Aaron Spicella's questions to Babcock & Wilcox Enterprises (BW) leadership • Q2 2025
Question
The analyst inquired about the current demand in the thermal energy sector, the potential for large upgrades and new coal-fired generation, the financial scale of these opportunities, the outlook for the second half of the year, and the company's confidence in achieving positive free cash flow.
Answer
The company confirmed strong demand driven by data centers, leading to discussions for up to 20 gigawatts of new generation, including potential new coal plants. While specific project sizes are not yet public, they are substantial and would be in the low hundreds of millions. The outlook for the second half is strong, driven by high-margin parts and services, and the company is confident in achieving positive free cash flow for the second half of 2025, aided by asset sales, debt reduction, and operational performance.