10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File No. 001-36876 

BABCOCK & WILCOX ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

Delaware	47-2783641
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
1200 East Market Street, Suite 650
Akron, Ohio	44305
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number, Including Area Code: (330) 753-4511

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	BW	New York Stock Exchange
8.125% Senior Notes due 2026	BWSN	New York Stock Exchange
6.50% Senior Notes due 2026	BWNB	New York Stock Exchange
7.75% Series A Cumulative Perpetual Preferred Stock	BW PRA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Yes  ☐    No  ☒

1

The number of shares of the registrant's common stock outstanding at October 31, 2022 was 88,633,634.

2

TABLE OF CONTENTS

		PAGE
Cautionary Statement Concerning Forward-Looking Information		3
PART I - FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)	5
	Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021 (Unaudited)	6
	Condensed Consolidated Statement of Stockholders' (Deficit) Equity for the Three Months Ended March 31, June 30, and September 30 2022, and 2021 (Unaudited)	7
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)	9
	Notes to Condensed Consolidated Financial Statements	11
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	38
	Overview	38
	Results of Operations - Three and Nine Months Ended September 30, 2022 and 2021	40
	Liquidity and Capital Resources	49
	Critical Accounting Policies and Estimates	51
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	51
Item 4.	Controls and Procedures	51
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 6.	Exhibits	52
SIGNATURES		54

2

***** Cautionary Statement Concerning Forward-Looking Information *****

This Quarterly Report on Form 10-Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical or current fact included in this Quarterly Report are forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements include words such as “expect,” “intend,” “plan,” “likely,” “seek,” “believe,” “project,” “forecast,” “target,” “goal,” “potential,” “estimate,” “may,” “might,” “will,” “would,” “should,” “could,” “can,” “have,” “due,” “anticipate,” “assume,” “contemplate,” “continue” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events.

These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the impact of COVID-19 or other similar global health crises, the impact of the ongoing conflict in Ukraine, the impact of global macroeconomic conditions, including inflation and volatility in the capital markets; our ability to integrate acquired businesses and the impact of those acquired businesses on our cash flows, results of operations and financial condition, including our recent acquisitions of Fosler Construction Company Inc. (also referred to as Fosler Solar and Fosler, herein), VODA A/S, Fossil Power Systems, Inc., and Optimus Industries, LLC; our recognition of any asset impairments as a result of any decline in the value of our assets or our efforts to dispose of any assets in the future; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives, surety bonds, letters of credit and similar financing; our ability to comply with the requirements of, and to service the indebtedness under, our debt facility agreements; our ability to pay dividends on our 7.75% Series A Cumulative Perpetual Preferred Stock; our ability to make interest payments on our 8.125% senior notes due 2026 and our 6.50% notes due 2026; the highly competitive nature of our businesses and our ability to win work, including identified project opportunities in our pipeline; general economic and business conditions, including changes in interest rates and currency exchange rates; cancellations of and adjustments to backlog and the resulting impact from using backlog as an indicator of future earnings; our ability to perform contracts on time and on budget, in accordance with the schedules and terms established by the applicable contracts with customers; failure by third-party subcontractors, partners or suppliers to perform their obligations on time and as specified; delays initiated by our customers; our ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; our ability to realize anticipated savings and operational benefits from our restructuring plans, and other cost savings initiatives; our ability to successfully address productivity and schedule issues in our B&W Renewable, B&W Environmental and B&W Thermal segments; our ability to successfully partner with third parties to win and execute contracts within our B&W Environmental, B&W Renewable and B&W Thermal segments; changes in our effective tax rate and tax positions, including any limitation on our ability to use our net operating loss carryforwards and other tax assets; our ability to successfully manage research and development projects and costs, including our efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to our lines of business, including professional liability, product liability, warranty and other claims against us; difficulties we may encounter in obtaining regulatory or other necessary permits or approvals; changes in actuarial assumptions and market fluctuations that affect our net pension liabilities and income; our ability to successfully compete with current and future competitors; our ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with our retirement benefit programs; social, political, competitive and economic situations in foreign countries where we do business or seek new business, and the other factors specified and set forth under "Risk Factors" in our periodic reports filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed on March 8, 2022.

These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While we believe that these assumptions underlying the forward-looking statements are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect actual results.

The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

PART I

ITEM 1. Condensed Consolidated Financial Statements

3

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Revenues	$	214,870	$	159,960	$	639,938	$	531,068
Costs and expenses:
Cost of operations	176,085		114,643		512,485		404,827
Selling, general and administrative expenses	39,356		38,206		127,351		112,367
Goodwill impairment	7,224		—		7,224		—
Advisory fees and settlement costs	1,198		1,841		10,275		9,658
Restructuring activities	359		4,575		351		7,968
Research and development costs (benefit)	994		(228)		2,850		969
Gain on asset disposals, net	(28)		(13,838)		(7,165)		(15,804)
Total costs and expenses	225,188		145,199		653,371		519,985
Operating (loss) income	(10,318)		14,761		(13,433)		11,083
Other expense:
Interest expense	(11,320)		(8,330)		(33,249)		(30,574)
Interest income	103		130		323		385
Gain on debt extinguishment	—		—		—		6,530
Loss on sale of business	—		—		—		(2,240)
Benefit plans, net	7,424		9,867		22,279		24,889
Foreign exchange	(2,007)		(1,673)		(3,218)		(1,056)
Other income (expense) – net	454		(806)		(169)		(988)
Total other expense, net	(5,346)		(812)		(14,034)		(3,054)
(Loss) income before income tax expense	(15,664)		13,949		(27,467)		8,029
Income tax expense	4,902		301		4,777		6,683
Net (loss) income	(20,566)		13,648		(32,244)		1,346
Net loss (income) attributable to non-controlling interest	2,800		(5)		3,647		(41)
Net (loss) income attributable to stockholders	(17,766)		13,643		(28,597)		1,305
Less: Dividend on Series A preferred stock	3,715		3,681		11,145		5,412
Net (loss) income attributable to stockholders of common stock	$	(21,481)	$	9,962	$	(39,742)	$	(4,107)
Basic (loss) earnings per share	$	(0.24)	$	0.12	$	(0.45)	$	(0.05)
Diluted (loss) earnings per share	$	(0.24)	0.11		$	(0.45)	$	(0.05)
Shares used in the computation of (loss) earnings per share:
Basic	88,321		86,002		88,115		81,088
Diluted	88,321		86,964		88,115		81,088

See accompanying notes to Condensed Consolidated Financial Statements.

4

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Net (loss) income	$	(20,566)	$	13,648	$	(32,244)	$	1,346
Other comprehensive (loss) income:
Currency translation adjustments ("CTA")	(13,344)		(1,292)		(24,263)		(2,840)
Reclassification of CTA to net (loss) income	—		—		—		(4,512)
Benefit obligations:
Pension and post retirement adjustments, net of tax	198		197		593		593
Other comprehensive loss	(13,146)		(1,095)		(23,670)		(6,759)
Total comprehensive (loss) income	(33,712)		12,553		(55,914)		(5,413)
Comprehensive income attributable to non-controlling interest	—		25		959		18
Comprehensive (loss) income attributable to stockholders	$	(33,712)	$	12,578	$	(54,955)	$	(5,395)

See accompanying notes to Condensed Consolidated Financial Statements.

5

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amount)	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	48,471	$	224,874
Current restricted cash and cash equivalents	9,630		1,841
Accounts receivable – trade, net	146,491		132,068
Accounts receivable – other	46,534		34,553
Contracts in progress	125,030		80,176
Inventories, net	97,832		79,527
Other current assets	24,605		29,395
Total current assets	498,593		582,434
Net property, plant and equipment, and finance lease	81,737		85,627
Goodwill	155,229		116,462
Intangible assets, net	59,794		43,795
Right-of-use assets	30,401		30,163
Long-term restricted cash	11,397		—
Other assets	44,416		54,784
Total assets	$	881,567	$	913,265
Accounts payable	$	122,083	$	85,929
Accrued employee benefits	12,110		12,989
Advance billings on contracts	97,961		68,380
Accrued warranty expense	10,621		12,925
Financing lease liabilities	1,140		2,445
Operating lease liabilities	3,786		3,950
Other accrued liabilities	69,531		54,385
Loans payable	2,301		12,380
Total current liabilities	319,533		253,383
Senior notes	333,498		326,366
Long term loans payable	534		1,543
Pension and other postretirement benefit liabilities	156,519		182,730
Non-current finance lease liabilities	27,778		29,369
Non-current operating lease liabilities	27,328		26,685
Other non-current liabilities	33,505		34,567
Total liabilities	898,695		854,643
Commitments and contingencies
Stockholders' (deficit) equity:
Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,669 and 7,669 at September 30, 2022 and December 31, 2021, respectively	77		77
Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 88,633 and 86,286 at September 30, 2022 and December 31, 2021, respectively	5,137		5,110
Capital in excess of par value	1,533,904		1,518,872
Treasury stock at cost, 1,867 and 1,525 shares at September 30, 2022 and December 31, 2021, respectively	(113,749)		(110,934)
Accumulated deficit	(1,360,896)		(1,321,154)
Accumulated other comprehensive loss	(82,492)		(58,822)
Stockholders' (deficit) equity attributable to shareholders	(18,019)		33,149
Non-controlling interest	891		25,473
Total stockholders' (deficit) equity	(17,128)		58,622
Total liabilities and stockholders' (deficit) equity	$	881,567	$	913,265

See accompanying notes to Condensed Consolidated Financial Statements.

6

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY

	Common Stock			Preferred Stock			Capital In Excess of Par Value		Treasury Stock		Accumulated Deficit		Accumulated Other Comprehensive (Loss)		Non-controlling Interest		Total Stockholders’ (Deficit) Equity
(in thousands, except share amounts)	Shares	Par  Value		Shares	Par  Value
Balance at December 31, 2021	86,286	$	5,110	7,669	$	77	$	1,518,872	$	(110,934)	$	(1,321,154)	$	(58,822)	$	25,473	$	58,622
Net loss	—	—		—	—		—		—		(8,264)		—		(420)		(8,684)
Currency translation adjustments	—	—		—	—		—		—		—		(4,285)		(41)		(4,326)
Pension and post retirement adjustments, net of tax	—	—		—	—		—		—		—		593		—		593
Stock-based compensation charges	52	1		—	—		1,673		(221)		—		—		—		1,453
Dividends to preferred stockholders	—	—		—	—		—		—		(3,715)		—		—		(3,715)
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		(1)		(1)
Balance at March 31, 2022	86,338	$	5,111	7,669	$	77	$	1,520,545	$	(111,155)	$	(1,333,133)	$	(62,514)	$	25,011	$	43,942
Net loss	—	—		—	—		—		—		(2,567)		—		(427)		(2,994)
Currency translation adjustments	—	—		—	—		—		—		—		(6,634)		(71)		(6,705)
Pension and post retirement adjustments, net of tax	—	—		—	—		—		—		—		(198)		—		(198)
Stock-based compensation charges	54	1		—	—		1,386		—		—		—		—		1,387
Dividends to preferred stockholders	—	—		—	—		—		—		(3,715)		—		—		(3,715)
Balance at June 30, 2022	86,392	$	5,112	7,669	$	77	$	1,521,931	$	(111,155)	$	(1,339,415)	$	(69,346)	$	24,513	$	31,717
Net loss	—	—		—	—		—		—		(17,766)		—		(2,800)		(20,566)
Currency translation adjustments	—	—		—	—		—		—		—		(13,344)		(87)		(13,431)
Pension and post retirement adjustments, net of tax	—	—		—	—		—		—		—		198		—		198
Stock-based compensation charges	2,241	25		—	—		3,347		(2,594)		—		—		—		778
Purchase of Fosler Construction non-controlling interest	—	—		—	—		8,626		—		—		—		(20,735)		(12,109)
Common stock offering				—	—		—		—		—		—		—		—
Preferred stock offering, net	—	—		—	—		—		—		—		—		—		—
Equitized Last Out Term Loan principal payment	—	—		—	—		—		—		—		—		—		—
Dividends to preferred stockholders	—	—		—	—		—		—		(3,715)		—		—		(3,715)
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		—		—
Balance at September 30, 2022	88,633	$	5,137	7,669	$	77	$	1,533,904	$	(113,749)	$	(1,360,896)	$	(82,492)	$	891	$	(17,128)

7

	Common Stock			Preferred Stock			Capital In Excess of Par Value		Treasury Stock		Accumulated Deficit		Accumulated Other Comprehensive (Loss)		Non-controlling Interest		Total Stockholders’ (Deficit) Equity
(in thousands, except share amounts)	Shares	Par  Value		Shares	Par Value
Balance at December 31, 2020	54,452	$	4,784	—	$	—	$	1,164,436	$	(105,990)	$	(1,350,206)	$	(52,390)	$	1,104	$	(338,262)
Net loss	—	—		—	—		—		—		(15,464)		—		21		(15,443)
Currency translation adjustments	—	—		—	—		—		—		—		(4,582)		(24)		(4,606)
Pension and post retirement adjustments, net of tax	—	—		—	—		—		—		—		198		—		198
Stock-based compensation charges	1,725	22		—	—		4,480		(3,308)		—		—		—		1,194
Common stock offering	29,487	295		—	—		161,218		—		—		—		—		161,513
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		(38)		(38)
Balance at March 31, 2021	85,664	$	5,101	—	$	—	$	1,330,134	$	(109,298)	$	(1,365,670)	$	(56,774)	$	1,063	$	(195,444)
Net income	—	—		—	—		—		—		3,126		—		15		3,141
Currency translation adjustments	—	—		—	—		—		—		—		(1,478)		(5)		(1,483)
Pension and post retirement adjustments, net of tax	—	—		—	—		—		—		—		198		—		198
Stock-based compensation charges	65	2		—	—		1,201		(3)		—		—		—		1,200
Common stock offering, net	—	—		—	—		(529)										(529)
Preferred stock offering, net	—	—		4,445	45		105,998		—		—		—		—		106,043
Equitized Last Out Term Loan interest payment	—	—		2,917	29		72,893		—		—		—		—		72,922
Dividends to preferred stockholders	—	—		—	—		—		—		(1,731)		—		—		(1,731)
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		(36)		(36)
Balance at June 30, 2021	85,729	$	5,103	7,362	$	74	$	1,509,697	$	(109,301)	$	(1,364,275)	$	(58,054)	$	1,037	$	(15,719)
Net income	—	—		—	—		—		—		13,643		—		5		13,648
Currency translation adjustments	—	—		—	—		—		—		—		(1,292)		(30)		(1,322)
Defined benefit obligations	—	—		—	—		—		—		—		197		—		197
Stock-based compensation charges	515	7		—	—		916		(1,552)		—		—		—		(629)
Common stock offering	—	—		—	—		(50)		—		—		—		—		(50)
Preferred stock offering, net	—	—		237	2		5,805		—		—		—		—		5,807
Dividends to preferred stockholders	—	—		—	—		—		—		(3,681)		—		—		(3,681)
Non-controlling interest from acquisition	—	—		—	—		—		—		—		—		22,262		22,262
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		(113)		(113)
Balance at September 30, 2021	86,244	$	5,110	7,599	$	76	$	1,516,368	$	(110,853)	$	(1,354,313)	$	(59,149)	$	23,161	$	20,400

See accompanying notes to Condensed Consolidated Financial Statements.

8

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
(in thousands)	2022		2021
Cash flows from operating activities:
Net (loss) income	$	(32,244)	$	1,346
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of long-lived assets	13,184		12,684
Goodwill impairment	7,224		—
Change in fair value of contingent consideration	(9,567)		—
Amortization of deferred financing costs and debt discount	3,864		7,150
Amortization of guaranty fee	543		1,370
Non-cash operating lease expense	5,698		3,206
Loss on sale of business	—		2,240
Gain on debt extinguishment	—		(6,530)
Gain on asset disposals	(7,000)		(15,804)
(Benefit from) provision for deferred income taxes	(2,597)		2,601
Prior service cost amortization for pension and postretirement plans	593		(1,660)
Stock-based compensation, net of associated income taxes	6,497		6,628
Foreign exchange	3,218		1,056
Changes in assets and liabilities:
Accounts receivable	(26,224)		1,466
Contracts in progress	(48,208)		(9,365)
Advance billings on contracts	28,915		(20,625)
Inventories	(15,098)		(4,681)
Income taxes	(2,133)		(4,239)
Accounts payable	39,639		7,375
Accrued and other current liabilities	(10,813)		(44,768)
Accrued contract loss	3,481		(266)
Pension liabilities, accrued postretirement benefits and employee benefits	(27,144)		(47,108)
Other, net	792		90
Net cash used in operating activities	(67,380)		(107,834)
Cash flows from investing activities:
Purchase of property, plant and equipment	(8,947)		(4,213)
Acquisition of business, net of cash acquired	(64,914)		(27,211)
Proceeds from sale of business and assets, net	2,500		23,770
Purchases of available-for-sale securities	(5,006)		(9,597)
Sales and maturities of available-for-sale securities	8,498		11,373
Other, net	299		—
Net cash used in investing activities	(67,570)		(5,878)

9

	Nine Months Ended September 30,
(in thousands)	2022		2021
Cash flows from financing activities:
Issuance of senior notes	5,455		151,239
Borrowings on loan payable	1,342		3,472
Repayments on loan payable	(13,863)		—
Repayments under last out term loans	—		(75,408)
Borrowings under U.S. revolving credit facility	—		14,500
Repayments of U.S. revolving credit facility	—		(178,800)
Issuance of preferred stock, net	(40)		111,850
Payment of preferred stock dividends	(11,145)		(5,412)
Shares of common stock returned to treasury stock	(2,815)		(4,863)
Issuance of common stock, net	—		160,934
Debt issuance costs	209		(16,725)
Other, net	1,776		(1,569)
Net cash (used in) provided by financing activities	(19,081)		159,218
Effects of exchange rate changes on cash	(3,186)		2,818
Net (decrease) increase in cash, cash equivalents and restricted cash	(157,217)		48,324
Cash, cash equivalents and restricted cash at beginning of period	226,715		67,423
Cash, cash equivalents and restricted cash at end of period	$	69,498	$	115,747
Schedule of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	48,471	$	107,055
Current restricted cash	9,630		8,692
Long-term restricted cash	11,397		—
Total cash, cash equivalents and restricted cash at end of period	$	69,498	$	115,747
Supplemental Cash flow information:
Income taxes paid, net	2,693		6,094
Interest paid	19,292		18,800

See accompanying notes to Condensed Consolidated Financial Statements.

10

BABCOCK & WILCOX ENTERPRISES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

NOTE 1 – BASIS OF PRESENTATION

These interim Condensed Consolidated Financial Statements of Babcock & Wilcox Enterprises, Inc. (“B&W,” “management,” “we,” “us,” “our” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with the Company's Annual Report. The Company has included all adjustments, in the opinion of management, consisting only of normal, recurring adjustments, necessary for a fair presentation of the interim financial statements. The Company has eliminated all intercompany transactions and accounts. The Company has presented the notes to its Condensed Consolidated Financial Statements on the basis of continuing operations, unless otherwise stated.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. In the opinion of management, these consolidated financial statements contain all estimates and adjustments, consisting of normal recurring accruals, required to fairly present the financial position, results of operations, and cash flows for the interim periods. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2022.

Non-controlling interests are presented in the Company’s consolidated financial statements as if parent company investors (controlling interests) and other minority investors (non-controlling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in non-controlling interests are reported as equity in the Company’s consolidated financial statements. Additionally, the Company’s consolidated financial statements include 100% of a controlled subsidiary’s earnings, rather than only its share. Transactions between the parent company and non-controlling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

Risks and Uncertainties

Management continues to adapt to macroeconomic conditions, including rising inflation, higher interest rates, foreign exchange rate fluctuations and the impact of the ongoing conflict in Ukraine and the COVID-19 pandemic, all of which impacted the Company during the first nine months of 2022. The COVID-19 pandemic has continued to create challenges for us in countries that have significant outbreak mitigation strategies, namely, countries in our Asia-Pacific region, which led to temporary project postponements and has continued to impact results in this region. Additionally, the Company has experienced negative impacts to its global supply chains as a result of COVID-19, the war in Ukraine, Russia-related supply chain shortages and other factors, including disruptions to the manufacturing, supply, distribution, transportation and delivery of its products. The Company has also observed significant delays and disruptions of its service providers and negative impacts to pricing of certain of its products. These delays and disruptions have had, and could continue to have, an adverse impact on the Company’s ability to meet customers’ demands. We are continuing to actively monitor the impact of these market conditions on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. The duration and scope of these conditions cannot be predicted, and therefore, any anticipated negative financial impact to the Company’s operating results cannot be reasonably estimated.

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NOTE 2 – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted (loss) earnings per share of the Company's common stock, net of non-controlling interest and dividends on preferred stock:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Net (loss) income attributable to stockholders of common stock	$	(21,481)	$	9,962	$	(39,742)	$	(4,107)
Weighted average shares used to calculate basic and diluted (loss) earnings per share	88,321		86,002		88,115		81,088
Dilutive effect of stock options, restricted stock and performance units	—		962		—		—
Weighted average shares used to calculate diluted earnings (loss) per share	88,321		86,964		88,115		81,088
Basic (loss) earnings per share	$	(0.24)	$	0.12	$	(0.45)	$	(0.05)
Diluted (loss) earnings per share	$	(0.24)	$	0.11	$	(0.45)	$	(0.05)

Because the Company incurred a net loss in the three and nine-month periods ended September 31, 2022 and the nine-month period ended September 30, 2021, basic and diluted shares are the same.

If the Company had net income in the three months ended September 30, 2022, diluted shares would include an additional 0.8 million shares. If the Company was in a net income position during the nine months ended September 30, 2022 and 2021, diluted shares would include an additional 0.9 million and 1.3 million shares, respectively.

The Company excluded 0.3 million and 0.9 million shares related to stock options from the diluted share calculation for the three-month periods ended September 30, 2022 and 2021, respectively, because their effect would have been anti-dilutive. The Company excluded 0.4 million and 1.0 million shares related to stock options from the diluted share calculation for the nine-month periods ended September 30, 2022 and 2021, respectively, because their effect would have been anti-dilutive.

NOTE 3 – SEGMENT REPORTING

The Company's operations are assessed based on three reportable market-facing segments as part of its strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders with improved visibility into its renewable and environmental growth platforms. 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 by diverting waste from landfills to use for power generation and replacing fossil fuels while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, 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.

•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.

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Revenues by segment exclude inter-segment sales. An analysis of the Company's operations by segment is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Revenues:
B&W Renewable segment
B&W Renewable	$	34,279	$	20,783	$	89,500	$	63,481
B&W Renewable Services (1)	30,164		2,036		57,996		10,889
Vølund	14,043		15,181		48,936		30,785
Fosler Solar	3,201		—		28,443		—
	81,687		38,000		224,875		105,155
B&W Environmental segment
B&W Environmental	25,773		14,338		56,759		42,766
SPIG	14,521		16,514		40,815		40,892
GMAB	4,332		7,397		13,612		14,109
	44,626		38,249		111,186		97,767
B&W Thermal segment
B&W Thermal	91,331		83,819		309,875		328,416
	91,331		83,819		309,875		328,416
Eliminations	(2,774)		(108)		(5,998)		(270)
Total Revenues	$	214,870	$	159,960	$	639,938	$	531,068

(1) B&W Renewable Services' 2021 revenues were reclassified from Vølund's prior year reported amount for year-over-year comparability.

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, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Adjusted EBITDA
B&W Renewable segment(1)	$	4,522	$	11,399	$	14,846	$	15,030
B&W Environmental segment	3,082		3,476		5,112		7,286
B&W Thermal segment	10,761		9,329		41,276		32,436
Corporate	(4,419)		(5,866)		(13,018)		(11,548)
Research and development costs	(891)		513		(2,532)		(560)
	$	13,055	$	18,851	$	45,684	$	42,644

(1) Adjusted EBITDA for the nine months ended September 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold as well as the reduction to Selling, General and Administrative Costs of $9.6 million for the three and nine months ended September 30, 2022 that resulted from the reversal of the contingent consideration related to an acquisition.

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.

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NOTE 4 – REVENUE RECOGNITION AND CONTRACTS

Revenue Recognition

The Company generates the vast majority of its revenues from the supply of, and aftermarket services for, steam-generating, environmental and auxiliary equipment. The Company also earns revenue from the supply of custom-engineered cooling systems for steam applications along with related aftermarket services.

Revenue from goods and services transferred to customers at a point in time, which includes certain aftermarket parts and services, accounted for 25% and 21% of the Company's revenue for the three months ended September 30, 2022 and 2021, respectively, and 23% and 20% of its revenue for the nine months ended September 30, 2022 and 2021, respectively. Revenue from products and services transferred to customers over time, which primarily relates to customized, engineered solutions and construction services, accounted for 75% and 79% of the Company's revenue for the three months ended September 30, 2022 and 2021, respectively, and 77% and 80% of its revenue for nine months ended September 30, 2022 and 2021, respectively

A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Refer to Note 3 for the Company's disaggregation of revenue by product line.

Contract Balances

The following represents the components of the Company's Contracts in progress and Advance billings on contracts included in its Condensed Consolidated Balance Sheets:

(in thousands)	September 30, 2022		December 31, 2021		$ Change		% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized	$	60,182	$	35,939	$	24,243	67	%
Revenues recognized less billings to customers	64,849		44,237		20,612		47	%
Contracts in progress	$	125,031	$	80,176	$	44,855	56	%
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized	$	87,033	$	68,615	$	18,418	27	%
Costs of revenue recognized less cost incurred	10,927		(235)		11,162		(4,750)	%
Advance billings on contracts	$	97,960	$	68,380	$	29,580	43	%
Net contract balance	$	27,071	$	11,796	$	15,275	129	%
Accrued contract losses	$	3,859	$	378	$	3,481	921	%

Backlog

On September 30, 2022 we had $730.0 million of remaining performance obligations, which the Company also refers to as total backlog. The Company expects to recognize approximately 32.5%, 46.4% and 21.1% of its remaining performance obligations as revenue in 2022, 2023 and thereafter, respectively.

