Babcock & Wilcox Enterprises (BW) 8 Nov 222022 Q3 Earnings call transcript

Good evening. Thank you for attending today's Babcock & Wilcox Enterprises Third Quarter 2022 Earnings Conference Call. My name is Megan, and I'll be your moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to your host, Sharyn Brooks, Director of Communications. ahead. go please Sharyn,

and Wilcox everyone earnings Enterprises Megan, on conference joining Babcock & third thanks you, for to us call. Thank quarter XXXX

and Lou call Executive quarter to results. the today Kenny third B&W's Joining are discuss our Officer; Chief Salamone, Chairman and Financial Officer, Young, Chief

our the During certain for be in forth our make harbor provision statements today of will statements XX-K can forward-looking. our the These end set be this on earnings subject including to business. detail at those also statements call, forward-looking found that are risks XX-Q Form we our be in with to further press release and and and uncertainties, about that safe will related the SEC file that filed and provide Form risks our is

as any we obligation undertake Additionally, by law, no forward-looking except to required statements. update

of in non-GAAP as GAAP posted information and historical results Relations of presentation third filed measures reconciliation our in accordance Form certain We be with supplement of at measures. considered also that to results regarding be the This our found the provide comparable to afternoon substitute company this not our for in Investor be superior provided can historical GAAP. published will quarter earnings overview this X-K babcock.com. on on afternoon and the non-GAAP A and information targeted release a our should or website section

Kenny. to I over will now the turn call

for joining a in demand and thanks, today. our Thanks, elevated increase directly continue backlog. everyone, Sharon, an see strong while by and us Well, we supported to bookings

our of and and global market the targets revised the supply chain industry the challenges worldwide Our reflect the quarter and of results and impacts negative - of current industry challenges pressures many for issues in impacted across issues geopolitical ongoing on the segments. ongoing timing lingering various by driven COVID certain the of restrictions. projects These business recognition Ukraine, along revenue negatively war with in

with an our progress to quarter ago. both in compared over the headwinds bookings strategy the strategic to XX% at execute third and year long-term near-term period growth continue we the and backlog increase same these against Despite of end a

More importantly, our backlog is and increasing. strong

of are have team regional drops Britain to team and inventory by reduced proven a continue resulting and certain Ukraine. this in backlog over place, a sector challenges by great difficult strong - global Europe, energy followed global of in that followed with across the Although and result it's the the number ago, by the war years of we company management and its losses impacts, a within in pandemic, led the geopolitical in has through issues the a especially most a as values currency and

all to to that, reacting has & and in global is strong the faster than past. Babcock perform, continues much and Wilcox at challenges capabilities regional operational Despite

of target high have maintained In and terms our our performance across remain in level a on addition, we of performance operational global projects.

a more well to increases project steps from taken our see. challenges, of smooth global and address these have as number We delays, impacts various we continue conservatively managing to the chain as cost out the to supply including projects

third of that our so market of timing ongoing reflects recently EBITDA recognition not revised repeat impacted to companies is target challenges that our nor revenue quarter other emphasize to continue results and across it the reflective the been project that want overall we Importantly, project face. whether issues, of portfolio, by many adversely and performance-related a adjusted has we

load of XXXX technology generation energy headwinds, across supply drive about all growth clean visibility we thermal chain our which in the as and our new Despite demand present a result current for segments the solution. business opportunities booking of optimistic for rising should remain base

to many present the the of again, around prior mentioned the and war timings so global our to disruptions is to revision to challenges which, various EBITDA adjusted our our on in in experience ongoing call continue and similar our companies announced delivery, Ukraine discussed world. As and targets, the earnings supply project previously parts chain

materials, These and components outside new shortages plant on challenges facing also to labor the our services. timing are as that of of well affected affect our certain projects required of cover customers These raw delays infrastructure balance suppliers in as and as industrial parts the have and revenues their are are bookings, scope. planned for deferrals and

resources. chain We We our continue challenges various our established global such these through mitigate adverse but and focused impacts where to these may to minimizing that recognize efforts these possible, on persist. conditions efforts, experience issues as remain supply to work intently we continue customers' global

supply we and reflect backlog revenues EBITDA. revised can, we timing overall and best believe chain targets of our runoff, invest known As challenges bookings, the currently new

operational performance and strong target. projects on Our remain on

Our from expectations mitigating not overall revised issues we And performance-related appropriately. at project are to that arise time again. project reflective have issues effective generally, recently of any been time

demand as technology alternatives As security our as the we to our forward and solutions and committed tailwind internationally continue we leader natural gas for both look remain to for opportunities expanding global segments, to a operations, to provider. emerge, and energy business domestically potential

global Healthy hydrogen leader elevated position the transition. energy be future initiatives to to and clean company the demand the in decarbonization continue a trends around and well along with

processes, our our University past exclusive XX the R&D patents the with through and as XX XX with filed joint capture We shared over well efforts rights have around as carbon patents to State Ohio over technology years.

