Babcock & Wilcox Enterprises Q1 2023 Earnings Call Transcript

Quartr
Provided by Quartr
May 10, 2023

There are 7 speakers on the call.

Operator

Welcome to the Babcock and Wilcox Enterprises First Quarter 2023 Earnings Conference Call. My name is Nadia, and I'll be coordinating the call today. I will now hand over to your host, Sharon Brooks to begin. Sharon, please go ahead.

Speaker 1

Thank you, Nadia, and thanks to everyone for joining us on Babcock and Wilcox Enterprises' First Quarter 2023 Earnings Conference Call. I'm Sharon Brooks, Director of Communications. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer and Lou Salamone, Chief Financial Officer, to discuss our Q1 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 today And our Form 10 ks that is on file with the SEC and provide further detail about the risks related to our business.

Speaker 1

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 GAAP measures. A reconciliation of historical non GAAP measures can be found in our Q1 earnings release published this morning And in our company overview presentation that was filed on Form 8 ks this morning and posted on the Investor Relations section of our website at babcox.com. I will now turn the call over to Kenny.

Speaker 2

Thanks, Sharon. Well, good morning, everyone, and thanks for joining us today on our first We are pleased to report strong results for the Q1 of 2023, Which exceeded our expectations and were highlighted by increases in revenues, bookings and backlog on a year over year basis. Our parts and service bookings across all of our segments were the highest in the past 7 years despite Continued supply chain challenges. Given our positive start to the year, growing customer demand across all of our segments and visibility for New booking opportunities, we believe we are well positioned for significantly improved full year performance in 2023. The revenues generated within our Renewables and Environmental business segments showed significant increases of 47% 13% respectively as compared to the Q1 of 2022.

Speaker 2

This growth Was driven by higher volumes across both segments, which helped drive on our consolidated revenues and adjusted EBITDA above expectations. More specifically, revenues in the Q1 increased 26% compared to 2022, while Our bookings and backlog increased 11% 15% on a year over year basis, respectively. Our strong start to the year also adds to our confidence in achieving our full year 2023 adjusted EBITDA target. And during the Q1, we generated adjusted EBITDA of $14,200,000 which was above our internal projections And compares to $12,500,000 in the Q1 of 2022. As always, I want to express my Thanks and gratitude to our employees for their continued dedication to achieving the highest operational performance, For their high focus on safety across our project and manufacturing sites and to thank them for driving innovation and advancing the world's Transition towards sustainable and secure energy, which is central to B and W's mission.

Speaker 2

Notably, The performance of our parts and services business across all of our segments was particularly strong in the quarter. Combined parts and service bookings for our Thermal, Renewable and Environmental segments were 114,000,000 Which is the strongest quarter for parts and services we've had since 2016. This was led by $67,000,000 in bookings By our Thermal segment, which had been or which has seen increased demand as customers around the world look to improve performance and extend the useful life of their facilities. B and W's Renewable and Environmental segments also booked $40,000,000 $7,000,000 in parts and services orders respectively as well. In total, we are recognizing a significant increase in customer demand Stimming from the need for long term energy security and clean technology solutions.

Speaker 2

Looking back at the quarter, we were Ecstatic with the progress our clean energy solutions have made, which have been bolstered by new environmental and renewable contracts In the Q1 of 2023 totaling $103,000,000 these projects not only demonstrate the increasing momentum in our Customer adoption of our innovative technologies, but also the expanding interest in our expertise and solar projects. Throughout the Q1, we announced 4 environmental and 2 renewable contracts to supply various technologies and services for Carbon capture, waste to energy and solar installation projects. This includes our collaboration With Phillips 66, and which we will provide engineering and design services, equipment and construction support for carbon capture projects in the UK. This project aims to reduce carbon emissions by capturing and storing carbon dioxide emissions from a refinery. As a company committed to promoting sustainability, we are proud to be part of this critical effort to reduce carbon emissions And support the energy transition to a low carbon future.

Speaker 2

Our progress in the UK also includes A contract to provide engineering and advanced technology for our waste to energy plant. Our innovative combustion system will help convert waste into Clean Energy further promoting sustainable practices. Additionally, B and W has also secured contracts provide highly efficient cooling systems for a few U. K. Waste to energy plants as well.