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Changes in Contract Estimates

During the three and nine-month periods ended September 30, 2022 and 2021, the Company recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Increases in gross profit for changes in estimates for over time contracts	$	1,690	$	7,001	$	11,343	$	12,340
Decreases in gross profit for changes in estimates for over time contracts	(10,353)		(1,523)		(20,004)		(6,018)
Net changes in gross profit for changes in estimates for over time contracts	$	(8,663)	$	5,478	$	(8,661)	$	6,322

B&W Renewable Projects

During March 2022, the Company determined that its Fosler Solar reporting unit had nine projects located in the United States that existed at the time Fosler was acquired on September 30, 2021 which generated losses that arose due to the status of certain construction activities, existing at acquisition date, not adequately disclosed in the sales agreement and not recognized in the financial records of the seller. As of September 30, 2022, the Company has recorded an increase in goodwill of $14.4 million, primarily resulting from the recognition of $14.1 million of accrued liabilities and $0.4 million of warranty accruals in conjunction with the finalization of purchase accounting as measurement period adjustments which was finalized as of September 30, 2022.

During the nine months ended September 30, 2022, two additional Fosler Solar projects became loss contracts. In the three and nine months ended September 30, 2022, the Company recorded $8.6 million in net losses from changes in the estimated revenues and costs to complete the eleven Fosler Solar loss contracts. The Company has submitted insurance claims to recover a portion of these losses as of September 30, 2022.

NOTE 5 – INVENTORIES

Inventories are stated at the lower of cost or net realizable value. The components of inventories are as follows:

(in thousands)	September 30, 2022		December 31, 2021
Raw materials and supplies	$	79,911	$	56,352
Work in progress	4,950		5,723
Finished goods	12,971		17,452
Total inventories	$	97,832	$	79,527

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NOTE 6 – PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASES

Property, plant and equipment less accumulated depreciation is as follows:

(in thousands)	September 30, 2022		December 31, 2021
Land	$	2,378	$	1,489
Buildings	33,842		31,895
Machinery and equipment	148,032		144,325
Property under construction	7,771		12,480
	192,023		190,189
Less accumulated depreciation	135,158		133,137
Net property, plant and equipment	56,865		57,052
Finance leases	30,548		34,159
Less finance lease accumulated amortization	5,676		5,584
Net property, plant and equipment, and finance lease	$	81,737	$	85,627

NOTE 7 - GOODWILL

The following summarizes the changes in the net carrying amount of goodwill as of September 30, 2022:

(in thousands)	B&W Renewable		B&W Environmental		B&W Thermal		Total
Balance at December 31, 2021	$	79,357	$	5,667	$	31,438	$	116,462
Addition - Fossil Power(1)					35,392		35,392
Addition - Optimus Industries(1)					11,081		11,081
Measurement period adjustments - Fosler(2)	10,697						10,697
Measurement period adjustments - VODA(1)(2)	(61)						(61)
Measurement period adjustments - Fossil Power(1)(2)					270		270
Measurement period adjustments - Optimus Industries(1)(2)					(7,273)		(7,273)
Goodwill impairment - Fosler	(7,224)						(7,224)
Currency translation adjustments	(1,041)		(786)		(2,288)		(4,115)
Balance at September 30, 2022	$	81,728	$	4,881	$	68,622	$	155,229

(1) As described in Note 21, the Company is in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the provisional measurements of goodwill associated with these acquisitions are subject to change.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

Goodwill represents the excess of the consideration transferred over the fair value of net assets, including identifiable intangible assets, at the acquisition date. Goodwill is assessed for impairment annually on October 1 or more frequently if events or changes in circumstances indicate a potential impairment exists.

In assessing goodwill for impairment, the Company follows ASC 350, Intangibles – Goodwill and Other, which permits a qualitative assessment of whether it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill, or we choose not to perform the qualitative assessment, then we compare the fair value of that reporting unit with its carrying value, including goodwill, in a quantitative assessment. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss measured as the excess of the reporting unit’s carrying value, including goodwill, over its fair value. The estimated fair value of the reporting unit is derived based on valuation techniques the Company believes market participants would use for each of the reporting units.

During the quarter ended September 30, 2022, the Company identified certain factors, including but not limited to, the acquisition of the remaining 40% ownership stake in Fosler Construction Company Inc. for an amount less than the remaining balance of the non-controlling interest, significant deterioration in operating results from those originally forecast

16

at the date of acquisition primarily as a result of supply chain issues on certain solar product inputs, the recognition of additional contract losses in the third quarter of $8.6 million beyond amounts previously accounted for as measurement period adjustments during the year, the determination that the contingent consideration would not be payable, all of which contributed to the identification of a triggering event, requiring an interim quantitative goodwill impairment assessment of its Fosler Construction reporting unit. In addition, in conjunction with the interim goodwill impairment test, the Company performed an impairment analysis of the Fosler asset group's its long-lived and intangible assets and noted no impairment.

The quantitative assessment was performed using a combination of the income approach (discounted cash flows), the market approach and the guideline transaction method. The income approach uses the reporting unit’s estimated future cash flows, discounted at the weighted-average cost of capital of a hypothetical third-party buyer to account for uncertainties within the projections. The income approach uses assumptions based on the reporting unit’s estimated revenue growth, operating margin, and working capital turnover. The market approach estimates fair value by applying cash flow multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar characteristics to the reporting unit. The guideline transaction method estimates fair value by applying recent observed transaction multiples from transactions involving companies with similar characteristics to the reporting unit’s business.

The Company compared the fair value of the Fosler Construction reporting unit to its carrying value and determined that the carrying value of the reporting unit exceeded the fair value. As such, the Company recorded goodwill impairment losses related to the Fosler Construction reporting unit of $7.2 million.

No indicators of goodwill impairment were identified for the Company's other reporting units.

NOTE 8 – INTANGIBLE ASSETS

The Company's intangible assets are as follows:

(in thousands)	September 30, 2022		December 31, 2021
Definite-lived intangible assets(1) (2)
Customer relationships	$	67,027	$	46,903
Unpatented technology	17,819		15,410
Patented technology	3,646		3,103
Tradename	13,029		12,747
Acquired backlog	3,100		3,100
All other	9,138		9,319
Gross value of definite-lived intangible assets	113,759		90,582
Customer relationships amortization	(24,705)		(20,800)
Unpatented technology amortization	(9,584)		(8,313)
Patented technology amortization	(2,845)		(2,729)
Tradename amortization	(5,962)		(5,425)
Acquired backlog	(3,100)		(1,620)
All other amortization	(9,074)		(9,205)
Accumulated amortization	(55,270)		(48,092)
Net definite-lived intangible assets	$	58,489	$	42,490
Indefinite-lived intangible assets
Trademarks and trade names	$	1,305	$	1,305
Total intangible assets, net	$	59,794	$	43,795

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result the intangible assets associated with these acquisitions are subject to change.

(2) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments

The following summarizes the changes in the carrying amount of intangible assets, net:

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	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	43,795	$	23,908
Business acquisitions and adjustments(1) (2)	27,412		17,100
Impairment of intangible assets	—		—
Amortization expense	(7,111)		(2,531)
Currency translation adjustments	(4,302)		(949)
Balance at end of the period	$	59,794	$	37,528

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the increase in intangible assets associated with these acquisitions are subject to change.

(3) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments.

Amortization of intangible assets is included in Cost of operations and SG&A in the Company's Condensed Consolidated Statement of Operations but is not allocated to segment results.

Intangible assets are assessed for impairment on an interim basis when impairment indicators exist. See Note 7 regarding the Company's interim impairment testing process for the nine months ended September 30, 2022.

Estimated future intangible asset amortization expense as of September 30, 2022 is as follows (in thousands):

	Amortization Expense
Year ending December 31, 2022	1,926
Year ending December 31, 2023	7,701
Year ending December 31, 2024	7,629
Year ending December 31, 2025	6,832
Year ending December 31, 2026	5,757
Year ending December 31, 2027	5,156
Thereafter	23,489

See Note 21 for more information regarding intangible assets identified in conjunction with the acquisitions of VODA, Fossil Power and Optimus Industries, which are subject to change pending the finalization of the purchase price allocation associated with these acquisitions.

NOTE 9 – ACCRUED WARRANTY EXPENSE

The Company may offer assurance type warranties on products and services that it sells. Changes in the carrying amount of accrued warranty expense are as follows:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	12,925	$	25,399
Additions	3,799		5,155
Expirations and other changes	(3,257)		(4,790)
Payments	(2,159)		(10,212)
Translation and other	(687)		(342)
Balance at end of period	$	10,621	$	15,210

The Company accrues estimated expense included in Cost of operations on its Condensed Consolidated Statements of Operations to satisfy contractual warranty requirements when it recognizes the associated revenues on the related contracts, or in the case of a loss contract, the full amount of the estimated warranty costs is accrued when the contract becomes a loss contract. Additions at September 30, 2022 included $0.4 million related to the Fosler projects, as described in Note 4. In addition, the Company records specific provisions or reductions where it expects the actual warranty costs to significantly

18

differ from the accrued estimates. Such changes could have a material effect on the Company's consolidated financial condition, results of operations and cash flows.

NOTE 10 – RESTRUCTURING ACTIVITIES

The Company incurred restructuring charges (benefits) in the three and nine months ended September 30, 2022, and 2021. The charges (benefits) primarily consist of severance and related costs to actions taken as part of the Company’s strategic, market-focused organizational and re-branding initiative.

The following tables summarizes the restructuring activity incurred by segment:

	Three Months Ended September 30,						Three Months Ended September 30,
	2022						2021
(in thousands)	Total		Severance and related costs (benefit)		Other (1)		Total		Severance and related costs		Other(1)
B&W Renewable segment	$	78	$	6	$	72	$	715	$	382	$	333
B&W Environmental segment	73		8		65		332		128		204
B&W Thermal segment	204		14		190		1,242		362		880
Corporate	4		1		3		2,286		124		2,162
	$	359	$	29	$	330	$	4,575	$	996	$	3,579

	Nine Months Ended September 30,						Nine Months Ended September 30,
	2022						2021
(in thousands)	Total		Severance and related costs (benefit)		Other (1)		Total		Severance and related costs		Other(1)
B&W Renewable segment	$	865	$	743	$	122	$	1,781	$	1,301	$	480
B&W Environmental segment	176		27		149		630		335		295
B&W Thermal segment	484		130		354		3,132		1,409		1,723
Corporate	(1,174)		(1,227)		53		2,425		132		2,293
	$	351	$	(327)	$	678	$	7,968	$	3,177	$	4,791
Cumulative costs to date	$	45,534	36,925		8,609

(1) Other amounts consist primarily of exit, relocation, COVID-19 related and other costs.

Restructuring liabilities are included in Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	4,136	$	7,945	$	6,561	$	8,146
Restructuring (benefit) expense	359		4,575		351		7,968
Payments	(1,943)		(5,482)		(4,360)		(9,076)
Balance at end of period	$	2,552	$	7,038	$	2,552	$	7,038

The payments shown above for the three and nine months ended September 30, 2022 and 2021 relate primarily to severance costs. Accrued restructuring liabilities at September 30, 2022 and 2021 relate primarily to employee termination benefits.

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NOTE 11 – PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of net periodic cost (benefit) included in net (loss) income are as follows:

	Pension Benefits								Other Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021		2022		2021		2022		2021
Interest cost	$	6,685	$	5,603	$	19,958	$	16,883	$	49	$	109	$	147	$	187
Expected return on plan assets	(14,358)		(13,527)		(42,985)		(40,309)		—		—		—		—
Amortization of prior service cost	27		28		82		84		173		173		519		519
Recognized net actuarial gain	—		(2,253)		—		(2,253)		—		—		—		—
Benefit plans, net (1)	(7,646)		(10,149)		(22,945)		(25,595)		222		282		666		706
Service cost included in COS (2)	195		217		594		652		5		6		15		18
Net periodic benefit cost (benefit)	$	(7,451)	$	(9,932)	$	(22,351)	$	(24,943)	$	227	$	288	$	681	$	724

(1)    Benefit plans, net, which is presented separately in the Company's Condensed Consolidated Statements of Operations, is not allocated to the segments.

(2)    Service cost related to a small group of active participants is presented within Cost of operations in the Company's Condensed Consolidated Statements of Operations and is allocated to the B&W Thermal segment.

There were no mark-to-market ("MTM") adjustments for the Company's pension and other postretirement benefit plans during the three and nine months ended September 30, 2022 and 2021.

The Company made contributions to its pension and other postretirement benefit plans totaling $1.7 million and $2.5 million during the three and nine months ended September 30, 2022, respectively, as compared to $0.4 million and $24.7 million during the three and nine months ended September 30, 2021, respectively.

NOTE 12 – DEBT

Senior Notes

8.125% Senior Notes

During 2021, the Company completed sales of $151.2 million aggregate principal amount of its 8.125% senior notes due 2026 (“8.125% Senior Notes”) for net proceeds of approximately $146.6 million. In addition to the completed sales, the Company issued $35.0 million of 8.125% Senior Notes to B. Riley Financial, Inc., a related party, in exchange for a deemed prepayment of its then existing Last Out Term Loan Tranche A-3. The 8.125% Senior Notes bear interest at the rate of 8.125% per annum which is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on April 30, 2021. The 8.125% Senior Notes mature on February 28, 2026.

On March 31, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in which it may sell to or through B. Riley Securities, Inc., from time to time, additional 8.125% Senior Notes up to an aggregate principal amount of $150.0 million. The 8.125% Senior Notes have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and are fungible with the initial 8.125% Senior Notes issuance in 2021.

During the first nine months of 2022, the Company sold $5.4 million aggregate principal of 8.125% Senior Notes under the sales agreement described above for $5.4 million of net proceeds.

6.50% Senior Notes

During 2021, the Company completed sales of $151.4 million aggregate principal amount of its 6.50% senior notes due in 2026 (the “6.50% Senior Notes”) for net proceeds of approximately $145.8 million. Interest on the 6.50% Senior Notes is

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payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. The 6.50% Senior Notes mature on December 31, 2026.

The components of the Company's senior notes at September 30, 2022 are as follows:

	Senior Notes
(in thousands)	8.125%		6.50%		Total
Senior notes due 2026	$	191,640	$	151,440	$	343,080
Unamortized deferred financing costs	(4,442)		(5,633)		(10,075)
Unamortized premium	493		—		493
Net debt balance	$	187,691	$	145,807	$	333,498

Revolving Debt

On June 30, 2021, the Company entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) with PNC Bank, National Association, as administrative agent (“PNC”) and a letter of credit agreement (the “Letter of Credit Agreement”) with PNC, pursuant to which PNC agreed to issue up to $110 million in letters of credit that is secured in part by cash collateral provided by an affiliate of MSD Partners, MSD PCOF Partners XLV, LLC (“MSD”), as well as a reimbursement, guaranty and security agreement with MSD, as administrative agent, and the cash collateral providers from time to time party thereto, along with certain of its subsidiaries as guarantors, pursuant to which the Company is obligated to reimburse MSD and any other cash collateral provider to the extent the cash collateral provided by MSD and any other cash collateral provider to secure the Letter of Credit Agreement is drawn to satisfy draws on letters of credit (the “Reimbursement Agreement”) and collectively with the Revolving Credit Agreement and Letter of Credit Agreement, the “Debt Documents” and the facilities thereunder, the “Debt Facilities”). The obligations of the Company under each of the Debt Facilities are guaranteed by certain existing and future domestic and foreign subsidiaries of the Company. B. Riley Financial, Inc. (“B. Riley”), a related party, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as described below. The Company expects to use the proceeds and letter of credit availability under the Debt Facilities for working capital purposes and general corporate purposes. The Revolving Credit Agreement matures on June 30, 2025. As of September 30, 2022, no borrowings have occurred under the Revolving Credit Agreement and under the Letter of Credit Agreement, usage consisted of $15.1 million of financial letters of credit and $94.3 million of performance letters of credit.

Each of the Debt Facilities has a maturity date of June 30, 2025. The interest rates applicable under the Revolving Credit Agreement float at a rate per annum equal to either (i) a base rate plus 2.0% or (ii) 1 or 3 month reserve-adjusted LIBOR rate plus 3.0%. The interest rates applicable to the Reimbursement Agreement float at a rate per annum equal to either (i) a base rate plus 6.50% or (ii) 1 or 3 month reserve-adjusted LIBOR plus 7.50%. Under the Letter of Credit Agreement, the Company is required to pay letter of credit fees on outstanding letters of credit equal to (i) administrative fees of 0.75% and (ii) fronting fees of 0.25%. Under the Revolving Credit Agreement, the Company is required to pay letter of credit fees on outstanding letters of credit equal to (i) letter of credit commitment fees of 3.0% and (ii) letter of credit fronting fees of 0.25%. Under each of the Revolving Credit Agreement and the Letter of Credit Agreement, the Company is required to pay a facility fee equal to 0.375% per annum of the unused portion of the Revolving Credit Agreement or the Letter of Credit Agreement, respectively. The Company is permitted to prepay all or any portion of the loans under the Revolving Credit Agreement prior to maturity without premium or penalty. Prepayments under the Reimbursement Agreement shall be subject to a prepayment fee of 2.25% in the first year after closing, 2.0% in the second year after closing and 1.25% in the third year after closing with no prepayment fee payable thereafter.

The Company has mandatory prepayment obligations under the Reimbursement Agreement upon the receipt of proceeds from certain dispositions or casualty or condemnation events. The Revolving Credit Agreement and Letter of Credit Agreement require mandatory prepayments to the extent of an over-advance.

The obligations under the Debt Facilities are secured by substantially all assets of the Company and each of the guarantors, in each case subject to inter-creditor arrangements. As noted above, the obligations under the Letter of Credit Facility are also secured by the cash collateral provided by MSD and any other cash collateral provider thereunder.

The Debt Documents contain certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The Debt Documents require the Company to comply with

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certain financial maintenance covenants, including a quarterly fixed charge coverage test of not less than 1.00 to 1.00, a quarterly senior net leverage ratio test of not greater than 2.50 to 1.00, a non-guarantor cash repatriation covenant not to exceed $35 million at any one time, a minimum liquidity covenant of at least $30.0 million at all times, a current ratio of not less than 1.25 to 1.00, and an annual cap on maintenance capital expenditures of $7.5 million. The Debt Documents also contain customary events of default (subject, in certain instances, to specified grace periods) including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal under the respective facility, the failure to comply with certain covenants and agreements specified in the applicable Debt Agreement, defaults in respect of certain other indebtedness and certain events of insolvency. If any event of default occurs, the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Debt Documents may become due and payable immediately. As of September 30, 2022, the Company was not in compliance with the aforementioned quarterly fixed charge coverage test and received a waiver from MSD and PNC for the period ended September 30, 2022.

In connection with the Company’s entry into the Debt Documents on June 30, 2021, B. Riley, a related party, entered into a Guaranty Agreement in favor of MSD, in its capacity as administrative agent under the Reimbursement Agreement, for the ratable benefit of MSD, the cash collateral providers and each co-agent or sub-agent appointed by MSD from time to time (the “B. Riley Guaranty”). The B. Riley Guaranty provides for the guarantee of all of the Company’s obligations under the Reimbursement Agreement. The B. Riley Guaranty is enforceable in certain circumstances, including, among others, certain events of default and the acceleration of the Company’s obligations under the Reimbursement Agreement. Under a fee letter with B. Riley, the Company agreed to pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty. The Company entered into a reimbursement agreement with B. Riley governing the Company’s obligation to reimburse B. Riley to the extent the B. Riley Guaranty is called upon by the agent or lenders under the Reimbursement Agreement.

Letters of Credit, Bank Guarantees and Surety Bonds

Certain of the Company's subsidiaries, primarily outside of the United States, have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees outside of the Company's Letter of Credit Agreement as of September 30, 2022 was $45.1 million. The aggregate value of the outstanding letters of credit provided under the Letter of Credit Agreement backstopping letters of credit or bank guarantees was $36.7 million as of September 30, 2022. Of the outstanding letters of credit issued under the Letter of Credit Agreement, $58.8 million are subject to foreign currency revaluation.

The Company has also posted surety bonds to support contractual obligations to customers relating to certain contracts. The Company utilizes bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should the Company fail to perform its obligations under its applicable contracts. The Company, and certain of its subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds the underwriters issue in support of some of its contracting activity. As of September 30, 2022, bonds issued and outstanding under these arrangements in support of its contracts totaled approximately $333.9 million. The aggregate value of the letters of credit backstopping surety bonds was $8.7 million.

The Company's ability to obtain and maintain sufficient capacity under the its current Debt Facilities is essential to allow it to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, the Company's ability to support contract security requirements in the future will be diminished.

Other Indebtedness - Loans Payable

As of September 30, 2022, the Company's Denmark subsidiary has an unsecured interest-free loan of $0.7 million under a local government loan program related to COVID-19 that is payable May 2023. In addition, the Company had $1.6 million in a loan payable related to financed insurance premiums payable April 2023. These loan payables are included in current Loans payable in the Company's Condensed Consolidated Balance Sheets.

Fosler Construction has loans, primarily for vehicles and equipment, totaling $0.5 million at September 30, 2022. The vehicle and equipment loans are included in Long-term loans payables in the Company's Condensed Consolidated Balance Sheets.

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NOTE 13 – PREFERRED STOCK

In May 2021, the Company completed a public offering of its 7.75% Series A Cumulative Perpetual Preferred Stock (the "Preferred Stock") pursuant to an underwriting agreement (the “Underwriting Agreement”) between the Company and B. Riley Securities, Inc. At the closing, the Company issued to the public 4,444,700 shares of its Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $106.4 million after deducting underwriting discounts, commissions but before expenses. The Preferred Stock has a par value of $0.01 per share and is perpetual and has no maturity date. The Preferred Stock has a cumulative cash dividend, when and as if declared by the Company's Board of Directors, at a rate of 7.75% per year on the liquidation preference amount of $25.00 per share and payable quarterly in arrears.

The Preferred Stock ranks, as to dividend rights and rights as to the distribution of assets upon the Company's liquidation, dissolution or winding-up: (1) senior to all classes or series of the Company's common stock and to all other capital stock issued by it expressly designated as ranking junior to the Preferred Stock; (2) on parity with any future class or series of the Company's capital stock expressly designated as ranking on parity with the Preferred Stock; (3) junior to any future class or series of the Company's capital stock expressly designated as ranking senior to the Preferred Stock; and (4) junior to all of the Company's existing and future indebtedness.

The Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. The Company will pay cumulative cash dividends on the Preferred Stock when, as and if declared by its Board of Directors, only out of funds legally available for payment of dividends. Dividends on the Preferred Stock will accrue on the stated amount of $25.00 per share of the Preferred Stock at a rate per annum equal to 7.75% (equivalent to $1.9375 per year), payable quarterly in arrears. Dividends on the Preferred Stock declared by the Company's Board of Directors will be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year.

During the nine months ending September 30, 2022, the Company's Board of Directors approved dividends totaling $11.1 million. There are no cumulative undeclared dividends of the Preferred Stock at September 30, 2022.

On June 1, 2021, the Company and B. Riley, a related party, entered into an agreement (the “Exchange Agreement”) pursuant to which the Company (i) issued B. Riley 2,916,880 shares of its Preferred Stock, representing an exchange price of $25.00 per share and paid $0.4 million in cash, and (ii) paid $0.9 million in cash to B. Riley for accrued interest due, in exchange for a deemed prepayment of $73.3 million of the Company's then existing term loans with B. Riley under the Company’s prior A&R Credit Agreement.

On July 7, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in connection with the offer to or through B. Riley Securities, Inc., from time to time, additional shares of Preferred Stock up to an aggregate amount of $76.0 million of Preferred Stock. The Preferred Stock has the same terms and have the same CUSIP number and is fungible with, the Preferred Stock issued during May 2021. For the nine months ending September 30, 2022, the Company has sold no additional Preferred Stock pursuant to the sales agreement. As of December 31, 2021, the Company sold $7.7 million aggregate principal amount of Preferred Stock for $7.7 million of net proceeds.

NOTE 14 – COMMON STOCK

On February 12, 2021, the Company completed a public offering of its common stock pursuant to an underwriting agreement dated February 9, 2021, between the Company and B. Riley Securities, Inc., as representative of the several underwriters. At the time of closing, the Company issued to the public 29,487,180 shares of its common stock and received net proceeds of approximately $163.0 million after deducting underwriting discounts and commissions, but before expenses. The net proceeds of the offering were used to make a prepayment toward the balance outstanding under the Company's then existing U.S. Revolving Credit Facility and permanently reduced the commitments under its senior secured credit facilities.

On May 19, 2022, at the 2022 annual meeting of stockholders of the Company, the stockholders of the Company, upon the recommendation of the Company’s Board of Directors, approved an amendment to the Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan. The Plan Amendment became effective upon such stockholder approval. The Plan Amendment increased the total number of shares of the Company’s common stock authorized for award grants under the 2021 Plan from 1,250,000 shares to 5,250,000 shares. The 2021 Plan replaced the Company’s Amended and Restated 2015 Long-Term Incentive Plan. In addition to the 5,250,000 shares available for award grant purposes under the 2021 Plan as described above, any shares of Company common stock underlying any outstanding award granted under the 2015 Plan that,

23

following May 20, 2021, expires, or is terminated, surrendered, or forfeited for any reason without issuance of such shares shall also be available for the grant of new awards under the 2021 Plan.