combined energy carbon the solutions, low produced OxyBright, intensity, oxy-combustion green our allows energy fuel to maximize to carbon customers with with standards. for biomass Our negative be our allows which technology,

exploring various storage, as We continue as for such as technologies to develop BrightLoop. long new testing fuel alternatives steam, green and duration well

discussions our secure progress feedstock in COX to BrightLoop site and locations, and detailed for sequestration. are process commercialization specific to continue We

and in utility clients interest BrightLoop various the regarding We industrial application are earnest. discussions commercial and in now continues additional opportunities with of and

carbon console. B&W platform and third the by evidenced application we solvent-based dioxide the Decarbonization quarter, solution to announced to ClimateBright SolveBright, in interest for increased award our the continued contract Throughout study recently capture recognize as of

project, developments Consol an our which installation Energy's power after U.S. demand This for award the advanced environmental plant. power XXst speak currently development. in and production a Together, shortly and century provide to increasing contract these $XX followed million environmental coal here infrastructure is and announced validate segment. services for plant biomass-based the within construction the upgrade in pipeline for clean power to growth our project

will decarbonization discuss We in current production provide these recent technologies. BrightLoop today hydrogen call wins and detail updates scale-up syngas on the award further on and

experienced million of $XXX backlog to performance EBITDA full the growth, our the target our to fourth of year-over-year adjusted and the quarter, to strong respect our and third outlook reiterate supporting we for With for million. quarter improved at ability bookings our $XXX year XXXX end

third was XX% an million, third XXXX, compared backlog ending For of which quarter our XXXX. the the is to $XXX of increase quarter of

existing to our quarter when XXXX. to backlog saw rates, as the the grow backlog of Additionally, related negative XXXX our excluding sequentially during the second we of impact compared foreign exchange third on quarter

quarter converting ago, third opportunities. to $X.X an demonstrating Bookings increase success recently our billion $XXX our as XX% continued for the of were compared period a in of identified XXXX project million, expanded year the same global

last to and opportunities these growth $X.X as Our of wins reflect current visibility through is opportunities, new announcing to billion this pipeline announcement one waste-to-energy revenues our has for being look thermal XXXX. identified an and renewable drive goal an future. additional quarter's That, forward significantly materialize. near and in year. increase prospects over We waste-to-energy contract of expected this backlog new We and additional increased thirds booking two awards the environmental plus the build current towards anticipate third yet our

processes equipment services and for installation enable I efficient are to our environmental with for contract mentioned provide The expertise technology earlier excited existing the to provide on sustainable award $XX strive highlights operational extensive and upgrade construction to and required new solutions. segment and our focus the the million enable We to and to a necessary future our clean customers' success. provide strategic providing customers environmental

based study the solution announced technology dioxide example we another with how biomass-based of capture Our advanced application project energies, solutions. are carbon customers plant solvent providing recently great power to of yet transformative contract XXst and B&W console coal century our for is SolveBright, award

and our technology how be study, power Through to gas capture a used near COX would from clean with this to SolveBright stream plant generate to the treat aim focused we advanced to flue similar evaluate this projects clean can capture in We carbon and technologies project the future. be on emissions. study on groundbreaking our intently the advancing how remain energy energy show used zero

over the Lou Lou? who turn some financial now details to call discuss the third Salamone, the I'll of will quarter. for

Kenny. be found later I'm results details company this XX-K, to you, which the with of on will on quarter SEC evening. third file and can Thank be you pleased give the the that review further the

were that offset primarily overall activity compared attributable Our lower XX% were to a million, and volumes, level was third $XXX consolidated quarter done partially this Thermal year XXXX. the in is And which higher to is construction announced improvement segment. previously the of prior third acquisitions quarter of the by in revenues

non-operational operating $X.X million asset moment, a quarter for chain issues Our third was loss million, such the of both also as related and net million, This $XX.X they the non-recurring, repeated to onetime the negative in operating on non-cash in the not items the which so $XX.X of our would which and was compared third in in $X.X this recovery as the is of of challenges Solar in a gain a in discuss and million well impact quarter. as global of quarter and variance million – in XXXX Kenny items, of income primarily several to of goodwill, of an as I'll onetime of the they're XXXX. recorded $XX.X the quarter, XXXX business supply which occurred sale be impairment XXXX mentioned geopolitical above, quarter at

