughout 2026. As we celebrate B&W's 160th year, I would like to recognize our employees around the world, past and present, who have made this a milestone possible.

Speaker #3: B&W remains focused on our objectives and uniquely positioned to capitalize on this current landscape. Our pipeline remains robust, exceeding $14 billion in project opportunities with significant tailwinds bolstered by the growing impact of AI data centers.

Speaker #3: Meanwhile, our bookings of backlog continue to convert at a strong pace, and we expect that momentum to continue throughout 2026. As we celebrate B&W's 160th year, I would like to recognize our employees around the world.

Speaker #3: Past and present, those who have made this milestone possible—their expertise, commitment to working safely, and dedication to advancing our technologies and serving our customers—set Babcock & Wilcox apart and have established our company as a recognized leader in the industries we serve.

Kenneth Young: Their expertise, commitment to working safely, and dedication to advancing our technology and serving our customers set Babcock & Wilcox apart and have established our company as a recognized leader in the industries we serve. I also want to thank our customers and suppliers for their continued support. With this strong foundation, we're excited about where we're headed and confident in our ability to leverage our leading power and environmental solutions to capitalize on the many opportunities ahead. With that, I'll now turn the call back over to Ellen, who will assist on a few questions. Ellen?

Kenny Young: Their expertise, commitment to working safely, and dedication to advancing our technology and serving our customers set Babcock & Wilcox apart and have established our company as a recognized leader in the industries we serve. I also want to thank our customers and suppliers for their continued support. With this strong foundation, we're excited about where we're headed and confident in our ability to leverage our leading power and environmental solutions to capitalize on the many opportunities ahead. With that, I'll now turn the call back over to Ellen, who will assist on a few questions. Ellen?

Speaker #3: I also want to thank our customers and suppliers for their continued support. And with this strong foundation, we're excited about where we're headed and confident in our ability to leverage our leading power and environmental solutions to capitalize on the many opportunities ahead.

Speaker #3: With that, I'll now turn the call back over to Ellen, who will assist on a few questions. Ellen?

Speaker #4: Thank you. We now have time to take a few questions. If you would like to ask a question, please press star one to raise your hand.

Ellen: Thank you. We now have time to take a few questions. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from the line of Robert Brown with Lake Street Capital Markets. Your line is open. Please go ahead.

Operator: Thank you. We now have time to take a few questions. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Our first question comes from the line of Robert Brown with Lake Street Capital Markets. Your line is open. Please go ahead.

Speaker #4: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality, and if muted locally, please remember to unmute your device.

Speaker #4: Please stand by while we compile the Q&A roster. Our first question comes from the line of Rob Brown with Lake Street Capital Markets. Your line is open.

Speaker #4: Please go ahead.

Speaker #5: Good afternoon, Ellen. Congratulations on all the progress. The first question is on the expanding pipeline. I think it went up by a couple of billion this quarter since last quarter.

Robert Brown: Good afternoon, congratulations on all the progress. First question's on the expanding pipeline. I think it went up by a couple billion USD this quarter since last quarter. What's sort of the environment for the pipeline you're seeing? What are some of the opportunities you're taking a look at? I know AI data center's driving a lot of it, could you give us just some more color on the pipeline growth?

Speaker #5: What's sort of the environment for the pipeline you're seeing? What are some of the opportunities you're taking a look at? And I know the idea center's driving a lot of it, but could you give us just more color on the pipeline growth?

Speaker #3: Sure. Yeah. I mean, obviously, the data center aspect of our business is driving quite a bit there. But there are others. We continue, and I'll start with maybe one part here and work back.

Kenneth Young: Sure, yeah. I mean, obviously the data center aspect of our business is driving quite a bit there, but there are others. There, you know, we continue. I'll start with maybe one part here and work back. We still continue to see a lot of opportunities in growing in either coal to natural gas conversion opportunities, or in some cases, some large coal generation plant upgrades, environmental upgrades to help and assist on those particular areas. We're seeing a lot of, you know, larger opportunities across the breadth of our portfolio of technologies, both on the core side and environmental side as well.

Kenny Young: Sure, yeah. I mean, obviously the data center aspect of our business is driving quite a bit there, but there are others. There, you know, we continue. I'll start with maybe one part here and work back. We still continue to see a lot of opportunities in growing in either coal to natural gas conversion opportunities, or in some cases, some large coal generation plant upgrades, environmental upgrades to help and assist on those particular areas. We're seeing a lot of, you know, larger opportunities across the breadth of our portfolio of technologies, both on the core side and environmental side as well.

