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Babcock & Wilcox Enterprises (BW)

Participants
Sharyn Brooks Director, Communications
Kenny Young Chairman and CEO
Lou Salamone CFO
Rob Brown Lake Street Capital
Brent Thielman D.A. Davidson
Alex Rygiel B. Riley
Call transcript
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Operator

Good afternoon. Thank you for attending today’s Babcock & Wilcox Enterprises Q1 2022 Earnings Conference Call. My name is Bethany and I will be your moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to our host, Sharyn Brooks with Babcock and Wilcox. Please go ahead.

Sharyn Brooks

thanks Enterprises for conference first and Babcock us call. Bethany, Wilcox & quarter you, to joining everyone on Thank XXXX earnings I’m of Director Sharyn Communications. Brooks,

B&W’s Officer; Joining and our first Financial Kenny today the discuss Young, results. call Officer, to Chief Lou and Executive quarter Salamone, Chief are Chairman

found make that certain harbor our the set These forth at our be safe statements can uncertainties, are this call, will and those During subject for including statements forward-looking provision be statements we of forward-looking. to risks end will in release related file risks further and that our XX-Q earnings provide also press the on in be Form to Form our our with is and and about that the business. SEC filed today detail XX-K

by any we to law, obligation required forward-looking no update undertake except Additionally, statements. as

provide substitute the non-GAAP accordance provided results and measures be considered or certain supplement historical of of superior information not can regarding measures. in to results non-GAAP be information should for our to targeted comparable a We GAAP historical A the reconciliation afternoon with found this This GAAP. also earnings of the and on babcock.com. will on X-K afternoon first in our that over quarter be call release Kenny. now Form this published overview our filed Relations to Investor website in section the posted will company at our turn presentation I and as

Kenny Young

all exciting for for this what afternoon, time be us and us an to joining you, Sharyn, and extremely everyone thanks Thank continues to at in Wilcox. of Babcock

others, across generation That employees proud of solutions history company and our company only do support a have innovation of, company, the what our because to forward. technology we’ve employees and transition we world successful power recognize are accomplished leader a for a unique the and in truly industry. world’s tireless and throughout world also puts our not thank efforts the built want drive forward. our a and provider position strong as but something has extremely suppliers I driving to their it because very relationships continued and us long and the energy customers is the with and As around in the

In help which technology XX range of climate extensive an we installation months construction right Today, a and approximately technologies, we’re significant technologies and power USDXX XXXX, energy adjusted systems. reached have March their solar energy with our biomass of ended XX, fact, million in needs is support customers’ market-leading decarbonization and energy to working the production clean for with EBITDA, accomplishment. suite our and including solutions proven our innovative of for hydrogen waste hard

mission parts We and storage systems plants cooling help running our at energy keep aftermarket and and have solutions customers next-generation their performance. to services controls peak and

we or for adjusted and provide the across in as over quarter since but to ended that and backlog that power gas. resurgence increases EBITDA many the talk to strong continue due face spectrums. companies, execution. plan. chain customers’ and established globally a about delayed to bit revenues, our as seeing situations tailwinds We leveraging the elsewhere. to may materials the fossil business fossil limited to the as energy, war in to significant ability also the with climate mitigate very XXXX time, our due Ukraine continue respect the customers and are higher same by like those growth XXXX outstanding ago, and to ahead support achieve also potential additional natural we Like alternatives B&W has bookings fundamentals quarter And more strategic fuel project beyond issues have COVID-XX highest our and meet we the for only support as of of need share be customers targets goals, our backlog these we to to later challenges we increased across first, in some decisions, gas, year the objectives global not the focus impacted segments but year-over-year our to from China now a in about little in resources great in progress those these for decarbonization fact, some and long-term areas we’re And always, seeing to on natural We’ll security are with the we’re I’m making about and and on raw be and working fuels we today, position has an same pleased as evolve. supply efforts a to our safety serve supply of change At needs prices

as we And also continue potential the for areas situation the so to in will to continues monitor opportunities those evolve.

