Executive Summary

Adjusted EBITDA materially beat “street” expectations: continuing operations delivered $15.1M (+89% YoY) and, including Diamond Power International (DPI), reached $21.6M vs consensus ~$12.3M; revenue was $144.1M on continuing operations amid timing of large projects, while Global Parts & Services grew 31% YoY to $64.8M .
Backlog rose 49% YoY to $418.1M, underpinned by baseload generation needs and AI/data center-driven demand; bookings were $114M vs $136M in Q2’24 as project timing shifted .
Balance sheet improved following the sale of DPI for ~$177M and private bond exchanges that lowered annual interest by ~$1.1M and extended maturities to 2030; management stated it has alleviated prior going-concern doubt and expects positive cash flow in 2H 2025 .
Narrative catalyst: management emphasized rising baseload needs from AI/data centers and “behind-the-meter” projects, highlighted BrightLoop steam/hydrogen opportunities, and indicated potential announcements on large thermal upgrades/new builds later this year .

What Went Well and What Went Wrong

What Went Well

Global Parts & Services revenue increased 31% YoY to $64.8M, driven by higher baseload generation and AI/data center demand; CEO: “We delivered strong operating results… Adjusted EBITDA significantly outperformed Company and Consensus expectations” .
Operating income turned positive at $8.1M vs a loss of $4.4M in Q2’24 as project timing and mix reduced costs; adjusted EBITDA nearly doubled YoY to $15.1M (continuing ops) .
Strategic actions: closed DPI sale (~~$177M), executed bond exchanges (~~$131.8M swapped to ~$100.7M due 2030), reduced interest cost ~$1.1M/yr, and improved liquidity; CFO: “B&W has alleviated the previous doubt about continuing as a going concern” .

What Went Wrong

Revenue declined to $144.1M from $151.4M YoY due to timing of closing/starting select large projects; Environmental segment revenue fell YoY ($20.8M vs $28.7M) and projects mix remained lumpy .
Primary EPS (including discontinued operations) was pressured by DPI-related discontinued losses (Q2: diluted loss per share -$0.63; continuing operations -$0.10), making headline EPS look worse vs consensus .
Bookings declined vs Q2’24 ($114M vs $136M) as large project timing shifted; management reiterated large project revenue will be “up and down” quarter-to-quarter .

Financial Results

Consolidated performance vs prior year and prior quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$151.4	$181.2	$144.1
Operating Income ($USD Millions)	$(4.4)	$5.9	$8.1
Diluted EPS – Continuing Ops ($USD)	$(0.26)	$(0.11)	$(0.10)
Diluted EPS – Total ($USD)	$0.24	$(0.26)	$(0.63)
Adjusted EBITDA ($USD Millions)	$8.0	$14.3	$15.1
Adjusted EBITDA ex BrightLoop/ClimateBright ($USD Millions)	$10.5	$15.0	$17.0
Adjusted EBITDA Margin (%)	5.3% (=8.0/151.4)	7.9% (=14.3/181.2)	10.5% (=15.1/144.1)

Q2 2025 Actual vs S&P Global Consensus

Metric	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($USD Millions)	$174.0*	$144.1
Primary EPS ($USD)	$(0.11)*	$(0.63)
EBITDA ($USD Millions)	$12.29*	$9.85 (EBITDA per SPGI definition) / $15.1 Adjusted

Values retrieved from S&P Global.*

Notes:

Company also disclosed Adjusted EBITDA including DPI of $21.6M, which was “76% greater than street expectations of $12.3M” .
Revenue including DPI was $173.7M (non-GAAP), broadly in line with consensus revenue .

Segment breakdown (Q2 2025 vs Q2 2024)

Segment	Revenue Q2 2024 ($M)	Revenue Q2 2025 ($M)	Adj. EBITDA Q2 2024 ($M)	Adj. EBITDA Q2 2025 ($M)
Thermal	$107.3	$104.3	$9.9	$17.5
Renewable	$15.4	$19.0	$0.4	$0.5
Environmental	$28.7	$20.8	$1.7	$2.3
Corporate	—	—	$(4.0)	$(5.2)
Total	$151.4	$144.1	$8.0	$15.1

KPIs and mix

KPI / Mix	Q2 2024	Q1 2025	Q2 2025
Global Parts & Services Revenue ($M)	$49.3	$99.6 (Thermal parts full quarter benchmark) / $Total Parts $105.1 FH 2024 context	$64.8
Bookings ($M)	$136	$167 (Q1)	$114
Backlog ($M)	$281	$526.8 (Q1)	$418.1
Revenue Mix – Parts ($M)	$49.3	$—	$64.8
Revenue Mix – Projects ($M)	$57.2	$—	$37.4
Revenue Mix – Construction ($M)	$45.0	$—	$41.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Free Cash Flow (company-level)	FY 2025 / 2H 2025	“Anticipate positive net cash flow in 2025 excluding BrightLoop” (Q4’24)	“Second half of the year will be cash positive” (CFO)	Maintained/clarified timing
Balance Sheet / Going Concern	Near term	Substantial doubt disclosed (Q1)	Management states doubt alleviated post DPI sale and refinancing	Improved
Large Thermal Projects Outlook	2025	Bookings/backlog tailwinds (Q4/Q1)	Expect potential announcements by end of year; revenue lumpy quarter-to-quarter	Narrative reinforced
BrightLoop commercialization	2025-2026	FEED pipeline; Massillon target early 2026 (Q4’24)	“Increasing activity… steam and hydrogen”; multiple project discussions	Progressing (qualitative)