Speaker #3: But we still continue to see a lot of opportunities in growing, and either coal-to-natural-gas conversion opportunities or, in some cases, some large coal generation plant upgrades—environmental upgrades.

Speaker #3: To help and assist on those particular areas. So we're seeing a lot of larger opportunities across the breadth of our portfolio of technologies, both on the core side and environmental side, as well.

Speaker #3: Specifically in the data center opportunities, we are seeing new opportunities emerge, both from utilities as well as hyperscalers that we're in discussions with. In some cases, they're looking to power specific data center opportunities.

Kenneth Young: Specifically in the data center opportunities, we are seeing, you know, new opportunities emerge both from utilities as well as hyperscalers, that we're in discussions with. That are, in some cases they're looking to power specific data center opportunities. In some cases, they're looking to power specific manufacturing or large manufacturing associated with data center opportunities. There's combinations there, on the specific end case or end user on where that power would be applied. We're looking and talking to them around utilizing and leveraging, you know, B&W's boiler technology. One of the key areas that we're focused on is supporting our customers on the ability to leverage our steam boilers with steam turbine combination, but perhaps combine that with a combustion turbine down the road.

Kenny Young: Specifically in the data center opportunities, we are seeing, you know, new opportunities emerge both from utilities as well as hyperscalers, that we're in discussions with. That are, in some cases they're looking to power specific data center opportunities. In some cases, they're looking to power specific manufacturing or large manufacturing associated with data center opportunities. There's combinations there, on the specific end case or end user on where that power would be applied. We're looking and talking to them around utilizing and leveraging, you know, B&W's boiler technology. One of the key areas that we're focused on is supporting our customers on the ability to leverage our steam boilers with steam turbine combination, but perhaps combine that with a combustion turbine down the road.

Speaker #3: In some cases, they're looking to power specific manufacturing, or large manufacturing associated with data center opportunities. And so this combination's there. On the specific end case or end user, where that power would be applied.

Speaker #3: But we're looking and talking to them around utilizing and leveraging B&W's boiler technology. One of the key areas that we're focused on is supporting our customers on the ability to leverage our steam boilers with a steam turbine combination, but perhaps combine that with a combustion turbine down the road.

Kenneth Young: where obviously you can gain some efficiencies through that combination of adding the combustion turbine with the steam boiler and the steam turbine generation set on that. What we believe we also gain is you can actually increase the amount of power output provided on the same size or same sq ft basis, if you will. In other words, you know, if we're putting in a 50 MW or a 100 MW boiler, by adding the combustion turbine and combining the heat from the turbine into the steam boiler itself, we can actually almost double the size of the output from that particular site. With very little real estate, we can actually increase the amount of wattage that can come from that particular location.

Speaker #3: Where obviously, you can gain some efficiencies through that combination of adding the combustion turbine with the steam boiler and the steam turbine generation set on that.

Kenny Young: where obviously you can gain some efficiencies through that combination of adding the combustion turbine with the steam boiler and the steam turbine generation set on that. What we believe we also gain is you can actually increase the amount of power output provided on the same size or same sq ft basis, if you will. In other words, you know, if we're putting in a 50 MW or a 100 MW boiler, by adding the combustion turbine and combining the heat from the turbine into the steam boiler itself, we can actually almost double the size of the output from that particular site. With very little real estate, we can actually increase the amount of wattage that can come from that particular location.

Speaker #3: But what we believe we also gain is you can actually increase the amount of power output provided on the same size or same square foot basis, if you will.

Speaker #3: So, in other words, if we're putting in a 50-megawatt or 100-megawatt boiler, by adding the combustion turbine and combining the heat from some of the turbine into the steam boiler itself, we can actually almost double the size of the output from that particular site.

Speaker #3: So with very little real estate, we can actually increase the amount of wattage that can come from that particular location. So there's interest and a few of our customers as it relates to those kind of long-term technology aspects and then clearly a few customers also want to make sure that they're in position to capture the CO2 at some future point in time, either for enhanced oil recovery or methane recovery or other uses or even sequestration but so as we talk about the data center concept, there's some uniqueness around our ability to get the steam boiler and turbine out quicker than a combustion set.

Kenneth Young: There's interest in a few of our customers as it relates to those kind of long-term technology aspects. Then, you know, clearly, a few customers also want to make sure that they're in a position to capture the CO2 at some future point in time, either for enhanced oil recovery or methane recovery or, you know, other uses or even sequestration. As we talk about the data center concept, there's some uniqueness around our ability to get the steam boiler and turbine out, you know, quicker than a combustion turbine, but does give them the ability to combine the combustion turbine at a later date in order to enhance that particular site or increase the overall productivity or output from an electrical generation standpoint.

