SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company's operations are assessed based on three reportable market-facing segments. The Company's three reportable segments are as follows:

•Babcock & Wilcox Renewable: Cost-effective technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, solar construction and installation, biomass energy and black liquor systems for the pulp and paper industry. B&W’s leading technologies support a circular economy, diverting waste from landfills to use for power generation or district heating and replacement of fossil fuels, while recovering metals and reducing emissions. To date, we have installed over 500 waste-to-energy and biomass-to-energy units at more than 300 facilities in approximately 30 countries which serve a wide variety of utility, waste management, municipality and investment firm customers. Additionally, we have installed more than 200MW of utility- and community-scale solar projects in North America.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass-to-energy, carbon black, and industrial steam generation applications around the world. B&W’s broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control. The Company's ClimateBright family of products including SolveBright, OxyBright, BrightLoop and BrightGen, places us at the forefront of carbon dioxide capturing technologies and development with many of the aforementioned products already commercially available and others ready for commercial demonstration.

•Babcock & Wilcox Thermal: Steam generation equipment, aftermarket parts, construction, maintenance, and field services for plants in the power generation, oil and gas, and industrial sectors. B&W has an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

An analysis of the Company's operations by segment is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Revenues:
B&W Renewable segment
B&W Renewable	$	44,166	$	35,510	$	93,298	$	55,221
B&W Renewable Services	25,811		19,544		42,121		27,832
Vølund	15,242		18,557		33,923		34,893
B&W Solar	13,672		1,616		29,661		25,242
	98,891		75,227		199,003		143,188
B&W Environmental segment
B&W Environmental	21,451		12,801		41,812		30,986
SPIG	23,634		14,234		40,239		26,294
GMAB	3,605		4,577		6,079		9,280
	48,690		31,612		88,130		66,560
B&W Thermal segment
B&W Thermal	158,010		116,305		277,246		218,544
	158,010		116,305		277,246		218,544
Eliminations	(404)		(2,125)		(1,945)		(3,224)
Total Revenues	$	305,187	$	221,019	$	562,434	$	425,068

At a segment level, the adjusted EBITDA presented below is consistent with the manner in which the Company's chief operating decision maker ("CODM") reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest, tax, depreciation and amortization adjusted for items such as gains or losses arising from the sale of non-income producing assets, net pension benefits, restructuring activities, impairments, gains and losses on debt extinguishment, legal and settlement costs, costs related to financial consulting, research and development costs, costs and operating income from contracts in disposal, and other costs that may not be directly controllable by segment management and are not allocated to the segment. The following table is provided to reconcile our segment performance metrics to loss before income tax expense.

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
B&W Renewable segment - Adjusted EBITDA	$	500	$	11,151	$	5,440	$	13,481
B&W Environmental segment - Adjusted EBITDA	3,394		591		5,300		2,030
B&W Thermal segment - Adjusted EBITDA	24,367		16,361		38,100		30,515
Corporate	(5,488)		(4,226)		(10,568)		(8,599)
R&D expenses	(893)		(987)		(2,200)		(1,642)
Interest Expense	(12,497)		(12,058)		(26,926)		(24,382)
Depreciation & Amortization	(5,967)		(5,736)		(11,332)		(11,938)
Benefit Plans, net	(138)		7,403		(247)		14,855
Gain on sales, net	602		117		(335)		137
Settlement and related legal costs	—		(3,911)		3,009		(6,439)
Advisory fees for settlement costs and liquidity planning	—		(879)		(546)		(1,911)
Stock Compensation	(2,271)		(475)		(5,498)		(1,794)
Restructuring expense and business services transition	(1,022)		(1,754)		(1,982)		(4,442)
Acquisition pursuit and related costs	(105)		(1,350)		(239)		(2,193)
Product Development	(1,048)		(991)		(2,418)		(1,843)
Foreign exchange	1,154		(4,296)		693		(1,211)
Financial advisory services	—		(352)		—		(727)
Contract Disposal	(2,693)		(2,282)		(4,080)		(3,157)
Inventory step-up price adjustment	—		—		—		(1,745)
Other Net	(1,046)		(675)		(1,307)		(798)
Loss before income tax expense	(3,151)		(4,349)		(15,136)		(11,803)

The Company does not separately identify or report its assets by segment as its CODM does not consider assets by segment to be a critical measure by which performance is measured.