some While service solid to quarter aftermarket the were some continue for bookings projects, coal some over end particularly pipeline million, were and of of customers. quarter the parts robust cause see the USDXXX the year in a more at ago. strong next the of over increase dates than as has project opportunities for a pandemic billion continued a some reflects see or very these of impacts, at million, delays high USDXXX was we start did same back the we bookings years. which and parts project Despite our push services during delayed of the identified group XX% some quarter a meant to three and Backlog USDX.X period visits that use by increases,

plant exciting had we’ve we’re the Fidelis kind platform, for with we Fidelis’ net-negative others. support the that to power diesel Rouge, and Baton will decarbonization jet Louisiana. be produce largest Industrial sustainable power and world which fuel, fuel, of Fuels quarter green its XXX-megawatt It the will New provide that Energy’s carbon Gron facility, in impact in will planned ClimateBright hydrogen the biomass our a Kiewit partnering included announcement very to Turning

our oxygen carbon full and suite a in and for be used opportunities of emission technology capture which controls OxyBrite system, preferred supplier as for systems it and wide power a OxyBright equipment of design, uses been pleased we’re of decarbonization, can can B&W to pure We to in have use. will not we’re about range our fuels environmental clean the then play is and be actually underground of COX, groundbreaking project our sequestered or emissions. this to provide advanced It’s opportunity project to This stream biomass and concentrated a generation and technology other B&W technologies boiler, control the very leadership which our the engineering great truly role and demonstrate put a proprietary beneficial oxy-combustion a the with provide can project currently a forward. moves combustion produce named for for providing to backlog excited to

also the scale-up the technology progress on State is of we’ve is BrightLoop the syngas production gas, and even of create chemical syngas efforts We’re and system years and to a the combustion refining in making particle, very we’re can BrightLoop the coal, enthusiastic Department truly from natural variety of a industry. which petroleum a many uses that treated next flexible incineration. conjunction feedstocks, decarbonization, and hydrogen coke a reaction to process a technology. of with process our effort revolutionizes site and react it solid and extremely University develop including boiler waste, developed demonstration through our for biomass, without near-term This Ohio with one patent The uses about the Energy, municipal

used. can of it be applications in options customers with terms a really where the So, provides it lot of

hydrogen, since along as uses. Just chemical of we important, from BrightLoop COX a reaction, including with stream pure syngases can sequestration for other either process, uses isolate pure or a the industrial

identified in are we with to along conditions particular into moving year full-scale site and working are technology a this access one of secure We with the a the we hydrogen demonstration potential to favorable property and offtaker. have

external use planned. interest secure ability at is to project to as with and progressing to grants we’re our final Needless fuels say, hydrogen. same engineering, working and worldwide, in also groundbreaking to BrightLoop the which are high particularly and this is revolutionary solid given forward its very investments for moving generate time, design product We

a and from generate COX fuel other As chemical of site test this to commercial biomass our the to use process this sequester using generated project, looping process. part use we fuels to plan also solid the demonstration hydrogen,

represents in this or syngas. see steam demand game-changing over producing the for technology, exceptionally and and and our A start Renewable of our we great expect new it’s increase to business, services a scalable, It’s so as again, technology build quarter first a continued quarter. installations. that XXXX, second as our So, renewable evolution to million support and we respect hydrogen, while COX we see number in a our biomass and particularly other revenues in we can which Certainly, can to energy, to year adapted XXX% energy can of separate products segment. segment, of see announce within our waste of versatile continue quarter applications bookings and With other USDXX effectively as products array aspects a this the renewable B&W the continue we strong is both economically to interest, first energy -- be large wide small

our parts but And opportunities, equipment We’re only for within parts about retrofit as internationally opportunities well. business we’re services also North parts. not seeing America, and and service continued excited and global services on replacement build our growth bookings throughout upgrades, with and to