NOTE 15 –INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

Interest expense in the Company's Condensed Consolidated Financial Statements consisted of the following components:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Components associated with borrowings from:
Senior notes	$	6,385	$	3,801	$	18,715	$	8,993
Last Out Term Loans - cash interest	—		—		—		4,349
U.S. Revolving Credit Facility	—		—		—		1,416
	6,385		3,801		18,715		14,758
Components associated with amortization or accretion of:
Revolving Credit Agreement	1,237		1,057		3,465		1,057
Senior notes	657		335		1,950		2,101
U.S. Revolving Credit Facility	—		—		—		5,995
	1,894		1,392		5,415		9,153
Components associated with interest from:
Lease liabilities	707		870		2,112		2,194
Other interest expense	2,334		2,267		7,007		4,469
	3,041		3,137		9,119		6,663
Total interest expense	$	11,320	$	8,330	$	33,249	$	30,574

The following table provides a reconciliation of Cash, cash equivalents and Short-term and Long-term restricted cash reporting within the Company's Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Cash Flows:

(in thousands)	September 30, 2022		December 31, 2021		September 30, 2021
Held by foreign entities	$	27,435	$	42,070	$	39,238
Held by U.S. entities	21,036		182,804		67,817
Cash and cash equivalents	48,471		224,874		107,055
Reinsurance reserve requirements	648		443		774
Bank guarantee collateral	1,892		997		1,026
Letters of credit collateral	1,190		401		6,892
Hold-back for acquisition purchase price (1)	5,900		—		—
Escrow for long-term project (2)	11,397		—		—
Current and Long-term restricted cash and cash equivalents	21,027		1,841		8,692
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	69,498	$	226,715	$	115,747

(1) The purchase price for Fossil Power Systems ("FPS") was $59.2 million, including a hold-back of $5.9 million which is included in Current restricted cash and cash equivalents and Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. The hold-back is being held in escrow for potential payment of up to the maximum amount twelve months from the February 1, 2022 date of acquisition if the conditions are met.

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(2) On December 15, 2021, the Company entered into an agreement to place $11.5 million in an escrow account as security to ensure project performance. On April 30, 2023, $2.5 million of the total amount held in escrow will be reclassified from Long-Term restricted cash to Current restricted cash in anticipation of the initial payment on April 20, 2024. The remaining amount of $9.0 million will be reclassified from Long-term restricted cash to Current restricted cash on September 30, 2024, with a scheduled final settlement on September 30, 2025.

The following cash activity is presented as a supplement to the Company's Condensed Consolidated Statements of Cash Flows and is included in Net cash used in operating activities:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Income tax payments, net	$	2,693	$	6,094
Interest payments - 8.125% Senior Notes due 2026	$	11,444	$	6,681
Interest payments - 6.50% Senior Notes due 2026	7,848		—
Interest payments on U.S. Revolving Credit Facility	—		5,979
Interest payments on Last Out Term Loans	—		6,140
Total cash paid for interest	$	19,292	$	18,800

NOTE 16 – PROVISION FOR INCOME TAXES

In the three months ended September 30, 2022, income tax expense was $4.9 million, resulting in an effective tax rate of (31.3)%. In the three months ended September 30, 2021, income tax expense was $0.3 million, resulting in an effective tax rate of 2.2%.

In the nine months ended September 30, 2022, income tax expense was $4.8 million, resulting in an effective tax rate of (17.4)%. In the nine months ended September 30, 2021, income tax expense was $6.7 million, resulting in an effective tax rate of 83.2%.

The Company's effective tax rate for the three and nine months ended September 30, 2022 and 2021 is not reflective of the U.S. statutory rate due to valuation allowances against certain net deferred tax assets and discrete items. The Company has unfavorable discrete items of $0.7 million and $1.2 million for the three and nine months ended September 30, 2022, which primarily represent withholding taxes and deferred tax asset remeasurement due to an enacted change in tax law. The Company had favorable discrete items of $0.6 million and unfavorable discrete items of $2.9 million for the three and nine months ended September 30, 2021, which primarily represented withholding taxes and deferred tax liability remeasurement due to an enacted change in tax law.

The Company is subject to federal income tax in the United States and numerous countries that have statutory tax rates different than the United States federal statutory rate of 21%. The most significant of these foreign operations are located in Canada, Denmark, Germany, Italy, Mexico, Sweden, and the United Kingdom, with effective tax rates ranging between approximately 19% and 30%. The Company provides for income taxes based on the tax laws and rates in the jurisdictions where it conducts operations. These jurisdictions may have regimes of taxation that vary in both nominal rates and the basis on which these rates are applied. The Company's consolidated effective income tax rate can vary from period to period due to these foreign income tax rate variations, changes in the jurisdictional mix of its income, and valuation allowances.

The Inflation Reduction Act ("IRA") and CHIPS and Science Act ("CHIPS Act") were signed into law in August 2022. The IRA introduced new provisions, including a 15 percent corporate alternative minimum tax for certain large corporations that have at least an average of $1 billion adjusted financial statement income over a consecutive three-tax-year period and a new excise tax on corporate stock buybacks of public US companies. The CHIPS Act, introduces investment tax credits and incentives in semiconductor manufacturing. The corporate minimum tax and excise tax on stock buybacks will be effective for years beginning after December 31, 2022. There is no impact to our financial position at this time.

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NOTE 17 – CONTINGENCIES

Litigation Relating to Boiler Installation and Supply Contract

On December 27, 2019, a complaint was filed against Babcock & Wilcox by P.H. Glatfelter Company (“Glatfelter”) in the United States District Court for the Middle District of Pennsylvania, Case No. 1:19-cv-02215-JPW, alleging claims of breach of contract, fraud, negligent misrepresentation, promissory estoppel and unjust enrichment (the “Glatfelter Litigation”). The complaint alleges damages in excess of $58.9 million. On March 16, 2020 the Company filed a motion to dismiss, and on December 14, 2020 the court issued its order dismissing the fraud and negligent misrepresentation claims and finding that, in the event that parties’ contract is found to be valid, Plaintiffs’ claims for damages will be subject to the contractual cap on liability (defined as the $11.7 million purchase price subject to certain adjustments). On January 11, 2021, the Company filed its answer and a counterclaim for breach of contract, seeking damages in excess of $2.9 million. The Company intends to continue to vigorously litigate the action. However, given the stage of the litigation, it is too early to determine if the outcome of the Glatfelter Litigation will have a material adverse impact on The Company's consolidated financial condition, results of operations or cash flows.

Stockholder Derivative and Class Action Litigation

On April 14, 2020, a putative B&W stockholder (“Plaintiff”) filed a derivative and class action complaint against certain of the Company’s directors (current and former), executives and significant stockholders (collectively, “Defendants”) and the Company (as a nominal defendant). The action was filed in the Delaware Court of Chancery and is captioned Parker v. Avril, et al., C.A. No. 2020-0280-PAF (the “Stockholder Litigation”). Plaintiff alleges that Defendants, among other things, did not properly discharge their fiduciary duties in connection with the 2019 rights offering and related transactions.

On June 10, 2022, after pursuing private mediation, the parties to the Stockholder Litigation reached a settlement agreement in principle to resolve the Stockholder Litigation. That settlement agreement includes (i) certain corporate governance changes that the Company is willing to implement in the future, (ii) a total payment of $9.5 million, and (iii) other customary terms and conditions. All attorney’s fees, administration costs, and expenses associated with the settlement of this matter will be deducted from the total payment amount, other than the cost of notice, which will be borne by the Company. Of the total settlement amount, the Company will pay $4.75 million on behalf of B. Riley Financial, Inc. and Vintage Capital Management, LLC pursuant to existing contractual indemnification obligations to settle Plaintiff’s direct claims asserted against these entities. This $4.75 million, after the deduction of attorney’s fees and the customary settlement costs and expenses described above, will be paid to shareholders of the Company, excluding any Defendant in the Stockholder Litigation. The remaining $4.75 million of the total settlement amount, after the deduction of attorney’s fees and the customary settlement costs and expenses described above, will be paid to the Company from insurance proceeds and the contribution of certain other parties to the Stockholder Litigation to settle the derivative claims asserted by Plaintiff on behalf of the Company. The proposed settlement, which remains subject to court approval, would resolve all claims that have been, could have been, could now be, or in the future could, can, or might be asserted in the Stockholder Litigation. The settlement of this matter remains subject to court approval and the amount to be paid by the Company is fully accrued and reflected in Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets at September 30, 2022.

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Russian Invasion of Ukraine

The Company does not currently have contracts directly with Russian entities or businesses and it currently does not conduct business in Russia directly. It is believed that the Company’s only involvement with Russia or Russian entities, involves sales of its products with a trade receivable in the amount of approximately $3.1 million by a wholly-owned Italian subsidiary of the Company to non-Russian counterparties who may resell the Company's products to Russian entities or perform services in Russia using its products. The Company has implemented a restricted party screening process completed by a third party to monitor compliance with trade restrictions. The economic sanctions and export-control measures and the ongoing invasion of Ukraine could impact the Company's subsidiary’s rights and responsibilities under the contracts and could result in potential losses to the Company.

Other

Due to the nature of B&W's business, the Company is, from time to time, involved in routine litigation or subject to disputes or claims related to its business activities, including, among other things: performance or warranty-related matters under the Company's customer and supplier contracts and other business arrangements; and workers' compensation, premises liability and other claims. Based on prior experience, the Company does not expect that any of these other litigation proceedings, disputes and claims will have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

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NOTE 18 – COMPREHENSIVE INCOME

Gains and losses deferred in accumulated other comprehensive income (loss) ("AOCI") are generally reclassified and recognized in the Condensed Consolidated Statements of Operations once they are realized. The changes in the components of AOCI, net of tax, for the first, second and third quarters of 2022 and 2021 were as follows:

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2021	$	(55,499)	$	(3,323)	$	(58,822)
Other comprehensive loss before reclassifications	(4,285)		—		(4,285)
Reclassified from AOCI to net loss	—		593		593
Net other comprehensive (loss) income	(4,285)		593		(3,692)
Balance at March 31, 2022	$	(59,784)	$	(2,730)	$	(62,514)
Other comprehensive loss before reclassifications	(6,634)		—		(6,634)
Reclassified from AOCI to net loss	—		(198)		(198)
Net other comprehensive loss	(6,634)		(198)		(6,832)
Balance at June 30, 2022	$	(66,418)	$	(2,928)	$	(69,346)
Other comprehensive loss before reclassifications	$	(13,344)	$	—	(13,344)
Reclassified from AOCI to net loss			$	198	198
Net other comprehensive loss	(13,344)		198		(13,146)
Balance at September 30, 2022	$	(79,762)	$	(2,730)	$	(82,492)

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2020	$	(47,575)	$	(4,815)	$	(52,390)
Other comprehensive loss before reclassifications	(70)		—		(70)
Reclassified from AOCI to net (loss) income	(4,512)		198		(4,314)
Net other comprehensive (loss) income	(4,582)		198		(4,384)
Balance at March 31, 2021	$	(52,157)	$	(4,617)	$	(56,774)
Other comprehensive loss before reclassifications	(1,478)		—		(1,478)
Reclassified from AOCI to net income	—		198		198
Net other comprehensive (loss) income	(1,478)		198		(1,280)
Balance at June 30, 2021	$	(53,635)	$	(4,419)	$	(58,054)
Other comprehensive loss before reclassifications	(1,292)		—		(1,292)
Reclassified from AOCI to net income (loss)	—		197		197
Net other comprehensive (loss) income	(1,292)		197		(1,095)
Balance at September 30, 2021	$	(54,927)	$	(4,222)	$	(59,149)

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The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands):

AOCI component	Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Release of currency translation adjustment with the sale of business	Loss on sale of business	$	—	$	—	$	—	$	4,512
Pension and post retirement adjustments, net of tax	Benefit plans, net	198		(197)		593		(593)
	Net (loss) income	$	198	$	(197)	$	593	$	3,919

NOTE 19 – FAIR VALUE MEASUREMENTS

The following tables summarize the Company's financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic, Fair Value Measurements and Disclosures).

(in thousands)
Available-for-sale securities	September 30, 2022		Level 1		Level 2
Corporate notes and bonds	$	6,147	$	6,147	$	—
Mutual funds	620		—		620
United States Government and agency securities	3,787		3,787		—
Total fair value of available-for-sale securities	$	10,554	$	9,934	$	620

(in thousands)
Available-for-sale securities	December 31, 2021		Level 1		Level 2
Corporate notes and bonds	$	9,477	$	9,477	$	—
Mutual funds	714		—		714
United States Government and agency securities	2,017		2,017		—
Total fair value of available-for-sale securities	$	12,208	$	11,494	$	714

Available-For-Sale Securities

The Company's investments in available-for-sale securities are presented in Other assets on its Condensed Consolidated Balance Sheets with contractual maturities ranging from 0-5 years.

Senior Notes

See Note 12 above for a discussion of the Company's senior notes. The fair value of the senior notes is based on readily available quoted market prices as of September 30, 2022.

(in thousands)	September 30, 2022
Senior Notes	Carrying Value		Estimated Fair Value
8.125% Senior Notes due 2026 ('BWSN')	$	191,640	$	184,800
6.50% Senior Notes due 2026 ('BWNB')	$	151,440	$	144,898

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Other Financial Instruments

The Company used the following methods and assumptions in estimating its fair value disclosures for its other financial instruments:

•Cash and cash equivalents and restricted cash and cash equivalents. The carrying amounts that the Company has reported in the accompanying Condensed Consolidated Balance Sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature.

•Revolving Debt. The Company bases the fair values of debt instruments on quoted market prices. Where quoted prices are not available, the Company bases the fair values on Level 2 inputs such as the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of the Company's Revolving Debt approximated their carrying value at September 30, 2022.

•Warrants. The fair value of the warrants was established using the Black-Scholes option pricing model value approach.

•Contingent consideration: In connection with the Fosler Construction Company acquisition, the Company agreed to pay contingent consideration based on the achievement of targeted revenue thresholds for the year ended December 31, 2022. The range of undiscounted amounts the Company could be required to pay under the contingent consideration arrangement is between $0.0 million and $10.0 million. The Company used the Monte Carlo simulation method to calculate the value of the contingent consideration and it was determined that the value of the liability should be zero at September 30, 2022. As such, the Company removed $9.6 million from Other current liabilities in the Company's Condensed Consolidated Balance Sheets and recorded a reduction of Selling, General and Administrative expense of $9.6 million on the Company's Condensed Consolidated Statements of Operations. The fair value measurement of the contingent consideration related to the Fosler Construction Company acquisition was categorized as a Level 3 liability, as the measurement amount is based primarily on significant inputs not observable in the markets. The Company evaluates the fair value of contingent consideration and the corresponding liability each reporting period using an option pricing framework. The Company estimates projections during the earn-out period and volatility within the option pricing model captures variability in the potential pay-out. The analysis considers a discount rate applicable to the underlying projections and the risk of the Company paying the future liability.

NOTE 20 – RELATED PARTY TRANSACTIONS

The Company believes transactions with related parties were conducted on terms equivalent to those prevailing in an arm's length transaction.

Transactions with B. Riley

Based on its Schedule 13D filings with the SEC, B. Riley beneficially owns approximately 30.5% of the Company's outstanding common stock as of September 30, 2022.

The Company entered into an agreement with BRPI Executive Consulting, LLC, an affiliate of B. Riley, on November 19, 2018 and amended the agreement on November 9, 2020 to retain the services of Mr. Kenny Young, to serve as its Chief Executive Officer until December 31, 2023, unless terminated by either party with thirty days written notice. Under this agreement, payments are $0.75 million per annum, paid monthly. Subject to the achievement of certain performance objectives as determined by the Compensation Committee of the Board, a bonus or bonuses may also be earned and payable to BRPI Executive Consulting, LLC. Total fees associated with B. Riley related to the services of Mr. Kenny Young were $0.2 million and $0.6 million for the three and nine months ended September 30, 2022, respectively, and $0.2 million and $0.4 million for the three and nine months ended September 30, 2021, respectively.

As described in Note 17, on June 10, 2022, after pursuing private mediation, the parties to the Stockholder Litigation reached a settlement agreement in principle to resolve the Stockholder Litigation. Of the total $9.5 million settlement amount, the Company will pay $4.75 million on behalf of B. Riley Financial, Inc. and Vintage Capital Management, LLC pursuant to existing contractual indemnification obligations to settle Plaintiff’s direct claims asserted against these entities. This $4.75 million, after the deduction of attorney’s fees and customary settlement costs and expenses, will be paid to shareholders of the Company, excluding any Defendant in the Stockholder Litigation. The settlement of this matter remains subject to court approval and the amount to be paid by the Company is fully accrued at September 30, 2022.

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The public offering of the Company's 8.125% Senior Notes in February 2021, as described in Note 12, was conducted pursuant to an underwriting agreement dated February 10, 2021, between the Company and B. Riley Securities, Inc., an affiliate of B. Riley, as representative of several underwriters. At the closing date on February 12, 2021, the Company paid B. Riley Securities, Inc. $5.2 million for underwriting fees and other transaction cost related to the 8.125% Senior Notes offering.

The public offering of the Company's common stock, as described in Note 14, was conducted pursuant to an underwriting agreement dated February 9, 2021, between the Company and B. Riley Securities, Inc., as representative of the several underwriters. Also on February 12, 2021, the Company paid B. Riley Securities, Inc. $9.5 million for underwriting fees and other transaction costs related to the offering.

On February 12, 2021, the Company and B. Riley entered into the Exchange Agreement pursuant to which the Company agreed to issue to B. Riley $35.0 million aggregate principal amount of 8.125% Senior Notes in exchange for a deemed prepayment of $35.0 million of its existing Tranche A term loan with B. Riley Financial in the Exchange, as described in Note 12.

On March 31, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in which the Company may sell, from time to time, up to an aggregated principal amount of $150.0 million of 8.125% Senior Notes due 2026 to or through B. Riley Securities, Inc., as described in Note 12. As of September 30, 2022, the Company paid B. Riley Securities, Inc. $0.6 million for underwriting fees and other transaction costs related to the offering of which $0.1 million has been paid for the nine months ended September 30, 2022.

The public offering of the Company's 7.75% Series A Cumulative Perpetual Preferred Stock, as described in Note 13, was conducted pursuant to an underwriting agreement dated May 4, 2021, between the Company and B. Riley Securities, Inc., as representative of several underwriters. At the closing date on May 2021, the Company paid B. Riley Securities, Inc. $4.3 million for underwriting fees and other transaction cost related to the Preferred Stock offering.

On May 26, 2021, the Company completed the additional sale of 444,700 shares of its Preferred Stock, related to the grant to the underwriters, as described in Note 13, and paid B. Riley Securities, Inc. $0.4 million for underwriting fees in conjunction with the transaction.

On June 1, 2021, the Company issued 2,916,880 shares of its 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash due to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of the Company's then existing Last Out Term Loans and paid $0.9 million in cash for accrued interest, as described in Note 13.

On June 30, 2021, the Company entered into new Debt Facilities, as described in Note 12. In connection with the its entry into the Debt Facilities, B. Riley Financial, Inc., an affiliate of B. Riley, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as describe in Note 12. Under a fee letter with B. Riley, the Company shall pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty.

On July 7, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in which the Company may sell, from time to time, up to an aggregated principal amount of $76.0 million of Preferred Stock to or through B. Riley Securities, Inc., as described in Note 13. As of September 30, 2022, the Company paid B. Riley Securities, Inc. $0.2 million for underwriting fees and other transaction costs related to the offering.

The public offering of the Company's 6.50% Senior Notes in December 2021, as described in Note 12, was conducted pursuant to an underwriting agreement dated December 8, 2021, between the Company and B. Riley Securities, Inc., an affiliate of B. Riley, as representative of several underwriters. At the closing date on December 13, 2021, the Company paid B. Riley Securities, Inc. $5.5 million for underwriting fees and other transaction cost related to the 6.50% Senior Notes offering.

On December 17, 2021, B. Riley Financial, Inc. entered into a General Agreement of Indemnity (the "Indemnity Agreement"), between the Company and AXA-XL and or its affiliated associated and subsidiary companies (collectively the “Surety”). Pursuant to the terms of the Indemnity Agreement, B. Riley will indemnify the Surety for losses the Surety may incur as a result of providing a payment and performance bond in an aggregate amount not to exceed €30.0 million in connection with the Company's proposed performance on a specified project. In consideration of B. Riley's execution of the Indemnity Agreement, the Company paid B. Riley a fee of $1.7 million following the issuance of the bond by the Surety, which represents approximately 5.0% of the bonded obligations, to be amortized over the term of the agreement.

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On December 28, 2021, the Company received a notice that the underwriters of the 6.50% Senior Notes had elected to exercise their overallotment option for an additional $11.4 million in aggregate principal amount of the Senior Notes. At the closing date on December 30, 2021, the Company paid B. Riley Securities, Inc. $0.5 million for underwriting fees and other transaction cost related to the 6.50% Senior Notes overallotment.

On July 20, 2022, BRF Investments, LLC, an affiliate of B. Riley, a related party exercised 1,541,666.7 warrants to purchase 1,541,666 shares of the Company's common stock at a price per share of $0.01 pursuant to the terms of the warrant agreement between the Company and B. Riley dated July 23, 2019.

On July 28, 2022, the Company participated in the sale process of Hamon Holdings Corporation ("Hamon") for which B. Riley Securities, Inc., a related party to the Company, has been engaged as Hamon’s investment banker and to serve as advisor to Hamon through a Chapter 11 363 Asset Sale of Hamon’s entire United States business or potential carve-out of any of its four main subsidiaries. The Company was the successful bidder for the assets of one of those subsidiaries, Hamon Research-Cottrell, Inc., a major provider of air pollution control technology, for approximately $2.9 million.

NOTE 21 – ACQUISITIONS AND DIVESTITURES

Acquisitions

Fosler Construction

On September 30, 2021, the Company acquired a 60% controlling ownership stake in Illinois-based solar energy contractor Fosler Construction Company Inc. (“Fosler Construction”). Fosler Construction provides commercial, industrial and utility-scale solar services and owns two community solar projects in Illinois that are being developed under the Illinois Solar for All program. Fosler Construction was founded in 1998 with a track record of successfully completing solar projects profitably with union labor while aligning its model with a growing number of renewable project incentives in the U.S. the Company believes Fosler Construction is positioned to capitalize on the high-growth solar market in the U.S. and that the acquisition aligns with B&W’s aggressive growth and expansion of the Company's clean and renewable energy businesses. Fosler Construction is reported as part of the Company's B&W Renewable segment, and operates under the name Fosler Solar, a Babcock and Wilcox company.

The total fair value of consideration for the acquisition is $36.0 million, including $27.2 million in cash plus $8.8 million in estimated fair value of the contingent consideration arrangement. In connection with the acquisition, the Company agreed to pay contingent consideration based on the achievement of targeted revenue thresholds for the year ended December 31, 2022. The range of undiscounted amounts the Company could be required to pay under the contingent consideration arrangement was between $0.0 million and $10.0 million. The Company used the Monte Carlo simulation method to calculate the value of the contingent consideration and it was determined that the value of the liability should be zero at September 30, 2022. See Note 19 for more details.

The Company estimated fair values primarily using the discounted cash flow method at September 30, 2021 for the preliminary allocation of consideration to the assets acquired and liabilities assumed during the measurement period and up to September 30, 2022 when the purchase price allocation was finalized. During the first nine months of 2022, the Company recorded an increase in goodwill of $14.4 million resulting from the initial recognition of $14.1 million of accrued liabilities and $0.4 million of warranty accruals as preliminary measurement period adjustments, as described in Note 4.

During the three and nine months ended September 30, 2022, the Company recorded $8.6 million in net losses from changes in the estimated revenues and costs to complete the eleven Fosler Solar loss contracts, as described in Note 4. The Company has submitted insurance claims to recover a portion of these losses as of September 30, 2022. See Note 4 for more details.

On September 24, 2022, the Company acquired the remaining 40% ownership stake in Fosler Construction for $12.7 million. In addition to the transfer of the remaining ownership stake, the settlement and share transfer agreement released all parties from the aforementioned contingent consideration arrangement, as well as other claims known as of the effective date of the agreement. The Company will make payments of $3.0 million, $5.0 million, and $4.7 million on January 16, 2023, June 30, 2023, and January 15, 2024, respectively, for a present value of $12.1 million at September 30, 2022. The Company has recorded the payments due within one year within the Other accrued liabilities caption and the payment due longer than one year within the Other non-current liabilities caption in the Company’s Condensed Consolidated Balance Sheet. As a result of the agreement, the Company removed the remaining non-controlling interest balance of $20.7 million from the Condensed Consolidated Balance Sheet and recorded an increase to Capital in Excess of Par Value for the $8.6 million difference.

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During the quarter ended September 30, 2022, the Company identified certain factors, including the acquisition of the remaining 40% ownership stake in Fosler Construction Company Inc., which contributed to the identification of a triggering event, requiring an interim quantitative goodwill impairment assessment and resulted in a goodwill impairment charge at Fosler Construction of $7.2 million. See Note 7 for more details.

VODA

On November 30, 2021, the Company acquired 100% ownership of VODA A/S (“VODA”) through its wholly-owned subsidiary, B&W PGG Luxembourg Finance SARL, for approximately $32.9 million. VODA is a Denmark-based multi-brand aftermarket parts and services provider, focusing on energy-producing incineration plants including waste-to-energy, biomass-to-energy or other fuels, providing service, engineering services, spare parts as well as general outage support and management. VODA has extensive experience in incineration technology, boiler and pressure parts, SRO, automation, and performance optimization. VODA is reported as part of the Company's B&W Renewable segment and is included in the B&W Renewable Services product line.

The Company estimated fair values primarily using the discounted cash flow method at November 30, 2021 for the preliminary allocation of consideration to the assets acquired and liabilities assumed. During the measurement period, the Company will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. Any subsequent changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

Fossil Power Systems

On February 1, 2022, the Company acquired 100% ownership of Fossil Power Systems, Inc. (“FPS”) for approximately $59.2 million. The consideration paid for FPS included a hold-back of $5.9 million, payable twelve months from the date of the acquisition if certain conditions of the purchase agreement are met and is recorded on the Company's Condensed Consolidated Balance Sheets in Restricted cash and cash equivalents and other accrued liabilities.