Speaker 2

These cooling systems will Help optimize the performance of the plants ensuring they're able to operate efficiently and sustainably. Transitioning to our solar business, we were awarded contracts worth over $15,000,000 by Summit Ridge Energy or SRE To construct 5 community solar power installation projects in Illinois. The project scheduled to be completed in 2023 will total approximately 15 megawatts. B and W will manage subcontractors, site coordination and supervision and Electrical tie ins to the grid. This is the 2nd set of contracts awarded by to B and W by SRE, which is one of the leading community solar Companies in the United States.

Speaker 2

The growing market for community solar projects in the U. S. Has been attributed to the high demand for affordable clean energy And state and federal incentives for renewable energy including for solar power. We are excited about the solar opportunities That we continue to see emerge over the coming quarters, especially with regards to community solar and Looking forward, we remain committed to further supporting sustainable energy projects That make a positive impact on the world. These recent award wins further strengthen our position as a leading provider Of Energy Solutions, and we look ahead to exploring new opportunities to promote a cleaner, more sustainable future.

Speaker 2

We also are pleased with the significant traction our BrightLoop technology has received to date. Most notably, We received announced excuse me, we recently announced a commercial project with Black Hills Energy in which B and W's BrightLoop hydrogen generation technology was selected to produce hydrogen gas from coal and capture carbon dioxide emissions. Utilizing our technology, clean energy can be produced using a variety of fuels with complete CO2 retention, Enhancing energy security and creating local clean energy jobs in the region. This project not only highlights B and W's Transformational technology but also demonstrates utility market interest in our clean power production and carbon capture capabilities. We look forward to scaling this product offering and working in tandem with our customers to provide the solutions they need to enhance Energy independence and deliver efficient energy to their customers while also combating climate change.

Speaker 2

I'll now turn the call over to Lou to discuss the financial details for Q1 of 2023. Lou?

Speaker 3

Thanks, Kenny. I'm really pleased to review our Q1 results And further details of which can be found in our 10 Q, which has been filed with the SEC. Our Q1 consolidated revenues were $257,200,000 which is a 26% improvement compared to the Q1 of 2022. This is primarily attributable to higher volumes in our Renewables segment due to B and W Renewable Parts and Services And our project based business as well as higher overall volume in our environmental segment and increased thermal segment volume And a higher level of construction activity. Net operating income in the Q1 was Of 2023 was $1,400,000 compared to an operating loss of $6,800,000 in the Q1 of 2022.

Speaker 3

Our adjusted EBITDA was $14,200,000 as compared to $12,500,000 in the Q1 of 2022, While bookings in the Q1 of 2023 were $206,000,000 an 11% increase compared to the Q1 bookings in 2022, Our ending backlog was $663,000,000 which was over a 15% increase compared to our backlog at the end of the Q1 2022. Our loss per share in the Q1 was $0.18 as compared to a loss per share of $0.14 in the Q1 of 2022. I'll now turn over to the Q1 segment results. Within our Babcock and Wilcox Renewables segment, revenues were $100,100,000 for the Q1 2023, which is a 47% increase compared to the $68,000,000 in the Q1 of 2022. This increase in revenue is primarily due to the higher volume of newbuild projects and the increase in revenues associated with our Renewable Parts and Services business.

Speaker 3

The adjusted EBITDA in the quarter for this segment was $4,900,000 compared to $2,000,000 in the Q1 of 2022, And this was primarily due to the higher volume as described above, offset somewhat by increases in expenses to support the growth of this business. The higher revenue levels also increased share overhead and SG and A allocations to the segment, which are based on revenue. Within the Babcock and Wilcox Environmental segment, revenues were $39,400,000 in the Q1 of 2023, Which is a 13% increase compared to the $34,900,000 in the Q1 of 2022. This increase is primarily driven again by Higher overall volume of dry cooling technology projects across the environmental segment. Our adjusted EBITDA for the segment $1,900,000 in the quarter as compared to $1,400,000 in the same quarter last year, again primarily driven by the higher revenue volume described above and offset by higher levels of shared overhead and SG and A that's allocated to this segment.