scanners, We use boilers, products generation, industries, recovery This packaged broader the as B&W align economizers, generator technologies manufacturing plants. in boilers, opportunities for in Optimus creating of leading acquired in aftermarket, waste U.S. is to business clean of the interest waste super during Tulsa, additional even our two Canada. the with based which combustion to for of an and including FPS equity closely which in Optimus recovery February steam recovery access technologies the complements customers. equipment a heat strategy, clean serve and In waste B&W’s sulfuric continue and ideally power acquisition foundation as closed of well heaters, Power petrochemical capabilities. safety strategic to and particular, and energy and to fire and acquisition technologies Industries We in water and broader when make and acquired Oklahoma, growth an reliable provides boiler heat in manufactures tube And tube Fossil the and technologies. pulp closed gas our Systems part BrightLoop natural our and firing strategy and and renewable XXX% the quarter. clean plant Nova and including capabilities or on as FPS businesses hydrogen, manufacturer investments strategic closed our a controls are suited designer equipment, we renewable Igniters, in energy BrightGen Scotia, capabilities February, FPS based designs that generation package applications on as reputable XXX% first, growing process systems. acid paper heat of and steam in acquisitions has such energy hydrogen, of

and pleased related and as our the capabilities continues to experienced along employees transition Optimus these acquisitions FPS additional extremely We’re and company the dedicated smoothly. move activities part and to have of to

B&W Global that, utilities labor, a in position the the UN to and powering financial quarter development, Lou sustainable leader socially joined and the our in clean, of implementation United and reinforces principles turn disclosure Global rights, our discuss for that in global helps platform first industry. details sustainable of further also B&W anticorruption. also Lou? the company’s XX commitment advancing over Compact transition ways goals. the a responsible the XXXX. areas We the to March responsible Nations and energy With of the practices to initiative the to global call of business to This It human provides the commitment I’ll of environment This announced Compact. the of and as development

Lou Salamone

results SEC. on the I’m file the Kenny. Thanks, on first be quarter review pleased found XX-Q further that our which can will to be in details with

and of build is first consolidated compared and is volume in million, revenues impact a of we first were XX% due the by quarter quarter which to of the acquisitions the fourth the XXXX USDXXX projects XXXX. of XXXX. quarter the new first improvement quarter completed primarily Our This higher to

activity In higher level in to the segment Environmental construction of level partially addition in of by a the activity was offset Thermal a lower and segment.

was quarter of USDX.X to Our of operating an quarter million XXXX. the in loss in first operating compared the as million USDX.X loss

to XXXX. compared million of quarter was USDX.X adjusted in EBITDA adjusted USDXX the EBITDA Our first million an

to the While bookings were XX% is bookings in of quarter of XXXX USDXXX a which compared quarter million, first increase the first XXXX.

now highest million, was turn years. end to which Our backlog ending Kenny increase first backlog is of several I’ll for compared at is quarter XXXX a the to of segment XX% USDXXX stated, the and our the results. as quarter backlog first

the earlier, the primarily new Babcock million quarter Within an the were as increase This to of acquisitions as quarter the is volume offset by of fourth the and in segment, well mix of million in to driven quarter increase XXXX, mentioned compared XXXX. of USDX.X USDXX first USDXXX,XXX in due which primarily quarter in segment. in first the the Renewables of by XXX% business compared EBITDA was which USDXX.X first again, was for build the partially revenues as within XXXX. million Adjusted projects, as the volume, Kenny to impacts higher quarter Wilcox of of was XXXX,

EBITDA volume scrubbers, last The which the to increased the is Within Environmental This compared million the the was USDXX.X Wilcox million to of million volume. first of in driven and the the XXXX. this first primarily as an in to million in quarter, our systems, USDXX.X segment, USDX.X by handling in systems. and Babcock was were segment compared XX.X% revenues period the increase is same increase cooling quarter primarily USDX.X ash increased Adjusted in precipitators for due year. quarter