our tariff costs us panels solar had XX, higher income get available, ability as the and XXXX, impacted Additionally, third plus into quarter ended panels impacted the we interest June of impact slightly the on to on panels for delivery taxes. became and which

also interest of was impairment goodwill legacy the result of factors impacted purchase of a of discount, unit. performance panels These carrying that the the mentioned a ago moment impact negatively and the a value projects reporting of impacting reduced supply of minority several business, performance performance the on constraints. above the because solar mentioned certain the solar a tariff including which I of at caused The

quarter. June of as mentioned mentioned. XXXX, geopolitical lingering XX, the well million COVID solar related sale mentioned primarily EBITDA on $XX.X $XX.X international was compared to of supply of which previously ended of on recovery, tariff onetime in variance gain panels, issues challenges, third XXXX in as previously impact the This the which previously quarter XXXX. and issues is the primarily in as chain a negative adjusted global continuing to the both QX Our in The asset occurred markets and the million

XX% a increase on me to bookings Let quarter of the move now third to Bookings quarter were compared in is third million $XXX XXXX. bookings. XXXX in which

Our backlog the was million, a ending increase is $XXX to compared XX% third end quarter which of backlog the the at XXXX.

as loss result the third net XXXX, variance the quarter of Our above. is in items the share that mentioned in $X.XX compared $X.XX earnings and I've to was a that quarter per of of

as $XX closed in and as primarily acquisitions, XXXX, build third results of Let Babcock in The segment XXXX. November our XX, which The within is third revenues XX this increase renewable me of segment quarter which the Wilcox were the higher segment. September on quarter million to million volumes revenues to quarter and well due now the the of third of an turn new revenue XXX% respectively. for compared increase to & XXXX, projects, is $XX.X from

of EBITDA Adjusted large of in in XXXX. of higher items. adjusted period the as of the items, compared as impairment This quarter due non-operational a was noncash the year EBITDA number such as on the interest million sale reduction improvements and primarily cost the non-recurring million primarily prior well current to business, was quarter several prior and some our in in third the project achieved gain to of solar and the due year, $X.X smaller as to $XX.X

made increased by reduction based future of allocations The challenges offset segments, and the renewal projects negative shared the resulted business related SG&A of revenue an higher acquisition. solar the in earn-out the on delayed were partially levels to revenue. which The of quarters. impacts The the various to overhead being the - are in certain

from - not year These higher delays adjusted negatively gross our customers. the margins were which as than but less affected where and higher anticipated, than possible, previous EBITDA a only in partially revenue recoveries revenue result of resulted offset, costs, in only overhead being by not

in by XXXX. Within segment, primarily lines, volume higher of in overall were is The the third of revenues of which current service XXXX, environmental system is quarter. driven increase million in by the lower was the our Babcock & quarter XX% to an Wilcox quarter product the million offset volume the compared $XX.X increase which third $XX.X in

for as share segment volume overhead in by by the the revenue along driven compared $X.X of to in to last of period, partially a and primarily of higher above. the the year, million this projects EBITDA in same some the million was and prior Adjusted the higher-margin with allocated levels $X.X were SG&A - segment quarter offset period higher completion described

were negative being result the of which delayed future impact due be adjusted various anticipated could higher EBITDA challenges quarters the in issues, in and than lower supply these and not geopolitical projects Revenue certain our costs, of recovered segment the into and and global customers. all to challenges from chain

to XXXX, compared Thermal which the of acquisitions, mentioned XXXX. due above. Revenues million & I an Babcock million Wilcox This in as quarter quarter of third to was two our the segment. $XX.X increase the were $XX.X X% to is of in Turning primarily third

EBITDA in again, to $XX.X the of the $X.X XX% to increase which before, quarter attributable acquisitions and improved here as profit third million the again the is increase third were I margins. million, two mentioned is Adjusted was XXXX of and of the that XXXX quarter closed, primarily compared in an

issues. than markets delayed we Revenue in and of and anticipated the again, would in of deliver international occur. certain and impact supply and the of this quarters deliveries to challenges segment were the lower These the negative certain adjusted parts delay EBITDA geopolitical the due those being as anticipated to services resulted projects chain challenges to future various segment, in

cash Now sheet, let and liquidity. flow me turn the balance to

Our of at had balance million, equivalents company was XXXX, cash restricted $XX.X total $XXX.X XX, debt September and and the cash cash million. and

agreements approval certain modified in into the and upon entered waive stock preferred Board and/or dividend granted by to we've conditioned added our loan. pay the to the term lenders permission today, covenant, who future of a Additionally, to with agreed on QX, for covenants our periods QX