Speaker 3

Turning to our Babcock and Wilcox Thermal segment, revenues were $119,200,000 in the Q1 of 2023, and this is a 17% Increase compared to the $102,000,000 in the Q1 of 2022. Again, this is primarily attributable to higher levels of volume on our Construction Projects business and the inclusion of Optimus Industries. Adjusted EBITDA in the Q1 of 2023 was $13,700,000 which is a decrease of 3% compared to the $14,200,000 in the 1st quarter, Primarily attributable to higher expenses that we incurred, which are related to the growth of this business. I'll now turn to our balance sheet, cash flow and liquidity. Our total debt at March 31, 2023 was $351,700,000 and the company had a cash, cash equivalents And restricted cash balance of $91,100,000 Finally, based on our strong bookings and backlog in the Q1 of 2023, We are reiterating our full year 2023 target of between $100,000,000 $120,000,000 in adjusted EBITDA.

Speaker 3

I'll now turn the call back over to Kenny.

Speaker 2

Thanks. Well, in closing, I would like to emphasize the continued progress and growth that Babcock and Wilcox has Over the past several years, we have taken proactive steps to improve our operations and qualify additional suppliers, which has reinforced our own supply chain and positions us well to navigate challenging market conditions compared to our competitors. Despite the ongoing market challenges we face, we have strong and growing customer demand across all of our segments, Expanding our bookings and backlog, while maintaining the highest operational and project performance across our global operations, Leveraging a strong balance sheet and our expanded pipeline of more than $8,000,000,000 and identified global opportunities, We are excited about our growth prospects and diversification initiatives within our Renewable and Environmental and Thermal Business segments. Looking ahead to the rest of 2023, we are excited to continue enhancing our Climate Bright decarbonization platform and executing our BrightLoop Commercialization strategy with the aim of deploying our transformative technology at scale. We are at the forefront of a global effort To combat climate change and are excited about the growing industry tailwinds that support our clean energy initiatives.

Speaker 2

As the year unfolds, we anticipate announcing meaningful projects that align with the seasonality of the business and revenue ramp that is Back half weighted for the full year. Finally, we would like to thank our employees again and our customers For their continued efforts and dedication to the company, which ultimately has driven our success as an organization. Together, we're focused on driving innovation, Supporting the global transition to sustainable energy solutions and delivering strong profitable growth for our shareholders. I will now turn the call back over to Nadia who will assist in taking your questions. Nadia?

Operator

Our first question today goes to Aaron Aaron, please go ahead. Your line is open.

Speaker 4

Yes. Good morning, Kenny and Lou. Thanks for taking the questions.

Speaker 2

Hey, good morning. No problem. Good

Speaker 4

morning. Yes, you bet. First maybe on Black Hills, Can you just kind of talk a little bit more about kind of that project, what it looks like, some of the next steps and time line, Anything on contribution? And then just you talked about scaling up. Can you just talk about confidence in the supply chain and kind of manufacturing as that progresses?

Speaker 2

Yes. So, the Black Hills project, the initial phase will be, I guess as we described it, BLH 15 on that project. The first phase of that, our approach there will be to Fire the project up on natural gas, creating hydrogen for natural gas on the initial aspect and then we'll introduce The coal, so the plant in that project specifically is the state of Wyoming wants to utilize PBR or coal that and the Coal is available actually very near the plant. Coal will be used in the Bright Lubes system to produce hydrogen in this particular case. The hydrogen will then be entered into the combined cycle plant, the turbine that's The turbine that Black Hills will be putting in is will support up to 30% hydrogen and 70% natural gas Involved in that.

Speaker 2

So but the intent is obviously using the coal to create the hydrogen and then in that particular case We'll either sequester the CO2, although we're having some conversations about potentially some other Beneficial use of the CO2, but either way it will be retained, captured and not emitted into the atmosphere in the long run. So We're excited about that all of those elements in that moving it into an early adopter in the utility sector which We think it's very exciting for us as well on that. In the long run, Black Hills will need Several 100 tons of hydrogen per day to feed the turbine, to drive base load generation and they do have the From a feedstock standpoint to support that. So that project would move into the next phase of it, which is a natural progression At that point in time? That's on one.

Speaker 2

On the supply chain sustainability aspect, If you're specifically talking about BrightLoop or just in general, sorry?

Speaker 4

Just really on the BrightLoop as we think about how that ramps over the next couple of years?