No quantitative revenue, margin, tax, OpEx guidance ranges were provided in Q2 materials; management emphasized qualitative tailwinds and cash flow timing .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI/data center power demand	Tailwinds from AI/EVs; FEED studies 12–15; >$1B pipeline potential	Stronger emphasis: baseload demand up; parts/services growth; “behind-the-meter” data center projects	Strengthening
Baseload generation (coal/nat gas)	Thermal backlog strength; natural gas conversions	Customers evaluating new coal/nat gas builds; plant life extensions drive aftermarket	Strengthening
BrightLoop (steam/hydrogen)	Massillon target; FEEDs	“Well over 10” pipeline; steam and hydrogen; CO2 isolation optionality	Advancing
Debt/refinancing & liquidity	Going-concern doubt; active refinancing and asset sales	DPI sale closed; bond exchanges reduced interest and extended maturities; doubt alleviated	Improving
Free cash flow	Anticipated positive in 2025 excluding BrightLoop	CFO targets cash positive in 2H 2025; parts/services and conversions to help	Clarified timing
Project timing / mix	Large project timing creates lumpiness	Q2 revenue decline due to timing; company reiterates quarterly variability	Ongoing

Management Commentary

CEO: “B&W is in a unique position to capitalize on the growing demand for base-load generation… fueled by demand from artificial intelligence, data centers and expanding economies… We believe this extended demand continues to position us for sustained success across our higher-margin Global Parts and Services businesses” .
CEO on backlog/pipeline: “Our growing backlog… benefited from increasing demand across Thermal projects… We anticipate further seasonal strength through the second half of 2025” .
CEO on balance sheet: “We completed the sale of Diamond Power International for gross proceeds of $177 million… entered into private bond exchanges… reduce our annual interest expense by $1.1 million annually, while… extending debt maturity to 2030” .
CFO: “As of July 31… cash and cash equivalents and restricted cash balance of $217.4M… net debt of approximately $203.9M… B&W has alleviated the previous doubt about continuing as a going concern” .

Q&A Highlights

Thermal demand/new builds: Management cited potential for “new coal-fired generation” and multiple customers exploring up to “20 GW” of new capacity to support data center demand; reiterated opportunities for BrightLoop to produce steam while isolating CO2 .
Free cash flow: CFO expects H2 2025 to be cash positive, aided by asset sales, interest reduction, and revenue from conversion projects and parts/services growth .
Aftermarket tailwinds: Plant life extensions and high utilization increase demand for upgrades, efficiency improvements, and parts/services, supporting higher margins .
BrightLoop pipeline: “Well over 10” projects in discussion across steam and hydrogen applications; optionality to capture CO2 without post-combustion systems emphasized .

Estimates Context

Headline revenue missed continuing-ops consensus ($144.1M vs $174.0M*), reflecting the exclusion of DPI; including DPI, non-GAAP revenue was $173.7M, roughly in line with consensus . Values retrieved from S&P Global.*
Adjusted EBITDA (continuing ops) beat consensus ($15.1M vs $12.29M*), and including DPI, the beat was significant ($21.6M vs ~$12.3M*, +~76%) . Values retrieved from S&P Global.*
Primary EPS (including discontinued ops) missed consensus due to DPI-related discontinued losses (actual diluted EPS -$0.63 vs -$0.11*), while continuing operations EPS was -$0.10 . Values retrieved from S&P Global.*
Number of estimates was limited (Revenue: 3; EPS: 2), implying higher dispersion/uncertainty around quarterly outcomes.*

Key Takeaways for Investors

Parts/services growth underpins margin expansion and cash generation; expect seasonal strength in 2H as baseload demand remains elevated across coal and natural gas fleets .
Large project timing remains lumpy; backlog (+49% YoY to $418.1M) and pipeline suggest multi-quarter visibility, but quarterly revenue can swing with booking/recognition schedules .
Balance sheet de-risking (DPI sale, bond exchanges) lowers interest burden and extends maturities, removing a key overhang and enabling pursuit of data center-oriented “behind-the-meter” opportunities .
BrightLoop optionality (steam/hydrogen with inherent CO2 isolation) is gaining commercial traction; further FEED/commercial announcements would be valuation catalysts .
Trading setup: headline EPS noise from discontinued operations can mask underlying improvement; focus on continuing ops EBITDA and backlog trajectory; watch for project announcements/guidance updates before year-end .
Medium-term thesis: baseload-driven aftermarket, conversions, and potential new builds create a durable runway; successful execution on BrightLoop and further debt refinement are upside levers .
Risk checks: project timing/mix, Environmental segment volatility, macro/supply chain, and financing markets remain variables; limited estimate coverage can increase post-earnings volatility .

Appendix: Additional Documents and Disclosures

Q2 2025 8-K (Item 2.02) and Exhibits: financial statements, segment details, non-GAAP reconciliations .
Q2 2025 Earnings Call Transcript: management remarks and Q&A .
DPI Sale 8-K and Press Release (July 31, 2025): transaction closed for ~$177M; pro forma details .
Prior two quarters for trend analysis: Q1 2025 earnings release and 8-K ; Q4 2024 earnings release and 8-K .

S&P Global consensus/estimates used in comparisons above; values retrieved from S&P Global.*

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