Kenny Young: There's interest in a few of our customers as it relates to those kind of long-term technology aspects. Then, you know, clearly, a few customers also want to make sure that they're in a position to capture the CO2 at some future point in time, either for enhanced oil recovery or methane recovery or, you know, other uses or even sequestration. As we talk about the data center concept, there's some uniqueness around our ability to get the steam boiler and turbine out, you know, quicker than a combustion turbine, but does give them the ability to combine the combustion turbine at a later date in order to enhance that particular site or increase the overall productivity or output from an electrical generation standpoint.

Speaker #3: But it does give them the ability to combine the combustion turbine at a later date in order to enhance that particular site or increase the overall productivity or output from an electrical generation standpoint.

Speaker #3: And that's an attractive or value proposition for our customers. So we're looking at all of that.

Kenneth Young: That's, you know, an attractive or value proposition for our customers. We're looking at all of that.

Kenny Young: That's, you know, an attractive or value proposition for our customers. We're looking at all of that.

Speaker #5: Okay. Great. Great idea. Then in the base electron project, I think you had 31 million in the quarter. How do you see that kind of laying out?

Robert Brown: Okay, great. Great. Yeah. The Base Electron project, I think, had $31 million in the quarter. How do you see that kind of laying out? Is it really ramp significantly starting next year, or do you get a decent amount of revenue yet this year?

Speaker #5: Is it really ramped significantly starting next year, or do you get a decent amount of revenue yet this year?

Kenneth Young: We'll get more revenue this year. I mean, clearly the bigger ramp, obviously, you know, as you mentioned, is when we get into the full, the full construction aspect on site. You know, not only civil and the early groundworks and all of that, but more when we're putting up steel, starting to do the steel production of the site itself. That's when there is a very significant ramp on revenue. We'll see that, you know, as we go into next year there.

Speaker #3: We'll get more revenue this year. I mean, Q2 is a bigger ramp, obviously. As mentioned, it's when we get into the full construction aspect on site.

Kenny Young: We'll get more revenue this year. I mean, clearly the bigger ramp, obviously, you know, as you mentioned, is when we get into the full, the full construction aspect on site. You know, not only civil and the early groundworks and all of that, but more when we're putting up steel, starting to do the steel production of the site itself. That's when there is a very significant ramp on revenue. We'll see that, you know, as we go into next year there.

Speaker #3: So not only civil and the early groundworks and all of that, but more when we're putting up steel, starting to do the steel production of the site itself.

Speaker #3: That's when there is a very significant ramp on revenue. So we'll see that as we go into next year. But they'll continue to produce revenue this year for base electron as we complete different milestones on the manufacturing side.

Kenneth Young: They'll continue to produce revenue this year for Base Electron as we complete, you know, different milestones on the manufacturing side of the project itself and complete some of the on-site preparation work we need to do for you know, engineering and other aspects for the civil construction capabilities, and get the site prepped for the actual steel manufacturing itself. There are different milestones involved in those contracts. We'll still see further revenue this year, but yeah, the huge amounts will start to impact next year.

Kenny Young: They'll continue to produce revenue this year for Base Electron as we complete, you know, different milestones on the manufacturing side of the project itself and complete some of the on-site preparation work we need to do for you know, engineering and other aspects for the civil construction capabilities, and get the site prepped for the actual steel manufacturing itself. There are different milestones involved in those contracts. We'll still see further revenue this year, but yeah, the huge amounts will start to impact next year.

Speaker #3: Of those of the project itself and complete some of the on-site preparation work, we need to do for engineering and other aspects for the civil construction capabilities and get the site prepped for the actual steel manufacturing itself.

Speaker #3: So there are different milestones involved in those contracts. So we'll still see further revenue this year, but yeah, the huge amounts will start to impact next year.

Speaker #5: Okay. Thank you. I'll turn it over.

Robert Brown: Okay, thank you. I'll turn it over.

Speaker #4: Your next question comes from the line of Jeff Grant with Northland Capital Markets. Your line is open. Please go ahead.

Ellen: Your next question comes from the line of Jeffrey Grampp with Northland Capital Markets. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Jeff Grampp with Northland Capital Markets. Your line is open. Please go ahead.

Speaker #2: Even that's perceived as that. So again, for some of these projects, as I recall on the last earnings call a couple of months back, it sounded like there were a couple of projects that were in, I guess, fairly serious discussions.

Jeffrey Grampp: Evening, guys. Appreciate the time. Kenneth Young.

Jeff Grampp: Evening, guys. Appreciate the time. Kenny.

Kenneth Young: Hi, Jeff.