Kenny. I'll now to back turn this

couple Lou, Wilcox significant thanks. Babcock & last continues the years. transformation to of in build Well, closing, on the execute, over

peers taken operational With in to perform positioned this to improvements we and measures. these more compared in difficult our in who times the we place are robustly have markets proactively have such period, well put not

our to and the we high Despite performance our project level global market operations. and broader across bookings, that expand B&WR the have operational strong challenges continue have we to customers outlined impact a have we build our continued industry, backlog, maintained of

have expanding solid balance with all business We opportunities across a our segments. sheet of

now opportunities X robust than global Our pipeline more $X.X identified see the discussed continues to quarters. an of the next we expand, figure recent billion is years, in and from $X.X over we which billion increase

beyond. And seeing existing XXXX the excited our our extremely remain business. about drive near-term in confident While level with uncertainties in the for significant the supply we demand of the we ability global growth and cognizant we remain are are we of and bookings to based chain, recent on backlog

our Collectively, safety, manage team on a our bookings the the leaders the highlight us our drive behind dedicated of our through in success and continued become ability the and to backlog execution, driving forces challenges one to project like global continued of company. clean transition of to remain and I commitment continue their to energy strong focus are as expansion industry. would near across employees who unmatched helping

represents on B&W mission see the extremely forefront of global change, aspect we fight lastly, to as continue an the And climate a against a which company. of important

within the that platform excited significant throughout and the world. ClimateBright the game-changing hydrogen impact are We they decarbonization and our about advancements have solutions

coming this in and and expanding area continue opportunities an our as periods, announce continuing meaningful to production. about innovative position remain in in upon to we to build and decarbonization in hydrogen to that expect We ahead regard carbon excited the leader see projects be able capture,

technologies committed demand remain our and energy We customer of for the advanced to building technology. long-term base growing meet on security decarbonization to our

in who support questions. answering will will I to Megan, over the now call us of your any back turn Megan?

Instructions] Craig-Hallum Spychalla Capital from comes the [Operator question line first you. of Thank Aaron with Our Group.

open. is line Your now

for taking Thanks the questions.

joining Thanks Aaron. it. problem, No Appreciate tonight. for

the there? lot me, comfort key you've of not the then better adjusted Kind and And that you're chain, guidance. worst we expecting the kind can have as fiscal like there just you've the on for on there? that a sounds of about get is behind there you there, bet. of backlog, kind you of to taken supply steps just margins touch the to the you Maybe parts some in kind Yeah, thinking first you 'XX comfort look are as of

sure. Yeah,

to tried think of a on from aspect, you targets all, I will, again we that of new the a best chain first discussed supply ensuring be when our revised the we normal, standpoint. I conservative included guess, we our on supply to chain if abilities,

that's and we to saw around in - and parts different us, we That are up book So always days services that And about year, a to and are and that several parts parts in or end so parts so components business. longer make of delays and XX we've standard over the forth. one out, and from which book-and-bill suppliers normally, services, the that's our the a on we've parts business. the services creates, into the our about. parts those extend acquire there that to impact XX and have of obviously, factors approach certain what and going talked of of on taking bill the world that obtain business taking and course or in had year of shipping And

of project the the from infrastructures materials course, raw both see impacting project the side, the we, aspect customers. on delays On our and

in some in out coming supply happy of components us and to challenging locations Asian components. customers time in shift is to to have the market and of our that and And other [ph] be because certain European proven certain from steel customer a characteristics [ph] theater projects components. certain steel in infrastructure have those our some cases, may of for we over had as Europe and putting add and that's in And business example, infrastructure for project delays various So responsible the and theater.

certain customers We bit in order and start-up the a materials that that. and raw also pricing reduction we're to the saw in of infrastructure and to see delay to a starting down, delaying what few start of amount that's steel little customers of leverage coming see, wanted projects were those and a to

those of those shortages there chain So a variability. of impacts markets some the on mean and some so lot that is and parts are product on of where in that have geopolitical part. and in for both of that seeing areas the forth. There's as and I seeing, the and labor many all the well an reasons that's we're so supply European particular, in we're side. of side the example labor various services suppliers But on business of the

ClimateBright? you some to some as there, just are these there? about some XXXX for All And what maybe right. think and developments And is sounds the you those event talk second maybe of you've coming Fidelis good a announcements. gating there. then about good those kind like it you there, forward? projects for factors color timing it there some for Thank and of of had Can still move maybe some of others, just Obviously, is me, on

