Company: BWNB
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001630805-25-000019
Chunk: 65

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 the current period.

Foreign exchange

We translate assets and liabilities of our foreign operations into U.S. dollars at current exchange rates, and we translate items in our Condensed Consolidated Statement of Operations at average exchange rates for the periods presented. We record adjustments resulting from the translation of foreign currency amounts as a component of Accumulated Other Comprehensive Loss. We report foreign currency transaction gains (losses) in income in the Condensed Consolidated Statements of Operations. Management excludes these expenses from Adjusted EBITDA as they do not reflect the ordinary course of business and are inherently unpredictable in timing and amount.

Foreign exchange gains and losses are primarily related to unhedged intercompany loans denominated in European currencies to fund foreign operations.

Letter of credit fees

Letter of credit fees are routinely incurred in the course of executing customer contracts. A portion of the fees are included in the contract prices with our customers. Certain letter of credit amounts represent performance guarantees akin to insurance that are not passed along to our customers and are excluded from Adjusted EBITDA as they do not reflect the performance of the business. Letter of credit fees are not passed along to customers and included in Cost of operations in the Condensed Consolidated Statement of Operations.

RESULTS BY SEGMENT

42

B&W Renewable Segment Results

Three Months Ended March 31,(in thousands)20252024$ ChangeRevenues$28,541 $27,458 $1,083 Adjusted EBITDA$3,128 $2,642 $486 

Three months ended March 31, 2025 and 2024

Revenues in the B&W Renewable segment increased 4%, or $1.1 million, to $28.5 million in the three months ended March 31, 2025 compared to $27.5 million in the three months ended March 31, 2024. This is primarily due to increases in our pulp and paper business.

Adjusted EBITDA in the B&W Renewable segment increased $0.5 million, to $3.1 million in the three months ended March 31, 2025 compared to $2.6 million in the three months ended March 31, 2024 driven by the revenue volume described above.

B&W Environmental Segment Results

Three Months Ended March 31,(in thousands)20252024$ ChangeRevenues$14,407 $26,708 $(12,301)Adjusted EBITDA$2,269 $1,027 $1,242