Kenny Young: Hi, Jeff.

Jeffrey Grampp: some of these projects, as I recall on the last earnings call a couple of months back, it sounded like there were a couple of projects that were in, I guess, fairly serious discussions. I know you're relatively limited on what you can say on the call, but just kind of wondering on those specific projects or any others that have kind of come up on the priority list over the last couple of months, you know, what kind of the latest and greatest is in terms of the state of those conversations and any outlook there. Thanks.

Jeff Grampp: some of these projects, as I recall on the last earnings call a couple of months back, it sounded like there were a couple of projects that were in, I guess, fairly serious discussions. I know you're relatively limited on what you can say on the call, but just kind of wondering on those specific projects or any others that have kind of come up on the priority list over the last couple of months, you know, what kind of the latest and greatest is in terms of the state of those conversations and any outlook there. Thanks.

Speaker #2: I know you're relatively limited on what you can say on the call. But just kind of wondering on those specific projects or any others that have kind of come up on the priority list over the last couple of months, what's kind of the latest and greatest is in terms of the state of those conversations and the outlook there?

Speaker #2: Thanks.

Speaker #3: Yeah. No, we still progress on those discussions. With two or three different customers out there, to determine obviously, the best way to move forward with them on that.

Kenneth Young: Yeah, no, we still progress on those discussions with two or three different customers out there to determine, you know, obviously the best way to move forward with them on that. I think, if we, you know, get one or so across the goal line, it'll clearly be a project where we'll sign a, you know, some sort of MOU or LNTP or something, obviously, to start and then allow us to get everything set up to move into the full notice to proceed, you know, at a later date. Similar to what we do just about on every big project that B&W's ever been involved in, so on that front. Those, those discussions still continue and, you know, working through a number of different scenarios.

Kenny Young: Yeah, no, we still progress on those discussions with two or three different customers out there to determine, you know, obviously the best way to move forward with them on that. I think, if we, you know, get one or so across the goal line, it'll clearly be a project where we'll sign a, you know, some sort of MOU or LNTP or something, obviously, to start and then allow us to get everything set up to move into the full notice to proceed, you know, at a later date. Similar to what we do just about on every big project that B&W's ever been involved in, so on that front. Those, those discussions still continue and, you know, working through a number of different scenarios.

Speaker #3: I think if we get one or so across the goal line, it'll clearly be a project where we'll sign some sort of MOU or LNTP or something, obviously, to start.

Speaker #3: And then allow us to get everything set up to move into the full notice to proceed at a later date. So, similar to what we do just about on every big project that B&W's ever been involved in.

Speaker #3: So on that front, but those discussions still continue. And working through a number of different scenarios—as typical on these kinds of projects—there's a lot of different variables that the end user and customers are trying to accomplish.

Kenneth Young: You know, as typical, on these kind of projects, there's a lot of different variables that the end user and customers are trying to accomplish. You know, either be from a technology standpoint, end user standpoint, permitting standpoint, location, geography, you know, so on and so forth. A lot of things kind of ebb and flow as we enter into these discussions, but they continue and, you know, we're hopeful that we can move one across the goal line.

Kenny Young: You know, as typical, on these kind of projects, there's a lot of different variables that the end user and customers are trying to accomplish. You know, either be from a technology standpoint, end user standpoint, permitting standpoint, location, geography, you know, so on and so forth. A lot of things kind of ebb and flow as we enter into these discussions, but they continue and, you know, we're hopeful that we can move one across the goal line.

Speaker #3: Either be from a technology standpoint, end user standpoint, permitting standpoint, location, geography, so on and so forth. So a lot of things kind of ebb and flow as we enter into these discussions.

Speaker #3: But they continue and we're hopeful that we can move one across the goal line.

Speaker #2: Got it. Appreciate that. And for my follow-up, to the extent you get another one or two projects under the belt here, that you ultimately can book, are there any investments or things along that kind of notion that BW may look to make to ensure it can deliver on perhaps an accelerated slate of projects?

Jeffrey Grampp: Got it. Appreciate that. For my follow-up, you know, to the extent you get another, you know, one or two projects under the belt here, that you ultimately can book, are there any, you know, investments or things along that kind of notion that B&W may look to make to ensure it can deliver on perhaps an accelerated slate of projects? Or do you feel that the companies and the supply chains are appropriately situated to deliver on multiple projects running concurrently?

Jeff Grampp: Got it. Appreciate that. For my follow-up, you know, to the extent you get another, you know, one or two projects under the belt here, that you ultimately can book, are there any, you know, investments or things along that kind of notion that B&W may look to make to ensure it can deliver on perhaps an accelerated slate of projects? Or do you feel that the companies and the supply chains are appropriately situated to deliver on multiple projects running concurrently?