Yeah.

as offtake project, Baton project as acquire completed in site moving location, in phase. discussions discussions an that in the we're commercial We're we've and would supported in around the the the on the be the both important We're as side project around that that once proving phases particular project. particular publicly to in demonstration as securing agreements well about moving technology. from commercialization commercialization know, we potential And we've early well. the of actively in ahead that as discussions the on rapidly of as location. in specific early that the interest it Louisiana project the are process ahead and can, That's step, prior talked you Rouge We with

and execution we're So in and are that. there, hydrogen sometime that, still early progressing have later ways but project We goals we about still XXXX of of how in producing obviously, excited our a and around the still around we're that's in the go, XXXX towards progressing. part underway well is to

that aspect mechanism pieces As we to those we're various of in that inside at and time, that, all we've diligently behind we also point the with in working said of fully that this although that agencies on will funding we're the place. government come scenes we haven't publicly, And project. anticipate have sure working occur, finalized funding diligently make

actually and focus securing that time. in things project as positive getting into even coming that a now advancing site as the is on But more and that's at lease our we're right and And land accordingly right progressing are I on specific this mentioned, we direction speak. now, point on project, the

Good hear. I'll the Thanks on. color. Good. to it pass for

you. Thank

Our line Thielman comes Brent from next the D.A. Davidson. with question of

Your line is now open.

Kenny. guess, you've like to morning, some deal it kind it had continue. bridge I of want EBITDA. Hey, Kenny, and built like you've thanks. in - of a sounds the around Good to XX bottlenecks in XX I come of sounds these call issues some XXXX, that expecting the sort and to you're into from outlook to it $XX back to million contingencies with Kenny,

these get stronger incremental sound to that pressures? year? EBITDA a understand growth next trying I'm in issues the bridge little just to given year? more, like where into Just million you abatement - stronger trying persist. think bit these could Is that in I next $XX understand Is just So it some it a

No, Yeah. comment. it's good a

areas couple are seeing We of a next year.

up. back me Let

things that and foremost, as to various and and can, to of about on we're trying best the as relates global to and same we conservative targets that the assuming sure make it chain have in, supply right? loaded we services. we timing stay the the again, parts be And as the First infrastructure can

next target of more tried to year we the so into this that the - rest that. year, And we for put the into obviously importantly, bake around that but out

start to one that's with. aspect So

rough timing in now, book I from talking saw not the XX I'm perspective mentioned parts example, we day-ish a cash, cash The that than from order about out things are business. for that before, there magnitude, mean, as the day book our and of I services to a other move parts piece period. in XX-plus are to really positive various aspect, from a book-to-bill, but longer

of that kind with reflected will, the we've - modified now forecast what you so that but catching if timing. is that seeing And more we're we're up,

So is starting North within as now go business where parts some those to and that's parts, we're increase. rebound relates particular, meet and we to it up parts into those in outage America, out QX, we're site, the service work get the revenue see starting the able supply services because we're in back. chain catching with as the It's to to and only of work

if about the the high gas. running full plants cost were we talked Historically, because more of that always of you natural remember, tilt

you're - those we're trends that, when we're - the on they year, we better parts revenue cash. obviously, we - so delivered pressure we on the - of when they're the our be have book seeing services and that And and all and on now deliver can anticipate it out and put would ability at will these start customers because that going recognize to getting we then to as then little timing and parts seeing come positive next be forward to into to spacing

we've its where period. bit next backing just we've a and gone little time that up we that of in So catching that how kind It's cycle see don't up caught the now changes year. we're into cycle. flowing through with the of We with think

and Again, of same business, the on in we the But new you at The the the side. of of when look to element that a waste-to-energy. from in tried that particular, builds, we at to that, other and conservative timing when different the other we're we're of and costs to look where project holds out chain increased look project lot we're able at look at in side is some applicable. supply In cases, projects that a regions conservatively those cases, world. how to, to some absorb get areas able make sure the managing aspect

customers catch seeing delays going But our know up. also by there. that there's to we're And so some that of be and additional we here

that overall to into obviously, and And overhead company. we're so adjust and other businesses. relook overall trying map then aspects our around And of our some management the

we that's - are better catching a year, as project out. go into confidence on us those and conservative bit then up those But the I mean but on having that pieces level, even flow little new we that next the aspect in gives put a targets

Okay...

