Company: BWNB
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001630805-25-000007
Chunk: 36

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 36
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 to Management’s Annual Report on Internal Control Over Financial Reporting

Critical Audit Matter Description

As discussed in Management’s Annual Report on Internal Control Over Financial Reporting, the Company identified material weaknesses across multiple components of the Internal Control – Integrated Framework (2013) issued by COSO. 

These material weaknesses impact the Company’s control over information technology (IT) systems and business processes, affecting substantially all financial statement account balances and disclosures. This required us to increase the extent of our audit effort, including the need to modify the nature and extent of audit evidence obtained, and involve more senior members of the engagement team in executing, supervising, and reviewing the results of the audit procedures.

How the Critical Audit Matter Was Addressed in the Audit

As a result of the material weaknesses we:

–Lowered the threshold for investigating differences between recorded amounts and independent expectations developed by us that we would have otherwise used.

–Increased the number of selections we would have otherwise made if the Company’s controls were designed and operating effectively. 

–Performed additional procedures to test the completeness and accuracy of the information included in system reports or information generated by the Company’s IT systems which were utilized for audit evidence. 

/s/ Deloitte & Touche LLP

Cleveland, Ohio

March 31, 2025

We have served as the Company's auditor since 2014.

52

BABCOCK & WILCOX ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Year ended December 31,(in thousands, except per share amounts)202420232022Revenues$717,333 $727,315 $609,437 Costs and expenses:Cost of operations540,308 550,613 464,302 Selling, general and administrative expenses141,476 150,147 152,697 Restructuring activities1,296 2,619 (205)Research and development costs5,794 7,197 2,557 Impairment of goodwill and long-lived assets3,729 — — (Gain) loss on asset disposals, net (354)134 (8,760)Total costs and expenses692,249 710,710 610,591 Operating income (loss) 25,084 16,605 (1,154)Other (expense) income:Interest expense(46,146)(42,571)(39,797)Interest income814 1,085 586 Loss on debt extinguishment