Q2 2026 Babcock & Wilcox Enterprises Inc Earnings Call

August 10, 2026

Operator: Thank you for attending the Babcock & Wilcox Enterprises' Q2 2026 conference call. All lines will be muted during the presentation portion for 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 #1: I would now like to turn the conference over to your host, Sharyn Brooks, BMW's Director of Communications. Thank you. You may proceed, Ms. Brooks.

Speaker #2: Thank you, Kristalyn, and thanks to everyone for joining us on Babcock & Wilcox Enterprises' Q2 2026 earnings conference call. I'm Sharyn Brooks, Director of Communications.

Sharyn Brooks: Thank you, Crystalyn, and thanks to everyone for joining us on Babcock & Wilcox Enterprises' Q2 2026 earnings conference call. I am Sharyn Brooks, Director of Communications. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer, and Cameron Frymyer, Chief Financial Officer, to discuss our Q2 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. Additionally, 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 Kenneth Young, BMW's Chairman and Chief Executive Officer, and Cameron Frymyer, Chief Financial Officer, to discuss our Q2 results. During this call, certain statements we make will be forward-looking.

Speaker #2: 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.

Speaker #2: Additionally, 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.

Sharyn Brooks: We also provide non-GAAP information regarding certain historical and targeted results to supplement the results provided in accordance with GAAP. This information, which includes a discussion of adjusted EBITDA and adjusted net income, should not be considered superior to, or a substitute for, the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our Q2 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 Q2 2026 earnings release published on 10 August 2026 for further information regarding our bookings and backlog. I will now turn the call over to Kenny.

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

Sharyn Brooks: This information, which includes a discussion of adjusted EBITDA and adjusted net income, should not be considered superior to, or a substitute for, the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our Q2 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 Q2 2026 earnings release published on 10 August 2026 for further information regarding our bookings and backlog. I will now turn the call over to Kenny.

Speaker #2: A reconciliation of historical non-GAAP measures can be found in our Q2 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 Q2 2026 earnings release, published on August 10, 2026, for further information regarding our bookings and backlog. I will now turn the call over to Kenneth.

Speaker #3: Thanks, Sharyn. Well, good afternoon, everyone, and thanks for joining us on our Q2 2026 earnings call. We are pleased to report another strong quarter highlighted by robust financial results and active project development and continued operational momentum in our core business and further strategic debt reduction and stock repurchase.

Kenneth Young: Well, thanks, Sharyn. Good afternoon, everyone, and thanks for joining us on our Q2 2026 earnings call. We are pleased to report another strong quarter highlighted by robust financial results and active project development and continued operational momentum in our core business and further strategic debt reduction and stock repurchase. During Q2, Babcock & Wilcox continued to benefit from the growing need for reliable electrical generation from all sources of power consumption, including utilities, industrial, and data center customers. These tailwinds drove strong operating results during the quarter and led us to raise our full year 2026 adjusted EBITDA target range from $80 million to $105 million. As excited as we are about the increasing opportunities in new utility, industrial, and AI, and data center power generation project opportunities, we are equally excited about strong results in our core projects as well as our parts and services businesses.

Kenny Young: Well, thanks, Sharyn. Good afternoon, everyone, and thanks for joining us on our Q2 2026 earnings call. We are pleased to report another strong quarter highlighted by robust financial results and active project development and continued operational momentum in our core business and further strategic debt reduction and stock repurchase. During Q2, Babcock & Wilcox continued to benefit from the growing need for reliable electrical generation from all sources of power consumption, including utilities, industrial, and data center customers. These tailwinds drove strong operating results during the quarter and led us to raise our full year 2026 adjusted EBITDA target range from $80 million to $105 million.

Speaker #3: During the second quarter, Babcock & Wilcox continued to benefit from the growing need for reliable electrical generation from all sources of power consumption, including utilities, industrial, and data center customers.

Speaker #3: These tailwinds drove strong operating results during the quarter and led us to raise our full-year 2026 adjusted EBITDA target range from $80 million to $105 million.

Speaker #3: As excited as we are about the increasing opportunities in new utility industrial and AI and data center power generation project opportunities, we're equally excited about the strong results in our core projects as well as our parts and services businesses.

Kenny Young: As excited as we are about the increasing opportunities in new utility, industrial, and AI, and data center power generation project opportunities, we are equally excited about strong results in our core projects as well as our parts and services businesses. These businesses have and continue to be strong cash generators for the company and continue to deliver significant growth each quarter due to the increased demand from coal and natural gas utilization, especially in the United States. Our quarterly financial results were highlighted by revenue, net income, and adjusted EBITDA, all of which exceeded both company and consensus expectations. in Q2 2026, our pipeline, bookings, and backlog saw significant development as well. Our total pipeline is now over $14 billion, including 4 to 6 gigawatts worth of power generation opportunities.

Speaker #3: These businesses have and continue to be strong cash generators for the company and continue to deliver significant growth each quarter due to the increased demand from coal and natural gas utilization, especially in the United States.

Kenneth Young: These businesses have and continue to be strong cash generators for the company and continue to deliver significant growth each quarter due to the increased demand from coal and natural gas utilization, especially in the United States. Our quarterly financial results were highlighted by revenue, net income, and adjusted EBITDA, all of which exceeded both company and consensus expectations. in Q2 2026, our pipeline, bookings, and backlog saw significant development as well. Our total pipeline is now over $14 billion, including 4 to 6 gigawatts worth of power generation opportunities. Our bookings and backlog surged year-over-year, fueled by our core business growth and continued development of our Base Electron project in North Dakota. In H1 2026, we had bookings of $2.7 billion, which was an increase of more than 1,058% compared to H1 2025.

Speaker #3: Our quarterly financial results were highlighted by revenue, net income, and adjusted EBITDA all of which exceeded both company and consensus expectations. In the Q2 of 2026, our pipeline—bookings and backlog—saw significant development as well.

Speaker #3: Our total pipeline is now over $14 billion, including 4 to 6 gigawatts' worth of power generation opportunities. Our bookings and backlog surged year over year, fueled by our core business growth and continued development of our base electron project in North Dakota.

Kenny Young: Our bookings and backlog surged year-over-year, fueled by our core business growth and continued development of our Base Electron project in North Dakota. In H1 2026, we had bookings of $2.7 billion, which was an increase of more than 1,058% compared to H1 2025. Additionally, our backlog was $2.6 billion in Q2 2026, which was a 533% increase compared to Q2 2025. Strong global demand for Babcock & Wilcox's technologies, together with increasing investment in power generation, continues to reinforce our positive outlook. We are focused on executing our strategic priorities, delivering on our current pipeline, and maintaining the operational and financial flexibility needed to capitalize on future growth opportunities. Turning to our core business, our parts and services continue to excel, with demand for reliable baseload power growing across North America and global markets as well.

Speaker #3: In the first half of 2026, we had bookings of $2.7 billion, which was an increase of more than $1,058% compared to the first half of 2025.

Speaker #3: Additionally, our backlog was $2.6 billion in Q2 2026, which was a 533% increase compared to Q2 2025. Strong global demand for B&W's technologies, together with increasing investment in power generation, continues to reinforce our positive outlook.

Kenneth Young: Additionally, our backlog was $2.6 billion in Q2 2026, which was a 533% increase compared to Q2 2025. Strong global demand for Babcock & Wilcox's technologies, together with increasing investment in power generation, continues to reinforce our positive outlook. We are focused on executing our strategic priorities, delivering on our current pipeline, and maintaining the operational and financial flexibility needed to capitalize on future growth opportunities. Turning to our core business, our parts and services continue to excel, with demand for reliable baseload power growing across North America and global markets as well. This accelerating demand is encouraging utilities to invest in the refurbishment, recommissioning, and continued operation of existing coal fire generation assets to support grid reliability and meet future load growth.

Speaker #3: We are focused on executing our strategic priorities, delivering on our current pipeline, and maintaining the operational and financial flexibility needed to capitalize on future growth opportunities.