FPS is a leading designer and manufacturer of hydrogen, natural gas and renewable pulp and paper combustion equipment including ignitors, plant controls and safety systems based in Dartmouth, Nova Scotia, Canada and is reported as part of the Company's B&W Thermal segment.

The Company estimated fair values primarily using the discounted cash flow method at February 1, 2022 for the preliminary allocation of consideration to the assets acquired and liabilities assumed. During the measurement period, the Company will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. Any subsequent changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

Optimus Industries

On February 28, 2022, the Company acquired 100% ownership of Optimus Industries, LLC ("Optimus Industries") for approximately $19.2 million. Optimus Industries designs and manufactures waste heat recovery products for use in power generation, petrochemical, and process industries, including package boilers, watertube and firetube waste heat boilers, economizers, superheaters, waste heat recovery equipment and units for sulfuric acid plants and is based in Tulsa, Oklahoma and Chanute, Kansas. Optimus Industries is reported as part of the Company's B&W Thermal segment.

The Company estimated fair values primarily using the discounted cash flow method at February 28, 2022 for the preliminary allocation of consideration to the assets acquired and liabilities assumed. During the measurement period, the Company will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. Any subsequent changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

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Hamon Holdings Corporation Industries

On July 28, 2022, the Company acquired certain assets of Hamon Holdings Corporation ("Hamon Holdings") through a competitive sale process, in connection with B. Riley Securities, Inc., a related party to the Company, had been engaged as Hamon Holdings’ investment banker and to serve as advisor to Hamon Holdings through a Chapter 11 363 Asset Sale of Hamon Holdings’ entire United States business or potential carve-out of any of its four main subsidiaries. B&W was the successful bidder for the assets of one of those subsidiaries, Hamon Research-Cottrell, Inc., ("Hamon") a major provider of air pollution control technology, for approximately $2.9 million.

Purchase Price Allocations

The purchase price allocation to assets acquired and liabilities assumed in the acquisitions are detailed in following tables. Specific to the Fosler Construction acquisition, the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed is based on estimated fair values at September 30, 2021, and was finalized during the quarter ended September 30, 2022. The following is a summary of the purchase price allocation to assets acquired and liabilities assumed in the Fosler Construction Acquisition:

	Fosler Construction
(in thousands)	Initial Allocation of Consideration		Measurement Period Adjustments(3)		Final Allocation
Accounts receivable	$	1,904	$	121	$	2,025
Contracts in progress	1,363		9,433		10,796
Other current assets	1,137		(835)		302
Property, plant and equipment	9,527		(7,860)		1,667
Goodwill(1) (4)	43,230		20,086		63,316
Other assets	17,497		(4,600)		12,897
Right of use assets	1,093		—		1,093
Debt	(7,625)		—		(7,625)
Current liabilities(4)	(5,073)		(15,472)		(20,545)
Advance billings on contracts	(1,557)		238		(1,319)
Non-current lease liabilities	(1,730)		—		(1,730)
Other non-current liabilities	(4,112)		3,218		(894)
Non-controlling interest(2)	(22,262)		(1,734)		(23,996)
Net acquisition cost	$	33,392	$	2,595	$	35,987

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Fosler Construction acquisition, goodwill represents Fosler's ability to significantly expand EPC and O&M services among new customers across the U.S. by leveraging B&W's access to capital and geographic reach.

(2) The fair value of the non-controlling interest was derived based on the fair value of the 60% controlling interest acquired by B&W. The transaction price paid by B&W reflects a Level 2 input involving an observable transaction involving an ownership interest in Fosler Construction. Also, as described above, a portion of the purchase consideration relates to the contingent consideration.

(3) The Company's purchase price allocation changed due to additional information and further analysis.

(4) The Company's goodwill and current liabilities adjustments increased $14.1 million, primarily due to additional accrued liabilities recognized attributable to the Fosler projects described in Note 4.

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	VODA
(in thousands)	Initial Allocation of Consideration		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	4,737	$	—	$	4,737
Accounts receivable	5,654		—		5,654
Contracts in progress	258		—		258
Other current assets	825		—		825
Property, plant and equipment	253		—		253
Goodwill(1)	17,176		(61)		17,115
Other assets	14,321		—		14,321
Right of use assets	433		—		433
Current liabilities	(5,181)		—		(5,181)
Advance billings on contracts	(2,036)		—		(2,036)
Non-current lease liabilities	(302)		—		(302)
Other non-current liabilities	(3,264)		—		(3,264)
Net acquisition cost	$	32,874	$	(61)	$	32,813

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the VODA acquisition, goodwill represents VODA's ability to significantly expand within the aftermarket parts and services industries by leveraging B&W's access to capital and existing platform within the renewable service market. Goodwill is not expected to be deductible for U.S federal income tax purposes.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

	Fossil Power Systems
(in thousands)	Estimated Acquisition Date Fair Value		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	1,869	$	—	$	1,869
Accounts receivable	2,624		—		2,624
Contracts in progress	370		—		370
Other current assets	3,228		—		3,228
Property, plant and equipment, net	178		—		178
Goodwill(1)	35,392		270		35,662
Other assets	25,092		—		25,092
Right of use assets	1,115		—		1,115
Current liabilities	(1,792)		(18)		(1,810)
Advance billings on contracts	(645)		—		(645)
Non-current lease liabilities	(989)		—		(989)
Non-current liabilities	(7,384)		(106)		(7,490)
Net acquisition cost	$	59,058	$	146	$	59,204

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the FPS acquisition, goodwill represents

FPS's ability to significantly expand services among new customers by leveraging cross-selling opportunities and recognizing general cost synergies.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

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	Optimus Industries
(in thousands)	Estimated Acquisition Date Fair Value		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	5,338	$	—	$	5,338
Accounts receivable	5,165		—		5,165
Contracts in progress	2,598		—		2,598
Other current assets	2,115		—		2,115
Property, plant and equipment, net	2,441		5,178		7,619
Goodwill(1)	11,081		(7,274)		3,807
Other assets	12		2,319		2,331
Right of use assets	94		11		105
Current liabilities	(4,240)		—		(4,240)
Advance billings on contracts	(3,779)		—		(3,779)
non-current lease liabilities	(2)		—		(2)
Non-current liabilities	(1,858)		—		(1,858)
Net acquisition cost	$	18,965	$	234	$	19,199

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Optimus Industries acquisition, goodwill represents Optimus Industries ability to significantly expand future customer relationships which are not in place today and recognize general cost synergies.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

Intangible assets are included in other assets above and consists of the following:

	Fosler Construction			VODA
(in thousands)	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life
Customer Relationships	$	9,400	12 years	$	13,855	11 years
Tradename	—		—	228		3 years
Backlog	3,100		5 months	—		—
Total intangible assets(1)	$	12,500		$	14,083
	Fossil Power Systems			Optimus Industries
	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life
Customer Relationships	$	20,451	9 years	2,100		10 years
Tradename	787		14 years	220		3 years
Patented Technology	578		12 years	—		—
Unpatented Technology	3,276		12 years	—		—
Total intangible assets(1)	$	25,092		$	2,320

(1) Intangible assets were valued using the income approach, which includes significant assumptions around future revenue growth, profitability, discount rates and customer attrition. Such assumptions are classified as level 3 inputs within the fair value hierarchy.

For the three and nine-month periods ended September 30, 2022, costs of $0.2 million and $1.0 million related to the Company's acquisitions of Fosler, VODA, Fossil Power Systems, and Optimus Industries were recorded as a component of its operating expenses in the Condensed Consolidated Statements of Operations.

Divestitures

On June 30, 2022 the Company sold development rights related to a future solar project for $8.0 million. In conjunction with the sale, the Company recognized a $7.0 million gain on sale and recorded an $8.0 million receivable within Accounts

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receivable – other in the Company's Condensed Consolidated Balance Sheet. During the 3 months ended September 30, 2022, the Company received $2.5 million of proceeds from the sale.

Certain real property assets for the Copley, Ohio location were sold on March 15, 2021 for $4.0 million. The Company received $3.3 million of net proceeds after adjustments and recognized a gain on sale of $1.9 million. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021, which expires on March 31, 2033.

Certain real property assets for the Lancaster, Ohio location were sold on August 13, 2021 for $18.9 million. The Company received $15.8 million of net proceeds after adjustments and expenses and recognized a gain on sale of $13.9 million. In conjunction with the sale, the Company executed a leaseback agreement commencing August 13, 2021, which expires on August 31, 2041.

Effective March 5, 2021, the Company sold all of the issued and outstanding capital stock of Diamond Power Machine (Hubei) Co., Inc, for $2.8 million. the Company received $2.0 million in gross proceeds before expenses and recorded an $0.8 million favorable contract asset for the amortization period from March 8, 2021 through December 31, 2023.

NOTE 22 – NEW ACCOUNTING PRONOUNCEMENTS AND STANDARDS

The Company adopted the following accounting standard during the first nine months of 2022:

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). The amendments in this update simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity by removing major separation models required under current U.S. GAAP. The amendments also improve the consistency of diluted earnings per share calculations. The impact of this standard on the Company's Condensed Consolidated Financial Statements was immaterial.

New accounting standards not yet adopted that could affect the Company's Condensed Consolidated Financial Statements in the future are summarized as follows:

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendment in this update provides an exception to fair value measurement for contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination. As a result, contract assets and contract liabilities will be recognized and measured by the acquirer in accordance with ASC 606, Revenue from Contracts with Customers. The amendment also improves consistency in revenue recognition in the post-acquisition period for acquired contracts as compared to contracts entered into after the business combination. The amendment in this update is effective for public business entities in January 2023; all other entities have an additional year to adopt. Early adoption is permitted; however, if the new guidance is adopted in an interim period, it is required to be applied retrospectively to all business combinations within the year of adoption. This amendment is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the standard on its Condensed Consolidated Financial Statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss ("CECL") model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on the Company's trade receivables, contracts in progress, and potentially its impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of both standards on its Condensed Consolidated Financial Statements.

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NOTE 23 – SUBSEQUENT EVENTS

On October 14, 2022, the Company changed the name of Fosler Construction to Babcock & Wilcox Solar Energy, Inc.

On October 25, 2022, the Company executed a revision to the lease on its Akron, Ohio headquarters which modified the payments and extended the term of the lease through June 2038 from its original expiration date of June 2034.

On November 7, 2022 the Company executed an amendment to it’s Debt Documents with MSD which modified certain financial maintenance covenants for future periods beginning with fiscal quarters ending on December 31, 2022. The Fixed Charge Coverage Ratio was amended to 0.55:1.0 for the fiscal quarter ending December 31, 2022, 0.65 to 1.00 for the fiscal quarter ending March 31, 2023, 0.80 to 1.00 for the fiscal quarter ending June 30, 2023, 1.15 to 1.00 for the fiscal quarter ending September 30, 2023 and 1.25 to 1.00 for the fiscal quarter ending December 31, 2023 and thereafter. The Senior Net Leverage Ratio was amended to 2.00 to 1.00 for the fiscal quarter ending December 31, 2022, 1.75 to 1.00 for the fiscal quarter ending March 31, 2023, 1.60 to 1.00 for the fiscal quarter ending June 30, 2023, and 1.50 to 1.00 for the fiscal quarter ending September 30, 2023 and thereafter. The amendment also establishes minimum cash flow covenants, as defined, for the fiscal quarter ending December 31, 2022 of $20.0 million and $25.0 million for the fiscal year 2023 and each fiscal year thereafter. Further, the amendment also establishes a minimum liquidity covenant of $30.0 million at all times. In addition, the Company also executed an amendment to it's Debt Documents with PNC which modified the calculation of the Fixed Charge Coverage Ratio for the fiscal quarters ending December 31, 2022, March 31, 2023 and June 30, 2023. The calculation of the Fixed Charge Coverage ratio for the fiscal quarter ending September 30, 2023 and thereafter will revert to the original calculation as stated in the original Debt Documents.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto included in Financial Statements under Item 1 within this Quarterly Report. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements as a result of many factors, including those described in more detail under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021. See also "Cautionary Statement Concerning Forward-Looking Information" herein.

Third Quarter 2022 Update

Management continues to adapt to macroeconomic conditions, including rising inflation, higher interest rates, foreign exchange rate fluctuations and the impact of the ongoing conflict in Ukraine and the COVID-19 pandemic, all of which impacted the Company during the first nine months of 2022. The COVID-19 pandemic has continued to create challenges for us in countries that have significant outbreak mitigation strategies, namely, countries in our Asia-Pacific region, which led to temporary project postponements and has continued to impact results in this region. Additionally, the Company has experienced negative impacts to its global supply chains as a result of COVID-19, the war in Ukraine, Russia-related supply chain shortages and other factors, including disruptions to the manufacturing, supply, distribution, transportation and delivery of its products. The Company has also observed significant delays and disruptions of its service providers and negative impacts to pricing of certain of its products. These delays and disruptions have had, and could continue to have, an adverse impact on the Company’s ability to meet customers’ demands. We are continuing to actively monitor the impact of these market conditions on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. The duration and scope of these conditions cannot be predicted, and therefore, any anticipated negative financial impact to the Company’s operating results cannot be reasonably estimated.

BUSINESS OVERVIEW

B&W is a growing, globally-focused renewable, environmental and thermal technologies provider with over 150 years of experience providing diversified energy and emissions control solutions to a broad range of industrial, electrical utility, municipal and other customers. B&W’s innovative products and services are organized into three market-facing segments. Our 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

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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 and replacing fossil fuels, while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, 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.

•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.

On February 1, 2022, we acquired 100% ownership of Fossil Power Systems, Inc. for approximately $59.2 million. Fossil Power Systems, Inc., is a leading designer and manufacturer of hydrogen, natural gas and renewable pulp and paper combustion equipment including ignitors, plant controls and safety systems based in Dartmouth, Nova Scotia, Canada. Fossil Power Systems, Inc. is reported as part of our B&W Thermal segment.

On February 28, 2022, we acquired 100% ownership of Optimus Industries, LLC for approximately $19.2 million. Optimus Industries, LLC designs and manufactures waste heat recovery products for use in power generation, petrochemical, and process industries, including package boilers, watertube and firetube waste heat boilers, economizers, superheaters, waste heat recovery equipment and units for sulfuric acid plants and is based in Tulsa, Oklahoma and Chanute, Kansas. Optimus Industries, LLC is reported as part of our B&W Thermal segment.

Our business depends significantly on the capital, operations and maintenance expenditures of global electric power generating companies, including renewable and thermal powered heat generation industries and industrial facilities with environmental compliance policy requirements. Several factors may influence these expenditures, including:

•climate change initiatives promoting environmental policies which include renewable energy options utilizing waste-to-energy or biomass to meet legislative requirements and clean energy portfolio standards in the United States, European, Middle East and Asian markets;

•requirements for environmental improvements in various global markets;

•expectation of future governmental requirements to further limit or reduce greenhouse gas and other emissions in the United States, Europe and other international climate change sensitive countries;

•prices for electricity, along with the cost of production and distribution including the cost of fuels within the United States, Europe, Middle East and Asian based countries;

•demand for electricity and other end products of steam-generating facilities;

•level of capacity utilization at operating power plants and other industrial uses of steam production;

•requirements for maintenance and upkeep at operating power plants to combat the accumulated effects of usage;

•prices of and access to materials, particularly as a result of rising inflation and the impact of the Russian invasion of Ukraine;

•overall strength of the industrial industry; and

•ability of electric power generating companies and other steam users to raise capital.

Customer demand is heavily affected by the variations in our customers' business cycles and by the overall economies and energy, environmental and noise abatement needs of the countries in which they operate.

We have manufacturing facilities in Mexico, the United States, Denmark, the United Kingdom and China. Many aspects of our operations and properties could be affected by political developments, including the ongoing Russian-Ukrainian conflict, environmental regulations and operating risks. These and other factors may have a material impact on our international and domestic operations or our business as a whole.

Through our restructuring efforts, we continue to make significant progress to make our cost structure more variable and to reduce costs. We expect our cost saving measures to continue to translate to bottom-line results, with top-line growth driven by opportunities for our core technologies and support services across the B&W Renewable, B&W Environmental and B&W Thermal segments globally.

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We expect to continue to explore other cost saving initiatives to improve cash generation and evaluate additional non-core asset sales to continue to strengthen our liquidity. There are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate.

In addition, we continue to evaluate further dispositions, opportunities for additional cost savings and opportunities for subcontractor recoveries and other claims where appropriate and available. If the value of our business was to decline, or if we were to determine that we were unable to recognize an amount in connection with any proposed disposition in excess of the carrying value of any disposed asset, we may be required to recognize impairments for one or more of our assets that may adversely impact our business, financial condition and results of operations.

RESULTS OF OPERATIONS

Components of Our Results of Operations

Revenue

Our revenue is the total amount of income generated by our business and consists primarily of income from our renewable, environmental and thermal technology solutions that we provide to a broad range of industrial electric utility and other customers. Revenue from our operations is assessed based on our three market-facing segments, Babcock & Wilcox Renewable, Babcock & Wilcox Environmental and Babcock & Wilcox Thermal.

Operating Income (Loss)

Operating income (loss) consists primarily of our revenue minus costs and expenses, including cost of operations, SG&A, and advisory fees and settlement costs.

Net Income (Loss)

Net income (loss) consists primarily of operating income minus other income and expenses, including interest income, foreign exchange and expense related to our benefit plans.

Condensed Consolidated Results of Operations

The following discussion of our business segment results of operations includes a discussion of adjusted EBITDA, which when used on a consolidated basis is a non-GAAP financial measure. Adjusted EBITDA differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (“GAAP”). A reconciliation of net income (loss), the most directly comparable GAAP measure, to adjusted EBITDA is included in “Non-GAAP Financial Measures” below. Management believes that this financial measure is useful to investors because it excludes certain expenses, allowing investors to more easily compare our financial performance period to period.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2022		2021		$ Change		2022		2021		$ Change
Revenues:
B&W Renewable segment	$	81,687	$	38,000	$	43,687	$	224,875	$	105,155	$	119,720
B&W Environmental segment	44,626		38,249		6,377		111,186		97,767		13,419
B&W Thermal segment	91,331		83,819		7,512		309,875		328,416		(18,541)
Eliminations	(2,774)		(108)		(2,666)		(5,998)		(270)		(5,728)
	$	214,870	$	159,960	$	54,910	$	639,938	$	531,068	$	108,870

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	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2022		2021		$ Change		2022		2021		$ Change
Adjusted EBITDA
B&W Renewable segment(1)	$	4,522	$	11,399	$	(6,877)	$	14,846	$	15,030	$	(184)
B&W Environmental segment	3,082		3,476		(394)		5,112		7,286		(2,174)
B&W Thermal segment	10,761		9,329		1,432		41,276		32,436		8,840
Corporate	(4,419)		(5,866)		1,447		(13,018)		(11,548)		(1,470)
Research and development costs	(891)		513		(1,404)		(2,532)		(560)		(1,972)
	$	13,055	$	18,851	$	(5,796)	$	45,684	$	42,644	$	3,040

(1) Adjusted EBITDA for nine months ended September 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold as well as the reduction to Selling, General and Administrative Costs of $9.6 million for the three and nine months ended September 30, 2022 that resulted from the reversal of the contingent consideration related to an acquisition.

Three Months Ended September 30, 2022 and 2021

Revenues increased by $54.9 million to $214.9 million in the three months ended September 30, 2022 as compared to $160.0 million in the three months ended September 30, 2021. The increase is primarily attributable to the acquisitions of Fosler Construction and VODA within our Renewable segment, higher overall volume in our Environmental segment and the acquisitions of Fossil Power Systems and Optimus Industries within our Thermal segment being partially offset by a lower level of construction activity in our Thermal segment. The negative impacts on the global economy as a result of the ongoing Russia-Ukraine military conflict continue to adversely impacted each of our segments, causing shortages of supplies and materials and affecting the timing of revenue on several projects. Segment specific changes are discussed in further detail in the sections below.

Net (loss)/income decreased by $34.2 million resulting in a net loss of $20.6 million in the three months ended September 30, 2022 as compared to net income of $13.6 million in the three months ended September 30, 2021. Operating (loss)/income decreased by $25.1 million in the comparable three-month periods ended September 30, 2022 and September 30, 2021. Operating loss for the three-month period ended September 30, 2022 was $(10.3) million as compared to operating income of $14.8 million in the three months ended September 30, 2021. The unfavorable variance is primarily related to overall increased costs and expenses, higher interest expense and foreign exchange losses in the current period. Restructuring activities, advisory fees, research and development, depreciation and amortization expense, pension and other postretirement benefit plans, foreign exchange, and income taxes are discussed in further detail in the sections below.

Nine Months Ended September 30, 2022 and 2021

Revenues increased by $108.9 million to $639.9 million in the nine months ended September 30, 2022 as compared to $531.1 million in the nine months ended September 30, 2021. The increase is primarily attributable to the acquisitions of Fosler Construction and VODA within our Renewable segment, higher overall volume in our Environmental segment and the acquisitions of Fossil Power Systems and Optimus Industries within our Thermal segment being partially offset by a lower level of construction activity in our Thermal segment. The negative impacts on the global economy as a result of the ongoing Russia-Ukraine military conflict continue to adversely impacted each of our segments causing shortages of supplies and materials and affecting the timing of revenue on several projects. Segment specific changes are discussed in further detail in the sections below.

Net loss/income declined by $33.6 million. We recorded a net loss of $32.2 million in the nine months ended September 30, 2022 as compared to net income of $1.3 million in the nine months ended September 30, 2021. Operating (loss)/income negatively changed by $24.5 million resulting in an operating loss of $13.4 million in the nine months ended September 30, 2022 as compared to operating income of $11.1 million in the nine months ended September 30, 2021. The year-over-year change is primarily related to overall increases in costs and expenses, higher interest expense and an increase in foreign exchange losses. The aforementioned expense increase were partially offset by positive contributions from the acquisitions, as described above offset partially by a lower level of construction activity in our Thermal segment. Restructuring activities, advisory fees, research and development, depreciation and amortization expense, pension and other postretirement benefit plans, foreign exchange, and income taxes are discussed in further detail in the sections below.

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Bookings and Backlog

Bookings and backlog are our measure of remaining performance obligations under our sales contracts. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies.

We generally include expected revenue from contracts in our backlog when we receive written confirmation from our customers authorizing the performance of work and committing the customers to payment for work performed. Backlog may not be indicative of future operating results, and contracts in our backlog may be canceled, modified or otherwise altered by customers. Backlog can vary significantly from period to period, particularly when large new build projects or operations and maintenance contracts are booked because they may be fulfilled over multiple years. Because we operate globally, our backlog is also affected by changes in foreign currencies each period. We do not include orders of our unconsolidated joint ventures in backlog.

Bookings represent changes to the backlog. Bookings include additions from booking new business, subtractions from customer cancellations or modifications, changes in estimates of liquidated damages that affect selling price and revaluation of backlog denominated in foreign currency. We believe comparing bookings on a quarterly basis or for periods less than one year is less meaningful than for longer periods, and that shorter-term changes in bookings may not necessarily indicate a material trend.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in approximate millions)	2022		2021		2022		2021
B&W Renewable(1)	$	57	$	103	$	217	$	184
B&W Environmental	40		22		112		90
B&W Thermal	130		48		382		236
Bookings	$	227	$	173	$	711	$	510

(1) B&W Renewable bookings includes the revaluation of backlog denominated in currency other than U.S. dollars. The foreign exchange impact on B&W Renewable bookings in the third quarter of 2022 and 2021 was $(17.0) million and $3.6 million, respectively. The foreign exchange impact on B&W Renewable bookings in the nine months ended September 30, 2022 and 2021 was $(23.4) million and $8.1 million, respectively.

Our backlog as of September 30, 2022 and 2021 was as follows:

	As of September 30,
(in approximate millions)	2022		2021
B&W Renewable(1)	$	374	$	313
B&W Environmental	121		101
B&W Thermal	233		130
Other/eliminations	2		(4)
Backlog	$	730	$	540

(1)     B&W Renewable backlog at September 30, 2022, includes $117.2 million related to long-term operation and maintenance contracts for renewable energy plants, with remaining durations extending until 2034. Generally, such contracts have a duration of 10-20 years and include options to extend.

Of the backlog at September 30, 2022, we expect to recognize revenues as follows:

(in approximate millions)	2022		2023		Thereafter		Total
B&W Renewable	$	118	$	141	$	115	$	374
B&W Environmental	33		65		23		121
B&W Thermal	84		133		16		233
Other/eliminations	2		—		—		2
Expected revenue from backlog	$	237	$	339	$	154	$	730

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Changes in Contract Estimates

During the three and nine-month periods ended September 30, 2022 and 2021, the Company recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Increases in gross profit for changes in estimates for over time contracts	$	1,690	$	7,001	$	11,343	$	12,340
Decreases in gross profit for changes in estimates for over time contracts	(10,353)		(1,523)		(20,004)		(6,018)
Net changes in gross profit for changes in estimates for over time contracts	$	(8,663)	$	5,478	$	(8,661)	$	6,322

Non-GAAP Financial Measures

Adjusted EBITDA on a consolidated basis is a non-GAAP metric defined as the sum of the adjusted EBITDA for each of the segments, further adjusted for corporate allocations and research and development costs. At a segment level, the adjusted EBITDA presented below is consistent with the way the Company's chief operating decision maker 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, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment. The Company uses adjusted EBITDA internally to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results, the Company believes that its presentation of adjusted EBITDA provides investors with greater transparency and a greater understanding of factors affecting its financial condition and results of operations than GAAP measures alone. Prior period results have been revised to conform with the revised definition and present separate reconciling items in our reconciliation, including business transition costs.