Speaker #2: Or do you feel that the companies and the supply chains are appropriately situated to deliver on multiple projects running concurrently?

Speaker #3: Yeah. No, we feel good about the current supply chain that we've established. Obviously, around the base electron project, we use that in order to establish a broader aspect around potential on other data center projects so that we could begin to secure a little bit of capacity there.

Kenneth Young: Yeah, no, we feel good about the current supply chain that we've established. Obviously, around the Base Electron project, we used that in order to establish a broader aspect around potential on other data center projects so that we could, you know, begin to secure a little bit of capacity there around that. I think, you know, each one of these will be a little bit nuanced. The size of the boilers or the size of the turbines will vary. You know, as we've always talked about, we wanna, as much as possible, use and leverage existing technology that B&W has put in the marketplace. Same on the turbine side of the equation.

Kenny Young: Yeah, no, we feel good about the current supply chain that we've established. Obviously, around the Base Electron project, we used that in order to establish a broader aspect around potential on other data center projects so that we could, you know, begin to secure a little bit of capacity there around that. I think, you know, each one of these will be a little bit nuanced. The size of the boilers or the size of the turbines will vary. You know, as we've always talked about, we wanna, as much as possible, use and leverage existing technology that B&W has put in the marketplace. Same on the turbine side of the equation.

Speaker #3: Around that, I think each one of these will be a little bit nuanced. The size of the boilers and the size of the turbines will vary.

Speaker #3: They'll be, as we've always talked about, we want to, as much as possible, use and leverage existing technology that B&W has put in the marketplace.

Speaker #3: Same on the turbine side of the equation. But there will be because there's a need to have different size boilers used, right, for base electron, we're using the 300-megawatt boilers.

Kenneth Young: You know, there's a need to have different size boilers used, right? You know, for Base Electron, we're using the 300 MW boilers. You know, in other cases we're looking at, you know, smaller. In some cases, we're actually looking at even bigger. The positive news on that is that we have different manufacturers lined up to be able to accept, you know, depending on the size of the boiler out there. Where we've been proactive on is to make sure as we move forward into these opportunities, that the manufacturers are kind of, if you will, sitting side by side with us as it relates to these so that we can ensure that we've got the capacity to make those happen out there.

Kenny Young: You know, there's a need to have different size boilers used, right? You know, for Base Electron, we're using the 300MW boilers. You know, in other cases we're looking at, you know, smaller. In some cases, we're actually looking at even bigger. The positive news on that is that we have different manufacturers lined up to be able to accept, you know, depending on the size of the boiler out there. Where we've been proactive on is to make sure as we move forward into these opportunities, that the manufacturers are kind of, if you will, sitting side by side with us as it relates to these so that we can ensure that we've got the capacity to make those happen out there.

Speaker #3: In other cases, we're looking at smaller and in some cases, we're actually looking at even bigger. So the positive news on that is that we have different manufacturers lined up to be able to accept depending on the size of the boiler.

Speaker #3: Out there. And so we've been proactive on is to make sure as we move forward into these opportunities that the manufacturers are kind of, if you will, sitting side by side with us as it relates to these so that we can ensure that we've got the capacity to make those happen.

Speaker #3: Out there. So we feel good about where we are right now. In the future, obviously, having security on the steam turbine aspect of it for us and some of the pressure parts is going to be crucial as we get past the one or two of these additional projects as we move along.

Kenneth Young: We feel good about where we are right now. You know, in the, in the future, obviously having, you know, security on the steam turbine aspect of it for us and, some of the pressure parts is going to be crucial as we get, you know, past the, one or two of these additional projects, as we move along. We'll have to make sure that, you know, we keep in mind how we can secure that capacity to continue to move forward. You know, at the moment, we feel pretty good about our position right now.

Kenny Young: We feel good about where we are right now. You know, in the, in the future, obviously having, you know, security on the steam turbine aspect of it for us and, some of the pressure parts is going to be crucial as we get, you know, past the, one or two of these additional projects, as we move along. We'll have to make sure that, you know, we keep in mind how we can secure that capacity to continue to move forward. You know, at the moment, we feel pretty good about our position right now.

Speaker #3: And we'll have to make sure that we've got—we keep in mind how we can secure that capacity to continue to move forward. But at the moment, we feel pretty good about our position right now.

Speaker #2: Got it. I appreciate all those details. I'll turn it back. Thank you.

Jeffrey Grampp: Got it. I appreciate all those details. I'll turn it back. Thank you.