Speaker #3: Turning to our core business, our parts and services continue to excel, with demand for reliable baseload power growing across North America and global markets as well.

Speaker #3: This accelerating demand is encouraging utilities to invest in the refurbishment, recommissioning, and continued operation of existing coal-fired generation assets to support grid reliability and meet future load growth.

Kenny Young: This accelerating demand is encouraging utilities to invest in the refurbishment, recommissioning, and continued operation of existing coal fire generation assets to support grid reliability and meet future load growth. This development serves as a catalyst for Babcock & Wilcox'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 initial data center project with Base Electron is progressing ahead of expectations and on budget. Manufacturing of the boilers, steam turbines, and other long lead time components continues to advance quickly and efficiently, helping to deliver reliable, high-capacity energy generation on the fast-track timeline required by AI data center customers. Base Electron has submitted its conditional use permit application.

Speaker #3: This development serves as a catalyst for BMW'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: This development serves as a catalyst for Babcock & Wilcox'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 initial data center project with Base Electron is progressing ahead of expectations and on budget. Manufacturing of the boilers, steam turbines, and other long lead time components continues to advance quickly and efficiently, helping to deliver reliable, high-capacity energy generation on the fast-track timeline required by AI data center customers. Base Electron has submitted its conditional use permit application, and we are planning for most of the on-site construction, including civil and mechanical, to start in the first part of 2027, and turbines and boiler components delivered after construction begins.

Speaker #3: Our initial data center project with Base Electron is progressing ahead of expectations and on budget. Manufacturing of the boilers, steam turbines, and other long lead-time components continues to advance quickly and efficiently, helping to deliver reliable, high-capacity energy generation on the fast-track timeline required by AI data center customers.

Speaker #3: Base Electron has submitted its conditional use permit application, and we are planning for most of the on-site construction, including civil and mechanical, to start in the first part of 2027, with turbines and boiler components delivered after construction begins.

Kenny Young: We are planning for most of the on-site construction, including civil and mechanical, to start in the first part of 2027, and turbines and boiler components delivered after construction begins. The growth of AI-driven data centers is creating significant opportunities for Babcock & Wilcox, with more than 4 to 6 gigawatts in new opportunities added from hyperscalers, developers, and utility customers in our pipeline. We remain in active discussions with multiple AI data center customers utilizing coal and natural gas, and we expect a second data center project to move in full notice to proceed this year. In anticipation of this next data center project, Babcock & Wilcox has secured the manufacturing reservation rights for an additional 1 gigawatt of steam turbines from Siemens Energy.

Speaker #3: The growth of AI-driven data centers is creating significant opportunities for BMW, with more than 4 to 6 gigawatts in new opportunities added from hyperscalers' developers and utility customers, in our pipeline.

Kenneth Young: The growth of AI-driven data centers is creating significant opportunities for Babcock & Wilcox, with more than 4 to 6 gigawatts in new opportunities added from hyperscalers, developers, and utility customers in our pipeline. We remain in active discussions with multiple AI data center customers utilizing coal and natural gas, and we expect a second data center project to move in full notice to proceed this year. In anticipation of this next data center project, Babcock & Wilcox has secured the manufacturing reservation rights for an additional 1 gigawatt of steam turbines from Siemens Energy. A total of 20 50-megawatt steam turbines will be produced, with the first generator sets being delivered within 12 to 14 months thereafter, and additional deliveries to follow on a regular basis. This will help accelerate deployments for future Babcock & Wilcox data center projects.

Speaker #3: We remain an active discussion with multiple AI data center customers, utilizing coal and natural gas, and we expect a second data center project to move in full notice to proceed this year, in anticipation of this next data center project BMW has secured the manufacturing reservation rights for an additional 1 gigawatt of steam turbines from Siemens Energy.

Speaker #3: A total of twenty 50-megawatt steam turbines will be produced, with the first generator sets being delivered within 12 to 14 months. Additional deliveries will follow on a regular basis.

Kenny Young: A total of 20 50-megawatt steam turbines will be produced, with the first generator sets being delivered within 12 to 14 months thereafter, and additional deliveries to follow on a regular basis. This will help accelerate deployments for future Babcock & Wilcox data center projects. As B&W continues to expand, we are increasing our workforce to support the growth in our hiring, in our engineering project, and business development organizations, while increasing the availability of qualified skilled welders and electricians. As the global power demand continues its climb, availability of highly skilled labor, especially in the United States, is in short supply. Specifically, this negatively impacted efficiencies and resulted in higher direct costs on a specific construction project for Babcock & Wilcox during Q2.

Speaker #3: This will help accelerate deployments for future BMW data center projects. As BMW continues to expand, we are increasing our workforce to support the growth in our hiring and our engineering, project, and business development organizations, while increasing the availability of qualified, skilled welders and electricians.

Kenneth Young: As Babcock & Wilcox continues to expand, we are increasing our workforce to support the growth in our hiring, in our engineering project, and business development organizations, while increasing the availability of qualified skilled welders and electricians. As the global power demand continues its climb, availability of highly skilled labor, especially in the United States, is in short supply. Specifically, this negatively impacted efficiencies and resulted in higher direct costs on a specific construction project for Babcock & Wilcox during Q2. We took immediate action in working with the unions to immediately increase qualified labor availability through incentives, rehires, and delayed retirements to ensure qualified skilled labor is available going forward. Despite these US industry-wide issues, we successfully navigated these labor impacts while still delivering robust top-line results and strong EBITDA growth as well.

Speaker #3: As the global power demand continues its climb, the availability of highly skilled labor, especially in the United States, is in short supply. Specifically, this negatively impacted efficiencies and resulted in higher direct costs on a specific construction project for BMW during the second quarter.

Speaker #3: We took immediate action and, working with the unions, to immediately increase qualified labor availability through incentives, rehires, and delayed retirements, to ensure qualified, skilled labor is available going forward.

Kenny Young: We took immediate action in working with the unions to immediately increase qualified labor availability through incentives, rehires, and delayed retirements to ensure qualified skilled labor is available going forward. Despite these US industry-wide issues, we successfully navigated these labor impacts while still delivering robust top-line results and strong EBITDA growth as well. We don't expect labor shortages to be persistent issues, as our near-term focus within our construction business has shifted towards variable price construction projects, and we are increasing our recruiting and training efforts across many disciplines as well. Our BrightLoop initiatives continue to move forward as we advance the commercialization of our technology to enable cost-effective energy production. The commercial-scale demonstration of BrightLoop at our Massillon, Ohio, project site remains a strategic priority.

Speaker #3: Despite these U.S. industry-wide issues, we successfully navigated these labor impacts while still delivering robust top-line results. And strong EBITDA growth as well. We don't expect labor shortages to be persistent issues, as our near-term focus within our construction business has shifted toward variable-priced construction projects, and we are increasing our recruiting and training efforts across many disciplines as well.

Kenneth Young: We don't expect labor shortages to be persistent issues, as our near-term focus within our construction business has shifted towards variable price construction projects, and we are increasing our recruiting and training efforts across many disciplines as well. Our BrightLoop initiatives continue to move forward as we advance the commercialization of our technology to enable cost-effective energy production. The commercial-scale demonstration of BrightLoop at our Massillon, Ohio, project site remains a strategic priority. We are continuing fabrication of major components for the facility while we prepare the site for major construction activities to begin yet this year. We have included a few photos of the various BrightLoop reactors in the fabrication process in our company overview presentation on our website. The operation of Massillon in late 2027 will position BrightLoop as a commercially available option for energy production as the demand for new generation assets continues to grow.

Speaker #3: Our BrightLoop initiatives continue to move forward as we advance the commercialization of our technology to enable cost-effective energy production. The commercial-scale demonstration of BrightLoop at our Maslin, Ohio, project site remains a strategic priority, and we are continuing fabrication of major components for the facility while we prepare the site for major construction activities to begin yet this year.