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	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Net (loss) income	$	(20,566)	$	13,648	$	(32,244)	$	1,346
Interest expense	12,768		8,902		37,150		31,752
Income tax (benefit) expense	4,902		301		4,777		6,683
Depreciation & amortization	4,818		4,305		16,756		12,684
EBITDA	1,922		27,156		26,439		52,465
Benefit plans, net	(7,424)		(9,867)		(22,279)		(24,889)
(Gain) loss on sales, net	(28)		(13,838)		(165)		(13,564)
Stock compensation	3,448		152		5,242		8,032
Restructuring activities and business services transition costs	1,746		4,575		6,188		7,968
Advisory fees for settlement costs and liquidity planning	27		954		1,938		4,991
Settlement and related legal costs	776		566		7,215		2,113
Gain on debt extinguishment	—		—		—		(6,530)
Acquisition pursuit and related costs	2,575		4,037		4,768		4,037
Product development (1)	757		2,427		2,600		2,690
Foreign exchange	2,007		1,673		3,218		1,056
Financial advisory services	394		322		1,121		2,554
Contract step-up purchase price adjustment	—		—		1,745		—
Loss from business held for sale	—		—		—		483
Goodwill impairment	7,224		—		7,224		—
Other - net	(369)		694		430		1,238
Adjusted EBITDA(2)	$	13,055	$	18,851	$	45,684	$	42,644

(1) Costs associated with development of commercially viable products that are ready to go to market.

(2) Adjusted EBITDA for the nine months ended September 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold as well as the reduction to Selling, General and Administrative Costs of $9.6 million for the three and nine months ended September 30, 2022 that resulted from the reversal of the contingent consideration related to an acquisition.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Adjusted EBITDA
B&W Renewable segment(1)	$	4,522	$	11,399	$	14,846	$	15,030
B&W Environmental segment	3,082		3,476		5,112		7,286
B&W Thermal segment	10,761		9,329		41,276		32,436
Corporate	(4,419)		(5,866)		(13,018)		(11,548)
Research and development costs	(891)		513		(2,532)		(560)
	$	13,055	$	18,851	$	45,684	$	42,644

(1) Adjusted EBITDA for the nine months ended September 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold as well as the reduction to Selling, General and Administrative Costs of $9.6 million for the three and nine months ended September 30, 2022 that resulted from the reversal of the contingent consideration related to an acquisition.

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B&W Renewable Segment Results

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2022		2021		$ Change		2022		2021		$ Change
Revenues	$	81,687	$	38,000	$	43,687	$	224,875	$	105,155	$	119,720
Adjusted EBITDA	$	4,522	$	11,399	$	(6,877)	$	14,846	$	15,030	$	(184)

Three Months Ended September 30, 2022 and 2021

Revenues in the B&W Renewable segment increased 115% or $43.7 million, to $81.7 million in the three months ended September 30, 2022 compared to $38.0 million in the three months ended September 30, 2021. The increase in revenue is primarily due to higher volume of new-build projects and revenues from acquisitions which closed on September 30, and November 30, 2021.

Adjusted EBITDA in the B&W Renewable segment decreased $6.9 million, to $4.5 million in the three months ended September 30, 2022 compared to income of $11.4 million in the three months ended September 30, 2021 due to a large project improvement achieved in the prior year period and due to the negative impact of global supply chain challenges and geopolitical issues. These various challenges resulted in the delivery of parts orders and projects being delayed into future quarters as well negatively impacting gross margin due to higher costs. The higher revenue levels increased shared overhead and SG&A allocations to the segment based on revenue. The negative impacts were partially offset by the reduction of the $9.6 million contingent consideration related to an acquisition as well higher volume of new build projects as described above.

Nine Months Ended September 30, 2022 and 2021

Revenues in the B&W Renewable segment increased 114% or $119.7 million, to $224.9 million in the nine months ended September 30, 2022 compared to $105.2 million in the nine months ended September 30, 2021. The increase in revenue is primarily due to higher volumes of new-build projects and revenues from acquisitions which closed on September 30 and November 30, 2021.

Adjusted EBITDA in the B&W Renewable segment decreased $0.2 million, to $14.8 million in the nine months ended September 30, 2022 compared to $15.0 million in the nine months ended September 30, 2021. The decrease is primarily due to a large project improvement achieved in the prior year period and due to the negative impact of global supply chain challenges and geopolitical issues. These various challenges resulted in the delivery of parts orders being delayed and projects being delayed into future quarters as well negatively impacting gross margin due to higher costs. The higher revenue levels increased shared overhead and SG&A allocations to the segment based on revenue. The negative impacts were partially offset by the reduction of the $9.6 million contingent consideration related to the Fosler acquisition as well higher volume of new build projects as described above.

B&W Environmental Segment Results

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2022		2021		$ Change		2022		2021		$ Change
Revenues	$	44,626	$	38,249	$	6,377	$	111,186	$	97,767	$	13,419
Adjusted EBITDA	$	3,082	$	3,476	$	(394)	$	5,112	$	7,286	$	(2,174)

Three Months Ended September 30, 2022 and 2021

Revenues in the B&W Environmental segment increased 17%, or $6.4 million to $44.6 million in the three months ended September 30, 2022 compared to $38.2 million in the three months ended September 30, 2021. The increase is primarily driven by higher overall volume in our project product lines. Revenue was lower than anticipated in the segment due to the negative impact of global supply chain challenges and geopolitical issues..

Adjusted EBITDA in the B&W Environmental segment was $3.1 million in the three months ended September 30, 2022 compared to $3.5 million in the three months ended September 30, 2021. The decrease is primarily driven by the completion of higher margin projects in the prior period along with higher levels of shared overhead and SG&A allocated to the segment being partially offset by higher revenue volume, as described above. Adjusted EBITDA was lower than anticipated in the

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segment due to the negative impact of global supply chain challenges and geopolitical issues. These various challenges resulted in certain projects being delayed into future quarters and higher costs all of which could not be recovered from our customers.

Nine Months Ended September 30, 2022 and 2021

Revenues in the B&W Environmental segment increased 14%, or $13.4 million to $111.2 million in the nine months ended September 30, 2022 compared to $97.8 million in the nine months ended September 30, 2021. The increase is primarily driven by higher overall volume in our project product lines. Revenue was lower than anticipated in the segment due to the negative impact of global supply chain challenges and geopolitical issues.

Adjusted EBITDA in the B&W Environmental segment was $5.1 million in the nine months ended September 30, 2022 compared to $7.3 million in the nine months ended September 30, 2021. The decrease is primarily driven by the completion of higher margin projects in the prior period along with higher levels of shared overhead and SG&A allocated to the segment being partially offset by higher revenue volume, as described above. Adjusted EBITDA was lower than anticipated in the segment due to the negative impact of global supply chain challenges and geopolitical issues. Previous tariff implications, also created challenges to solar supply chain which led to disruptions within the North American solar markets. These various challenges resulted in certain projects being delayed into future quarters and higher costs all of which could not be recovered from our customers.

B&W Thermal Segment Results

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2022		2021		$ Change		2022		2021		$ Change
Revenues	$	91,331	$	83,819	$	7,512	$	309,875	$	328,416	$	(18,541)
Adjusted EBITDA	$	10,761	$	9,329	$	1,432	$	41,276	$	32,436	$	8,840

Three Months Ended September 30, 2022 and 2021

Revenues in the B&W Thermal segment increased 9%, or $7.5 million to $91.3 million in the three months ended September 30, 2022 compared to $83.8 million in the three months ended September 30, 2021. The revenue increase is attributable to two acquisitions that closed in February 2022.

Adjusted EBITDA in the B&W Thermal segment increased $1.4 million to $10.8 million in the three months ended September 30, 2022 compared to $9.3 million in the three months ended September 30, 2021, primarily attributable to two acquisitions closed in February 2022. Revenue and adjusted EBITDA were lower than anticipated in the segment due to the negative impact of global supply chain challenges and geopolitical issues. These various challenges resulted in the delay of the delivery of parts orders and services primarily in certain international markets as anticipated.

Nine Months Ended September 30, 2022 and 2021

Revenues in the B&W Thermal segment decreased 6%, or $18.5 million, to $309.9 million in the nine months ended September 30, 2022 compared to $328.4 million in the nine months ended September 30, 2021. The revenue decrease is attributable to a lower level of activity on construction projects, partially offset by two acquisitions that closed in February 2022..

Adjusted EBITDA in the B&W Thermal segment increased $8.8 million to $41.3 million in the nine months ended September 30, 2022 compared to $32.4 million in the nine months ended September 30, 2021, which is mainly attributable to favorable product mix and by two acquisitions closed in February 2022 as well as lower level of shared overhead and SG&A allocated to the segment. These are partially offset by the lower volume of construction projects described above. Revenue and adjusted EBITDA were lower than anticipated in the segment due to the negative impact of global supply chain challenges and geopolitical issues. Previous tariff implications, also created challenges to solar supply chain which led to disruptions within the North American solar markets. These various challenges resulted in the delay in the delivery of parts orders and services in certain international markets as anticipated

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Corporate

Corporate costs in adjusted EBITDA include SG&A expenses that are not allocated to the reportable segments. These costs include, among others, certain executive, compliance, strategic, reporting and legal expenses associated with governance of the total organization and being an SEC registrant. Corporate costs decreased $1.5 million to $4.4 million in three months ended September 30, 2022 as compared to $5.9 million incurred in the three months ended September 30, 2021.

Corporate costs increased $1.5 million to $13.0 million in the nine months ended September 30, 2022 as compared to $11.5 million incurred in the nine months ended September 30, 2021. The increase is primarily due to increased tax and accounting services.

On July 28, 2022, the Company granted 860,000 restricted stock units (“RSUs”) with a market-based condition. The RSU’s will vest only if the closing price of the Company's common stock is equal to or higher than $12.00 by the fifth anniversary of the date of grant. The total fair value of the grant is $5.8 million and is being recognized over the derived requisite service period, determined to be 9 months, within Selling, General and Administrative expenses. As of September 30, 2022, the total unrecognized compensation charge related to the RSU’s is approximately $4.5 million. In addition, on July 28, 2022, the Company granted 924,340 RSU’s. These awards are recognized on a straight-line basis over a 3-year vesting period. As of September 30, 2022, the total unrecognized compensation charge related to the RSU’s is approximately $6.6 million, which is expected to be recognized through fiscal 2025.

Advisory Fees and Settlement Costs

Advisory fees and settlement costs decreased $0.6 million to $1.2 million in the three months ended September 30, 2022 as compared to $1.8 million in the comparable period of 2021. Advisory fees and settlement costs increased $0.6 million to $10.3 million in the nine months ended September 30, 2022 as compared to $9.7 million in the comparable period of 2021. The increase is primarily related to higher legal fees and other costs incurred in prior quarters.

Research and Development

Our research and development activities are focused on improving our products through innovations to reduce their cost and make them more competitive, as well as to reduce performance risk of our products to better meet our and our customers’ expectations. Research and development expenses totaled $1.0 million and $(0.2) million in the three months ended September 30, 2022 and 2021, respectively, $2.9 million and $1.0 million in the nine months ended September 30, 2022 and 2021, respectively.

Restructuring

Restructuring actions across our business units and corporate functions resulted in $0.4 million and $4.6 million of expense in the three months ended September 30, 2022 and 2021, respectively, and $0.4 million and $8.0 million of expense in the nine months ended September 30, 2022 and 2021, respectively. The decrease for the nine months ended September 30, 2022 compared to the prior year comparable period is due to overall lower levels of restructuring actions in all three reportable segments during the current year.

Transition Costs

Transition costs across our corporate and business functions resulted in $1.5 million and $6.0 million of expense in the three and nine months ended September 30, 2022, respectively. These charges primarily result from actions taken to outsource certain tasks to offshore service providers or to transfer administrative and compliance tasks to global service providers as part of our strategic efforts to reduce future selling, general and administrative costs. Transition costs are included in selling, general and administrative expenses in our Condensed Consolidated Statements of Operations.

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Depreciation and Amortization

Depreciation expense was $2.3 million and $2.3 million in the three months ended September 30, 2022 and 2021, respectively, and depreciation expense was $7.1 million and $7.4 million in the nine months ended September 30, 2022 and 2021.

Amortization expense was $1.4 million and $2.0 million in the three months ended September 30, 2022 and 2021, respectively, amortization expense was $6.1 million and $5.3 million in the nine months ended September 30, 2022 and 2021, respectively.

Pension and Other Postretirement Benefit Plans

We recognize benefits from our defined benefit and other postretirement benefit plans based on actuarial calculations primarily because our expected return on assets is greater than our service cost. Service cost is low because our plan benefits are frozen except for a small number of hourly participants.

Our pension costs also include mark-to-market ("MTM") adjustments from time to time and are primarily a result of changes in the discount rate, curtailments and settlements. Any MTM charge or gain should not be considered to be representative of future MTM adjustments as such events are not currently predicted and are in each case subject to market conditions and actuarial assumptions as of the date of the event giving rise to the MTM adjustment. There were no MTM adjustments for our other postretirement benefit plans during the three and nine months ended September 30, 2022 and 2021, respectively.

Refer to Note 11 to the Condensed Consolidated Financial Statements for further information regarding our pension and other postretirement plans.

Foreign Exchange

We translate assets and liabilities of our foreign operations into United States dollars at current exchange rates, and we translate items in our statement of operations at average exchange rates for the periods presented. We record adjustments resulting from the translation of foreign currency financial statements as a component of accumulated other comprehensive income (loss). We report foreign currency transaction gains and losses in the Condensed Consolidated Statements of Operations.

Foreign exchange was a loss of $(2.0) million and $(1.7) million for the three months ended September 30, 2022 and 2021, respectively, and a loss of $(3.2) million and $(1.1) million for the nine months ended September 30, 2022 and 2021, respectively. Foreign exchange losses are primarily related to unhedged intercompany loans denominated in European currencies to fund foreign operations.

Income Taxes

	Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except for percentages)	2022			2021			$ Change		2022			2021			$ Change
(Loss) income before income taxes	$	(15,664)		$	13,949		$	(29,613)	$	(27,467)		$	8,029		$	(35,496)
Income tax (benefit) expense	$	4,902		$	301		$	4,601	$	4,777		$	6,683		$	(1,906)
Effective tax rate	(31.3)		%	2.2		%			(17.4)		%	83.2		%

Our income tax expense in the third quarter of 2022 reflects a full valuation allowance against our net deferred tax assets, except in Mexico, Canada, the United Kingdom, Brazil, Finland, Germany, Thailand, the Philippines, Indonesia, and Sweden. Deferred tax assets are evaluated each period to determine whether realization is more likely than not. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Valuation allowances may be removed in the future if sufficient positive evidence exists to outweigh the negative evidence under the framework of ASC 740, Income Taxes ("ASC 740").

Our effective tax rate for the third quarter of 2022 is not reflective of the United States statutory rate primarily due to a valuation allowance against certain net deferred tax assets and unfavorable discrete items. In certain jurisdictions (namely, Italy) where the Company anticipates a loss for the fiscal year or incurs a loss for the year-to-date period for which a tax benefit cannot be realized in accordance with ASC 740, the Company excludes the loss in that jurisdiction from the overall computation of the estimated annual effective tax rate.

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The Inflation Reduction Act ("IRA") and CHIPS and Science Act ("CHIPS Act") were signed into law in August 2022. The IRA introduced new provisions, including a 15 percent corporate alternative minimum tax for certain large corporations that have at least an average of $1 billion adjusted financial statement income over a consecutive three-tax-year period and a new excise tax on corporate stock buybacks of public US companies. The CHIPS Act, introduces investment tax credits and incentives in semiconductor manufacturing. The corporate minimum tax and excise tax on stock buybacks will be effective for years beginning after December 31, 2022. There is no impact to our financial position at this time.

Liquidity and Capital Resources

Liquidity

Our primary liquidity requirements include debt service, funding of dividends on preferred stock and working capital needs. We fund our liquidity requirements primarily through cash generated from operations, external sources of financing, including our, senior notes, equity offerings, including our Preferred Stock, and revolving credit agreement which are described in the Notes to our Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report in further detail along with other sources of liquidity.

During the first nine months of 2022, we executed the following actions:

•on February 1, 2022, we acquired 100% ownership of Fossil Power Systems, Inc. for approximately $59.2 million, excluding working capital adjustments as described in Note 21 to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report;

•on February 28, 2022, we acquired 100% ownership of Optimus Industries, LLC for approximately $19.0 million, excluding working capital adjustments as described in Note 21 to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report; and

•the Company sold $5.4 million aggregate principal of 8.125% Senior Notes and received $5.4 million of net proceeds as described in Note 12 to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report.

See Note 12, Note 13, Note 14 and Note 21 to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report for additional information on our external sources of financing and equity offerings.

Cash and Cash Flows

At September 30, 2022, our cash and cash equivalents, current restricted cash and long-term restricted cash totaled $69.5 million and we had total debt of $336.3 million as well as $191.7 million of gross preferred stock outstanding. Our foreign business locations held $27.4 million of our total unrestricted cash and cash equivalents at September 30, 2022. In general, our foreign cash balances are not available to fund our U.S. operations unless the funds are repatriated or used to repay intercompany loans made from the U.S. to foreign entities, which could expose us to taxes we presently have not made a provision for in our results of operations. We presently have no plans to repatriate these funds to the U.S. In addition, we had $1.2 million of restricted cash at September 30, 2022 related to collateral for certain letters of credit. We believe our future operating cash flows will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next 12 months and thereafter for the foreseeable future.

Cash used in operations was $67.4 million in the nine months ended September 30, 2022, which is primarily attributable to the year-to-date net loss of $32.2 million combined with $56.8 million in net unfavorable changes in working capital. Cash used in operations was $107.8 million in the nine months ended September 30, 2021, which is primarily represented in the $47.1 million change in postretirement and employee benefit liabilities and the remaining $75.0 million of net increase in operating cash outflows associated with unfavorable changes in working capital.

Cash flows from investing activities used net cash of $67.6 million in the nine months ended September 30, 2022, primarily due to the acquisitions of business of $64.9 million and $8.9 million of capital expenditures. Cash flows from investing activities used net cash of $5.9 million in the nine months ended September 30, 2021, primarily related to the acquisition of Fosler Construction of $27.2 million combined with $4.2 million of capital expenditures, partially offset by proceeds from the sale of business and assets, net of $23.8 million.

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Cash flows used in financing activities of $19.1 million in the nine months ended September 30, 2022, primarily related to the payment of the preferred stock dividend of $11.1 million and loan payments of $13.9 million, partially offset by the senior note proceeds of $5.5 million. Cash flows provided by financing activities were $159.2 million in the nine months ended September 30, 2021. Cash generated was primarily related to the issuance of common stock, Senior Notes and Preferred Stock, partially offset by $75.4 million Last Out Term Loans repayments, a $164.3 million net reduction on the prior U.S. Revolving Credit Facility and $16.7 million of incremental financing fees.

Debt Facilities

As described in the Note 12 to our Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report, on September 30, 2021, we entered into the Reimbursement Agreement, Revolving Credit Agreement and Letter of Credit Agreement (collectively, the “Debt Documents” and the facilities thereunder, the “Debt Facilities”). The obligations of the Company under each of the Debt Facilities are guaranteed by certain existing and future domestic and foreign subsidiaries of the Company. B. Riley, a related party, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement. The Company expects to use the proceeds and letter of credit availability under the Debt Facilities for working capital purposes and general corporate purposes. The Revolving Credit Agreement matures on June 30, 2025. As of September 30, 2022, no borrowings have occurred under the Revolving Credit Agreement and under the Letter of Credit Agreement, usage consisted of $15.1 million of financial letters of credit and $94.3 million of performance letters of credit. As of September 30, 2022, the Company was not in compliance with their Quarterly Fixed Charge Coverage financial covenant and received a waiver from MSD and PNC for the period ended September 30, 2022 as described within Note 12.

Letters of Credit, Bank Guarantees and Surety Bonds

Certain of our subsidiaries primarily outside of the United States have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees outside of our Letter of Credit Agreement as of September 30, 2022 was $45.1 million. The aggregate value of the outstanding letters of credit provided under the Letter of Credit Agreement backstopping letters of credit or bank guarantees was $36.7 million as of September 30, 2022. Of the outstanding letters of credit issued under the Letter of Credit Agreement, $58.8 million are subject to foreign currency revaluation.

We have also posted surety bonds to support contractual obligations to customers relating to certain contracts. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should we fail to perform our obligations under the applicable contracts. We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue in support of some of our contracting activity. As of September 30, 2022, bonds issued and outstanding under these arrangements in support of contracts totaled approximately $333.9 million. The aggregate value of the letters of credit backstopping surety bonds was $8.7 million.

Our ability to obtain and maintain sufficient capacity under our current Debt Facilities is essential to allow us to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, our ability to support contract security requirements in the future will be diminished.

Other Indebtedness - Loans Payable

As of September 30, 2022, our Denmark subsidiary has an unsecured interest-free loan of $0.7 million under a local government loan program related to COVID-19 that is payable May 2023. In addition, the Company had $1.6 million in a loan payable related to financed insurance premiums payable April 2023. These loans are included in current Loans payable in our Condensed Consolidated Balance Sheets.

Fosler Construction has loans, primarily for vehicles and equipment, totaling $0.5 million at September 30, 2022. The vehicle and equipment loans are included in long term loans payables in our Condensed Consolidated Balance Sheets.

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Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have, or are reasonably expected to have, a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources at September 30, 2022.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For a summary of the critical accounting policies and estimates that we use in the preparation of the Company's unaudited Condensed Consolidated Financial Statements, see "Critical Accounting Policies and Estimates" in the Company's Annual Report for the year ended December 31, 2021. There have been no significant changes to the Company's policies during the nine months ended September 30, 2022.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's exposures to market risks have not changed materially from those disclosed under "Quantitative and Qualitative Disclosures About Market Risk" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company's management, with the participation of its Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Exchange Act")). The Company's disclosure controls and procedures, by their nature, can provide only reasonable assurance regarding the control objectives. It should be noted that the design of any system of disclosure controls and procedures is based in part upon various assumptions about the likelihood of future events, and cannot assure that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

Based on the evaluation referred to above, the Company's Chief Executive Officer and Chief Financial Officer concluded that the design and operation of its disclosure controls and procedures are effective as of September 30, 2022 to provide reasonable assurance that information required to be disclosed by us in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and such information is accumulated and communicated to management as appropriate to allow timely decisions regarding disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting during the three months ended September 30, 2022 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting. The Company has not experienced any material impact to its internal controls over financial reporting, despite the fact that some of its team members are working remotely in response to the COVID-19 pandemic. The Company is continually monitoring and assessing these situations on its internal controls to ensure their operating effectiveness.

Inherent Limitations in Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures, or our internal controls, will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake or fraud. Additionally, controls can be circumvented by individuals

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or groups of persons or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements in our public reports due to error or fraud may occur and not be detected.

PART II

Item 1. Legal Proceedings

For information regarding ongoing investigations and litigation, see Note 17 to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report, which the Company incorporates by reference into this Item.

Item 1A. Risk Factors

The Company is subject to various risks and uncertainties in the course of its business. The discussion of such risks and uncertainties may be found under “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Other than the additional risk factor set forth below there have been no material changes to the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

The ongoing invasion of Ukraine by Russia may continue to adversely affect the Company's business and results of operations.

The ongoing invasion of Ukraine by Russia, and the global response to it, may continue to adversely affect the Company's business and results of operations. The military conflict between Russia and Ukraine has caused significant volatility and disruptions to the global markets, including shortages of supplies and materials necessary for the Company's business. For example, the conflict can impact the Company's ability to place orders for materials, such as steel, in Europe, and may more broadly impact lead times for materials globally. It is not possible to predict the short-term and long-term implications of this conflict, which could include but are not limited to further uncertainty about economic and political stability, delays in access to supplies and materials, increases in inflation rate and energy prices and adverse effects on currency exchange rates and financial markets. As described in the Company's Business Overview and Results of Operations included in Part I, Item II and Note 17 to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report, the conflict has resulted in shortages of supplies and materials and delays in the timing of revenue. The Company continues to monitor the situation closely and is proactively assessing and evaluating alternative sources to bolster its current sources of supplies and materials moving forward.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In accordance with the provisions of the employee benefit plans, the Company acquired the following shares in connection with the vesting of employee restricted stock that require us to withhold shares to satisfy employee statutory income tax withholding obligations. The following table identifies the number of common shares and average price per share for each month during the quarter ended September 30, 2022. The Company does not have a general share repurchase program at this time.

(data in whole amounts)
Period	Total number of shares acquired (1)	Average price per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs
July 2022	—	$	—	—	$	—
August 2022	—	$	—	—	$	—
September 2022	—	$	—	—	$	—
Total	—	$	—	—	$	—

(1) Acquired shares are recorded in treasury stock in the Company's Condensed Consolidated Balance Sheets.

Item 6. Exhibits

2.1* Master Separation Agreement, dated as of June 8, 2015, between The Babcock & Wilcox Company and Babcock & Wilcox Enterprises, Inc. (incorporated by reference to Exhibit 2.1 to the Babcock & Wilcox Enterprises, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (File No. 001-36876)).

52

3.1	Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (File No. 001-36876)).
3.2	Certificate of Amendment of the Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on June 17, 2019 (File No. 001-36876)).
3.3	Certificate of Amendment of the Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 24, 2019 (File No. 001-36876)).
3.4	Amended and Restated Bylaws of the Babcock & Wilcox Enterprises, Inc.
3.5	Certificate of Designations with respect to the 7.75% Series A Cumulative Perpetual Preferred Stock, dated May 6, 2021, filed with the Secretary of State of Delaware and effective on May 6, 2021 (incorporated by reference to Exhibit 3.4 to the Babcock & Wilcox Enterprises, Inc. Form 8-A filed on May 7, 2021 (File No. 001-36876)).
3.6	Certificate of Increase in Number of Shares of 7.75% Series A Cumulative Perpetual Preferred Stock, dated June 1, 2021 (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 7, 2021 (File No. 001-36876)).
31.1	Rule 13a-14(a)/15d-14(a) certification of Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) certification of Chief Financial Officer.
32.1	Section 1350 certification of Chief Executive Officer.
32.2	Section 1350 certification of Chief Financial Officer.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (embedded within the inline XBRL document)

*Certain schedules and exhibits to this agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request.