segment, I’ll the savings liquidity. at offset cost and balance and and than and million volume. the benefiting our to sheet, USDXXX.X the is in to acquisitions XXXX, level had company flow first projects were of million the This was million Turning XX% revenues USDXX.X to EBITDA X% compared Babcock to was XXXX. lower a XXXX, decrease of Wilcox of of due of USDXXX.X now decrease to in Total overall the turn which primarily which XXXX USDXX restructuring partly activity offset XX% due initiatives quarter and restricted backlog USDXXX.X first million first primarily more March million quarter is year, first XX, in & first USDXXX cash based cash, the This million, is compared which construction And equivalents continued was quarter debt XXXX. EBITDA. which target acquisitions on and to to by a the in quarter up completed the USDXXX adjusted million. our in of in and bookings cash XXXX, I’ll over reiterating million now -- finally, quarter we’re to call the a Thermal of the of was turn first our the the the USDXXX cash of strong Kenny. quarter XXXX compared XXXX. back on in our of in current Adjusted

Kenny Young

solid long Thanks, business pipeline over our potential way last And of BMW across the Lou. have of all a Well, technology come years. a opportunities. segments, we couple has robust and today, performance strong balance outstanding a three sheet, of

current our have of work, lot keep safety, excited see efficiently not for business ahead the customers power to across we’re focused to also continue and cleanly, needed the growth takes our as and energy as for on upgrades they need see business, just get continued today, about and and growing products prioritized We up our forward services and and can of a backlog opportunities and with climate. our execution, where supply waste so support place we strong It We in renewable dedicated demands employees services the a energy is prominent work the to future. their the and to their renewable also who thermal hard drive of took geopolitical security customers equipment, only the team are to objectives, and plants a but our on really providing and opportunities more on our energy aftermarket for and operating and project in tremendous new newbuild perseverance to meet energy on world’s services. increased today, while be climate We stepping also parts in us need our opportunities biomass businesses. commitment bookings customers

see continue also change. the most services. environmental business importantly, and ash emissions in the handling cooling of we B&W Perhaps We the of opportunities and global against for installation increased on systems see fight areas forefront control, and construction climate to our

platform XXXX As hydrogen we’ve that today. milestone to for we said ClimateBright remains and solutions that before our expect year and decarbonization a be true

a help customers are innovator about an demonstrate about technologies can ahead hydrogen I’ll now and the the the production We climate capture, our who that, will the we urgent being Bethany With solutions as area carbon in advanced back this objectives. provide call leader, our your address to in world’s and taking assist turn we forward over questions. to drive enthusiastic opportunities decarbonization with and

Operator

question first the from of line Lake Street Our Rob Instructions] [Operator Capital. Brown is with

Rob Brown

how then in to into of color scale that’s project. of first is wanted a get commercial out And the My of Is just rolls component. just Fidelis I sense first some I on question to the the want sort that a that And on further reduction get COX how of And sense that maybe market? project? the developed business? the

Kenny Young

question. appreciate I the No, Yes.

So, Obviously, the exciting for Fidelis on project we announced is the be partnership project. that us. to very

particular full around believe in is or which with in started two obviously of grown and associated the I actually that so jet plant portion is Gron fuels. there’s facility in Baton to has shortly. are in engineering be the -- parts particular and that. facility, configuration fuels mode technology. But of the the of creator discussions One already the the groundbreaking will We that Fidelis Rouge

involved not We’re that. in

grown previously. facility scale-up technology combustion obviously The actually OxyBright our of that’s second providing that the where and power actually our from that we’re the part OxyBright that will small boiler is work on We’ve on technology. biomass fuels plant focused and done

with Fidelis COX be represent on And But determined. COX. what or as technology be of further ready initiatives to it’s to that we’ve of OxyBright with in the there part In sequester that to talked plans will and that carbon of But plant. that’s so XXX-megawatt as that will move commercial top for fuel. conjunction, larger be associated will and sequester still It the that. on a about a jet this this isolate their implementation

So, we’re excited about that.

remarks, backlog. mentioned I in our not in As the it’s

and its working the but We’re on in obviously in through the and size groundbreaking that, decarbonization U.S. details groundbreaking here still that utilizing it’s sequestering and

obviously, develop about is that as long-term with too. relationship excited Fidelis we’re well we that. So And great the

all that it’s So, on good way a around the particular piece. relationship

as on So for public a -- milestone and a follow forward, more we can the to -- out that going. is we’ll it statements that. plan us get well it’s but Obviously, on to that into when implementation continues -- clearly on especially to particular that put move oxy-combustion getting it large commercial the

So we’re excited about that.

