Company: BWNB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001630805-25-000019
Chunk: 116

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 thousands)20252024Components associated with borrowings from:Senior Notes$6,320 $6,271 Revolving Credit Facility1,168 1,532 7,488 7,803 Components associated with amortization or accretion of:Revolving Credit Agreement1,609 1,149 Senior Notes656 644 2,265 1,793 Components associated with interest from:Lease liabilities591 548 Letter of credit interest and fees452 1,489 Other interest expense367 381 1,410 2,418 Total interest expense$11,163 $12,014 

Interest expense for the three months ended March 31, 2025 is lower due to the decrease in letter of credit usage in 2025 compared to 2024.

Income Taxes

Three Months Ended March 31,(in thousands, except for percentages)20252024$ ChangeLoss from continuing operations before income tax expense$(5,441)$(11,888)$6,447 Income tax expense$2,322 $907 $1,415 Effective tax rate(42.7)%(7.6)%

Deferred tax assets are evaluated each period to determine whether realization is more likely than not. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Valuation allowances may be removed in the future if sufficient positive evidence exists to outweigh the negative evidence under the framework of ASC 740, Income Taxes ("ASC 740").

Our effective tax rate for the first three months of 2025 is not reflective of the U.S. statutory rate primarily due to certain foreign entities having a tax rate higher than the U.S statutory rate, valuation allowances against certain net deferred tax assets and unfavorable discrete items. In certain jurisdictions where we anticipate a loss for the year or incur a loss for the year-to-date period for which a tax benefit cannot be realized in accordance with ASC 740, we exclude the loss in that jurisdiction from the overall computation of the estimated annual effective tax rate.

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Bookings and Backlog

Bookings and backlog are our measures of remaining performance obligations under our sales contracts. We believe these metrics provide investors, lenders and other users of our financial statements with a leading indicator of future revenues. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies.

We generally include expected revenue from