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SIGNATURES

Pursuant to the requirements of the Section 13 or 15(d) of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		BABCOCK & WILCOX ENTERPRISES, INC.
November 8, 2022	By:	/s/ Louis Salamone
		Louis Salamone
		Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial and Accounting Officer and Duly Authorized Representative)

54

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Kenneth M. Young, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Babcock & Wilcox Enterprises, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 8, 2022	/s/ Kenneth M. Young
	Kenneth M. Young
	Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Louis Salamone, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Babcock & Wilcox Enterprises, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 8, 2022	/s/ Louis Salamone
	Louis Salamone
	Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

BABCOCK & WILCOX ENTERPRISES, INC.

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Kenneth M. Young, President and Chief Executive Officer of Babcock & Wilcox Enterprises, Inc., a Delaware corporation (the “Company”), hereby certify, to my knowledge, that:

(1)the Company’s quarterly Report on Form 10-Q for the period ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of B&W as of the dates and for the periods expressed in the Report.

Dated: November 8, 2022	/s/ Kenneth M. Young
	Kenneth M. Young
	Chairman and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

BABCOCK & WILCOX ENTERPRISES, INC.

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Louis Salamone, Chief Financial Officer of Babcock & Wilcox Enterprises, Inc., a Delaware corporation (the “Company”), hereby certify, to my knowledge, that:

(1)the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of B&W as of the dates and for the periods expressed in the Report.

Dated: November 8, 2022	/s/ Louis Salamone
	Louis Salamone
	Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial and Accounting Officer)

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Cover - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-36876
Entity Registrant Name	BABCOCK & WILCOX ENTERPRISES, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-2783641
Entity Address, Address Line One	1200 East Market Street
Entity Address, Address Line Two	Suite 650
Entity Address, City or Town	Akron
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44305
City Area Code	(330)
Local Phone Number	753-4511
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		88,633,634
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001630805
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	BW
Security Exchange Name	NYSE
8.125% Senior Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	8.125% Senior Notes due 2026
Trading Symbol	BWSN
Security Exchange Name	NYSE
6.50% Senior Notes due 2026
Entity Information [Line Items]
Title of 12(b) Security	6.50% Senior Notes due 2026
Trading Symbol	BWNB
Security Exchange Name	NYSE
7.75% Series A Cumulative Perpetual Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	7.75% Series A Cumulative Perpetual Preferred Stock
Trading Symbol	BW PRA
Security Exchange Name	NYSE

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenues	$ 214,870	$ 159,960	$ 639,938	$ 531,068
Costs and expenses:
Cost of operations	176,085	114,643	512,485	404,827
Selling, general and administrative expenses	39,356	38,206	127,351	112,367
Goodwill impairment	7,224	0	7,224	0
Advisory fees and settlement costs	1,198	1,841	10,275	9,658
Restructuring activities	359	4,575	351	7,968
Research and development costs (benefit)	994	(228)	2,850	969
Gain on asset disposals, net	(28)	(13,838)	(7,165)	(15,804)
Total costs and expenses	225,188	145,199	653,371	519,985
Operating (loss) income	(10,318)	14,761	(13,433)	11,083
Other expense:
Interest expense	(11,320)	(8,330)	(33,249)	(30,574)
Interest income	103	130	323	385
Gain on debt extinguishment	0	0	0	6,530
Loss on sale of business	0	0	0	(2,240)
Benefit plans, net	7,424	9,867	22,279	24,889
Foreign exchange	(2,007)	(1,673)	(3,218)	(1,056)
Other income (expense) – net	454	(806)	(169)	(988)
Total other expense, net	(5,346)	(812)	(14,034)	(3,054)
(Loss) income before income tax expense	(15,664)	13,949	(27,467)	8,029
Income tax expense	4,902	301	4,777	6,683
Net (loss) income	(20,566)	13,648	(32,244)	1,346
Net loss (income) attributable to non-controlling interest	2,800	(5)	3,647	(41)
Net (loss) income attributable to stockholders	(17,766)	13,643	(28,597)	1,305
Less: Dividend on Series A preferred stock	3,715	3,681	11,145	5,412
Net (loss) income attributable to stockholders of common stock, diluted	(21,481)	9,962	(39,742)	(4,107)
Net (loss) income attributable to stockholders of common stock, basic	$ (21,481)	$ 9,962	$ (39,742)	$ (4,107)
Basic (loss) earnings per share (in dollars per share)	$ (0.24)	$ 0.12	$ (0.45)	$ (0.05)
Diluted (loss) earnings per share (in dollars per share)	$ (0.24)	$ 0.11	$ (0.45)	$ (0.05)
Shares used in the computation of (loss) earnings per share:
Basic (in shares)	88,321	86,002	88,115	81,088
Diluted (in shares)	88,321	86,964	88,115	81,088

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (20,566)	$ 13,648	$ (32,244)	$ 1,346
Other comprehensive (loss) income:
Currency translation adjustments ("CTA")	(13,344)	(1,292)	(24,263)	(2,840)
Reclassification of CTA to net (loss) income	0	0	0	(4,512)
Benefit obligations:
Pension and post retirement adjustments, net of tax	198	197	593	593
Other comprehensive loss	(13,146)	(1,095)	(23,670)	(6,759)
Total comprehensive (loss) income	(33,712)	12,553	(55,914)	(5,413)
Comprehensive income attributable to non-controlling interest	0	25	959	18
Comprehensive (loss) income attributable to stockholders	$ (33,712)	$ 12,578	$ (54,955)	$ (5,395)

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 48,471	$ 224,874
Current restricted cash and cash equivalents	9,630	1,841
Accounts receivable – trade, net	146,491	132,068
Accounts receivable – other	46,534	34,553
Contracts in progress	125,030	80,176
Inventories, net	97,832	79,527
Other current assets	24,605	29,395
Total current assets	498,593	582,434
Net property, plant and equipment, and finance lease	81,737	85,627
Goodwill	155,229	116,462
Intangible assets, net	59,794	43,795
Right-of-use assets	30,401	30,163
Long-term restricted cash	11,397	0
Other assets	44,416	54,784
Total assets	881,567	913,265
Accounts payable	122,083	85,929
Accrued employee benefits	12,110	12,989
Advance billings on contracts	97,961	68,380
Accrued warranty expense	10,621	12,925
Financing lease liabilities	1,140	2,445
Operating lease liabilities	3,786	3,950
Other accrued liabilities	69,531	54,385
Loans payable	2,301	12,380
Total current liabilities	319,533	253,383
Senior notes	333,498	326,366
Long term loans payable	534	1,543
Pension and other postretirement benefit liabilities	156,519	182,730
Non-current finance lease liabilities	27,778	29,369
Non-current operating lease liabilities	27,328	26,685
Other non-current liabilities	33,505	34,567
Total liabilities	898,695	854,643
Commitments and contingencies
Stockholders' (deficit) equity:
Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,669 and 7,669 at September 30, 2022 and December 31, 2021, respectively	77	77
Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 88,633 and 86,286 at September 30, 2022 and December 31, 2021, respectively	5,137	5,110
Capital in excess of par value	1,533,904	1,518,872
Treasury stock at cost, 1,867 and 1,525 shares at September 30, 2022 and December 31, 2021, respectively	(113,749)	(110,934)
Accumulated deficit	(1,360,896)	(1,321,154)
Accumulated other comprehensive loss	(82,492)	(58,822)
Stockholders' (deficit) equity attributable to shareholders	(18,019)	33,149
Non-controlling interest	891	25,473
Total stockholders' (deficit) equity	(17,128)	58,622
Total liabilities and stockholders' (deficit) equity	$ 881,567	$ 913,265

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	20,000,000	20,000,000
Preferred stock, issued (in shares)	7,669,000	7,669,000
Preferred stock, outstanding (in shares)	7,669,000	7,669,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	88,633,000	86,286,000
Common stock, outstanding (in shares)	88,633,000	86,286,000
Treasury stock, at cost (in shares)	1,867,000	1,525,000

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands	Total	Common Stock	Preferred Stock	Capital In Excess of Par Value	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive (Loss)	Non-controlling Interest
Beginning balance of common stock (in shares) at Dec. 31, 2020		54,452,000
Beginning balance at Dec. 31, 2020	$ (338,262)	$ 4,784	$ 0	$ 1,164,436	$ (105,990)	$ (1,350,206)	$ (52,390)	$ 1,104
Beginning balance of preferred stock (in shares) at Dec. 31, 2020			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(15,443)					(15,464)		21
Currency translation adjustments	(4,606)						(4,582)	(24)
Pension and post retirement adjustments, net of tax	198						198
Stock-based compensation charges (in shares)		1,725,000
Stock-based compensation charges	1,194	$ 22		4,480	(3,308)
Common stock offering (in shares)		29,487,000
Common stock offering	161,513	$ 295		161,218
Dividends to non-controlling interest	(38)							(38)
Ending balance of common stock (in shares) at Mar. 31, 2021		85,664,000
Ending balance at Mar. 31, 2021	(195,444)	$ 5,101	$ 0	1,330,134	(109,298)	(1,365,670)	(56,774)	1,063
Ending balance of preferred stock (in shares) at Mar. 31, 2021			0
Beginning balance of common stock (in shares) at Dec. 31, 2020		54,452,000
Beginning balance at Dec. 31, 2020	(338,262)	$ 4,784	$ 0	1,164,436	(105,990)	(1,350,206)	(52,390)	1,104
Beginning balance of preferred stock (in shares) at Dec. 31, 2020			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	1,346
Pension and post retirement adjustments, net of tax	593
Ending balance of common stock (in shares) at Sep. 30, 2021		86,244,000
Ending balance at Sep. 30, 2021	20,400	$ 5,110	$ 76	1,516,368	(110,853)	(1,354,313)	(59,149)	23,161
Ending balance of preferred stock (in shares) at Sep. 30, 2021			7,599,000
Beginning balance of common stock (in shares) at Mar. 31, 2021		85,664,000
Beginning balance at Mar. 31, 2021	(195,444)	$ 5,101	$ 0	1,330,134	(109,298)	(1,365,670)	(56,774)	1,063
Beginning balance of preferred stock (in shares) at Mar. 31, 2021			0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	3,141					3,126		15
Currency translation adjustments	(1,483)						(1,478)	(5)
Pension and post retirement adjustments, net of tax	198						198
Stock-based compensation charges (in shares)		65,000
Stock-based compensation charges	1,200	$ 2		1,201	(3)
Common stock offering	(529)			(529)
Preferred stock offering, net (in shares)			4,445,000
Preferred stock offering, net	106,043		$ 45	105,998
Equitized Last Out Term Loan interest payment (in shares)			2,917,000
Equitized Last Out Term Loan interest payment	72,922		$ 29	72,893
Dividends to preferred stockholders	(1,731)					(1,731)
Dividends to non-controlling interest	(36)
Ending balance of common stock (in shares) at Jun. 30, 2021		85,729,000
Ending balance at Jun. 30, 2021	(15,719)	$ 5,103	$ 74	1,509,697	(109,301)	(1,364,275)	(58,054)	1,037
Ending balance of preferred stock (in shares) at Jun. 30, 2021			7,362,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	13,648					13,643		5
Currency translation adjustments	(1,322)						(1,292)	(30)
Pension and post retirement adjustments, net of tax	197						197
Stock-based compensation charges (in shares)		515,000
Stock-based compensation charges	(629)	$ 7		916	(1,552)
Common stock offering	(50)			(50)
Preferred stock offering, net (in shares)			237,000
Preferred stock offering, net	5,807		$ 2	5,805
Dividends to preferred stockholders	(3,681)					(3,681)
Non-controlling interest from acquisition	22,262							22,262
Dividends to non-controlling interest	(113)							(113)
Ending balance of common stock (in shares) at Sep. 30, 2021		86,244,000
Ending balance at Sep. 30, 2021	$ 20,400	$ 5,110	$ 76	1,516,368	(110,853)	(1,354,313)	(59,149)	23,161
Ending balance of preferred stock (in shares) at Sep. 30, 2021			7,599,000
Beginning balance of common stock (in shares) at Dec. 31, 2021	86,286,000	86,286,000
Beginning balance at Dec. 31, 2021	$ 58,622	$ 5,110	$ 77	1,518,872	(110,934)	(1,321,154)	(58,822)	25,473
Beginning balance of preferred stock (in shares) at Dec. 31, 2021	7,669,000		7,669,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ (8,684)					(8,264)		(420)
Currency translation adjustments	(4,326)						(4,285)	(41)
Pension and post retirement adjustments, net of tax	593						593
Stock-based compensation charges (in shares)		52,000
Stock-based compensation charges	1,453	$ 1		1,673	(221)
Dividends to preferred stockholders	(3,715)					(3,715)
Dividends to non-controlling interest	(1)							(1)
Ending balance of common stock (in shares) at Mar. 31, 2022		86,338,000
Ending balance at Mar. 31, 2022	$ 43,942	$ 5,111	$ 77	1,520,545	(111,155)	(1,333,133)	(62,514)	25,011
Ending balance of preferred stock (in shares) at Mar. 31, 2022			7,669,000
Beginning balance of common stock (in shares) at Dec. 31, 2021	86,286,000	86,286,000
Beginning balance at Dec. 31, 2021	$ 58,622	$ 5,110	$ 77	1,518,872	(110,934)	(1,321,154)	(58,822)	25,473
Beginning balance of preferred stock (in shares) at Dec. 31, 2021	7,669,000		7,669,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ (32,244)
Pension and post retirement adjustments, net of tax	$ 593
Ending balance of common stock (in shares) at Sep. 30, 2022	88,633,000	88,633,000
Ending balance at Sep. 30, 2022	$ (17,128)	$ 5,137	$ 77	1,533,904	(113,749)	(1,360,896)	(82,492)	891
Ending balance of preferred stock (in shares) at Sep. 30, 2022	7,669,000		7,669,000
Beginning balance of common stock (in shares) at Mar. 31, 2022		86,338,000
Beginning balance at Mar. 31, 2022	$ 43,942	$ 5,111	$ 77	1,520,545	(111,155)	(1,333,133)	(62,514)	25,011
Beginning balance of preferred stock (in shares) at Mar. 31, 2022			7,669,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(2,994)					(2,567)		(427)
Currency translation adjustments	(6,705)						(6,634)	(71)
Pension and post retirement adjustments, net of tax	(198)						(198)
Stock-based compensation charges (in shares)		54,000
Stock-based compensation charges	1,387	$ 1		1,386
Dividends to preferred stockholders	(3,715)					(3,715)
Ending balance of common stock (in shares) at Jun. 30, 2022		86,392,000
Ending balance at Jun. 30, 2022	31,717	$ 5,112	$ 77	1,521,931	(111,155)	(1,339,415)	(69,346)	24,513
Ending balance of preferred stock (in shares) at Jun. 30, 2022			7,669,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(20,566)					(17,766)		(2,800)
Currency translation adjustments	(13,431)						(13,344)	(87)
Pension and post retirement adjustments, net of tax	198						198
Stock-based compensation charges (in shares)		2,241,000
Stock-based compensation charges	778	$ 25		3,347	(2,594)
Purchase of Fosler Construction non-controlling interest	(12,109)			8,626				(20,735)
Common stock offering (in shares)
Common stock offering	0			0
Preferred stock offering, net (in shares)			0
Preferred stock offering, net	0		$ 0	0
Equitized Last Out Term Loan principal payment (in shares)			0
Equitized Last Out Term Loan principal payment	0		$ 0	0
Dividends to preferred stockholders	(3,715)					(3,715)
Dividends to non-controlling interest	$ 0							0
Ending balance of common stock (in shares) at Sep. 30, 2022	88,633,000	88,633,000
Ending balance at Sep. 30, 2022	$ (17,128)	$ 5,137	$ 77	$ 1,533,904	$ (113,749)	$ (1,360,896)	$ (82,492)	$ 891
Ending balance of preferred stock (in shares) at Sep. 30, 2022	7,669,000		7,669,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands			3 Months Ended						9 Months Ended		12 Months Ended
	Aug. 13, 2021	Mar. 15, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Cash flows from operating activities:
Net (loss) income			$ (20,566)	$ (2,994)	$ (8,684)	$ 13,648	$ 3,141	$ (15,443)	$ (32,244)	$ 1,346
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of long-lived assets									13,184	12,684
Goodwill impairment									7,224	0
Change in fair value of contingent consideration			(9,600)						(9,567)	0
Amortization of deferred financing costs and debt discount									3,864	7,150
Amortization of guaranty fee									543	1,370
Non-cash operating lease expense									5,698	3,206
Loss on sale of business	$ (13,900)	$ (1,900)							0	2,240
Gain on debt extinguishment			0			0			0	(6,530)
Gain on asset disposals									(7,000)	(15,804)
(Benefit from) provision for deferred income taxes									(2,597)	2,601
Prior service cost amortization for pension and postretirement plans									593	(1,660)
Stock-based compensation, net of associated income taxes									6,497	6,628
Foreign exchange			2,007			1,673			3,218	1,056
Changes in assets and liabilities:
Accounts receivable									(26,224)	1,466
Contracts in progress									(48,208)	(9,365)
Advance billings on contracts									28,915	(20,625)
Inventories									(15,098)	(4,681)
Income taxes									(2,133)	(4,239)
Accounts payable									39,639	7,375
Accrued and other current liabilities									(10,813)	(44,768)
Accrued contract loss									3,481	(266)
Pension liabilities, accrued postretirement benefits and employee benefits									(27,144)	(47,108)
Other, net									792	90
Net cash used in operating activities									(67,380)	(107,834)
Cash flows from investing activities:
Purchase of property, plant and equipment									(8,947)	(4,213)
Acquisition of business, net of cash acquired									(64,914)	(27,211)
Proceeds from sale of business and assets, net									2,500	23,770
Purchases of available-for-sale securities									(5,006)	(9,597)
Sales and maturities of available-for-sale securities									8,498	11,373
Other, net									299	0
Net cash used in investing activities									(67,570)	(5,878)
Cash flows from financing activities:
Issuance of senior notes									5,455	151,239
Borrowings on loan payable									1,342	3,472
Repayments on loan payable									(13,863)	0
Repayments under last out term loans									0	(75,408)
Borrowings under U.S. revolving credit facility									0	14,500
Repayments of U.S. revolving credit facility									0	(178,800)
Issuance of preferred stock, net									(40)	111,850
Payment of preferred stock dividends									(11,145)	(5,412)
Shares of common stock returned to treasury stock									(2,815)	(4,863)
Issuance of common stock, net									0	160,934
Debt issuance costs									209	(16,725)
Other, net									1,776	(1,569)
Net cash (used in) provided by financing activities									(19,081)	159,218
Effects of exchange rate changes on cash									(3,186)	2,818
Net (decrease) increase in cash, cash equivalents and restricted cash									(157,217)	48,324
Cash, cash equivalents and restricted cash at beginning of period					$ 226,715			$ 67,423	226,715	67,423	$ 67,423
Cash, cash equivalents and restricted cash at end of period			69,498			115,747			69,498	115,747	226,715
Schedule of cash, cash equivalents and restricted cash:
Cash and cash equivalents			48,471			107,055			48,471	107,055	224,874
Current restricted cash			9,630			8,692			9,630	8,692	1,841
Long-term restricted cash			11,397			0			11,397	0	0
Total cash, cash equivalents and restricted cash at end of period			$ 69,498			$ 115,747			69,498	115,747	$ 226,715
Supplemental Cash flow information:
Income taxes paid, net									2,693	6,094
Interest paid									$ 19,292	$ 18,800

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BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

These interim Condensed Consolidated Financial Statements of Babcock & Wilcox Enterprises, Inc. (“B&W,” “management,” “we,” “us,” “our” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with the Company's Annual Report. The Company has included all adjustments, in the opinion of management, consisting only of normal, recurring adjustments, necessary for a fair presentation of the interim financial statements. The Company has eliminated all intercompany transactions and accounts. The Company has presented the notes to its Condensed Consolidated Financial Statements on the basis of continuing operations, unless otherwise stated.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. In the opinion of management, these consolidated financial statements contain all estimates and adjustments, consisting of normal recurring accruals, required to fairly present the financial position, results of operations, and cash flows for the interim periods. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full-year ending December 31, 2022.

Non-controlling interests are presented in the Company’s consolidated financial statements as if parent company investors (controlling interests) and other minority investors (non-controlling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in non-controlling interests are reported as equity in the Company’s consolidated financial statements. Additionally, the Company’s consolidated financial statements include 100% of a controlled subsidiary’s earnings, rather than only its share. Transactions between the parent company and non-controlling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

Risks and Uncertainties

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EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted (loss) earnings per share of the Company's common stock, net of non-controlling interest and dividends on preferred stock:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Net (loss) income attributable to stockholders of common stock	$	(21,481)	$	9,962	$	(39,742)	$	(4,107)
Weighted average shares used to calculate basic and diluted (loss) earnings per share	88,321		86,002		88,115		81,088
Dilutive effect of stock options, restricted stock and performance units	—		962		—		—
Weighted average shares used to calculate diluted earnings (loss) per share	88,321		86,964		88,115		81,088
Basic (loss) earnings per share	$	(0.24)	$	0.12	$	(0.45)	$	(0.05)
Diluted (loss) earnings per share	$	(0.24)	$	0.11	$	(0.45)	$	(0.05)

Because the Company incurred a net loss in the three and nine-month periods ended September 31, 2022 and the nine-month period ended September 30, 2021, basic and diluted shares are the same.

If the Company had net income in the three months ended September 30, 2022, diluted shares would include an additional 0.8 million shares. If the Company was in a net income position during the nine months ended September 30, 2022 and 2021, diluted shares would include an additional 0.9 million and 1.3 million shares, respectively.

The Company excluded 0.3 million and 0.9 million shares related to stock options from the diluted share calculation for the three-month periods ended September 30, 2022 and 2021, respectively, because their effect would have been anti-dilutive. The Company excluded 0.4 million and 1.0 million shares related to stock options from the diluted share calculation for the nine-month periods ended September 30, 2022 and 2021, respectively, because their effect would have been anti-dilutive.

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SEGMENT REPORTING

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company's operations are assessed based on three reportable market-facing segments as part of its strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders with improved visibility into its renewable and environmental growth platforms. 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 by diverting waste from landfills to use for power generation and replacing fossil fuels while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, 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.

•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.

Revenues by segment exclude inter-segment sales. An analysis of the Company's operations by segment is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Revenues:
B&W Renewable segment
B&W Renewable	$	34,279	$	20,783	$	89,500	$	63,481
B&W Renewable Services (1)	30,164		2,036		57,996		10,889
Vølund	14,043		15,181		48,936		30,785
Fosler Solar	3,201		—		28,443		—
	81,687		38,000		224,875		105,155
B&W Environmental segment
B&W Environmental	25,773		14,338		56,759		42,766
SPIG	14,521		16,514		40,815		40,892
GMAB	4,332		7,397		13,612		14,109
	44,626		38,249		111,186		97,767
B&W Thermal segment
B&W Thermal	91,331		83,819		309,875		328,416
	91,331		83,819		309,875		328,416
Eliminations	(2,774)		(108)		(5,998)		(270)
Total Revenues	$	214,870	$	159,960	$	639,938	$	531,068

(1) B&W Renewable Services' 2021 revenues were reclassified from Vølund's prior year reported amount for year-over-year comparability.

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, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management and are not allocated to the segment.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Adjusted EBITDA
B&W Renewable segment(1)	$	4,522	$	11,399	$	14,846	$	15,030
B&W Environmental segment	3,082		3,476		5,112		7,286
B&W Thermal segment	10,761		9,329		41,276		32,436
Corporate	(4,419)		(5,866)		(13,018)		(11,548)
Research and development costs	(891)		513		(2,532)		(560)
	$	13,055	$	18,851	$	45,684	$	42,644

(1) Adjusted EBITDA for the nine months ended September 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold as well as the reduction to Selling, General and Administrative Costs of $9.6 million for the three and nine months ended September 30, 2022 that resulted from the reversal of the contingent consideration related to an acquisition.

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.

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REVENUE RECOGNITION AND CONTRACTS

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION AND CONTRACTS

REVENUE RECOGNITION AND CONTRACTS

Revenue Recognition

The Company generates the vast majority of its revenues from the supply of, and aftermarket services for, steam-generating, environmental and auxiliary equipment. The Company also earns revenue from the supply of custom-engineered cooling systems for steam applications along with related aftermarket services.

Revenue from goods and services transferred to customers at a point in time, which includes certain aftermarket parts and services, accounted for 25% and 21% of the Company's revenue for the three months ended September 30, 2022 and 2021, respectively, and 23% and 20% of its revenue for the nine months ended September 30, 2022 and 2021, respectively. Revenue from products and services transferred to customers over time, which primarily relates to customized, engineered solutions and construction services, accounted for 75% and 79% of the Company's revenue for the three months ended September 30, 2022 and 2021, respectively, and 77% and 80% of its revenue for nine months ended September 30, 2022 and 2021, respectively

A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Refer to Note 3 for the Company's disaggregation of revenue by product line.

Contract Balances

The following represents the components of the Company's Contracts in progress and Advance billings on contracts included in its Condensed Consolidated Balance Sheets:

(in thousands)	September 30, 2022		December 31, 2021		$ Change		% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized	$	60,182	$	35,939	$	24,243	67	%
Revenues recognized less billings to customers	64,849		44,237		20,612		47	%
Contracts in progress	$	125,031	$	80,176	$	44,855	56	%
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized	$	87,033	$	68,615	$	18,418	27	%
Costs of revenue recognized less cost incurred	10,927		(235)		11,162		(4,750)	%
Advance billings on contracts	$	97,960	$	68,380	$	29,580	43	%
Net contract balance	$	27,071	$	11,796	$	15,275	129	%
Accrued contract losses	$	3,859	$	378	$	3,481	921	%

Backlog

On September 30, 2022 we had $730.0 million of remaining performance obligations, which the Company also refers to as total backlog. The Company expects to recognize approximately 32.5%, 46.4% and 21.1% of its remaining performance obligations as revenue in 2022, 2023 and thereafter, respectively.