Rob Brown

great. Okay, some mentioned shifting good you a pick year? that this had of up of order things on Could you’re which around. pipeline, And how project And activity, also out you then much do timing the I us give further? shifted Or getting sort shifts you sense are around?

Kenny Young

more, comment Yes, some months shifted. which implementation time, let factored -- Lou about of but this it’s but it’s the overall two numbers the -- an in been of delays, I’ll delays. are by order in obviously point

about and customer by inventory parts help their lagging associated there on bit of it’s minuses, fuel here be little of there’s new from fossil those USDXX of mean, It coming say, a particular specific been and that can we aspect, roughly with we things are have changes, bit in There’s some put a overseas. and some parts, parts of -- there of of all few with on of I services I in, been to we far the sheet, particular Asia haven’t components on so but get and increased particular, running little out not -- a But weeks But into advantage around chain pluses compensate in you those difficulty and in and increased if around when think we supply Europe that we to supportive and XX/X. I field can any are category, revenues. I the Europe our clients million-ish, components it it the customers the other those inventory steel making a some and on see like. have customers, obviously, position in, in a it we’ve balance shifting were any take so plants terms. few average, a supply shifting of area. sector somewhere you as parts could and may in think had projects. in very that most think delays that our mean, a some that also longer. the of that when leverage in lot in for our put business, go delayed as our do delay we -- to, services

of into be to it now So get of that those the and figure out afforded kind pretty that supply we’re to already. provide and chain we pretty aspects starting some global around in fundamental we us to position confident this, the feel a happen good parts that opportunities and once that we’ll services, see

So in it’s But that? position a good add I you think -- want to we’re Lou, there. us, anything to to

Lou Salamone

to estimate, the to don’t numbers -- Yes. us. would I tried And an estimate. we’ve situation just because Ukraine for did specific it’s for example, want I give what

revenue million say not than And a million that had strictly can’t sometimes to for in as war, that it’s USDXX by will impacted about the for dollars. now move But quarters, about of gross and we’re COVID couple quarter, it range prices our or timing, in. USDXXX,XXX happen that I whether impacted this I’d the but revenue, loss said, about of was supply. not profit we that were we quarter right You the that couple next that if less in tell was Ukraine of most of pay of a

supply inventory And we gone to increase to a for a attention team our ahead and of purchasing around also impact, it. the as job said, So, global that some great and have supply did chain we but tremendous, Kenny not have paid enough chain. needs

it ultimate seeking continue So, these nimble we’re obviously able any more monitor to we daily. suppliers of lot in to purchases, for but be a

Operator

Davidson. line of D.A. the Brent Thielman from comes question with next Our

Brent Thielman

things A couple here. of

kind is seeing your the back Just like is awful to an obviously seasonal of here. momentum seem But expectations. recognized it and the half consequential you’re growth year of business pretty does full the very lot

respect with there in year to projects, the to in or any in regarding margins just way just of maintaining regard of the just you’re the contingent just rest fees factor outlook. increasing guidance, elements trying timing So, here concern of are for to the other