Kenny Young: We are continuing fabrication of major components for the facility while we prepare the site for major construction activities to begin yet this year. We have included a few photos of the various BrightLoop reactors in the fabrication process in our company overview presentation on our website. The operation of Massillon in late 2027 will position BrightLoop as a commercially available option for energy production as the demand for new generation assets continues to grow. We believe these efforts will strengthen Babcock & Wilcox's leadership in low-carbon energy solutions and support our long-term growth. I'll now turn the call over to Cameron to discuss the financial details of Q2 for 2026. Cameron?

Speaker #3: We have included a few photos of the various Bright Loop reactors in the fabrication process in our company overview presentation on our website. The operation of Maslin in late 2027 will position Bright Loop as a commercially available option for energy production as the demand for new generation assets continues to grow.

Speaker #3: We believe these efforts will strengthen BMW's leadership in low-carbon energy solutions and support our long-term growth. I'll now turn the call over to Cameron to discuss the financial details of the Q2 for 2026.

Kenneth Young: We believe these efforts will strengthen Babcock & Wilcox's leadership in low-carbon energy solutions and support our long-term growth. I'll now turn the call over to Cameron to discuss the financial details of Q2 for 2026. Cameron?

Speaker #3: Cameron?

Speaker #1: Thanks, Kenny. I am pleased to review our Q2 2026 financial results. Further details of which can be found in the 10-Q that was filed with the SEC this afternoon.

Cameron Frymyer: Thanks, Kenny. I am pleased to review our Q2 2026 financial results, further details of which can be found in the Form 10-Q that was filed with the SEC this afternoon. Our Q2 2026 consolidated revenues were $319.7 million, which is 130% increase compared to Q2 2025. Net income was $14.3 million for Q2, a $72.8 million increase compared to Q2 2025. Finally, adjusted EBITDA was $21.8 million for Q2, a $7.9 million increase compared to Q2 2025. These top-line metrics capture the recent growth we've seen across our businesses and illustrate Babcock & Wilcox's positive trajectory moving forward. in H1 2026, revenues were $534.1 million, which is a significant increase compared to the revenue of $287.5 million in H1 2025.

Speaker #1: Our Q2 2026 consolidated revenues were $319.7 million, which is a 130% increase compared to Q2 2025. Net income was $14.3 million for the quarter, a $72.8 million increase compared to Q2 2025.

Speaker #1: Finally, adjusted EBITDA was $21.8 million for the Q2, a 7.9 million increase compared to the Q2 of 2025. These top-line metrics captured the recent growth we've seen across our businesses and illustrate BMW's positive trajectory moving forward.

Speaker #1: In the first half of 2026, revenues were $534.1 million, which is a significant increase compared to the revenue of $287.5 million in the first half of 2025.

Speaker #1: This is primarily driven by an increase in large project volume, including $131.7 million from Base Electron, and the growing need for electricity from fossil fuels, driven by demand from AI data centers and expanding economies.

Cameron Frymyer: This is primarily driven by an increase in large project volume, including $131.7 million from Base Electron, and the growing need for electricity from fossil fuels, driven by demand from AI, data centers, and expanding economies. Our core parts and services continue to perform well during the H1 of the year. Net loss in the H1 of 2026 was $62.7 million, compared to a net loss of $80.5 million in the H1 of 2025. Net loss in the H1 of 2026 is attributed to $77.4 million of non-cash warrants and other stock-related costs that we recorded this year due to the increase in our stock performance. Excluding the impact of these specific warrants and other stock-related costs, B&W reported adjusted net income of $14.7 million in the H1 of 2026.

Speaker #1: Our core parts and services continue to perform well during the first half of the year. Net loss in the first half of 2026 was $62.7 million, compared to a net loss of $80.5 million in the first half of 2025.

Speaker #1: Net loss in the first half of 2026 is attributed to 77.4 million of non-cash warrants and other stock-related costs that were recorded this year due to the increase in our stock performance.

Speaker #1: Excluding the impact of these specific warrants and other stock-related costs, BMW reported adjusted net income of $14.7 million in the first half of 2026.

Speaker #1: Adjusted EBITDA was $37.8 million in the first half of 2026, compared to $17.9 million in the first half of 2025. I'll now turn to the balance sheet cash flow and liquidity.

Cameron Frymyer: Adjusted EBITDA was $37.8 million in the H1 of 2026, compared to $17.9 million in the H1 of 2025. I'll now turn to the balance sheet cash flow and liquidity. Total debt at 30 June 2026 was $276.8 million, which includes unamortized fees and unamortized gains from our bond swap in 2025. The company had a cash equivalents, and restricted cash balance of $382.8 million. In the Q2 of 2026, we announced the repurchase of the remaining $61.8 million in outstanding December 2026 bonds. In addition, B&W's board of directors in July of 2026 authorized a share repurchase program for up to $50 million. The combination of our bond payments and the launch of the share repurchase program illustrates B&W's disciplined approach to debt repayment while reflecting the confidence in our balance sheet and strategic approach to building shareholder value.

Speaker #1: Total debt at June 30, 2026 was $276.8 million, which includes unamortized fees and unamortized gains, from our bond swap in 2025. The company had a cash-cash equivalent and restricted cash balance of $382.8 million.

Speaker #1: In the second quarter of 2026, we announced the repurchase of the remaining $61.8 million in outstanding December 2026 bonds, and in addition, B&W's board of directors in July 2026 authorized a share repurchase program for up to $50 million.

Speaker #1: The combination of our bond payments and the launch of the share repurchase program illustrates BMW's disciplined approach to debt repayment while reflecting the confidence in our balance sheet and strategic approach to building shareholder value.

Speaker #1: With that, I'll now turn the call back over to Kenny.

Cameron Frymyer: With that, I'll now turn the call back over to Kenny.

Speaker #2: Thanks, Cameron. Well, in closing, we are encouraged by the progress that we have seen across the first half of 2026, which, along with our visibility for continued strong demand in the second half, helped drive our improved 2026 full-year adjusted EBITDA target range.

Kenneth Young: Thanks, Cameron. Well, in closing, we are encouraged by the progress that we have seen across the H1 of 2026, which, along with our visibility for continued strong demand in the H2, helped drive our improved 2026 full-year adjusted EBITDA target range. Our core business continues to see sustained opportunities fueled by growing demand for reliable baseload power and a continued focus on energy security. We believe B&W is uniquely positioned to capitalize on these trends. We continue to move forward with Base Electron projects and see additional data center opportunities emerging, and our pipeline now exceeds well over $14 billion in project opportunities. Our bookings and backlog continue to convert at a strong pace.

Kenny Young: Thanks, Cameron. Well, in closing, we are encouraged by the progress that we have seen across the H1 of 2026, which, along with our visibility for continued strong demand in the H2, helped drive our improved 2026 full-year adjusted EBITDA target range. Our core business continues to see sustained opportunities fueled by growing demand for reliable baseload power and a continued focus on energy security. We believe B&W is uniquely positioned to capitalize on these trends. We continue to move forward with Base Electron projects and see additional data center opportunities emerging, and our pipeline now exceeds well over $14 billion in project opportunities. Our bookings and backlog continue to convert at a strong pace.

Speaker #2: Our core business continues to see sustained opportunities, fueled by growing demand for reliable baseload power and a continued focus on energy security. We believe B&W is uniquely positioned to capitalize on these trends.

Speaker #2: We continue to move forward with base electron projects and see additional data center opportunities emerging in our pipeline now exceeds well over $14 billion in project opportunities.

Speaker #2: And our bookings and backlog continue to convert at a strong pace. We are encouraged by momentum we are seeing across our core markets and the opportunities to not only support the growing need for reliable baseload generation, but also to play a key role in advancing energy security and supporting the global energy transition.