Speaker 2

Yes. So the we'll begin ramping up The ability to develop the particle, we have limited aspects of capacity right now, but that will be developed out To build up the particle aspects, the fabrication side of the modules, the reactors Is the there's one long pole in the tent, so to speak. I would say some of the others are in and around Some of the air compression and other components and pieces that we need in that technology out there. So those are running 9 to 12 months typically in lead time. So, we those are the areas that we when we look at supply chain in Bright In that regard, when we plan out the timing of the projects, we take all of that into consideration overall so that we're not too far over These as it relates to the abilities to get the fabrication and steel and the other components into the plant in the site.

Speaker 2

But So that we know that we anticipate that and that's just normal course. The good news is I think there's short of the particle There's not a lot of new tech that we talked about before that's going into this. So when you think about the reactor, Sure. B and Ws have been involved in reactors for many years. The pressurization, the heating aspect of that Inside the reactors, BMW has been involved in that for many years.

Speaker 2

The other construct on all of the other Feed handling systems, fuel handling systems, obviously coal in this case, the ability to pulverize the coal and everything you need to get done, all of that is very common accord at B&W. So, the newer piece here is really around the particle aspect on it and We're excited to get that going as well too.

Speaker 4

Right. Good to hear. And then maybe as a follow-up, you touched on it a little bit, but just can you give a little more color on the solar business and what that business looks like this year versus Maybe 2022, some of the initiatives in the pipeline. Are you starting to see the impact from the IRA and just anything on module availability?

Speaker 2

Yes. So far module availability is fairly good So we typically wouldn't get involved in a project if the owner operator didn't have access to the modules. That's kind of a red flag, if you will. But module availability seems to be very strong right now in the marketplace with all of the work and effort. The number of projects both in utility and I'm sorry, both our community solar and small scale utility are very significant in the marketplace in the U.

Speaker 2

S. And a lot of it is being driven by The IRA credits, there's in Illinois, there's some state incentives that exist as well to support these community solar projects. So you see a number more and more and more of these and a lot of developers are out raising a tremendous amount of capital too as well, some of the Companies we talk to, to position themselves in building out these solar projects, that take place. So the demand is clearly there. For us, obviously, we're now entering kind of a growth phase of that from a B and W perspective.

Speaker 2

And we're as we continue to grow that particular business, the advent of us self performing more and more of that work To will help improve the margins in the long run. The other aspect is We're hiring a number of different resources to come in from materials, estimation, project management capabilities To work not only in solar but in our renewable energy sector. So we're in a very much in a hiring mode at this point in time In that marketplace, but as we bring on new resources and individuals, we see nothing but more opportunity start to grow On the solar side, so I in the U. S. Alone, I don't know what I'd have to pull up the stats.

Speaker 2

I've got them somewhere In the marketplace, but there are 1,000,000,000 of dollars of opportunities of solar being built in the U. S. And the module are all available to support that kind of size of a marketplace. So it's very significant right now.

Speaker 4

Great, great. Thanks for taking the questions. I'll turn it over.

Speaker 2

Great. Thanks.

Operator

Thank you. The next question goes to Rob Brown of Lake Street Capital Markets. Rob, please go ahead. Your line is open.

Speaker 5

Hi, good morning. Just wanted to follow-up on the Black Hills project. What's sort of the revenue opportunity in Phase 1 and I guess Phase 2 for that project and when sort of is the time line for that to be awarded?

Speaker 2

Yes. So Phase 1 will be small on that project. I don't know if we put out exact numbers yet, but it will be small Under Phase 1, the important piece is just is getting the commercial aspect of getting the So using the local feedstock and moving that forward. In terms of moving it into the larger units out there, Which would be 100, 200 kind of approach in the marketplace. I Just a rough range, broad range on that would be anywhere from $250,000,000 $300,000,000 $400,000,000 $500,000,000 on a unit depending on a number of different variables that will exist on that.

Speaker 2

Obviously, It's still TBD on that size of a unit, those locations. But if you thought about them in terms of If you're building new technology to support a power plant that's producing a few 100,000,000 Watts of power, it's roughly in that kind of the similar category as far as size and revenues, and that's just some broad scale thought process on it.

Speaker 5

Okay, great. Thank you. That's very helpful. And then on the kind of parts and services Improvement in the business. I know there was some pent up demand, but could you just sort of give us some color on what's driving that improvement and how much How should that continue, I guess?