Jeff Grampp: Got it. I appreciate all those details. I'll turn it back. Thank you.

Speaker #3: Thank you.

Kenneth Young: Thank you.

Kenny Young: Thank you.

Speaker #4: Your next question comes from Erin Spicello with Craig Hallam. Your line is open. Please go ahead.

Ellen: Your next question comes from Aaron Spychalla with Craig-Hallum. Your line is open. Please go ahead.

Operator: Your next question comes from Aaron Spychalla with Craig-Hallum. Your line is open. Please go ahead.

Speaker #5: Yeah. Good afternoon, Kenny and Cameron. Thanks for taking the questions. Maybe first for me on just guidance with the better start to the year and it sounds like confidence in activity levels.

Aaron Spychalla: Yeah, good afternoon, Kenny and Cameron. Thanks for taking the questions. Maybe first for me on just guidance, you know, with the better start to the year and it sounds like, you know, confidence in activity levels. Can you just talk to, you know, visibility in the guidance and maybe cadence throughout the year?

Speaker #5: Can you just talk to visibility in the guidance and maybe cadence throughout the year?

Speaker #3: Yeah. No, good question. Obviously, we kept the guidance where we are right now. 100% just as we try to figure out how much we can shift in either into construction or pull forward some of the manufacturing and other aspects around these projects that we're involved in.

Kenneth Young: Yeah, no, good question. Obviously, we kept the guidance where we are right now, 100% just as we try to figure out how much we can shift in either into construction or pull forward some of the manufacturing and other aspects around these projects that we're involved in. You know, once we have a better handle on that here in the coming months, we'll relook at the guidance we put out in the marketplace, and we'll see how that goes. You know, I think the positive news is there's definitely a potential for upside related to our guidance that exists today. We're gonna, you know, keep an eye on how things progress this year and see where it goes.

Kenny Young: Yeah, no, good question. Obviously, we kept the guidance where we are right now, 100% just as we try to figure out how much we can shift in either into construction or pull forward some of the manufacturing and other aspects around these projects that we're involved in. You know, once we have a better handle on that here in the coming months, we'll relook at the guidance we put out in the marketplace, and we'll see how that goes. You know, I think the positive news is there's definitely a potential for upside related to our guidance that exists today. We're gonna, you know, keep an eye on how things progress this year and see where it goes.

Speaker #3: Once we have a better handle on that here in the coming months, then we'll relook at the guidance we put out in the marketplace.

Speaker #3: And we'll see how that goes. But I think the positive news is there's definitely potential for upside related to our guidance that exists today.

Speaker #3: And we're going to keep an eye on how things progress this year and see where it goes. Obviously, if it doesn't hit this year, then it just goes into next year.

Kenneth Young: You know, obviously, if it doesn't hit this year, then it just goes into next year. You know, either way, it's a good position for B&W to be in. You know, we'll keep an eye on that and circle back around on that at a later date.

Kenny Young: You know, obviously, if it doesn't hit this year, then it just goes into next year. You know, either way, it's a good position for B&W to be in. You know, we'll keep an eye on that and circle back around on that at a later date.

Speaker #3: So either way, it's a good position for B&W to be in. But we'll keep an eye on that and circle back around on that at a later date.

Speaker #5: Right. Understood. And then, within the guide for this year, is there a way to think about kind of that base parts and services business?

Aaron Spychalla: Right. Understood. Then, you know, within the guide for this year, is there a way to think about, you know, kind of that base, you know, parts and services business? What kind of contribution looks like there? Just as we think about kind of growth in the coming years, you obviously have, you know, the big projects and some of these coal-to-gas conversions, but just what's kind of that base run rate? It seems like that business is still very much healthy.

Speaker #5: What kind of contribution looks like there? And just as we think about kind of growth in the coming years, you obviously have the big projects and some of these coal-to-gas conversions.

Speaker #5: But just what's kind of that base run rate? And it seems like that business is still very much healthy.

Speaker #3: Yeah. No, I mean, obviously, our parts and services, as we mentioned, had a significantly strong first quarter one of its best. And from a first quarter standpoint, recent history, usually as you know, it's Q1 is a little low for us from a parts and services.

Kenneth Young: Yeah, no, I mean, obviously our parts and services you mentioned had a significantly strong Q1, you know, one of its best in from a Q1 standpoint in recent history. Usually, you know, as you know, it's Q1 is a little low for us from a parts and services Q2, you know, maybe about the same, slightly better. Q3, Q4 is where we really pick up on that due to the outages and other aspects. You know, the demand we're seeing still is still strong out there for that business. We don't, you know, we don't see that changing as it goes into the rest of the year.