solar for Brent, say case. - thing going only we're - the the this mean don't anticipate thing add, the The Yeah, have only situation lost months I to in four I'd Lou. of other I'd in that we is we the business, example, tariff revenue again. that

to growth gives see target. projecting make some in we business able So the little - some solar we're being that us a more that in confidence

the the the what [ph] and that that you're know, the within fourth services that cash book in among other quarter? some Appreciate Kenny. step business, here, confidence behind you I and in you And expecting gives to Lou the the phenomenon presume again is Okay. of up sort parts things,

does. It

we obviously, the out on As based put and - we're seeing that, we we're unfold. that here, targets sit

yeah. So

question. new new just it curious. work have booking at that in so I and things looks just I'm coming that the to a And at these been forth. mean Okay. even stronger impacted I'm then bid projects terms place? these how of and could been another you've like forth of in it mobility you're How has book? I just delays, experienced healthy mean disruptions of wondering clip. schedule sort

business because of Well, look us I and the unique forced a it's in, it's the to - new we challenge, obviously, - as when the we come think look we're overhead seeing have company at wouldn't mentioned deeply we're very we bookings seeing new the waste-to-energy having heavily involved opportunities. yet that that year. negotiations we anticipate around weren't often a aspects in opportunity. still I other new booking say Obviously, we and quite mean that if this that we

But maintain there, we of the one when the overhead with bookings, is to have that. those challenges look associated at we always out supporting

only have other We'll we not an work but to be And project obviously again have supply through we but bookings. to manage - area fall have engineering management on chain the goes to world we have chain, support that we the So to perfect aspects never future aspects perfect also have challenge. aspects through, able individual the and supply be to we always quarter that's that those variability. on and maintain that until an that the

bit from said give able us outside doesn't support the next ago efforts those saw motion a now going other don't year ago some third-party into company be know, show we engineering And now, companies that QX of we of And I we benefit year. years flexibility to that of we in and I in to a guess a into in in and or more a trying get little - the little assist our couple clearly, in quarter see to this up the but projects. numbers, probably and how better manage did - going to

But we us challenges on balance will challenges that's new supply the of always these some we've going So we side. fully some - market to continue engineering is that helped chain improve. that past challenges and get pressure have taken of to point already that forward, the the activities technology to the or anticipate

the will be group, we're starting we're place, that into now unfold parts XXXX. revenue in impact thermal the part in backlog projects which look the of large of strong we the a especially side, that now and really overall see is more seeing to that as thermal and mobilization business, On services of business, coming certain construction, at plus

we go a we into And objectives revenue go with enter year backlog have. strong support or that the next so we very into to should year - next

visibility now better it. of of some those North America that lot supply larger on of have projects a here the we chain in many projects a the aspects over especially the have especially the happening and control of are some we more ones timing where lot And of

if overall. that - So don't helps, that that I gives but us confidence know

here mentioned forward? on maintenance detail Maybe just last going that, one in any you Can to provide Yeah. hit covenants more of Kenny. I place. appreciate kind you what you Lou, one, some need put

with the for we've quarter. lenders, third we've dividend the waiver got the mentioned other What quarter. I back the - covenants fourth the in got We've new on negotiated We've the than had. done we've a got relief we Yeah. covenants to gone paying and we've targets, the

into And with and these going so - revised that out more there. that the future a we the gives with estimates have revised flexibility targets us forward little

helpful that's So to forward. us going

Okay, guys. Thanks, it all right. on. I'll pass

Thank you.

Thank you.

Rygiel Our Riley. B. next Alex comes of from with question line the

Your line is now open.

early my for delayed in XXXX Lou, a turnarounds half of that that Thanks Kenny there such bit chance couple little could taking second A redevelop that your questions. trends the a XXXX? Is in XXXX of questions. different are in good evening. seasonal and were

little It's Natural and have too I and a year gas early there'll in their and to type U.S. outages. that thermal here We that we those see domestic flow to of tell to right be particularly But on the more think still running. work. able and mean, and the that high they're here those parts - increased a are next is number from of services, up thermal installed. services see customers the services plants I is in parts the of still normalization bit be pricing not time cycle an lot more parts catching what with our side and outages we'll and planning the now

that So we see happening.