Speaker 2

So there is improvement in increased Demand, I mean, it's really unique on the if we divide it into 3 conversations here. On the thermal side, we saw a little bit of Catch up where people were catching up on parts and services from the past couple of years since we've always talked about the fact that clients are running, That was delayed. We're so we're seeing a little of that. We're also seeing the fact That a lot of these fossil fuel plants are now gearing up to run a little bit longer than maybe the public announcements We're as it relates to when those might be shutting down, or we have a number of customers that are in Europe, for example, trying to recommission Some of those facilities and plants and that will add a little bit to the volume In that particular area, so you kind of have a 2 fold. 1, a little bit of catch up.

Speaker 2

You have a little bit of Where these plants have to run longer than they normally had planned for them to do, which is a good thing from us from a parts and services standpoint. And you're seeing a few of these plants reemerge in Europe. And we as we talked about in the past, we keep Expanding our international presence in Asia Pac and other markets. So, you see a little bit of a gravitation and more adoption of parts and services coming From Middle East and the Asia Pac region as well too. So overall, we think The levels of activity are back to rough order of magnitude back to where they were before COVID.

Speaker 2

At this point in time, we still have those supply chain challenges where things take longer to get in than before, It's now part of the new norm, and we've kind of caught up with that cycle within the Thermal segment. The other part of the growth on the parts and services within the company, we've seen an increase because we've actually been putting Cooling towers over the past couple of years. And so a lot of that embedded base customers out there now are getting past the warranty period. And so we're starting to see parts and service Come from our environmental business in that regard. The other piece is we obviously with intent, but Invested in a small company in Europe that was a strong parts and services company in waste to energy, and we've seen that expand In Grow with in that base.

Speaker 2

So all of those are combinations and elements on the parts Services aspects and we're excited about where it is. But overall, we see we don't see anything after this that says, hey, this is a one time clip and go back down. There's we have to deal with quarter by quarter, obviously, on all these things, but there's the outlook is pretty strong.

Speaker 5

Okay. Thank you. I'll turn it over.

Operator

Thank you. The next question Alex Rygiel of B. Riley. Alex, please go ahead. Your line is open.

Speaker 5

Good morning, Kenny and Lou. Thank you for taking my questions. A couple of quick ones here. First, can you comment on your confidence and guidance and maybe talk about the variables that would lead Either the low end or the high end of that EBITDA guidance for 2023?

Speaker 2

Sure. Well, the low end is always typically around 2 things. 1 is, if there are customer delays or delays On projects or other things that were unanticipated are beyond our control. So on the lower and or I would say the other aspect that always is the start date of a project. So if the customer We're supposed to start a project, let's say, in July, but it slips through the start date now as in, let's say, September Yes, our October, then we missed the quarter on that revenue.

Speaker 2

Even going from the last month quarter to the next 1st month of the new quarter, we missed a quarter revenue on that. So that's always the challenging piece for us. And so if there's lower end aspects, Typically comes from those kinds of pieces and components. The upside It is also kind of the opposite of that. If the projects start a little earlier than we anticipated in our planning cycle, then there There's upside opportunities there.

Speaker 2

If the energy security thing keeps going on the cliff it's going and We're actually driving more parts and services from the thermal aspect that could give upside to because that's obviously high margin Revenues for us as well in the long run. And then it's just new bookings and getting those in and executing on those Across the board, most of the new booking upside will be in renewable, so either coming from solar or Biomass or waste energy technologies that would be the bigger driver of the upside Aspects and they're clearly out there, but we have to get them booked and obviously execute or start doing the work this year In order to gain that particular piece, but those they're all out there on that regard. It's just we wouldn't, At this point, right off Q1 change anything as it relates to our target guidance we put out, but there are those upsides that exist.

Speaker 5

And then any update on the Fidelis project?

Speaker 2

Yes. Fidelis, They're working through their final funding on the power plant for the fuel aspect. Hopefully that gets announced relatively soon and we'll begin working towards The other pieces of that both the biomass plant that we talked about and also for the Bright Loop facility and at that location. So there are a lot of discussions on that. There's we're back and forth and looking at their as they evolve their power needs a little bit, we look at Adjusting certain things here and there as it relates to the 2 projects, but overall the chain of events is waiting for them to get their Final funding completed and then things will then start to move forward from there.