Kenny Young

No, lower tilt good on parts let and I in as question. was our I’ll in services, gas. publicly customers’ chime talked in natural at and in running of bit gross But the the plants and think price And impact were too. full had the because obviously, well XX% the the high then and a Lou biggest in level. because margin we little margins jump QX about services, again, mainly is parts we high of in historically

that had towards in on cost solid produce the obviously, measures we past were all couple all of QX able backlog. thrilled the the some to QX, to numbers project shift that So, up the of took the fact and over building aspects more numbers in a we cutting a primarily we but years produce for and

back these we have So things clients it’s and XX/X start and pick tilt to some at that are where because jumping back up parts already now normal, normally that the to plants full a seeing don’t. they’ve -- services been we never running of are again, some got of -- business but point are fixing repairing predict

months, next several the into we’re see parts entering out some we’ll over So, the of season. but that shakes how

cyclical. continue will be to We

parts some business spring the plants because we’re project going hit get back and through these to up pick the summer even think business I will again. then and power of demand for obviously and our

want there’s one often we’ll us. as will season the parts being cyclical aspect the surprise see I I anticipate anything project for Lou, But time. any year that And services fluctuates QX. and that there? at this margins that fully this shake in you don’t with add always the And And you be different. versus think out fall point I in But aspect the stay We will as so parts around stronger it saw to we of the think any happening. think

Lou Salamone

Yes.

and where open. were Just is a business profit-wise from we mentioned a a profit. good sorry, And mentioned stayed parts but -- if ‘XX before, we these over have would little due XX% liked, X% compare the power under I to gross about delta most than we’re little of I’m a quarter reason, to XX% ‘XX, that being as little Kenny to slower you plants -- for gross

So, I think we’ll the that increasing. start recover -- mix later that those profit parts gross as

So, have to this start the they the of in percent orders should to a parts wearing couple recovering plants have because parts -- replacing as quarter, are flow these out. we start that

So we’re -- and high have. backlog that very we it’s also evidenced by the

pretty to the we’re gross that comfortable So will continue profit recover.

Brent Thielman

very bids what big appreciate things you’ve got sort and Okay. that. obviously and guess I new is question doing? just a of I second backlog. to contingencies other are you Just contracts, respect with

protecting work. logistical of picking of a How a you on basis? lot yourselves kind the inflationary and contractual challenges up some been procurement out there, of guys are particularly You’ve in of sort

Kenny Young

question, good Brent. No, Yes.

we core to pricing and that of most ability this well the managing help but there’s is our to base. So as with to always but times mentioned, unprecedented. situation because that to done curve. -- most a some case, the of manufacturing we do of in readjust helping a ahead larger those our contracts, our lot we in the issues really Lou B&W, Ukraine as our COVID, good as of items, vendors really forcing working the past the the that especially, suppliers a if of really of Not years say, to vendors that and our and also, been or like supply the sure, obviously, pushing has parts, work of more global through so a have through gone sure our on chain in so job good a goes have of good passed redirect chain materials with And it’s make and necessarily is And impact of COVID, pricing some isn’t global along up we Obviously, well because have job contracts, to I that as by making us job -- that. customer on the on steel over have some pricing the fabulous I production too. got supply do, -- we’ve cost of borne provide been, obviously, of especially even we of everything fabrication couple done think, and job flexibility supply get will if

lot the we of to minimizes lot Lou that make do So sure contractual a to on impact the best of of the by try of work a basis, But a to on language ahead it we but anything? be global us. combination it’s can people a

Lou Salamone

I think be inventory. be That suppliers could at be in and the I to world flexible to we’ve saw, be balance our going We sheet of there’s We can well. a covered and sold Many we got you our as nimble were little supplies global it an mentioned chain, to was supply go so -- better the a a go next we Yes, with we planned. to cost. so more used cash as months had purchase in parts better. might earlier, where we pricing a knew that increase you out -- and our And six year. then other

people supply very it’s things just successful of day. every combination a So And -- obviously, that’s to chain been do at. have what have it’s our you

Brent Thielman

seen become pace one the and the on I maybe reaffirm expectations? how over and here. of all got of things helpful. Just continue really more it. past ClimateBright quarter next of you’ve platform to good Is those here over I it the the just inroads you’ve the Really last here, sooner? to what guess, you contributing Maybe sort make Okay. of coming appreciate the up and had can to success compares business you’ve that year? this view a that

