Company: BWNB
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001630805-25-000007
Chunk: 14

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 14
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.1 million to $64.8 million in 2023 compared to $56.7 million in 2022. The increase is the result of the large new construction project and increased volume in our parts business described above.

Other Expenses Impacting Operating Results

Interest Expense

Interest expense in our Consolidated Financial Statements consisted of the following components:

Year ended December 31,(in thousands)202420232022Components associated with borrowings from:Senior notes$25,512 $25,601 $24,962 Credit Facility4,892 1,494 — 30,404 27,095 24,962 Components associated with amortization or accretion of:Revolving Credit Agreement6,149 4,643 4,400 Senior notes2,606 2,525 2,612 8,755 7,168 7,012 Components associated with interest from:Lease liabilities2,037 2,813 2,372 Letter of Credit fees and interest3,942 3,519 3,910 Other interest expense1,008 1,976 1,541 6,987 8,308 7,823 Total interest expense$46,146 $42,571 $39,797 

The increase in interest expense is driven by increased borrowings in 2024 when compared to 2023.

The increase in interest expense in 2023, when compared to 2022 is driven by higher utilization of the revolver as well as increased other interest expense.

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Income Taxes

Year ended December 31,(in thousands, except for percentages)202420232022Loss from continuing operations before income tax expense$(60,790)$(65,976)$(5,115)Income tax expense $12,172 $9,818 $9,071 Effective tax rate(20)%(15)%(177)%

Our effective tax rate reflects a valuation allowance against deferred tax assets in jurisdictions other than Mexico, Canada, Brazil, Finland, Germany, Thailand, the Philippines, Indonesia, the United Kingdom, and Sweden.

The change in our income tax expense in 2024 compared to 2023 is primarily attributable to an increase in valuation allowances, a change in the Company's permanent investment assertion and an unfavorable resolution of a foreign income tax matter.

Liquidity and Capital Resources

Liquidity

Our primary liquidity requirements include debt service, funding dividends on preferred stock and working