Kenneth Young: We are encouraged by momentum we are seeing across our core markets and the opportunities to not only support the growing need for reliable baseload generation, but also to play a key role in advancing energy security and supporting the global energy transition. I will close by recognizing our talented and dedicated employees worldwide, whose commitment and expertise continue to drive Babcock & Wilcox's success. We are grateful for their ongoing contributions as well as their continued support of our customers, suppliers, and partners around the world. We are optimistic about the opportunities ahead and look forward to further demonstrating Babcock & Wilcox's role as a leader and innovator in delivering advanced power generation and environmental solutions that support reliable power and strengthen energy security and shape the future of the global energy landscape. With that, I will turn it back over to Crystalyn, and we have time for just one or two questions.

Kenny Young: We are encouraged by momentum we are seeing across our core markets and the opportunities to not only support the growing need for reliable baseload generation, but also to play a key role in advancing energy security and supporting the global energy transition. I will close by recognizing our talented and dedicated employees worldwide, whose commitment and expertise continue to drive Babcock & Wilcox's success. We are grateful for their ongoing contributions as well as their continued support of our customers, suppliers, and partners around the world. We are optimistic about the opportunities ahead and look forward to further demonstrating Babcock & Wilcox's role as a leader and innovator in delivering advanced power generation and environmental solutions that support reliable power and strengthen energy security and shape the future of the global energy landscape.

Speaker #2: I will close by recognizing our talented and dedicated employees worldwide whose commitment and expertise continue to drive BMW's success. We are grateful for their ongoing contributions, as well as their continued support of our customers, suppliers, and partners around the world.

Speaker #2: We are optimistic about the opportunities ahead and look forward to further demonstrating BMW's role as a leader and innovator in delivering advanced power generation and environmental solutions that support reliable power and strengthen energy security and shape the future of the global energy landscape.

Speaker #2: With that, I'll turn it back over to Chrislin, and we have time for just one or two questions. So, Chrislin, I'll turn it over to you.

Kenny Young: With that, I will turn it back over to Crystalyn, and we have time for just one or two questions. Crystalyn, I will turn it over to you.

Kenneth Young: Crystalyn, I will turn it over to you.

Speaker #3: We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand.

Operator: We will now begin the question and answer session. 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 to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Rob Brown with Lake Street Capital Markets. Your line is open. Please go ahead.

Speaker #3: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Rob Brown with Lake Street Capital Markets.

Speaker #3: Your line is open. Please go ahead.

Speaker #4: Hi, Kenny. Hi, Cameron. Congratulations on all the progress.

Rob Brown: Hi, Kenny. Hi, Cameron. Congratulations on all the progress.

Speaker #2: Hey, Rob. I have a question on

Kenneth Young: Hey, Rob.

Kenny Young: Hey, Rob.

Rob Brown: First question on the Base Electron project. You recognized a fair amount of revenue in the quarter. Could you give us a layout of how that project's developing and flowing through the income statement and really how the project steps forward over the next few quarters?

Speaker #4: the base electron project. You recognized a fair amount of revenue in the quarter. Could you give us a kind of a layout of how that project's developing and flowing through the income statement, and really how the project kind of steps forward over the next few quarters?

Speaker #2: Yeah. So we were able to recognize a little bit more revenue in the first part than we anticipated. Obviously, from the production aspect and the manufacturing aspect of various milestones that have been reached, which is exciting for us because we're ahead of expectations right now on that project and on budget.

Kenneth Young: Yeah. We were able to recognize a little bit more revenue in the first part than we anticipated. Obviously, from the production aspect and the manufacturing aspect of various milestones that have been reached, which is exciting for us because we're ahead of expectations right now on that project and on budget. On that standpoint, I think where the real bulk of the revenues pick up is as we move into the construction phase and we begin shipping materials on-site, which will have significant milestones. Obviously, that'll start early next year on the particular site location. As mentioned, Base has filed their initial permit application for the site, and they're working through all of those details, and we're supporting them heavily on that. We're excited about getting to the construction phase, which again, will start next year.

Kenny Young: Yeah. We were able to recognize a little bit more revenue in the first part than we anticipated. Obviously, from the production aspect and the manufacturing aspect of various milestones that have been reached, which is exciting for us because we're ahead of expectations right now on that project and on budget. On that standpoint, I think where the real bulk of the revenues pick up is as we move into the construction phase and we begin shipping materials on-site, which will have significant milestones. Obviously, that'll start early next year on the particular site location. As mentioned, Base has filed their initial permit application for the site, and they're working through all of those details, and we're supporting them heavily on that. We're excited about getting to the construction phase, which again, will start next year.

Speaker #2: On that standpoint, I think we're the real bulk of the revenues pick up is as we move into the construction phase and we begin shipping materials on site, which will have significant milestones, obviously.

Speaker #2: That'll begin, that'll start early next year on the particular site and location. And as mentioned, BASE has filed their initial permit application for the site, and they're working through all of those details. We're supporting them heavily on that, and we're excited about getting to the construction phase, which, again, will start next year.

Speaker #2: So we'll talk we can actually we'll keep an eye out on the revenue aspect, and if we think we can pull in more revenue and EBIT, obviously, we'll take a look at that in the coming quarters and make any adjustments accordingly on that standpoint.

Kenneth Young: We'll keep an eye out on the revenue aspect, and if we think we can pull in more revenue and EBIT, obviously, we'll take a look at that in the coming quarters and make any adjustments accordingly on that standpoint. That's one of the reasons, amongst others, that we decided to increase the EBIT range as well. We'll see how the milestones shake out, but I think we'll see significantly more revenue going into early part of next year.

Kenny Young: We'll keep an eye out on the revenue aspect, and if we think we can pull in more revenue and EBIT, obviously, we'll take a look at that in the coming quarters and make any adjustments accordingly on that standpoint. That's one of the reasons, amongst others, that we decided to increase the EBIT range as well. We'll see how the milestones shake out, but I think we'll see significantly more revenue going into early part of next year.

Speaker #2: But and that's one of the reasons amongst others that we decided to increase the EBIT arrangements well too. So we'll see how the milestones shake out, but I think we'll see significantly more revenue going into early part of next year.

Speaker #4: Okay, great. And then on the pipeline, I think you talked about four to six gigawatts of potential pipeline there. Could you kind of elaborate on how you see those projects developing and maybe how they compare to the base electron kind of project in terms of the numbers of projects that you're going after?

Rob Brown: Okay, great. On the pipeline, I think you talked about 4 to 6 gigawatts of potential pipeline there. Could you elaborate on how you see those projects developing and maybe how they compare to the Base Electron project in terms of the numbers of projects that you are going after?

Speaker #2: Yeah, no, happy to. So, as we're involved in a number of them now, in discussions and obviously negotiations on a few, I think these will evolve, as we've stated publicly before.

Kenneth Young: Yeah, happy to. As we are involved in a number of them now, in discussions and obviously negotiations on a few. I think these will evolve, as we have stated publicly before, these will evolve with some sort of an initial LNTP of various sizes up front, and then we will move into full NTP or full notice to proceed on those projects. We are obviously confident and excited about one or two that are developing that we went ahead and placed reservation rights for the Siemens turbines associated with that. In this particular case, instead of the larger boilers, we are using 50-megawatt boilers and steam turbines in an enhanced combined cycle fashion where we can actually install the boiler and the turbine ahead of the combustion turbine, and we are able to add a combustion turbine at a later date.

Kenny Young: Yeah, happy to. As we are involved in a number of them now, in discussions and obviously negotiations on a few. I think these will evolve, as we have stated publicly before, these will evolve with some sort of an initial LNTP of various sizes up front, and then we will move into full NTP or full notice to proceed on those projects. We are obviously confident and excited about one or two that are developing that we went ahead and placed reservation rights for the Siemens turbines associated with that. In this particular case, instead of the larger boilers, we are using 50-megawatt boilers and steam turbines in an enhanced combined cycle fashion where we can actually install the boiler and the turbine ahead of the combustion turbine.

Speaker #2: These will evolve with some sort of an initial LNTP of various sizes upfront, and then we'll move into full NTP or full notice to proceed on those projects.

