Babcock & Wilcox Enterprises, Inc.

Good afternoon. Thank you for attending the Babcock and Wilcox Enterprises First Quarter 2025 Conference Call. All lines will be muted during the presentation portion of the call for an opportunity for questions and answers at the end. I'll now have to turn the conference over to your host, Sharon Brooks, B&W's Director of Communications. Thank you. You may proceed, Ms. Brooks.

Thank you, Matt, and thanks to everyone for joining us on Babcock and Wilcox Enterprises First Quarter 2025 Earnings Conference Call. I'm Sharon Brooks, Director of Communications and Marketing. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer, and Cameron Freymeier, Chief Financial Officer, to discuss our first quarter 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 also in our Form 10-Q that was filed this afternoon and our Form 10-K that is on file with the SEC and provide further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable gap measures. A reconciliation of historical non-gap measures can be found in our first quarter earnings release published this afternoon and in our company overview presentation filed on Form 8K this afternoon and posted on the investor relations section of our website at bobcock.com. I will now turn the call over to Kenny.

Thanks, Sharon, and thanks, everyone, for joining this afternoon. We are pleased to report a strong start to 2025 with robust first quarter results across our entire business. Our results in the first quarter reflect the strong global and North American demand for our technologies as we continue converting our 7.6 billion global pipeline of identified project opportunities into new bookings. We generated strong operating results highlighted by revenue operating income and adjusted EBITDA that exceeded both company and consensus expectations for the quarter. The results in the quarter were led by a strong performance from our global parts and services business, which posted the highest Q1 bookings, revenue, gross profit, and EBITDA in the past decade. The company's core business continues to perform ahead of expectations, and we anticipate returning to positive cash flows in 2025. We are also excited to report a significant accomplishment from our recent strategic efforts to reduce or refinance our current debt. Earlier today, we announced that approximately 40% of our outstanding bonds had been exchanged into new five-year notes at a discount to par which significantly reduces our current debt, lowers our overall net debt, and reduces our annual interest expense. This privately negotiated bond exchange is expected to result in 131.8 million of outstanding bonds due in 2026 being replaced with new bonds in the amount of 100.8 million that will be due in 2030. This lowers our annual interest expense by $1.1 million and combined represents a positive step in our restructuring and refinancing efforts while demonstrating continued support from our lenders and bondholders. Moving forward, we continue to explore further debt refinancing options and are in discussions regarding other potential asset dispositions to reduce our current and long-term debt obligations. In support of that objective, earlier this month, we also announced the sale of the majority of the assets of our Denmark-based waste energy subsidiary for $20 million in gross proceeds to Canadivia Inova, formerly known as Hitachi Zosyn. As part of the sale, $5 million of the $20 million in total proceeds is directed to fund our Bright Loop project in Massillon, Ohio. As a part of this asset sale, we have also entered into agreements to work together regarding the North American waste-to-energy market, leveraging each company's best-in-class waste-to-energy-grade technologies and B&W's boiler technologies. We also entered into an agreement to jointly develop Bright Loop opportunities to leverage renewable natural gas and other applications. ABI is a global leader in waste energy technologies, carbon capture, and renewable natural gas, and we look forward to working with them on joint opportunities in the years to come. We continue to see strong global demand for our diverse portfolio of technologies and are making progress in converting our 7.6 billion global pipeline of identified projects and opportunities as displayed by our strong bookings and backlog results this quarter. Our backlog of 526.8 million at the end of the first quarter was a 47% increase compared to the same period of 2024. This represents the largest backlog in recent company history as our thermal segment continues to perform based on higher baseload generation demand in North America. In addition, we achieved bookings from continued operations of 167 million an 11% increase compared to the same period of 2024. This increase in bookings is supported by record high bookings from our global parts and services business. We believe these results affirm our strong foundation while underpinning our pipeline and outlook for the year ahead. Our efforts to progress Brightloop are moving forward as we further the commercial development of existing projects and continue working to improve the overall operational effectiveness of these technologies to produce low-cost green hydrogen. We are continuing to progress with engineering work for our previously announced Bright Loop projects. We are finalizing the Financing for Massillon, Ohio project for which we have already received a significant offtake agreement. When completed, the plant will produce five tons of hydrogen per day. And we anticipate completing financing in the next few months while simultaneously placing long lead time orders and continuing with all permits, licenses, and construction. And we anticipate hydrogen production from the Massillon plant sometime by mid-2026. We also continue to see opportunities for new projects related to renewable energy in the United States, which could enable us to leverage our climate-bright decarbonization platform and presents additional higher margin prospects. These opportunities are for behind-the-meter data center power applications as well as carbon dioxide removal technology. Looking forward, we anticipate industry tailwinds and generation demand to continue throughout 2025 and the years ahead. However, the company is also keeping a close eye on the tariff negotiations and any potential impact on the business in 2025. As stated, the company's core business continues to perform ahead of expectations and we do again expect to return to positive cash flows in 2025. I'll now turn the call over to Cameron to discuss the financial details of the first quarter 2025. Cameron.