bidding that decarbonization to starting we're the next I we're technology. particular, come around year. aspect aspect, And waste into think opportunities in play see in synergy into seeing the more

as of So to it those the overall the are, I think, overall. positive direction relates company

obviously, Lou solar in work the mentioned the year of side, that some aspect. of because this don't the impactful tariff I were

converted went wind. projects of those Some and those into

bounce into next know, on increased see So community demand more within obviously, in now solar we're but wide. seeing, we're won't focused all you guys the front is But smaller specifically solar, - back we're solar especially which those an year. of we a on what projects,

starting otherwise, In some to technologies, we're solar. move particular, the green new which steam require of into and obviously

think the some and we'll a this And we're see are. next into thermal aspects year, side year synergistic that that's the had bit continue we supply year. that, go chain so so and strong that to aspects on. there's we've some opportunities I starting around next other But targets of we based forward Obviously, where around move on the - to

at the into get see progressing, going and biomass we side, the next forward as that the the booked being in Louisiana, have energy we waste biomass that next the more moved to projects we'll opportunities larger year. - anticipate well. But we and in synergy bookings that as And we and still then year

our of we're that in and too obviously, very some expanding call, much And talk seeing, also as that on here to customers to starting of is Act. gives we see their positive and what the That's it U.S. IRA Part the us about we're element a relates of didn't lot in footprint clients optimism, the much a which that.

that XXD into here seeing developers IRA United some to the give to America community some will leverage in think North take more some we'll great and beyond. the credits also all build Act in the those to international the or States of those. are out advantage We're of on under And other I or there the to us that of of opportunities continue those move that XXQ confidence in of XXXX want

And you your bit talk XXXX exceed how about then EBITDA could a can guidance?

- tried timing We more would those some of comes more the on these revenues, it's of year. time project increase sure. numbers year. an next of and starting that The be that we're of stating that the And be would into project EBITDA timing on it and planning and they're target the direction customers on think, little be forward happens, actually projects the they're we again, and be locations. our next standpoint. conservative the Yeah, those from to, upside to projects conservative of seeing a we that that some project possible goes from a on frames Clearly, for tried as pull if construction

state progress, more around pulling the more We're well, customers and as impacts starting all they us. more us some timing would that coming have where some also see to positive grants for are into opportunities some force engineering a in state, driving credits possibilities decarbonization and and IRA those by want the of seeing aspect and to where we're other too, that be would

from would conservative those and more were the across services. on pieces. that upside board, again come We the And would parts really but the be

- from any supply to be upside shrink bill would year XX chain the more book the XX aspects globally, that to and on us and to of versus targets in XX. of we there's of for that and can next if XX as well, to back bill because XX too, the XX book base the all improvement down So XX%, to for back we

Thank Perfect. much. very you

Alex. Thanks, Yes.

very much. you Thank

comes Capital of Brown Street Our next the question Rob from line with Lake Markets.

line Your now open. is

wondering the impact I Hi. FX backlog was if the quantify you to quarter? could the in

the quarter, the Thanks, the Rob. you clarify what When in question, of - impact the sorry. just to backlog you are say

Yes.

came I of how the of I you that kind think wondering FX down was of of Lou adjusted translation kind mentioned impact some backlog to from? much backlog the just that was as the number.

impact That numbers, round XX,XXX backlog - about was Yeah. million the on on the about $XX - backlog.

I Sorry answered today. mixed a millions my about questions that, got lot up. of I

$XX about the on million So backlog, Rob.

Okay.

How you're things. the of give COX with you of how would just the characterize maybe on capture projects? those sort if some Great, you you. are wondering then pipeline discussions of projects [ph] I can of in pipeline Okay. in how - - them lot know a the many more And thank catcher COX market. of

over. Well Yes.

biomass say over large I'm XX%. stated projects. and I'll Very that the active actually over technology. on I about update is publicly is unique just the I'm call one well but of OxyBright - of put talking is We'll facility We're not talking have well we think XX. Louisiana, oxycombustion, that's the it's we'll in one here and BrightLoop, Clearly, bit the there. in or unique a about out little our which few term, there. a place the but

say only the along can combine there out but few of with that and the OxyBright of that. our one isolate the never with associated we capture that actually the capabilities think we're one, CFPs to technology biomass the I COX

in under Europe California, the customer well, that's there project. states, fuel IRA that others U.S. in intensity for carbon is biodiesel the too. leverage negative carbon the as And the Canada various come for low standard in And credits credit out that that creates able case, that's from to here this and

in demand for - demand And the Europe now follow so period, other you that, the the diesel but and green fuels. for as quite high green demand is diesel

the those standpoint, isolate technology opportunities biomass of in OxyBright they discussions the excited maybe the opportunities. We're And to in going XXX some that customer technology. be at pipeline but similar so megawatt, where we're But situated looking have sizes and the other about with the back is would to different been in overall. different type are interested the COX, combined

biofuels. we're actually which where XXXX in believe XXXX, is the of think about, company growth hydrogen from or to and around we create beyond, is BrightLoop I its equally biomass excited the future and abilities

sources either We economy. that a the the are companies production now tax we're pathway XXQ one IRA. the value pushing table testing utilize of full the the to credit more of standpoint industries under in within biomass hydrogen right a again, the few we on leverage of after our actually actually or of to And the hydrogen the XXB fuel in see and process labs, multiple towards number different across are

of And and and various interest through that's on of starting discussions we're appeal pre-engineering on clients on working standpoint hydrogen with in working a create the customers, number testing and to different sides those of across aspects, number a opportunities.