Speaker #2: We're obviously confident, excited about one or two that are developing that we went ahead and placed reservation rights for the Siemens turbines associated with that.

Speaker #2: In this particular case, instead of the larger boilers, we're using 50-megawatt boilers and steam turbines in an enhanced combined-cycle fashion, where we can run the turbine ahead of the combustion turbine, and we're able to add a combustion turbine at a later date.

Kenny Young: We are able to add a combustion turbine at a later date. But the customer can realize the full power of the 50-megawatt unit that will provide initially 1 gigawatt worth of power, 50 times 20. When the combustion turbine is available, it will basically, on the same plot of land, double the output from 1 gigawatt to 2 gigawatts. It is a real nice advantage for one or two of our customers, and we are in continuing discussions with them. We are also, and I think this is unique, in discussions around potential other large project opportunities. Some of those are coal-related, which I realize many people will have a difficult time believing.

Speaker #2: But the customer can realize the full power of the 50-megawatt units that'll provide initially one gigawatt worth of power, 50 times 20, when the combustion turbine's available, it'll basically, on the same plot of land, double the output from one gigawatt to two gigawatts.

Kenneth Young: But the customer can realize the full power of the 50-megawatt unit that will provide initially 1 gigawatt worth of power, 50 times 20. When the combustion turbine is available, it will basically, on the same plot of land, double the output from 1 gigawatt to 2 gigawatts. It is a real nice advantage for one or two of our customers, and we are in continuing discussions with them. We are also, and I think this is unique, in discussions around potential other large project opportunities. Some of those are coal-related, which I realize many people will have a difficult time believing.

Speaker #2: So it's a real nice advantage for one or two of our customers and we're in discussions continuing discussions with them we're also and I think this is unique in discussions around potential other large project opportunities.

Speaker #2: Some of those are coal-related, which I realize many people will have a difficult time believing. But even outside the Terrace Spark project that we announced—and we're working on the feed study associated with that project—we're in discussions on other potential coal-related projects, obviously backed by the current administration.

Kenneth Young: But even outside the TerraSpark project that we announced, and we are working on the FEED study associated with that project, we are in discussions on other potential coal-related projects obviously backed by the current administration, but to be used either in a grid connection associated with a data center or in direct connect to a data center at a particular site. These are larger projects as well. There are several that we are involved in outside of the coal opportunities. But I want to reference that because we think those are unique, and it is also uniquely positioned as Babcock & Wilcox is probably one of the only few companies that actually can support those projects today.

Kenny Young: But even outside the TerraSpark project that we announced, and we are working on the FEED study associated with that project, we are in discussions on other potential coal-related projects obviously backed by the current administration, but to be used either in a grid connection associated with a data center or in direct connect to a data center at a particular site. These are larger projects as well. There are several that we are involved in outside of the coal opportunities. But I want to reference that because we think those are unique, and it is also uniquely positioned as Babcock & Wilcox is probably one of the only few companies that actually can support those projects today.

Speaker #2: But to be used either in a grid connection associated with a data center, or in direct connect through a data center, at a particular site.

Speaker #2: And these are larger projects as well too. So there are several that we're involved in. Outside of the coal opportunities, but want to reference that because we think those are unique and it's also uniquely positioned as B&W's probably one of the only few companies that actually can support those projects today.

Speaker #4: Okay, great. And then last questions on the sort of the customer response to I think you have a quicker time to market with your product and an overall kind of comparable cost structure for your system versus others.

Rob Brown: Okay, great. Last question is on the customer response to, I think you have a quicker time to market with your product and an overall comparable cost structure for your system versus others. What is the need in the marketplace for time to market, and how is that resonating with the customer base?

Speaker #4: But what's the need in the marketplace for time-to-market, and how is that resonating with the customer base?

Speaker #2: Well, customers always want to go faster and faster. For sure, right? We understand that pressure and we're working to respond to that. That's one of the reasons we're moving quicker on these Siemens turbines to be ready in a 12 to 14-month period to get initial shipments on that to match what the boiler opportunity.

Kenneth Young: Well, customers always want to go faster and faster, for sure. We understand that pressure, and we are working to respond to that. That is one of the reasons we are moving quicker on these Siemens turbines to be ready in a 12 to 14 month period to get initial shipments on that to match with the boiler opportunity out there overall. From a capital, our focus has always been on the total cost of levelized or the levelized cost of electricity, so looking at total cost of ownership.

Kenny Young: Well, customers always want to go faster and faster, for sure. We understand that pressure, and we are working to respond to that. That is one of the reasons we are moving quicker on these Siemens turbines to be ready in a 12 to 14 month period to get initial shipments on that to match with the boiler opportunity out there overall. From a capital, our focus has always been on the total cost of levelized or the levelized cost of electricity, so looking at total cost of ownership. The levelized cost of electricity, when you look at that category, or if you want to look at heat rate.

Speaker #2: Out there. Overall. But from a capital our focus has always been on the total cost of levelized or the levelized cost of electricity so looking at total cost of ownership.

Speaker #2: But the levelized cost of electricity when you look at that category or if you want to look at heat rate, when you leverage the enhanced combined cycle plant and structure that we're doing, where we're taking the boiler and the turbine and matching that up with a combustion turbine, at a later date, the combination of all three of those puts us on a heat rate that's not the much worse, if you will, than a combined cycle plant.

Kenneth Young: The levelized cost of electricity, when you look at that category, or if you want to look at heat rate, when you leverage the enhanced combined cycle plant structure that we are doing, where we are taking the boiler and the turbine and matching that up with a combustion turbine at a later date, the combination of all three of those puts us on a heat rate that is not much worse, if you will, than a combined cycle plant. When you look at the overall efficiency aspect of those, we are pretty in line or pretty close. We are providing power three to five years faster on those sites than a combustion turbine alone.

Kenny Young: When you leverage the enhanced combined cycle plant structure that we are doing, where we are taking the boiler and the turbine and matching that up with a combustion turbine at a later date, the combination of all three of those puts us on a heat rate that is not much worse, if you will, than a combined cycle plant. When you look at the overall efficiency aspect of those, we are pretty in line or pretty close. We are providing power three to five years faster on those sites than a combustion turbine alone. I think the other key factor is, and we do not talk about this enough, but if it is just a standard combustion turbine with a HRSG and a steam turbine under a combined cycle concept, the reliability of that is a little bit less.

Speaker #2: So, when you look at the overall efficiency aspect of those, we're pretty in line or pretty close. But we're providing power three to five years faster on those sites than a combustion turbine alone.

Speaker #2: I think the other key factor is—and we don't talk about this enough—but if it's just a standard combustion turbine, with a HRSG and a steam turbine, under a combined cycle concept, the reliability of that is a little bit less.

Kenneth Young: I think the other key factor is, and we do not talk about this enough, but if it is just a standard combustion turbine with a HRSG and a steam turbine under a combined cycle concept, the reliability of that is a little bit less. One, it is well known combustion turbines are not quite as reliable as steam. The second aspect of it is, if the combustion turbine goes out of service, that entire amount of electricity is gone. When you have, in our case, where we are taking a standard steam boiler, converting that into a combination of a HRSG and boiler, where it can accept the waste heat from a combustion turbine in the future, then we are able to generate power both from the combustion turbine as well as from the boiler/steam turbine. If one or the other goes down, you still have one of the units operating.

Speaker #2: One, it's well-known combustion turbines are not quite as reliable as steam. The second aspect of it is if the combustion turbine goes out of service, that entire amount of electricity is gone.

Kenny Young: One, it is well known combustion turbines are not quite as reliable as steam. The second aspect of it is, if the combustion turbine goes out of service, that entire amount of electricity is gone. When you have, in our case, where we are taking a standard steam boiler, converting that into a combination of a HRSG and boiler, where it can accept the waste heat from a combustion turbine in the future, then we are able to generate power both from the combustion turbine as well as from the boiler/steam turbine. If one or the other goes down, you still have one of the units operating. Combined, they will be producing, let's say in this case, 100 megawatts. So a 50 megawatt combustion turbine and a 50 megawatt steam and boiler/HRSG would be creating 100 megawatts.