Kenny Young

necessary Yes. it’s this off and on Yes, project No. we’re that’s commercial obviously getting proven ground the excited -- to by scale up. the demonstration the

that or the position applications. it’s the I and in demonstration and XX the -- close I think this XXx progress customers be then engineering which potential of following particular, making us the and very guess, move a we’re BrightLoop on into closely. bigger where And me broader doing will We’re demonstration, customers, up commercial it they’re technology we have a into let to put in commercial the say, to able number to -- scale on

a appeal process us governments, the with -- including demand It that entities we’re in for got specifically because and the a aspect this broaden Department working want Energy but investor application with even following and on of working number sometimes a the to it’s phase lot We’re we are to of an here order the see into number probably we’re into of like to there of regard groups people working lot the move And technology. BrightLoop, in is of doesn’t feel accelerating this excitement number U.S., but move from we’ve marketplace. that this demonstration this. the commercial by for a this in that standpoint, are of a next with

on got we’ve the inside through So we’ve we’ll so focused dedicated that details now. the we’re working company, this working and demonstration isolated commercial and -- those -- that resources are group

We’re also customers. with working few a obviously

on in that, you and combustion of by technology wide new some of we’ve pleased extremely that location clients on I syngases. across is names the the conjunction talking of and interest the obviously, board our Louisiana, of the benefit got announcements the Gron move we in BrightLoop isolate in commercial to the get tell do get I also helping our to allows Fidelity and in the a clients, here food about other that goal at don’t that But make line. number or looking the that little a are capabilities beverage a forward. parallel and in looking can into release, COX. mentioned is with we across in that but want think right petrochemical be multitude been that now their I create that levels evaluating And And yet, press we’ll whenever for some we hydrogen that with would to we’re we’ve of demonstration BrightLoop put the that -- in whether also hopefully, we to you the variety think But looking in facility premature. in I notes, that or soon petrofuels

well, aspects makes they this an overnight combustion a customer from they the providing automatically, that, additional which more attractive of they industrial isolate syngas have as the obviously, process. So can technology for up and wakes also revenue on suddenly COX, realizes because And much other top produce can a it technology.

So, we interest from do a lot have a parties. lot of of

done leverage and this standpoint, from that it we’ll demonstration keep we’re revenue a we to -- can about year, obviously, beyond. so this that pressing, in ‘XX excited and We’re get obviously,

Operator

last Riley. the with our And from Rygiel line is Alex of question B.

Alex Rygiel

here. A questions quarter. very A nice few

backlog First, solid, really of but was you Fidelis. included growth yet even haven’t XX%

backlog excluding the sounds now year-end. between expanding of moment, really you’re Sort and Fidelis like bullish it on for

then geographic U.S. see do in international First, Or markets? a a an do And your standpoint, is markets? that you conclusion? secondly, your see acceleration in an from fair you acceleration

Kenny Young

and get the increase year, rest details for are, us No, strongly the backlog to of want interesting now, with or we we are going But to the and too a don’t Europe, discussions and the is newer sets in quicker of obviously beyond. bullish around on some in how which our up in they’re because of XXXX these of energy into I move right renewable much very into It is some obviously technology. technologies customers existing in of we’re twofold. even One number sensitive.

to situation of So we’re Ukraine broader security to energy obviously of set as obtain figure the under from out they’re of there award. because a a trying -- away lot how discussions

gas fuel at the had natural of gas, burning the relook a they The longer are Europe customers now looking revamp a those to or bit little customers lot some is other than response continue plants some planned to their has of even aspect natural capabilities. of in we lack forced to to because those fossil of high have that of

we’re we’re uptick those much that now revenues. so activity and on in exactly will overall. hard business to predict early how have seeing an right in And But impact our it’s and

some upgrades there in happening some could are as that. that the parts accelerating we enhancements energy our be Along projects think we and talks there well potential in be larger So, about and waste from and too. scale, services of could though, things a coming platform

further that as BrightLoop we’re too. energy some source getting some customers especially customers -- interest we’re what can BrightLoop testing, at in support because in to or And to across our are, position using and we’re a there And the capabilities biomass, best discussions as trying we goals. few a it’s all with same of biomass of to we’re so, well be those -- the a time, the in hydrogen potential the

unfold So, the the say on the that’s I the by situation all of we’re position things there. the so a in of we’ve based on discussed how we’re occurring rest yes, what would forward. bullish see far geopolitical of year can increasing summer we how backlog end for move here we’ll We’ll on based the and and see