Kenny Young: Yeah, no, I mean, obviously our parts and services you mentioned had a significantly strong Q1, you know, one of its best in from a Q1 standpoint in recent history. Usually, you know, as you know, it's Q1 is a little low for us from a parts and services Q2, you know, maybe about the same, slightly better. Q3, Q4 is where we really pick up on that due to the outages and other aspects. You know, the demand we're seeing still is still strong out there for that business. We don't, you know, we don't see that changing as it goes into the rest of the year.

Speaker #3: Q2, maybe about the same, slightly better. But Q3, Q4 is where we really pick up on that due to the outages and overlap aspect.

Speaker #3: The demand we're seeing still is still strong out there for that business. We don't see that changing as it goes into the rest of the year.

Kenneth Young: You know, we have pretty good visibility into the outages that are targeted to come later this year, to do, you know, maybe a significant aspect, not necessarily a gas or coal-to-gas conversion, but, you know, a broader upgrade or something, maybe environmental aspects as well too, on these coal plants. I think the, you know, the uniqueness is that, on the coal plants that they're being used obviously more and more and more, and they have capacity to be used even further than they are today. You know, as a result of that, you're seeing more investment put into these coal plants than we've seen in the past because they are running a lot longer and the need for them to run now is also increasing.

Kenny Young: You know, we have pretty good visibility into the outages that are targeted to come later this year, to do, you know, maybe a significant aspect, not necessarily a gas or coal-to-gas conversion, but, you know, a broader upgrade or something, maybe environmental aspects as well too, on these coal plants. I think the, you know, the uniqueness is that, on the coal plants that they're being used obviously more and more and more, and they have capacity to be used even further than they are today. You know, as a result of that, you're seeing more investment put into these coal plants than we've seen in the past because they are running a lot longer and the need for them to run now is also increasing.

Speaker #3: We have pretty good visibility into the outages that are targeted to come later this year. To do maybe a significant aspect, not necessarily a gas or coal-to-gas conversion, but a broader upgrade or something, maybe environmental aspects as well too, on these coal plants.

Speaker #3: I think the uniqueness is that on the coal plants, that they're being used obviously more and more and more, and they have capacity to be used even further than they are today.

Speaker #3: As a result of that, you're seeing more investment put into these coal plants than we've seen in the past because they are running a lot longer and the need for them to run now is also increasing.

Speaker #3: So a lot of utilities, a lot of our customers are investing more into these plants to ensure the longevity for the, obviously, baseload generation.

Kenneth Young: A lot of the utilities or a lot of our customers are investing more into these plants to ensure the longevity for the, you know, obviously baseload generation. It's a good place for us to be in right now and excited about that. You know, we're taking it a quarter at a time, but, you know, it's right now we see a very strong outlook on the parts and services and anticipate that continuing right now for the foreseeable future. You know, it's the concept of the utilization on this, and that's the good news about it. These aren't just, you know, one-off kind of parts aspects. This is based on, you know, continuation of these plants running. We don't see that slowing down anytime soon.

Kenny Young: A lot of the utilities or a lot of our customers are investing more into these plants to ensure the longevity for the, you know, obviously baseload generation. It's a good place for us to be in right now and excited about that. You know, we're taking it a quarter at a time, but, you know, it's right now we see a very strong outlook on the parts and services and anticipate that continuing right now for the foreseeable future. You know, it's the concept of the utilization on this, and that's the good news about it. These aren't just, you know, one-off kind of parts aspects. This is based on, you know, continuation of these plants running. We don't see that slowing down anytime soon.

Speaker #3: So it's a good place for us to be in right now and excited about that. And we're taking a quarter of a time. But it's right now we see a very strong outlook on the parts and services and anticipate that continuing.

Speaker #3: Right now for the foreseeable future. I don't know if the concept of the utilization on this, and that's the good news about it. These aren't just one-off kind of parts aspects.

Speaker #3: This is based on the continuation of these plants running, and we don't see that slowing down anytime soon.

Speaker #5: Right. Okay. Thank you for the color on that. And then just maybe, almost housekeeping, on the pipeline expansion to $14 billion—Craig, we see you had kind of talked about a data center power gen pipeline of $3 to $5 billion plus, I think. Is most of that increase—just driven, the $2 billion—kind of driven by an increase in that pipeline, or anything else to highlight?

Aaron Spychalla: Right. Okay. Thank you for the color in that. Just maybe, you know, almost housekeeping. On the pipeline expansion to $14 billion, you know, because I see you had kind of talked about a data center power gen pipeline of, you know, $3 to 5 billion plus, I think. Is most of that increase, you know, just driven, you know, the $2 billion kind of driven by an increase in that pipeline or anything else to highlight?