Speaker #2: When you have, in our case, where we're taking a standard steam boiler and converting that into a combination of a HRSG and boiler—where it can accept the waste heat from a combustion turbine in the future—then we're able to generate power both from the combustion turbine as well as from the boiler/steam turbine.

Speaker #2: So if one or the other goes down, you still have one of the units operating. So combined, they'll be producing, let's say, in this case, 100 megawatts.

Kenneth Young: Combined, they will be producing, let's say in this case, 100 megawatts. So a 50 megawatt combustion turbine and a 50 megawatt steam and boiler/HRSG would be creating 100 megawatts. When one goes out, you still have 50 operating. In a normal combined cycle world, when that combustion turbine goes down for maintenance, you have lost the entire amount of electricity being produced. So you gain much more reliability. You gain 3 to 5 years faster to market on speed standpoint, from a power standpoint. As I said, the efficiency and heat rate from a levelized cost of electricity is pretty close. So a lot of advantages there on that. Having said that, our customers continue to put pressure on us to go faster and faster, and we continually analyze ways and technologies and options to make that happen, and we will continue to do so.

Speaker #2: So, a 50-megawatt combustion turbine and a 50-megawatt steam and boiler/heater set would be creating 100 megawatts. When one goes out, you still have 50 operating.

Kenny Young: When one goes out, you still have 50 operating. In a normal combined cycle world, when that combustion turbine goes down for maintenance, you have lost the entire amount of electricity being produced. So you gain much more reliability. You gain three to five years faster to market on speed standpoint, from a power standpoint. As I said, the efficiency and heat rate from a levelized cost of electricity is pretty close. So a lot of advantages there on that. Having said that, our customers continue to put pressure on us to go faster and faster, and we continually analyze ways and technologies and options to make that happen, and we will continue to do so.

Speaker #2: In a normal combined cycle world, when that combustion turbine goes down for maintenance, you block the entire amount of electricity being produced. So you gain much more reliability; you gain three to five years faster to market on a speed standpoint from a power standpoint.

Speaker #2: And like I said, the efficiency and heat rate from a levelized cost of electricity is pretty close. So a lot of advantages there. On that, having said that, our customers continue to put pressure on us to go faster and faster.

Speaker #2: And we continually annualize or analyze ways and technologies and options to make that happen. And we'll continue to do so. But we're excited about where we are.

Kenneth Young: We are excited about where we are, and obviously, getting a few of these projects across the goal line is important to us, and we continue to work on those.

Kenny Young: We are excited about where we are, and obviously, getting a few of these projects across the goal line is important to us, and we continue to work on those.

Speaker #2: And obviously, getting a few of these projects across the goal line is important to us, and we continue to work on those.

Speaker #4: All right, thank you. I'll turn it over.

Rob Brown: All right. Thank you. I will turn it over.

Speaker #1: Your next question comes from the line of Erin Faichala with Craig Hallam Capital Group. Your line is open. Please go ahead.

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

Speaker #4: Yeah. Hi, Kenny and Cameron. Thanks for taking the questions. Maybe first for us, just on supply chain. Can you just kind of speak to confidence in your ability to meet the growth that you're seeing from this first project and kind of additional projects?

Aaron Spychalla: Yeah. Hi, Kenny and Cameron. Thanks for taking the questions. Maybe first for us, just on supply chain, can you just speak to confidence in your ability to meet the growth that you are seeing from this first project and additional projects? You talked a little about labor and obviously ordering some of these turbines. Can you just talk about any investments needed there and just the confidence in that growth?

Speaker #4: You talked a little bit about labor and, obviously, kind of ordering some of these turbines. Can you just talk about any investments needed there, and your confidence in that growth?

Speaker #2: Yeah. So we do continue to work. As we mentioned, previously, when we look at the various opportunities, we have different manufacturing I'll just talk about the boiler for a second.

Kenneth Young: Yeah. We do continue to work, as we mentioned previously, when we look at the various opportunities, we have different manufacturing on I will just talk about the boiler for a second. We have different manufacturers and manufacturing processes that we rely on, both some of that is internal to ourselves, some of that is third party related as well, where we can shift different boiler sizes into different manufacturing facilities. So it gives us the ability to take on more and more project work. Babcock & Wilcox has been doing that for quite some time, and that is not any different as it relates to these opportunities.

Kenny Young: Yeah. We do continue to work, as we mentioned previously, when we look at the various opportunities, we have different manufacturing on I will just talk about the boiler for a second. We have different manufacturers and manufacturing processes that we rely on, both some of that is internal to ourselves, some of that is third party related as well, where we can shift different boiler sizes into different manufacturing facilities. So it gives us the ability to take on more and more project work. Babcock & Wilcox has been doing that for quite some time, and that is not any different as it relates to these opportunities. We feel like that we have that kind of flexibility and capacity on these.

Speaker #2: We have different manufacturers and manufacturing processes that we rely on, some of which are internal, and some that are third-party as well.

Speaker #2: We can shift different boiler sizes into different manufacturing facilities, so it gives us the ability to take on more and more project work.

Speaker #2: That's B&W's been doing that for quite some time. And that's not any different as it relates to these opportunities. So we're we feel like that we have that kind of flexibility and capacity on these.

Kenneth Young: We feel like that we have that kind of flexibility and capacity on these, and we will continue working with those manufacturers to increase the output and also not only the volume, but the speed too, as well, because obviously speed to getting this on site is really, really important. On Base Electron's case, as you mentioned, we are ahead of where we planned and all of our manufacturing on the large, long lead time items are producing on schedule, and so that project is on track overall with them. As we mentioned, the biggest component is making sure that we have access to, besides the boilers, the steam turbine, especially for these initial projects where the combustion turbine would be added at a later date. And we obviously have a very close relationship with Siemens and continue to do so there.

Speaker #2: And we'll continue working with those manufacturers to increase the output and not only the volume, but the speed as well. Because, obviously, speed in getting this on site is really, really important.

Kenny Young: We will continue working with those manufacturers to increase the output and also not only the volume, but the speed too, as well, because obviously speed to getting this on site is really, really important. On Base Electron's case, as you mentioned, we are ahead of where we planned and all of our manufacturing on the large, long lead time items are producing on schedule, and so that project is on track overall with them. As we mentioned, the biggest component is making sure that we have access to, besides the boilers, the steam turbine, especially for these initial projects where the combustion turbine would be added at a later date. And we obviously have a very close relationship with Siemens and continue to do so there.

Speaker #2: On base electrons case, as mentioned, we're ahead of where we planned. And all of our manufacturing on the large long lead time items are producing on schedule.

Speaker #2: And so that project's on track overall with them. As we mentioned, the biggest component is making sure that we have access to, besides the boilers, the steam turbine—especially for these initial projects, where the combustion turbine would be added at a later date.

Speaker #2: And we've obviously have a very close relationship with Siemens and continue to do so there. And we wanted to move ahead and invest in these next gigawatt worth of steam turbines.

Kenneth Young: And we wanted to move ahead and invest in these next gigawatt worth of steam turbines. And so that reservation has been secured on that and ready to ship in the next 12 to 14 months on those turbine units. And the relationship there is good, not only from a supply chain standpoint, but from payment term standpoint on the financial side as well. So, it is very positive in that relationship, and we continue to work with them on the evolution of the turbine and other aspects where we might improve overall efficiencies from an output standpoint, but also efficiencies from a time to market standpoint. So those are two characteristics that we are focused on. That is on those two major areas.