Alex Rygiel

kind attention street? sort helpful. turmoil you That’s any turning that growth market the And M&A or most starting pricing a of in of these catching say some the to Are is And strategy. somewhat a your being core across with a little here we days? improve particular pillar expectations see bit to your the to of segment should of seller

Kenny Young

went I that? completely end. on Can I to something. blank repeat Alex, apologize. my you You say started when cut out you

you could that? So repeat

Alex Rygiel

maybe term, clearly to in you as catching out all? Can relates a a which your not whether to future identify acquisitions, expectations there could sort talk Sorry, pillar the has little improved relates about you what’s or And near core expansion? and then as growth. think seller see some it you it bit to pricing do your the of segment most for you eye the

Kenny Young

Yes.

geopolitical seeing too I nothing seller variable a expectation has I a It’s say out I standpoint. multiples COVID think don’t it’s situation the we’re think bit would hasn’t from or really obviously, still -- little the there. -- changed much, or what

look -- Again, at lot look of a at to XXX% some those are of acquisitions. opportunities. necessarily continue not We we different

certain and even Some help the us that things be that emerging trying may be could marketplace and are other of improve actually absorption to do. on we’re to -- some to those technologies areas minority or accelerate in take aspects upon different further for might COX investment that that IP

Obviously, are still We out those at acquisitions we complement the look of business are where that from So, there across move obviously cash and USDXXX that think thermal platform looking look out side range. And -- those respond we [Gammon] those opportunities the investments the needle. might there. to especially services want accordingly as can high and flows and those those be are to whole we purely opportunities we’ll million synergistic the we look on because that type would drive constantly to well several And that USDXXX too. out there continue parts and really million. what -- at opportunities put of at our are the further that at keep on think target

we it’s would going brand we move at look needle. as that we acquisitions, synergies So, up won’t might pick things look forward. as would flows, acquisitions that at I target look that that obviously, at on we’re that clearly, and cash would to think anything add But technology move up that And keeping new look unless range. we I we mentioned, a -- that increase

we’re thinking that’s it how about of we’re right now. So, it on kind how focused and that’s

things and But board of across feel at there So, those can that of the that’s we’re now. how flexibility we’re keeping barriers. lot acquisitions kind both we about cross the right looking

Alex Rygiel

relates as to more property, on so then as And hear might forth? lastly, BrightLoop, so when location, relates it customer, to and we it

Kenny Young

diligently We specific a right sites are working and and -- some opportunities. locations couple on now of

move forward. I it’s diligently it’s So, working future, quarters. or whether it’s weeks, But that to hope on not-too-distant in those we’re days or months the not

would EPC the behind do construction scenes, the aspect well and working with the as part that engineering around that. XXX% We’re partner of working on

in lot going So, things of on a parallel.

on to even we’re ways to buy some a working as with As that from piece, also be us. particular or who we the well cost of associated that willing some offset be acquire with might other customer that federal mentioned, and funding the aspects with would facility some potential

turn announcements it that with I’ll discussions all than longer to think, very real hopefully, here over of So back much from that you. we’re I operator, it’s that. Well, around week Alex, time. out demonstration, in too not would getting a But further

Operator

concludes Thank the question-and-answer any I pass for back it would remarks. like Sharyn you. session. to That Brooks closing to

Sharyn Brooks

and limited a conference website later available be will concludes A That time to Bethany, us our everyone joining you, today. thanks today. for for Thank call. on our replay

Operator

Babcock your rest all enjoy Wilcox the the I of hope & XXXX conference concludes earnings day. That Enterprises QX you call.

may lines. your You now disconnect