Shares of Babcock & Wilcox Enterprises tumbled 19% following the release of their third-quarter financial results, which included a loss. The environmental-services provider also announced that it is exploring strategic options for non-core assets.
The company revealed a third-quarter loss of $120.6 million, or $1.35 per share. This marks a significant drop compared to a loss of $21.5 million, or 24 cents per share, during the same period last year. The loss from continuing operations stood at 18 cents per share. Analysts surveyed by FactSet had projected earnings of four cents per share.
Despite the loss, revenue rose by 13% to $239.4 million. However, this fell short of analysts’ expectations of $289.5 million, according to FactSet.
Business Realignment and Strategic Alternatives
Babcock & Wilcox Enterprises, headquartered in Akron, Ohio, is undergoing a business realignment to refocus its operations on servicing existing projects rather than pursuing new ones. The company’s Chief Executive, Kenneth Young, explained that the demand for new-build projects has been affected by higher interest rates.
Young also highlighted a global trend of extending the operational lifespans of power and industrial generation facilities. In response, Babcock & Wilcox Enterprises is implementing cost-cutting measures and evaluating strategic alternatives for specific assets.
Stay tuned for further updates on the company’s strategic decisions.