Kenny Young: And we wanted to move ahead and invest in these next gigawatt worth of steam turbines. And so that reservation has been secured on that and ready to ship in the next 12 to 14 months on those turbine units. And the relationship there is good, not only from a supply chain standpoint, but from payment term standpoint on the financial side as well. So, it is very positive in that relationship, and we continue to work with them on the evolution of the turbine and other aspects where we might improve overall efficiencies from an output standpoint, but also efficiencies from a time to market standpoint. So those are two characteristics that we are focused on. That is on those two major areas.

Speaker #2: And so that reservation has been secured. On that and ready to ship in the next 12 to 14 months. On those turbine units. And it's the relationship there is good not only from a supply chain standpoint, but from payment terms standpoint on the financial side as well.

Speaker #2: So it's very positive in that relationship. And we continue to work with them on the evolution of the turbine and other aspects where we might improve overall efficiencies, es, from an output standpoint, but also efficiencies from a time-to-market standpoint.

Speaker #2: So, those are two characteristics that we're focused on—that's on those two major areas. When you look at the other aspect you mentioned, it's on labor.

Kenneth Young: When you look at the other aspect you mentioned is on labor, and that is an area that we continually keep a very close eye on the availability of, I would say, highly skilled labor. It is one, to have a workforce. Two, that workforce has to be highly skilled, especially in these high-pressure wells in those particular areas. We are working very close with the various unions on that front, as well as our customers on that front to make sure that we are aligned and have the availability that we need when we need it.

Kenny Young: When you look at the other aspect you mentioned is on labor, and that is an area that we continually keep a very close eye on the availability of, I would say, highly skilled labor. It is one, to have a workforce. Two, that workforce has to be highly skilled, especially in these high-pressure wells in those particular areas. We are working very close with the various unions on that front, as well as our customers on that front to make sure that we are aligned and have the availability that we need when we need it.

Speaker #2: And that's an area that we continually keep a very close eye on—the availability of, I would say, highly skilled labor. It's one thing to have a workforce.

Speaker #2: Two, that workforce has to be highly skilled, especially in these high-pressure wells and those particular areas. And we're working very close with the various unions.

Speaker #2: On that front, as well as with our customers, to make sure that we're aligned and have the availability that we need, when we need it.

Kenneth Young: In particular on bases we move into construction next year, we have been working very close with the unions to be ready to have welders available as we start those projects and a ramp rate, if you will, to increase the supply of quality welders and moving them through our various safety and other training programs to ensure that they are ready to go to work on those particular projects. We will continue a focus there, and we will continue to invest in that recruiting and training efforts along with the various unions. I will say that the unions have been extremely cooperative and supportive of this as well too. They see that importance, and they know the demand is out there.

Kenny Young: In particular on bases we move into construction next year, we have been working very close with the unions to be ready to have welders available as we start those projects and a ramp rate, if you will, to increase the supply of quality welders and moving them through our various safety and other training programs to ensure that they are ready to go to work on those particular projects. We will continue a focus there, and we will continue to invest in that recruiting and training efforts along with the various unions. I will say that the unions have been extremely cooperative and supportive of this as well too. They see that importance, and they know the demand is out there.

Speaker #2: In particular, on base, as we move into construction next year, we have been working very closely with the unions to be ready to have welders available as we start those projects.

Speaker #2: And a ramp rate, if you will, to increase the supply of quality welders, and moving them through our various safety and other training programs to ensure that they're ready to go to work on those particular projects.

Speaker #2: So we'll continue a focus there. We'll continue to invest in that recruiting and training efforts with along with the various unions. And I will say that the unions have been extremely cooperative and supportive of this as well too.

Speaker #2: They see that importance, and they know the demand is out there, right? So it's a good time in the industry. But any time you have this massive amount of growth in the marketplace, especially here in the United States, it puts pressure to make sure that we're planning on those resources equally as well as the manufacturing side as well, too.

Kenneth Young: It is a good time in the industry, but anytime you have this massive amount of growth in the marketplace, especially here in the United States, it puts pressure to make sure that we are planning on those resources equally as well as the manufacturing side as well too. We are staying on top of it, and I feel like we have accomplished a lot over the last quarter and have put us in a good direction going into next year.

Kenny Young: It is a good time in the industry, but anytime you have this massive amount of growth in the marketplace, especially here in the United States, it puts pressure to make sure that we are planning on those resources equally as well as the manufacturing side as well too. We are staying on top of it, and I feel like we have accomplished a lot over the last quarter and have put us in a good direction going into next year.

Speaker #2: So we're staying on top of it, and I feel like we've accomplished a lot over the last quarter and have put us in a good direction going into next year.

Speaker #4: Got it. Thanks for the color. And then you kind of referenced a feed study. You had a coal plant announcement here this past quarter.

Aaron Spychalla: Got it. Thanks for the color. You referenced a FEED study at a coal plant announcement here this past quarter. Can you just give a little bit more detail on what that pipeline, what that opportunity, what the kind of pipeline looks like? Any thoughts on kind of timing and next steps there?

Speaker #4: Can you just give a little bit more detail on what that pipeline—what that opportunity, what the kind of pipeline looks like? Any thoughts on timing and next steps there?

Speaker #2: Yeah. We're working closely on the feeds, obviously. The feed is going through the whole front-end engineering design aspect—the plant flows, project power flows, everything else associated with that.

Kenneth Young: Yeah, we are working close on the FEED study. Obviously, the FEED is going through the whole Front-End Engineering Design aspect of the plant flows project, power flows, everything else associated with that normal course on that particular piece. There is a lot of involvement with the Department of Energy on that particular project, and we are working very close with them as well too. It is going through its process, and TerraSpark is working through its approach on the process and looking at different options on how to structure the boiler and other pieces to support their long-term goals on that piece. But we are excited to be a part of that. I can tell you from an employee perspective, we have got a lot of employees that never thought they would see the light of day of building a coal plant here in the US.

Kenny Young: Yeah, we are working close on the FEED study. Obviously, the FEED is going through the whole Front-End Engineering Design aspect of the plant flows project, power flows, everything else associated with that normal course on that particular piece. There is a lot of involvement with the Department of Energy on that particular project, and we are working very close with them as well too. It is going through its process, and TerraSpark is working through its approach on the process and looking at different options on how to structure the boiler and other pieces to support their long-term goals on that piece. But we are excited to be a part of that.

Speaker #2: Normal course. On that particular piece. There's a lot of involvement with the DOE on that particular project. And we're working very close with them as well too.

Speaker #2: So it's going through its process. And TerraSpark is working through its approach on the process. And looking at different options on how to structure the boiler and other pieces to support their long-term goals on that piece.

Speaker #2: But we're excited to be a part of that. I can tell you, from an employee perspective, we have a lot of employees who never thought they would see the day when a coal plant would be built here in the U.S.

Kenny Young: I can tell you from an employee perspective, we have got a lot of employees that never thought they would see the light of day of building a coal plant here in the US. A lot of our engineers that have been around these subcritical or supercritical plants are excited to be a part of it, and we are as well too. So, we are supporting their efforts and obviously TerraSpark has got lead on this, but a lot of discussions with them and working with them on getting this done. It is too soon to anticipate quite yet how we would forecast out revenues associated with that project and when past the FEED study. But it is actively involved and engaged, and we will just have to see how it goes from here.

Speaker #2: So a lot of our engineers that have been around these critical sub-critical or super-critical plants are excited to be a part of it. And we are as well too.

Kenneth Young: A lot of our engineers that have been around these subcritical or supercritical plants are excited to be a part of it, and we are as well too. So, we are supporting their efforts and obviously TerraSpark has got lead on this, but a lot of discussions with them and working with them on getting this done. It is too soon to anticipate quite yet how we would forecast out revenues associated with that project and when past the FEED study. But it is actively involved and engaged, and we will just have to see how it goes from here.

Speaker #2: So we're supporting their efforts, and obviously TerraSpark's got lead on this. But there's a lot of discussions with them and we're working with them on getting this done.

Speaker #2: So it's too soon to anticipate quite yet how we'd forecast out revenues associated with that project and when. Past the feed study. But it's actively involved and engaged.