Changes in Contract Estimates

During the three and nine-month periods ended September 30, 2022 and 2021, the Company recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Increases in gross profit for changes in estimates for over time contracts	$	1,690	$	7,001	$	11,343	$	12,340
Decreases in gross profit for changes in estimates for over time contracts	(10,353)		(1,523)		(20,004)		(6,018)
Net changes in gross profit for changes in estimates for over time contracts	$	(8,663)	$	5,478	$	(8,661)	$	6,322

B&W Renewable Projects

During March 2022, the Company determined that its Fosler Solar reporting unit had nine projects located in the United States that existed at the time Fosler was acquired on September 30, 2021 which generated losses that arose due to the status of certain construction activities, existing at acquisition date, not adequately disclosed in the sales agreement and not recognized in the financial records of the seller. As of September 30, 2022, the Company has recorded an increase in goodwill of $14.4 million, primarily resulting from the recognition of $14.1 million of accrued liabilities and $0.4 million of warranty accruals in conjunction with the finalization of purchase accounting as measurement period adjustments which was finalized as of September 30, 2022.

During the nine months ended September 30, 2022, two additional Fosler Solar projects became loss contracts. In the three and nine months ended September 30, 2022, the Company recorded $8.6 million in net losses from changes in the estimated revenues and costs to complete the eleven Fosler Solar loss contracts. The Company has submitted insurance claims to recover a portion of these losses as of September 30, 2022.

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INVENTORIES

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories are stated at the lower of cost or net realizable value. The components of inventories are as follows:

(in thousands)	September 30, 2022		December 31, 2021
Raw materials and supplies	$	79,911	$	56,352
Work in progress	4,950		5,723
Finished goods	12,971		17,452
Total inventories	$	97,832	$	79,527

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PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASES

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASES

PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASES

Property, plant and equipment less accumulated depreciation is as follows:

(in thousands)	September 30, 2022		December 31, 2021
Land	$	2,378	$	1,489
Buildings	33,842		31,895
Machinery and equipment	148,032		144,325
Property under construction	7,771		12,480
	192,023		190,189
Less accumulated depreciation	135,158		133,137
Net property, plant and equipment	56,865		57,052
Finance leases	30,548		34,159
Less finance lease accumulated amortization	5,676		5,584
Net property, plant and equipment, and finance lease	$	81,737	$	85,627

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GOODWILL

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

The following summarizes the changes in the net carrying amount of goodwill as of September 30, 2022:

(in thousands)	B&W Renewable		B&W Environmental		B&W Thermal		Total
Balance at December 31, 2021	$	79,357	$	5,667	$	31,438	$	116,462
Addition - Fossil Power(1)					35,392		35,392
Addition - Optimus Industries(1)					11,081		11,081
Measurement period adjustments - Fosler(2)	10,697						10,697
Measurement period adjustments - VODA(1)(2)	(61)						(61)
Measurement period adjustments - Fossil Power(1)(2)					270		270
Measurement period adjustments - Optimus Industries(1)(2)					(7,273)		(7,273)
Goodwill impairment - Fosler	(7,224)						(7,224)
Currency translation adjustments	(1,041)		(786)		(2,288)		(4,115)
Balance at September 30, 2022	$	81,728	$	4,881	$	68,622	$	155,229

(1) As described in Note 21, the Company is in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the provisional measurements of goodwill associated with these acquisitions are subject to change.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

Goodwill represents the excess of the consideration transferred over the fair value of net assets, including identifiable intangible assets, at the acquisition date. Goodwill is assessed for impairment annually on October 1 or more frequently if events or changes in circumstances indicate a potential impairment exists.

In assessing goodwill for impairment, the Company follows ASC 350, Intangibles – Goodwill and Other, which permits a qualitative assessment of whether it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill, or we choose not to perform the qualitative assessment, then we compare the fair value of that reporting unit with its carrying value, including goodwill, in a quantitative assessment. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss measured as the excess of the reporting unit’s carrying value, including goodwill, over its fair value. The estimated fair value of the reporting unit is derived based on valuation techniques the Company believes market participants would use for each of the reporting units.

During the quarter ended September 30, 2022, the Company identified certain factors, including but not limited to, the acquisition of the remaining 40% ownership stake in Fosler Construction Company Inc. for an amount less than the remaining balance of the non-controlling interest, significant deterioration in operating results from those originally forecast

at the date of acquisition primarily as a result of supply chain issues on certain solar product inputs, the recognition of additional contract losses in the third quarter of $8.6 million beyond amounts previously accounted for as measurement period adjustments during the year, the determination that the contingent consideration would not be payable, all of which contributed to the identification of a triggering event, requiring an interim quantitative goodwill impairment assessment of its Fosler Construction reporting unit. In addition, in conjunction with the interim goodwill impairment test, the Company performed an impairment analysis of the Fosler asset group's its long-lived and intangible assets and noted no impairment.

The quantitative assessment was performed using a combination of the income approach (discounted cash flows), the market approach and the guideline transaction method. The income approach uses the reporting unit’s estimated future cash flows, discounted at the weighted-average cost of capital of a hypothetical third-party buyer to account for uncertainties within the projections. The income approach uses assumptions based on the reporting unit’s estimated revenue growth, operating margin, and working capital turnover. The market approach estimates fair value by applying cash flow multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar characteristics to the reporting unit. The guideline transaction method estimates fair value by applying recent observed transaction multiples from transactions involving companies with similar characteristics to the reporting unit’s business.

The Company compared the fair value of the Fosler Construction reporting unit to its carrying value and determined that the carrying value of the reporting unit exceeded the fair value. As such, the Company recorded goodwill impairment losses related to the Fosler Construction reporting unit of $7.2 million.

No indicators of goodwill impairment were identified for the Company's other reporting units.

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INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

INTANGIBLE ASSETS

The Company's intangible assets are as follows:

(in thousands)	September 30, 2022		December 31, 2021
Definite-lived intangible assets(1) (2)
Customer relationships	$	67,027	$	46,903
Unpatented technology	17,819		15,410
Patented technology	3,646		3,103
Tradename	13,029		12,747
Acquired backlog	3,100		3,100
All other	9,138		9,319
Gross value of definite-lived intangible assets	113,759		90,582
Customer relationships amortization	(24,705)		(20,800)
Unpatented technology amortization	(9,584)		(8,313)
Patented technology amortization	(2,845)		(2,729)
Tradename amortization	(5,962)		(5,425)
Acquired backlog	(3,100)		(1,620)
All other amortization	(9,074)		(9,205)
Accumulated amortization	(55,270)		(48,092)
Net definite-lived intangible assets	$	58,489	$	42,490
Indefinite-lived intangible assets
Trademarks and trade names	$	1,305	$	1,305
Total intangible assets, net	$	59,794	$	43,795

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result the intangible assets associated with these acquisitions are subject to change.

(2) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments

The following summarizes the changes in the carrying amount of intangible assets, net:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	43,795	$	23,908
Business acquisitions and adjustments(1) (2)	27,412		17,100
Impairment of intangible assets	—		—
Amortization expense	(7,111)		(2,531)
Currency translation adjustments	(4,302)		(949)
Balance at end of the period	$	59,794	$	37,528

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the increase in intangible assets associated with these acquisitions are subject to change.

(3) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments.

Amortization of intangible assets is included in Cost of operations and SG&A in the Company's Condensed Consolidated Statement of Operations but is not allocated to segment results.

Intangible assets are assessed for impairment on an interim basis when impairment indicators exist. See Note 7 regarding the Company's interim impairment testing process for the nine months ended September 30, 2022.

Estimated future intangible asset amortization expense as of September 30, 2022 is as follows (in thousands):

	Amortization Expense
Year ending December 31, 2022	1,926
Year ending December 31, 2023	7,701
Year ending December 31, 2024	7,629
Year ending December 31, 2025	6,832
Year ending December 31, 2026	5,757
Year ending December 31, 2027	5,156
Thereafter	23,489

See Note 21 for more information regarding intangible assets identified in conjunction with the acquisitions of VODA, Fossil Power and Optimus Industries, which are subject to change pending the finalization of the purchase price allocation associated with these acquisitions.

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ACCRUED WARRANTY EXPENSE

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

ACCRUED WARRANTY EXPENSE

ACCRUED WARRANTY EXPENSE

The Company may offer assurance type warranties on products and services that it sells. Changes in the carrying amount of accrued warranty expense are as follows:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	12,925	$	25,399
Additions	3,799		5,155
Expirations and other changes	(3,257)		(4,790)
Payments	(2,159)		(10,212)
Translation and other	(687)		(342)
Balance at end of period	$	10,621	$	15,210

The Company accrues estimated expense included in Cost of operations on its Condensed Consolidated Statements of Operations to satisfy contractual warranty requirements when it recognizes the associated revenues on the related contracts, or in the case of a loss contract, the full amount of the estimated warranty costs is accrued when the contract becomes a loss contract. Additions at September 30, 2022 included $0.4 million related to the Fosler projects, as described in Note 4. In addition, the Company records specific provisions or reductions where it expects the actual warranty costs to significantly

differ from the accrued estimates. Such changes could have a material effect on the Company's consolidated financial condition, results of operations and cash flows.

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RESTRUCTURING ACTIVITIES

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

The Company incurred restructuring charges (benefits) in the three and nine months ended September 30, 2022, and 2021. The charges (benefits) primarily consist of severance and related costs to actions taken as part of the Company’s strategic, market-focused organizational and re-branding initiative.

The following tables summarizes the restructuring activity incurred by segment:

	Three Months Ended September 30,						Three Months Ended September 30,
	2022						2021
(in thousands)	Total		Severance and related costs (benefit)		Other (1)		Total		Severance and related costs		Other(1)
B&W Renewable segment	$	78	$	6	$	72	$	715	$	382	$	333
B&W Environmental segment	73		8		65		332		128		204
B&W Thermal segment	204		14		190		1,242		362		880
Corporate	4		1		3		2,286		124		2,162
	$	359	$	29	$	330	$	4,575	$	996	$	3,579

	Nine Months Ended September 30,						Nine Months Ended September 30,
	2022						2021
(in thousands)	Total		Severance and related costs (benefit)		Other (1)		Total		Severance and related costs		Other(1)
B&W Renewable segment	$	865	$	743	$	122	$	1,781	$	1,301	$	480
B&W Environmental segment	176		27		149		630		335		295
B&W Thermal segment	484		130		354		3,132		1,409		1,723
Corporate	(1,174)		(1,227)		53		2,425		132		2,293
	$	351	$	(327)	$	678	$	7,968	$	3,177	$	4,791
Cumulative costs to date	$	45,534	36,925		8,609

(1) Other amounts consist primarily of exit, relocation, COVID-19 related and other costs.

Restructuring liabilities are included in Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	4,136	$	7,945	$	6,561	$	8,146
Restructuring (benefit) expense	359		4,575		351		7,968
Payments	(1,943)		(5,482)		(4,360)		(9,076)
Balance at end of period	$	2,552	$	7,038	$	2,552	$	7,038

The payments shown above for the three and nine months ended September 30, 2022 and 2021 relate primarily to severance costs. Accrued restructuring liabilities at September 30, 2022 and 2021 relate primarily to employee termination benefits.

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of net periodic cost (benefit) included in net (loss) income are as follows:

	Pension Benefits								Other Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021		2022		2021		2022		2021
Interest cost	$	6,685	$	5,603	$	19,958	$	16,883	$	49	$	109	$	147	$	187
Expected return on plan assets	(14,358)		(13,527)		(42,985)		(40,309)		—		—		—		—
Amortization of prior service cost	27		28		82		84		173		173		519		519
Recognized net actuarial gain	—		(2,253)		—		(2,253)		—		—		—		—
Benefit plans, net (1)	(7,646)		(10,149)		(22,945)		(25,595)		222		282		666		706
Service cost included in COS (2)	195		217		594		652		5		6		15		18
Net periodic benefit cost (benefit)	$	(7,451)	$	(9,932)	$	(22,351)	$	(24,943)	$	227	$	288	$	681	$	724

(1)    Benefit plans, net, which is presented separately in the Company's Condensed Consolidated Statements of Operations, is not allocated to the segments.

(2)    Service cost related to a small group of active participants is presented within Cost of operations in the Company's Condensed Consolidated Statements of Operations and is allocated to the B&W Thermal segment.

There were no mark-to-market ("MTM") adjustments for the Company's pension and other postretirement benefit plans during the three and nine months ended September 30, 2022 and 2021.

The Company made contributions to its pension and other postretirement benefit plans totaling $1.7 million and $2.5 million during the three and nine months ended September 30, 2022, respectively, as compared to $0.4 million and $24.7 million during the three and nine months ended September 30, 2021, respectively.

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DEBT

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

DEBT

DEBT

Senior Notes

8.125% Senior Notes

During 2021, the Company completed sales of $151.2 million aggregate principal amount of its 8.125% senior notes due 2026 (“8.125% Senior Notes”) for net proceeds of approximately $146.6 million. In addition to the completed sales, the Company issued $35.0 million of 8.125% Senior Notes to B. Riley Financial, Inc., a related party, in exchange for a deemed prepayment of its then existing Last Out Term Loan Tranche A-3. The 8.125% Senior Notes bear interest at the rate of 8.125% per annum which is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on April 30, 2021. The 8.125% Senior Notes mature on February 28, 2026.

On March 31, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in which it may sell to or through B. Riley Securities, Inc., from time to time, additional 8.125% Senior Notes up to an aggregate principal amount of $150.0 million. The 8.125% Senior Notes have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and are fungible with the initial 8.125% Senior Notes issuance in 2021.

During the first nine months of 2022, the Company sold $5.4 million aggregate principal of 8.125% Senior Notes under the sales agreement described above for $5.4 million of net proceeds.

6.50% Senior Notes

During 2021, the Company completed sales of $151.4 million aggregate principal amount of its 6.50% senior notes due in 2026 (the “6.50% Senior Notes”) for net proceeds of approximately $145.8 million. Interest on the 6.50% Senior Notes is

payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year. The 6.50% Senior Notes mature on December 31, 2026.

The components of the Company's senior notes at September 30, 2022 are as follows:

	Senior Notes
(in thousands)	8.125%		6.50%		Total
Senior notes due 2026	$	191,640	$	151,440	$	343,080
Unamortized deferred financing costs	(4,442)		(5,633)		(10,075)
Unamortized premium	493		—		493
Net debt balance	$	187,691	$	145,807	$	333,498

Revolving Debt

On June 30, 2021, the Company entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) with PNC Bank, National Association, as administrative agent (“PNC”) and a letter of credit agreement (the “Letter of Credit Agreement”) with PNC, pursuant to which PNC agreed to issue up to $110 million in letters of credit that is secured in part by cash collateral provided by an affiliate of MSD Partners, MSD PCOF Partners XLV, LLC (“MSD”), as well as a reimbursement, guaranty and security agreement with MSD, as administrative agent, and the cash collateral providers from time to time party thereto, along with certain of its subsidiaries as guarantors, pursuant to which the Company is obligated to reimburse MSD and any other cash collateral provider to the extent the cash collateral provided by MSD and any other cash collateral provider to secure the Letter of Credit Agreement is drawn to satisfy draws on letters of credit (the “Reimbursement Agreement”) and collectively with the Revolving Credit Agreement and Letter of Credit Agreement, the “Debt Documents” and the facilities thereunder, the “Debt Facilities”). The obligations of the Company under each of the Debt Facilities are guaranteed by certain existing and future domestic and foreign subsidiaries of the Company. B. Riley Financial, Inc. (“B. Riley”), a related party, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as described below. The Company expects to use the proceeds and letter of credit availability under the Debt Facilities for working capital purposes and general corporate purposes. The Revolving Credit Agreement matures on June 30, 2025. As of September 30, 2022, no borrowings have occurred under the Revolving Credit Agreement and under the Letter of Credit Agreement, usage consisted of $15.1 million of financial letters of credit and $94.3 million of performance letters of credit.

Each of the Debt Facilities has a maturity date of June 30, 2025. The interest rates applicable under the Revolving Credit Agreement float at a rate per annum equal to either (i) a base rate plus 2.0% or (ii) 1 or 3 month reserve-adjusted LIBOR rate plus 3.0%. The interest rates applicable to the Reimbursement Agreement float at a rate per annum equal to either (i) a base rate plus 6.50% or (ii) 1 or 3 month reserve-adjusted LIBOR plus 7.50%. Under the Letter of Credit Agreement, the Company is required to pay letter of credit fees on outstanding letters of credit equal to (i) administrative fees of 0.75% and (ii) fronting fees of 0.25%. Under the Revolving Credit Agreement, the Company is required to pay letter of credit fees on outstanding letters of credit equal to (i) letter of credit commitment fees of 3.0% and (ii) letter of credit fronting fees of 0.25%. Under each of the Revolving Credit Agreement and the Letter of Credit Agreement, the Company is required to pay a facility fee equal to 0.375% per annum of the unused portion of the Revolving Credit Agreement or the Letter of Credit Agreement, respectively. The Company is permitted to prepay all or any portion of the loans under the Revolving Credit Agreement prior to maturity without premium or penalty. Prepayments under the Reimbursement Agreement shall be subject to a prepayment fee of 2.25% in the first year after closing, 2.0% in the second year after closing and 1.25% in the third year after closing with no prepayment fee payable thereafter.

The Company has mandatory prepayment obligations under the Reimbursement Agreement upon the receipt of proceeds from certain dispositions or casualty or condemnation events. The Revolving Credit Agreement and Letter of Credit Agreement require mandatory prepayments to the extent of an over-advance.

The obligations under the Debt Facilities are secured by substantially all assets of the Company and each of the guarantors, in each case subject to inter-creditor arrangements. As noted above, the obligations under the Letter of Credit Facility are also secured by the cash collateral provided by MSD and any other cash collateral provider thereunder.

The Debt Documents contain certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The Debt Documents require the Company to comply with

certain financial maintenance covenants, including a quarterly fixed charge coverage test of not less than 1.00 to 1.00, a quarterly senior net leverage ratio test of not greater than 2.50 to 1.00, a non-guarantor cash repatriation covenant not to exceed $35 million at any one time, a minimum liquidity covenant of at least $30.0 million at all times, a current ratio of not less than 1.25 to 1.00, and an annual cap on maintenance capital expenditures of $7.5 million. The Debt Documents also contain customary events of default (subject, in certain instances, to specified grace periods) including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal under the respective facility, the failure to comply with certain covenants and agreements specified in the applicable Debt Agreement, defaults in respect of certain other indebtedness and certain events of insolvency. If any event of default occurs, the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Debt Documents may become due and payable immediately. As of September 30, 2022, the Company was not in compliance with the aforementioned quarterly fixed charge coverage test and received a waiver from MSD and PNC for the period ended September 30, 2022.

In connection with the Company’s entry into the Debt Documents on June 30, 2021, B. Riley, a related party, entered into a Guaranty Agreement in favor of MSD, in its capacity as administrative agent under the Reimbursement Agreement, for the ratable benefit of MSD, the cash collateral providers and each co-agent or sub-agent appointed by MSD from time to time (the “B. Riley Guaranty”). The B. Riley Guaranty provides for the guarantee of all of the Company’s obligations under the Reimbursement Agreement. The B. Riley Guaranty is enforceable in certain circumstances, including, among others, certain events of default and the acceleration of the Company’s obligations under the Reimbursement Agreement. Under a fee letter with B. Riley, the Company agreed to pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty. The Company entered into a reimbursement agreement with B. Riley governing the Company’s obligation to reimburse B. Riley to the extent the B. Riley Guaranty is called upon by the agent or lenders under the Reimbursement Agreement.

Letters of Credit, Bank Guarantees and Surety Bonds

Certain of the Company's subsidiaries, primarily outside of the United States, have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees outside of the Company's Letter of Credit Agreement as of September 30, 2022 was $45.1 million. The aggregate value of the outstanding letters of credit provided under the Letter of Credit Agreement backstopping letters of credit or bank guarantees was $36.7 million as of September 30, 2022. Of the outstanding letters of credit issued under the Letter of Credit Agreement, $58.8 million are subject to foreign currency revaluation.

The Company has also posted surety bonds to support contractual obligations to customers relating to certain contracts. The Company utilizes bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should the Company fail to perform its obligations under its applicable contracts. The Company, and certain of its subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds the underwriters issue in support of some of its contracting activity. As of September 30, 2022, bonds issued and outstanding under these arrangements in support of its contracts totaled approximately $333.9 million. The aggregate value of the letters of credit backstopping surety bonds was $8.7 million.

The Company's ability to obtain and maintain sufficient capacity under the its current Debt Facilities is essential to allow it to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, the Company's ability to support contract security requirements in the future will be diminished.

Other Indebtedness - Loans Payable

As of September 30, 2022, the Company's Denmark subsidiary has an unsecured interest-free loan of $0.7 million under a local government loan program related to COVID-19 that is payable May 2023. In addition, the Company had $1.6 million in a loan payable related to financed insurance premiums payable April 2023. These loan payables are included in current Loans payable in the Company's Condensed Consolidated Balance Sheets.

Fosler Construction has loans, primarily for vehicles and equipment, totaling $0.5 million at September 30, 2022. The vehicle and equipment loans are included in Long-term loans payables in the Company's Condensed Consolidated Balance Sheets.

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PREFERRED STOCK

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

PREFERRED STOCK

PREFERRED STOCK

In May 2021, the Company completed a public offering of its 7.75% Series A Cumulative Perpetual Preferred Stock (the "Preferred Stock") pursuant to an underwriting agreement (the “Underwriting Agreement”) between the Company and B. Riley Securities, Inc. At the closing, the Company issued to the public 4,444,700 shares of its Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $106.4 million after deducting underwriting discounts, commissions but before expenses. The Preferred Stock has a par value of $0.01 per share and is perpetual and has no maturity date. The Preferred Stock has a cumulative cash dividend, when and as if declared by the Company's Board of Directors, at a rate of 7.75% per year on the liquidation preference amount of $25.00 per share and payable quarterly in arrears.

The Preferred Stock ranks, as to dividend rights and rights as to the distribution of assets upon the Company's liquidation, dissolution or winding-up: (1) senior to all classes or series of the Company's common stock and to all other capital stock issued by it expressly designated as ranking junior to the Preferred Stock; (2) on parity with any future class or series of the Company's capital stock expressly designated as ranking on parity with the Preferred Stock; (3) junior to any future class or series of the Company's capital stock expressly designated as ranking senior to the Preferred Stock; and (4) junior to all of the Company's existing and future indebtedness.

The Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. The Company will pay cumulative cash dividends on the Preferred Stock when, as and if declared by its Board of Directors, only out of funds legally available for payment of dividends. Dividends on the Preferred Stock will accrue on the stated amount of $25.00 per share of the Preferred Stock at a rate per annum equal to 7.75% (equivalent to $1.9375 per year), payable quarterly in arrears. Dividends on the Preferred Stock declared by the Company's Board of Directors will be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year.

During the nine months ending September 30, 2022, the Company's Board of Directors approved dividends totaling $11.1 million. There are no cumulative undeclared dividends of the Preferred Stock at September 30, 2022.

On June 1, 2021, the Company and B. Riley, a related party, entered into an agreement (the “Exchange Agreement”) pursuant to which the Company (i) issued B. Riley 2,916,880 shares of its Preferred Stock, representing an exchange price of $25.00 per share and paid $0.4 million in cash, and (ii) paid $0.9 million in cash to B. Riley for accrued interest due, in exchange for a deemed prepayment of $73.3 million of the Company's then existing term loans with B. Riley under the Company’s prior A&R Credit Agreement.

On July 7, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in connection with the offer to or through B. Riley Securities, Inc., from time to time, additional shares of Preferred Stock up to an aggregate amount of $76.0 million of Preferred Stock. The Preferred Stock has the same terms and have the same CUSIP number and is fungible with, the Preferred Stock issued during May 2021. For the nine months ending September 30, 2022, the Company has sold no additional Preferred Stock pursuant to the sales agreement. As of December 31, 2021, the Company sold $7.7 million aggregate principal amount of Preferred Stock for $7.7 million of net proceeds.

COMMON STOCK

On February 12, 2021, the Company completed a public offering of its common stock pursuant to an underwriting agreement dated February 9, 2021, between the Company and B. Riley Securities, Inc., as representative of the several underwriters. At the time of closing, the Company issued to the public 29,487,180 shares of its common stock and received net proceeds of approximately $163.0 million after deducting underwriting discounts and commissions, but before expenses. The net proceeds of the offering were used to make a prepayment toward the balance outstanding under the Company's then existing U.S. Revolving Credit Facility and permanently reduced the commitments under its senior secured credit facilities.

On May 19, 2022, at the 2022 annual meeting of stockholders of the Company, the stockholders of the Company, upon the recommendation of the Company’s Board of Directors, approved an amendment to the Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan. The Plan Amendment became effective upon such stockholder approval. The Plan Amendment increased the total number of shares of the Company’s common stock authorized for award grants under the 2021 Plan from 1,250,000 shares to 5,250,000 shares. The 2021 Plan replaced the Company’s Amended and Restated 2015 Long-Term Incentive Plan. In addition to the 5,250,000 shares available for award grant purposes under the 2021 Plan as described above, any shares of Company common stock underlying any outstanding award granted under the 2015 Plan that,

following May 20, 2021, expires, or is terminated, surrendered, or forfeited for any reason without issuance of such shares shall also be available for the grant of new awards under the 2021 Plan.

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COMMON STOCK

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

COMMON STOCK

PREFERRED STOCK

In May 2021, the Company completed a public offering of its 7.75% Series A Cumulative Perpetual Preferred Stock (the "Preferred Stock") pursuant to an underwriting agreement (the “Underwriting Agreement”) between the Company and B. Riley Securities, Inc. At the closing, the Company issued to the public 4,444,700 shares of its Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $106.4 million after deducting underwriting discounts, commissions but before expenses. The Preferred Stock has a par value of $0.01 per share and is perpetual and has no maturity date. The Preferred Stock has a cumulative cash dividend, when and as if declared by the Company's Board of Directors, at a rate of 7.75% per year on the liquidation preference amount of $25.00 per share and payable quarterly in arrears.