would those of move announce forward. we anticipate and year, some And sometime next we obviously,

But going and the in at as interest solid been, has our we breakthrough opinion, technology level around that technology. that real least very And do see forward. strong

getting And that. so far, the feedback equates to we're

greener that hydrogen to the with XXQ XXB the would you number it have, the of So provide a be in describe leverage to be would offtake case. low credit the or opportunities again, And that. keel we further can or the under used, to would customer it, of again, the actually similar carbon because that standards hydrogen other want qualify fuel however Louisiana a again output in support their facility Louisiana business the different and and

coke capture and much create, we leverage that And industry, capabilities an from opportunity. isolate is which we're and and hydrogen So and hydrogen as and around coke, we're a COX. can it the see that We're well very leverage about We discussions that seeing waste oil use produce oil that. certain with that's again, the excited gas coke a product with and the output gas customers to in pet as in pet to pet positive. in also

is but air, little stack not out And no nitrogen, so idea other stack. these and strong permits is, output able by-products to air, usually of the going this that the to just give And a if just source you it's we oxygen, this even the circle through bit how air we're simply but or the it's a minor together, of emissions lot back, are application. maybe the because under some there's plants it's put of fall of so COX

other it So hydrogen relates to very permits. around we're very the for pure on it's the that. very obviously, as strong sequestration a on the and or application It's purposes production - it, COX pure from stream we're

closer so forward out commercialization. that excited of we're a of about demand coming get And to product and moving we see once we lot that

turn I'll Okay. all Great. Thank color. you for that over. it

you. Thank

of Cook from question the Jamie last Credit comes with Our line Suisse.

Your line now is open.

Hi, good evening.

$X.X I I growing of pipeline business Just - you follow-up quick increasing a X.X. about from billion, questions. think to your talked to of One, couple guess

drivers So done the it the and that the you've of of are of what just some the acquisitions? some acquisitions that? performance Is behind

company's in quarter? And ability And $XXX when or you XXXX, fourth in that normalized like more million about? for last EBITDA to we then earnings talked of expectations flow Thanks. then generate the my to question, about the million thinking the as terms $XXX you're Lou, get just is cash the how to

Yeah.

a were and is behind cash get There such should Jamie, that conversion normalized last as quarter we conversion so forth. from of rate the the EBITDA the now. acquisitions in But flow more things there I flow view going was up flow our in little much going of expectations conversion forward. higher. to much a think on quarter the EBITDA Starting cash our to and forward, this through side, cash our

letters backing getting conversion faster get them closer. It's as we et sheet advanced can of get get so in, really in to is in letters cash one cash there cash not that our faster, for pushing of of up, on, the credit the items credit to much EBITDA cetera, we're focused and many bring balance payments cash being more out able fewer to with that the can we utilize so much

is different It bit coming from the on the a pipeline, seeing of from Jamie, little a from we're that. sources. Then on acquisitions couple it

coming Some necessarily on of be services, it of pipeline, the a and little parts some the which wouldn't acquisitions in acquisitions from seeing but the are are we that.

or and the in see that. waste - opportunities multiple combustion, oxy The starting bigger I particular, in from biomass biomass driver the to guess, opportunities energy the for more That's proven are sizable, to with technology. we're the

Louisiana. So Obviously, that's technology that about talk today. we're moving into we the delivery phase

that four technology. that coming more where, two unfold significant with credits, the revenues But we're from seeing very have are we're three opportunities there especially or that IRA to particular or pipeline that adding the

we X.X. to the so enough pipeline were reasons increase X.X from to one And of the that's confident

you. Thank Okay.

Jamie. Thanks,

Jamie. Thanks,

are questions this additional There you. waiting Thank no at time.

Brooks I'll remarks. to the for any closing conference Sharyn So back pass over

later Megan, you, a today. be joining That call. conference for us available our for our you and limited time will A today. thank concludes website replay on Thank

& the conference Wilcox concludes XXXX you earnings participation. your third for Thank That Babcock call. Enterprises quarter

lines. your now disconnect may You