Speaker #3: Yeah, I mean, the data centers obviously have a large impact, just because of the size consideration of those. There are a few that we're talking to that are in the 500-megawatt range.

Kenneth Young: Yeah, I mean, the data centers obviously have a large impact just because of the size, you know, consideration of those. There are a few that we're talking to that are in the, you know, 500 MW range, you know, to start with. There's a couple that are in the 300 MW range, but, you know, there are some that are in the, you know, 1 to 2 GW range. There is a big demand for that as the data centers continue to grow. Obviously, we're not gonna book all of that business, but the opportunities are wide across, you know, that size range.

Kenny Young: Yeah, I mean, the data centers obviously have a large impact just because of the size, you know, consideration of those. There are a few that we're talking to that are in the, you know, 500MW range, you know, to start with. There's a couple that are in the 300MW range, but, you know, there are some that are in the, you know, 1 to 2GW range. There is a big demand for that as the data centers continue to grow. Obviously, we're not gonna book all of that business, but the opportunities are wide across, you know, that size range.

Speaker #3: To start with, there's a couple that are in the 300 megawatt range. But there are some that are in the 1 to 2 gigawatt range.

Speaker #3: So there's a big demand for that as the data centers continue to grow, and obviously we're not going to book all of that business.

Speaker #3: But the opportunities are wide across that size range. So when you're talking about a 1 gigawatt plant or higher, that's a significant project for us.

Kenneth Young: You know, when you're talking about a 1 gigawatt plant or higher, you know, that's a significant project for us. Obviously has, you know, solid revenue ramifications if we get that booked and across the goal line. You know, overall the pipeline out there is reflective of that. We, you know, it's been able to allow us to grow it quite a bit. The opportunities are, you know, still continue to evolve and come. You know, keep in mind the pipeline is projects where we think will close, not necessarily 100% with us, but we think will close within the next 3 years.

Kenny Young: You know, when you're talking about a 1 gigawatt plant or higher, you know, that's a significant project for us. Obviously has, you know, solid revenue ramifications if we get that booked and across the goal line. You know, overall the pipeline out there is reflective of that. We, you know, it's been able to allow us to grow it quite a bit. The opportunities are, you know, still continue to evolve and come. You know, keep in mind the pipeline is projects where we think will close, not necessarily 100% with us, but we think will close within the next 3 years.

Speaker #3: And so, obviously, it has solid revenue ramifications if we get that booked across the goal line. So, overall, the pipeline out there is reflective of that.

Speaker #3: And we it's been able to allow us to grow it quite a bit. But the opportunities are still continue to evolve and come. But keep in mind the pipeline is projects where we think will close not necessarily 100% with us, but we think will close within the next three years.

Kenneth Young: There's obviously opportunities that are outside that 3-year window, you know, that would increase the size of that, but we don't talk about the opportunities. Just to give you some idea, you know, there's a lot of conversations on things that could be 4 years out that don't make it to the pipeline for that very definition reason.

Speaker #3: There's obviously opportunities that are outside that three-year window that would increase the size of that. But we don't talk about the opportunities. But just to give you some idea, there's a lot of conversations on things that could be four years out that don't make it to the pipeline for that very definition reason.

Kenny Young: There's obviously opportunities that are outside that 3-year window, you know, that would increase the size of that, but we don't talk about the opportunities. Just to give you some idea, you know, there's a lot of conversations on things that could be 4 years out that don't make it to the pipeline for that very definition reason.

Speaker #5: Right. Right. That makes sense. Appreciate the color. I'll turn it over.

Aaron Spychalla: Right. Right. That makes sense. Appreciate the color. I'll turn it over.

Speaker #6: We have reached the end of the Q&A session. I will now turn the call back to Sharyn Brooks for closing remarks.

Ellen: We have reached the end of the Q&A session. I will now turn the call back to Sharyn Brooks for closing remarks.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Sharyn Brooks for closing remarks.

Speaker #1: Thank you for joining us. That concludes our conference call. A replay will be available for a limited time on our website later today.

Sharyn Brooks: Thank you for joining us. That concludes our conference call. A replay will be available for a limited time on our website later today.

Speaker #6: You may now disconnect. This event has now concluded. Thank you for joining Babcock & Wilcox Q1 2026 earnings conference call. The line will disconnect automatically.

Operator 1: Thank you for joining Babcock & Wilcox Q1 2026 Earnings Conference Call.

Operator: Thank you for joining Babcock & Wilcox Q1 2026 Earnings Conference Call.