Speaker 2

So I don't I hate to put a timeline out publicly on that, But do anticipate that they are able to get stuff down here in the next 1 to 2 months, but we'll see where how that shakes out.

Speaker 5

Very helpful. Nice quarter. Thank you.

Speaker 3

Thanks, Alex.

Operator

Thank you. The next question goes to Brent Thielman of D. A. Davidson, Brent.

Speaker 6

Yes. Thanks, hey. Good morning.

Speaker 2

Hi. Good morning.

Speaker 6

I guess Kenny or Lou, you all made several references to the parts and services backlog and bookings Strength. I guess, just want to take a step back. Maybe you could just share some views on sort of why this is such a relevant Metric for us to be focused on, what does it say about your customer's position right now? Maybe how it informs your view of guidance For the year from year?

Speaker 2

Well, I think the number one aspect on parts and services For us is that overall, it's a very high margin part, right? New project builds are, By definition, I mean, the marketplace is usually a little lower in margins. The parts and services That come following those are obviously yes, come following that are much higher margins. I think we've talked publicly that our parts and Between 35% and 40% gross margins overall in the company. So if we can see improvements there On that, above and beyond our plans, then that helps to accelerate and pull in margin In the outer months, once those parts and services are shipped and built.

Speaker 2

So the importance of it is really around that, right, That a healthy parts and services platform is very strong cash flows for us, due to the high margin nature of it and More or less, in which we talked about in the past, normally it's a short book and bill. It's roughly about 60 days now ish In the marketplace, where it used to be 30, but with the new supply chain, it's extended out there a little bit. But That's kind of the way that we think about it in terms of that. I think the other just from a company strategy The important piece here is that by expanding parts and services beyond thermal and in renewable Environmental, it's very much a positive for us because that was part of our strategic plan was to increase our presence in parts and services in those groups, which again, same High margins and margin activity, but we needed to broaden our presence. So we're seeing the benefit of that because It's been a very strong quarter for our renewable sector, in particular, on parts and services.

Speaker 6

Okay. Thanks for that Kenny. And then all three business segments, Looks like they saw pretty good improvement in volume, I guess, by the commentary, where I think you're getting the benefit It's a better operating leverage here. But I guess I just wanted to better understand how the supply chain issues or anything else Maybe holding your margins back, whether it's comments by segment, Kenny or just the company overall?

Speaker 2

Yes. No, it's a give and take. Each quarter, there's we in some cases, We're allowed to pass along the cost increases of the supply chain aspect and overall goes up in price. And obviously, we're dealing with thousands of objects here. So it's hard to I don't know exact percent, but When Duke parts and services do go up, for the most part, in most cases, we're allowed to pass that increase on to our customer.

Speaker 2

There's occasionally a project or 2 where we have to absorb it for an initial period of time, but then in a quarter or 2 later, we're able to increase Price, at that point in time, right? So there's an ebb and flow and as it relates to that in our parts business and Depending on who the customer is and who the parts are, but if you thought about it in terms of at this point, I think our supply chain pricing is Fairly stable. There's few things still going up. We've seen some stuff come down a little bit On that, but the bigger impact that we still probably overall in the business then, we adjusted our targets accordingly, It's just the length of getting certain items in. It's interesting if you go back to the solar So I'd talk about that.

Speaker 2

When you think about a solar site, obviously, one of the first things we do is qualify whether or not the customers Panels on hand because if they don't, that's a long lead time item. And secondly, if they have transformers, on the supply aspect or Yes. Who's responsible for the transformer side of it? Because those are, again, very much a long lead time item out in the marketplace. So there's some extra Caveats and things that we go through when we try to qualify opportunities to make sure that that's all available.

Speaker 2

But those are The longer lead time items in the parts services aspect are, we've kind of baked in that time frame in our targets. But That improves. That's great. We haven't seen it, I would say, over the past 6 months, I guess, at this point, something like that, we haven't seen it get worse. And I think That's an important consideration.

Speaker 2

So it's almost like we're operating kind of in a new norm, and that's what it feels like anyway.

Speaker 6

Okay. Thank you.

Operator

Thank you. We have no further questions. I'll now hand back to Sharon for any closing comments.

Speaker 1

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

Operator

Thank you. This now concludes today's call. Thank you so much for joining. You may now disconnect your lines.

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Earnings Conference Call
Babcock & Wilcox Enterprises Q1 2023
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