Speaker #2: And we'll just have to see how it goes from here.

Speaker #4: Okay, thanks for that. And then maybe one last one for me—just on ClimateBright. You kind of mentioned, I think, 2027. Can you just talk a little about next steps there, and maybe what that pipeline looks like as we think about growth and getting that project up and running?

Aaron Spychalla: Okay. Thanks for that. Then maybe one last one for me, just on ClimateBright. You kind of mentioned, I think 2027. Can you just kind of talk about next steps there and maybe what that pipeline looks like as we think about growth and getting that project up and running?

Speaker #2: Yeah. So well, first on the Maslin project, I haven't had I assume our presentation's up by now. But on the Maslin project, you'll see some pictures of fabrication of the fuel reactors on Bright Loop that'll be going in that location.

Kenneth Young: Well, first on the Massillon project, and I have not had, I assume our presentation is up by now. But on the Massillon project, you will see some pictures of fabrication of the fuel reactors on BrightLoop that will be going in that location on the commercial aspect of that. We have got a lot of interest from hyperscalers and others, even oil companies, as it relates to BrightLoop and that commercial demonstration of that particular project. So, we have obviously accomplished, I think, for the most part, all of the funding necessary to get that in the ground, and so we will begin construction on site either later in the fall. But that will begin and obviously our anticipation still is to have the fuel reactor and the hydrogen reactor in initial phase operational sometime by latter part of 2027 on that location.

Kenny Young: Well, first on the Massillon project, and I have not had, I assume our presentation is up by now. But on the Massillon project, you will see some pictures of fabrication of the fuel reactors on BrightLoop that will be going in that location on the commercial aspect of that. We have got a lot of interest from hyperscalers and others, even oil companies, as it relates to BrightLoop and that commercial demonstration of that particular project. So, we have obviously accomplished, I think, for the most part, all of the funding necessary to get that in the ground, and so we will begin construction on site either later in the fall. But that will begin and obviously our anticipation still is to have the fuel reactor and the hydrogen reactor in initial phase operational sometime by latter part of 2027 on that location.

Speaker #2: On the commercial aspect of that, we've got a lot of interest from hyperscalers and others, even oil companies, as it relates to BrightLoop and that commercial demonstration on that particular project.

Speaker #2: So we’ve obviously accomplished, I think for the most part, all of the funding necessary to get that in the ground. And so we’ll begin construction on site either later in the fall.

Speaker #2: But that will begin. And obviously, our anticipation still is to have the fuel reactor and the hydrogen reactor and initial phase operational sometime by latter part of 2027 on that location.

Speaker #2: Bright Loop is, as we've talked about, can do hydrogen but can also just do steam. And so we've got a lot of interest right now in the concept of that commercial demonstration showing that the fuel reactor at that scale up is important to move it into a higher scale.

Kenneth Young: BrightLoop is, as we have talked about, can do hydrogen, but it can also just do steam. We have got a lot of interest right now in the concept of that commercial demonstration, showing that the fuel reactor at that scale-up is important to move it into a higher scale. When we look at both the West Virginia project as well as the Wyoming project, a lot of interest right now, given the current environment, is to produce steam from coal with the CO2 being isolated and used for enhanced methane recovery or enhanced oil recovery at those two locations. Getting this commercially in the ground is important steps as it relates to those two projects. We are in close discussions with both those customers as it relates to the Massillon project itself.

Kenny Young: BrightLoop is, as we have talked about, can do hydrogen, but it can also just do steam. We have got a lot of interest right now in the concept of that commercial demonstration, showing that the fuel reactor at that scale-up is important to move it into a higher scale. When we look at both the West Virginia project as well as the Wyoming project, a lot of interest right now, given the current environment, is to produce steam from coal with the CO2 being isolated and used for enhanced methane recovery or enhanced oil recovery at those two locations. Getting this commercially in the ground is important steps as it relates to those two projects. We are in close discussions with both those customers as it relates to the Massillon project itself.

Speaker #2: And when we look at both the West Virginia project as well as the Wyoming project, a lot of interest right now given the current environment is to produce steam from coal with the CO2 being isolated and used for enhanced methane recovery or enhanced oil recovery.

Speaker #2: At those two locations. So getting this commercially in the ground is important steps as it relates to those two projects. And obviously, we're in close discussions with both those customers as it relates to the Maslin project itself.

Speaker #2: So the concept of that, I think, still—our opinion is it still has high growth capabilities. And if we had, honestly—I’ll just make that statement.

Kenneth Young: The concept of that, I think our opinion, it still has a high growth capabilities. If we had, honestly, I will just make the statement, if we had Massillon in the ground two, three years ago, four years ago on it, which was in a practical aspect, but if we had that commercial project done and moving on to larger projects, I think there is a lot of hyperscalers today that would be in discussions about buying, utilizing BrightLoop for power generation because of its CO2 treatment capabilities. Whether it is captured CO2 and sequestered or whether it is used for other enhanced purposes. In the long run, the hyperscalers still want a pathway and a check the box that there could be, at some future point in time, some sort of carbon capture associated with these data centers and AI infrastructure. We are obviously still in a good position.

Kenny Young: The concept of that, I think our opinion, it still has a high growth capabilities. If we had, honestly, I will just make the statement, if we had Massillon in the ground two, three years ago, four years ago on it, which was in a practical aspect, but if we had that commercial project done and moving on to larger projects, I think there is a lot of hyperscalers today that would be in discussions about buying, utilizing BrightLoop for power generation because of its CO2 treatment capabilities. Whether it is captured CO2 and sequestered or whether it is used for other enhanced purposes. In the long run, the hyperscalers still want a pathway and a check the box that there could be, at some future point in time, some sort of carbon capture associated with these data centers and AI infrastructure. We are obviously still in a good position.

Speaker #2: If we had Maslin in the ground two, three years ago, four years ago, on it, which was in a practical aspect. But if we had that commercial project done and moving on to larger projects, I think there's a lot of hyperscalers today that would be in discussions about buying utilizing Bright Loop for power generation because of its CO2 treatment capabilities, whether it's captured CO2 and sequestered or whether it's used for other enhanced purposes.

Speaker #2: But in the long run, the hyperscalers still want a pathway and a check the box that there could be some future point in time some sort of carbon capture associated with these data centers and AI infrastructure.

Speaker #2: So, we're obviously still in a good position. We don't see an end to the power generation demands coming from AI and data centers, despite what the public markets have been stating.

Kenneth Young: We do not see an end to the power generation demands coming from AI and data centers, despite what the public markets have been stating. The demand continues not only here but worldwide, and I think we are hopefully poised with the company to leverage that once we get this up and going by the end of 2027. We will be looking at bookings in 2028, 2029, 2030 as we previously discussed BrightLoop as well as other ClimateBright applications such as our oxy-combustion or post-combustion technologies as well.

Kenny Young: We do not see an end to the power generation demands coming from AI and data centers, despite what the public markets have been stating. The demand continues not only here but worldwide, and I think we are hopefully poised with the company to leverage that once we get this up and going by the end of 2027. We will be looking at bookings in 2028, 2029, 2030 as we previously discussed BrightLoop as well as other ClimateBright applications such as our oxy-combustion or post-combustion technologies as well.

Speaker #2: The demand continues not only here, but worldwide. And I think we're hopefully poised, with the company, to leverage that once we get this up and going by the end of '27.

Speaker #2: So we'll be looking at bookings in '28, '29, '30 as we've ve previously discussed. Bright Loop as well as other Climate Bright applications such as our OxyCombustion or Post-Combustion technologies as well.

Aaron Spychalla: Sure. Seems like it. Thanks for taking the questions. I will turn it over.

Speaker #4: Sure, seems like it. Thanks for taking the questions. I'll turn it over.

Speaker #3: 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.

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

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

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Q2 2026 Babcock & Wilcox Enterprises Inc Earnings Call

Request DemoDemo

Babcock & Wilcox Enterprises

Earnings