The Preferred Stock ranks, as to dividend rights and rights as to the distribution of assets upon the Company's liquidation, dissolution or winding-up: (1) senior to all classes or series of the Company's common stock and to all other capital stock issued by it expressly designated as ranking junior to the Preferred Stock; (2) on parity with any future class or series of the Company's capital stock expressly designated as ranking on parity with the Preferred Stock; (3) junior to any future class or series of the Company's capital stock expressly designated as ranking senior to the Preferred Stock; and (4) junior to all of the Company's existing and future indebtedness.

The Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. The Company will pay cumulative cash dividends on the Preferred Stock when, as and if declared by its Board of Directors, only out of funds legally available for payment of dividends. Dividends on the Preferred Stock will accrue on the stated amount of $25.00 per share of the Preferred Stock at a rate per annum equal to 7.75% (equivalent to $1.9375 per year), payable quarterly in arrears. Dividends on the Preferred Stock declared by the Company's Board of Directors will be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year.

During the nine months ending September 30, 2022, the Company's Board of Directors approved dividends totaling $11.1 million. There are no cumulative undeclared dividends of the Preferred Stock at September 30, 2022.

On June 1, 2021, the Company and B. Riley, a related party, entered into an agreement (the “Exchange Agreement”) pursuant to which the Company (i) issued B. Riley 2,916,880 shares of its Preferred Stock, representing an exchange price of $25.00 per share and paid $0.4 million in cash, and (ii) paid $0.9 million in cash to B. Riley for accrued interest due, in exchange for a deemed prepayment of $73.3 million of the Company's then existing term loans with B. Riley under the Company’s prior A&R Credit Agreement.

On July 7, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in connection with the offer to or through B. Riley Securities, Inc., from time to time, additional shares of Preferred Stock up to an aggregate amount of $76.0 million of Preferred Stock. The Preferred Stock has the same terms and have the same CUSIP number and is fungible with, the Preferred Stock issued during May 2021. For the nine months ending September 30, 2022, the Company has sold no additional Preferred Stock pursuant to the sales agreement. As of December 31, 2021, the Company sold $7.7 million aggregate principal amount of Preferred Stock for $7.7 million of net proceeds.

COMMON STOCK

On February 12, 2021, the Company completed a public offering of its common stock pursuant to an underwriting agreement dated February 9, 2021, between the Company and B. Riley Securities, Inc., as representative of the several underwriters. At the time of closing, the Company issued to the public 29,487,180 shares of its common stock and received net proceeds of approximately $163.0 million after deducting underwriting discounts and commissions, but before expenses. The net proceeds of the offering were used to make a prepayment toward the balance outstanding under the Company's then existing U.S. Revolving Credit Facility and permanently reduced the commitments under its senior secured credit facilities.

On May 19, 2022, at the 2022 annual meeting of stockholders of the Company, the stockholders of the Company, upon the recommendation of the Company’s Board of Directors, approved an amendment to the Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan. The Plan Amendment became effective upon such stockholder approval. The Plan Amendment increased the total number of shares of the Company’s common stock authorized for award grants under the 2021 Plan from 1,250,000 shares to 5,250,000 shares. The 2021 Plan replaced the Company’s Amended and Restated 2015 Long-Term Incentive Plan. In addition to the 5,250,000 shares available for award grant purposes under the 2021 Plan as described above, any shares of Company common stock underlying any outstanding award granted under the 2015 Plan that,

following May 20, 2021, expires, or is terminated, surrendered, or forfeited for any reason without issuance of such shares shall also be available for the grant of new awards under the 2021 Plan.

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Information [Abstract]

INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

Interest expense in the Company's Condensed Consolidated Financial Statements consisted of the following components:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Components associated with borrowings from:
Senior notes	$	6,385	$	3,801	$	18,715	$	8,993
Last Out Term Loans - cash interest	—		—		—		4,349
U.S. Revolving Credit Facility	—		—		—		1,416
	6,385		3,801		18,715		14,758
Components associated with amortization or accretion of:
Revolving Credit Agreement	1,237		1,057		3,465		1,057
Senior notes	657		335		1,950		2,101
U.S. Revolving Credit Facility	—		—		—		5,995
	1,894		1,392		5,415		9,153
Components associated with interest from:
Lease liabilities	707		870		2,112		2,194
Other interest expense	2,334		2,267		7,007		4,469
	3,041		3,137		9,119		6,663
Total interest expense	$	11,320	$	8,330	$	33,249	$	30,574

The following table provides a reconciliation of Cash, cash equivalents and Short-term and Long-term restricted cash reporting within the Company's Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Cash Flows:

(in thousands)	September 30, 2022		December 31, 2021		September 30, 2021
Held by foreign entities	$	27,435	$	42,070	$	39,238
Held by U.S. entities	21,036		182,804		67,817
Cash and cash equivalents	48,471		224,874		107,055
Reinsurance reserve requirements	648		443		774
Bank guarantee collateral	1,892		997		1,026
Letters of credit collateral	1,190		401		6,892
Hold-back for acquisition purchase price (1)	5,900		—		—
Escrow for long-term project (2)	11,397		—		—
Current and Long-term restricted cash and cash equivalents	21,027		1,841		8,692
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	69,498	$	226,715	$	115,747

(1) The purchase price for Fossil Power Systems ("FPS") was $59.2 million, including a hold-back of $5.9 million which is included in Current restricted cash and cash equivalents and Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. The hold-back is being held in escrow for potential payment of up to the maximum amount twelve months from the February 1, 2022 date of acquisition if the conditions are met.

(2) On December 15, 2021, the Company entered into an agreement to place $11.5 million in an escrow account as security to ensure project performance. On April 30, 2023, $2.5 million of the total amount held in escrow will be reclassified from Long-Term restricted cash to Current restricted cash in anticipation of the initial payment on April 20, 2024. The remaining amount of $9.0 million will be reclassified from Long-term restricted cash to Current restricted cash on September 30, 2024, with a scheduled final settlement on September 30, 2025.

The following cash activity is presented as a supplement to the Company's Condensed Consolidated Statements of Cash Flows and is included in Net cash used in operating activities:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Income tax payments, net	$	2,693	$	6,094
Interest payments - 8.125% Senior Notes due 2026	$	11,444	$	6,681
Interest payments - 6.50% Senior Notes due 2026	7,848		—
Interest payments on U.S. Revolving Credit Facility	—		5,979
Interest payments on Last Out Term Loans	—		6,140
Total cash paid for interest	$	19,292	$	18,800

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PROVISION FOR INCOME TAXES

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES

In the three months ended September 30, 2022, income tax expense was $4.9 million, resulting in an effective tax rate of (31.3)%. In the three months ended September 30, 2021, income tax expense was $0.3 million, resulting in an effective tax rate of 2.2%.

In the nine months ended September 30, 2022, income tax expense was $4.8 million, resulting in an effective tax rate of (17.4)%. In the nine months ended September 30, 2021, income tax expense was $6.7 million, resulting in an effective tax rate of 83.2%.

The Company's effective tax rate for the three and nine months ended September 30, 2022 and 2021 is not reflective of the U.S. statutory rate due to valuation allowances against certain net deferred tax assets and discrete items. The Company has unfavorable discrete items of $0.7 million and $1.2 million for the three and nine months ended September 30, 2022, which primarily represent withholding taxes and deferred tax asset remeasurement due to an enacted change in tax law. The Company had favorable discrete items of $0.6 million and unfavorable discrete items of $2.9 million for the three and nine months ended September 30, 2021, which primarily represented withholding taxes and deferred tax liability remeasurement due to an enacted change in tax law.

The Company is subject to federal income tax in the United States and numerous countries that have statutory tax rates different than the United States federal statutory rate of 21%. The most significant of these foreign operations are located in Canada, Denmark, Germany, Italy, Mexico, Sweden, and the United Kingdom, with effective tax rates ranging between approximately 19% and 30%. The Company provides for income taxes based on the tax laws and rates in the jurisdictions where it conducts operations. These jurisdictions may have regimes of taxation that vary in both nominal rates and the basis on which these rates are applied. The Company's consolidated effective income tax rate can vary from period to period due to these foreign income tax rate variations, changes in the jurisdictional mix of its income, and valuation allowances.

The Inflation Reduction Act ("IRA") and CHIPS and Science Act ("CHIPS Act") were signed into law in August 2022. The IRA introduced new provisions, including a 15 percent corporate alternative minimum tax for certain large corporations that have at least an average of $1 billion adjusted financial statement income over a consecutive three-tax-year period and a new excise tax on corporate stock buybacks of public US companies. The CHIPS Act, introduces investment tax credits and incentives in semiconductor manufacturing. The corporate minimum tax and excise tax on stock buybacks will be effective for years beginning after December 31, 2022. There is no impact to our financial position at this time.

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CONTINGENCIES

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

Litigation Relating to Boiler Installation and Supply Contract

On December 27, 2019, a complaint was filed against Babcock & Wilcox by P.H. Glatfelter Company (“Glatfelter”) in the United States District Court for the Middle District of Pennsylvania, Case No. 1:19-cv-02215-JPW, alleging claims of breach of contract, fraud, negligent misrepresentation, promissory estoppel and unjust enrichment (the “Glatfelter Litigation”). The complaint alleges damages in excess of $58.9 million. On March 16, 2020 the Company filed a motion to dismiss, and on December 14, 2020 the court issued its order dismissing the fraud and negligent misrepresentation claims and finding that, in the event that parties’ contract is found to be valid, Plaintiffs’ claims for damages will be subject to the contractual cap on liability (defined as the $11.7 million purchase price subject to certain adjustments). On January 11, 2021, the Company filed its answer and a counterclaim for breach of contract, seeking damages in excess of $2.9 million. The Company intends to continue to vigorously litigate the action. However, given the stage of the litigation, it is too early to determine if the outcome of the Glatfelter Litigation will have a material adverse impact on The Company's consolidated financial condition, results of operations or cash flows.

Stockholder Derivative and Class Action Litigation

On April 14, 2020, a putative B&W stockholder (“Plaintiff”) filed a derivative and class action complaint against certain of the Company’s directors (current and former), executives and significant stockholders (collectively, “Defendants”) and the Company (as a nominal defendant). The action was filed in the Delaware Court of Chancery and is captioned Parker v. Avril, et al., C.A. No. 2020-0280-PAF (the “Stockholder Litigation”). Plaintiff alleges that Defendants, among other things, did not properly discharge their fiduciary duties in connection with the 2019 rights offering and related transactions.

On June 10, 2022, after pursuing private mediation, the parties to the Stockholder Litigation reached a settlement agreement in principle to resolve the Stockholder Litigation. That settlement agreement includes (i) certain corporate governance changes that the Company is willing to implement in the future, (ii) a total payment of $9.5 million, and (iii) other customary terms and conditions. All attorney’s fees, administration costs, and expenses associated with the settlement of this matter will be deducted from the total payment amount, other than the cost of notice, which will be borne by the Company. Of the total settlement amount, the Company will pay $4.75 million on behalf of B. Riley Financial, Inc. and Vintage Capital Management, LLC pursuant to existing contractual indemnification obligations to settle Plaintiff’s direct claims asserted against these entities. This $4.75 million, after the deduction of attorney’s fees and the customary settlement costs and expenses described above, will be paid to shareholders of the Company, excluding any Defendant in the Stockholder Litigation. The remaining $4.75 million of the total settlement amount, after the deduction of attorney’s fees and the customary settlement costs and expenses described above, will be paid to the Company from insurance proceeds and the contribution of certain other parties to the Stockholder Litigation to settle the derivative claims asserted by Plaintiff on behalf of the Company. The proposed settlement, which remains subject to court approval, would resolve all claims that have been, could have been, could now be, or in the future could, can, or might be asserted in the Stockholder Litigation. The settlement of this matter remains subject to court approval and the amount to be paid by the Company is fully accrued and reflected in Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets at September 30, 2022.

Russian Invasion of Ukraine

The Company does not currently have contracts directly with Russian entities or businesses and it currently does not conduct business in Russia directly. It is believed that the Company’s only involvement with Russia or Russian entities, involves sales of its products with a trade receivable in the amount of approximately $3.1 million by a wholly-owned Italian subsidiary of the Company to non-Russian counterparties who may resell the Company's products to Russian entities or perform services in Russia using its products. The Company has implemented a restricted party screening process completed by a third party to monitor compliance with trade restrictions. The economic sanctions and export-control measures and the ongoing invasion of Ukraine could impact the Company's subsidiary’s rights and responsibilities under the contracts and could result in potential losses to the Company.

Other

Due to the nature of B&W's business, the Company is, from time to time, involved in routine litigation or subject to disputes or claims related to its business activities, including, among other things: performance or warranty-related matters under the Company's customer and supplier contracts and other business arrangements; and workers' compensation, premises liability and other claims. Based on prior experience, the Company does not expect that any of these other litigation proceedings, disputes and claims will have a material adverse effect on its consolidated financial condition, results of operations or cash flows.

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COMPREHENSIVE INCOME

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME

Gains and losses deferred in accumulated other comprehensive income (loss) ("AOCI") are generally reclassified and recognized in the Condensed Consolidated Statements of Operations once they are realized. The changes in the components of AOCI, net of tax, for the first, second and third quarters of 2022 and 2021 were as follows:

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2021	$	(55,499)	$	(3,323)	$	(58,822)
Other comprehensive loss before reclassifications	(4,285)		—		(4,285)
Reclassified from AOCI to net loss	—		593		593
Net other comprehensive (loss) income	(4,285)		593		(3,692)
Balance at March 31, 2022	$	(59,784)	$	(2,730)	$	(62,514)
Other comprehensive loss before reclassifications	(6,634)		—		(6,634)
Reclassified from AOCI to net loss	—		(198)		(198)
Net other comprehensive loss	(6,634)		(198)		(6,832)
Balance at June 30, 2022	$	(66,418)	$	(2,928)	$	(69,346)
Other comprehensive loss before reclassifications	$	(13,344)	$	—	(13,344)
Reclassified from AOCI to net loss			$	198	198
Net other comprehensive loss	(13,344)		198		(13,146)
Balance at September 30, 2022	$	(79,762)	$	(2,730)	$	(82,492)

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2020	$	(47,575)	$	(4,815)	$	(52,390)
Other comprehensive loss before reclassifications	(70)		—		(70)
Reclassified from AOCI to net (loss) income	(4,512)		198		(4,314)
Net other comprehensive (loss) income	(4,582)		198		(4,384)
Balance at March 31, 2021	$	(52,157)	$	(4,617)	$	(56,774)
Other comprehensive loss before reclassifications	(1,478)		—		(1,478)
Reclassified from AOCI to net income	—		198		198
Net other comprehensive (loss) income	(1,478)		198		(1,280)
Balance at June 30, 2021	$	(53,635)	$	(4,419)	$	(58,054)
Other comprehensive loss before reclassifications	(1,292)		—		(1,292)
Reclassified from AOCI to net income (loss)	—		197		197
Net other comprehensive (loss) income	(1,292)		197		(1,095)
Balance at September 30, 2021	$	(54,927)	$	(4,222)	$	(59,149)

The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands):

AOCI component	Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Release of currency translation adjustment with the sale of business	Loss on sale of business	$	—	$	—	$	—	$	4,512
Pension and post retirement adjustments, net of tax	Benefit plans, net	198		(197)		593		(593)
	Net (loss) income	$	198	$	(197)	$	593	$	3,919

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The following tables summarize the Company's financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic, Fair Value Measurements and Disclosures).

(in thousands)
Available-for-sale securities	September 30, 2022		Level 1		Level 2
Corporate notes and bonds	$	6,147	$	6,147	$	—
Mutual funds	620		—		620
United States Government and agency securities	3,787		3,787		—
Total fair value of available-for-sale securities	$	10,554	$	9,934	$	620

(in thousands)
Available-for-sale securities	December 31, 2021		Level 1		Level 2
Corporate notes and bonds	$	9,477	$	9,477	$	—
Mutual funds	714		—		714
United States Government and agency securities	2,017		2,017		—
Total fair value of available-for-sale securities	$	12,208	$	11,494	$	714

Available-For-Sale Securities

The Company's investments in available-for-sale securities are presented in Other assets on its Condensed Consolidated Balance Sheets with contractual maturities ranging from 0-5 years.

Senior Notes

See Note 12 above for a discussion of the Company's senior notes. The fair value of the senior notes is based on readily available quoted market prices as of September 30, 2022.

(in thousands)	September 30, 2022
Senior Notes	Carrying Value		Estimated Fair Value
8.125% Senior Notes due 2026 ('BWSN')	$	191,640	$	184,800
6.50% Senior Notes due 2026 ('BWNB')	$	151,440	$	144,898

Other Financial Instruments

The Company used the following methods and assumptions in estimating its fair value disclosures for its other financial instruments:

•Cash and cash equivalents and restricted cash and cash equivalents. The carrying amounts that the Company has reported in the accompanying Condensed Consolidated Balance Sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature.

•Revolving Debt. The Company bases the fair values of debt instruments on quoted market prices. Where quoted prices are not available, the Company bases the fair values on Level 2 inputs such as the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of the Company's Revolving Debt approximated their carrying value at September 30, 2022.

•Warrants. The fair value of the warrants was established using the Black-Scholes option pricing model value approach.

•Contingent consideration: In connection with the Fosler Construction Company acquisition, the Company agreed to pay contingent consideration based on the achievement of targeted revenue thresholds for the year ended December 31, 2022. The range of undiscounted amounts the Company could be required to pay under the contingent consideration arrangement is between $0.0 million and $10.0 million. The Company used the Monte Carlo simulation method to calculate the value of the contingent consideration and it was determined that the value of the liability should be zero at September 30, 2022. As such, the Company removed $9.6 million from Other current liabilities in the Company's Condensed Consolidated Balance Sheets and recorded a reduction of Selling, General and Administrative expense of $9.6 million on the Company's Condensed Consolidated Statements of Operations. The fair value measurement of the contingent consideration related to the Fosler Construction Company acquisition was categorized as a Level 3 liability, as the measurement amount is based primarily on significant inputs not observable in the markets. The Company evaluates the fair value of contingent consideration and the corresponding liability each reporting period using an option pricing framework. The Company estimates projections during the earn-out period and volatility within the option pricing model captures variability in the potential pay-out. The analysis considers a discount rate applicable to the underlying projections and the risk of the Company paying the future liability.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

The Company believes transactions with related parties were conducted on terms equivalent to those prevailing in an arm's length transaction.

Transactions with B. Riley

Based on its Schedule 13D filings with the SEC, B. Riley beneficially owns approximately 30.5% of the Company's outstanding common stock as of September 30, 2022.

The Company entered into an agreement with BRPI Executive Consulting, LLC, an affiliate of B. Riley, on November 19, 2018 and amended the agreement on November 9, 2020 to retain the services of Mr. Kenny Young, to serve as its Chief Executive Officer until December 31, 2023, unless terminated by either party with thirty days written notice. Under this agreement, payments are $0.75 million per annum, paid monthly. Subject to the achievement of certain performance objectives as determined by the Compensation Committee of the Board, a bonus or bonuses may also be earned and payable to BRPI Executive Consulting, LLC. Total fees associated with B. Riley related to the services of Mr. Kenny Young were $0.2 million and $0.6 million for the three and nine months ended September 30, 2022, respectively, and $0.2 million and $0.4 million for the three and nine months ended September 30, 2021, respectively.

As described in Note 17, on June 10, 2022, after pursuing private mediation, the parties to the Stockholder Litigation reached a settlement agreement in principle to resolve the Stockholder Litigation. Of the total $9.5 million settlement amount, the Company will pay $4.75 million on behalf of B. Riley Financial, Inc. and Vintage Capital Management, LLC pursuant to existing contractual indemnification obligations to settle Plaintiff’s direct claims asserted against these entities. This $4.75 million, after the deduction of attorney’s fees and customary settlement costs and expenses, will be paid to shareholders of the Company, excluding any Defendant in the Stockholder Litigation. The settlement of this matter remains subject to court approval and the amount to be paid by the Company is fully accrued at September 30, 2022.

The public offering of the Company's 8.125% Senior Notes in February 2021, as described in Note 12, was conducted pursuant to an underwriting agreement dated February 10, 2021, between the Company and B. Riley Securities, Inc., an affiliate of B. Riley, as representative of several underwriters. At the closing date on February 12, 2021, the Company paid B. Riley Securities, Inc. $5.2 million for underwriting fees and other transaction cost related to the 8.125% Senior Notes offering.

The public offering of the Company's common stock, as described in Note 14, was conducted pursuant to an underwriting agreement dated February 9, 2021, between the Company and B. Riley Securities, Inc., as representative of the several underwriters. Also on February 12, 2021, the Company paid B. Riley Securities, Inc. $9.5 million for underwriting fees and other transaction costs related to the offering.

On February 12, 2021, the Company and B. Riley entered into the Exchange Agreement pursuant to which the Company agreed to issue to B. Riley $35.0 million aggregate principal amount of 8.125% Senior Notes in exchange for a deemed prepayment of $35.0 million of its existing Tranche A term loan with B. Riley Financial in the Exchange, as described in Note 12.

On March 31, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in which the Company may sell, from time to time, up to an aggregated principal amount of $150.0 million of 8.125% Senior Notes due 2026 to or through B. Riley Securities, Inc., as described in Note 12. As of September 30, 2022, the Company paid B. Riley Securities, Inc. $0.6 million for underwriting fees and other transaction costs related to the offering of which $0.1 million has been paid for the nine months ended September 30, 2022.

The public offering of the Company's 7.75% Series A Cumulative Perpetual Preferred Stock, as described in Note 13, was conducted pursuant to an underwriting agreement dated May 4, 2021, between the Company and B. Riley Securities, Inc., as representative of several underwriters. At the closing date on May 2021, the Company paid B. Riley Securities, Inc. $4.3 million for underwriting fees and other transaction cost related to the Preferred Stock offering.

On May 26, 2021, the Company completed the additional sale of 444,700 shares of its Preferred Stock, related to the grant to the underwriters, as described in Note 13, and paid B. Riley Securities, Inc. $0.4 million for underwriting fees in conjunction with the transaction.

On June 1, 2021, the Company issued 2,916,880 shares of its 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash due to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of the Company's then existing Last Out Term Loans and paid $0.9 million in cash for accrued interest, as described in Note 13.

On June 30, 2021, the Company entered into new Debt Facilities, as described in Note 12. In connection with the its entry into the Debt Facilities, B. Riley Financial, Inc., an affiliate of B. Riley, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as describe in Note 12. Under a fee letter with B. Riley, the Company shall pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty.

On July 7, 2021, the Company entered into a sales agreement with B. Riley Securities, Inc., a related party, in which the Company may sell, from time to time, up to an aggregated principal amount of $76.0 million of Preferred Stock to or through B. Riley Securities, Inc., as described in Note 13. As of September 30, 2022, the Company paid B. Riley Securities, Inc. $0.2 million for underwriting fees and other transaction costs related to the offering.

The public offering of the Company's 6.50% Senior Notes in December 2021, as described in Note 12, was conducted pursuant to an underwriting agreement dated December 8, 2021, between the Company and B. Riley Securities, Inc., an affiliate of B. Riley, as representative of several underwriters. At the closing date on December 13, 2021, the Company paid B. Riley Securities, Inc. $5.5 million for underwriting fees and other transaction cost related to the 6.50% Senior Notes offering.

On December 17, 2021, B. Riley Financial, Inc. entered into a General Agreement of Indemnity (the "Indemnity Agreement"), between the Company and AXA-XL and or its affiliated associated and subsidiary companies (collectively the “Surety”). Pursuant to the terms of the Indemnity Agreement, B. Riley will indemnify the Surety for losses the Surety may incur as a result of providing a payment and performance bond in an aggregate amount not to exceed €30.0 million in connection with the Company's proposed performance on a specified project. In consideration of B. Riley's execution of the Indemnity Agreement, the Company paid B. Riley a fee of $1.7 million following the issuance of the bond by the Surety, which represents approximately 5.0% of the bonded obligations, to be amortized over the term of the agreement.

On December 28, 2021, the Company received a notice that the underwriters of the 6.50% Senior Notes had elected to exercise their overallotment option for an additional $11.4 million in aggregate principal amount of the Senior Notes. At the closing date on December 30, 2021, the Company paid B. Riley Securities, Inc. $0.5 million for underwriting fees and other transaction cost related to the 6.50% Senior Notes overallotment.

On July 20, 2022, BRF Investments, LLC, an affiliate of B. Riley, a related party exercised 1,541,666.7 warrants to purchase 1,541,666 shares of the Company's common stock at a price per share of $0.01 pursuant to the terms of the warrant agreement between the Company and B. Riley dated July 23, 2019.

On July 28, 2022, the Company participated in the sale process of Hamon Holdings Corporation ("Hamon") for which B. Riley Securities, Inc., a related party to the Company, has been engaged as Hamon’s investment banker and to serve as advisor to Hamon through a Chapter 11 363 Asset Sale of Hamon’s entire United States business or potential carve-out of any of its four main subsidiaries. The Company was the successful bidder for the assets of one of those subsidiaries, Hamon Research-Cottrell, Inc., a major provider of air pollution control technology, for approximately $2.9 million.

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ACQUISITIONS AND DIVESTITURES

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

Acquisitions

Fosler Construction

On September 30, 2021, the Company acquired a 60% controlling ownership stake in Illinois-based solar energy contractor Fosler Construction Company Inc. (“Fosler Construction”). Fosler Construction provides commercial, industrial and utility-scale solar services and owns two community solar projects in Illinois that are being developed under the Illinois Solar for All program. Fosler Construction was founded in 1998 with a track record of successfully completing solar projects profitably with union labor while aligning its model with a growing number of renewable project incentives in the U.S. the Company believes Fosler Construction is positioned to capitalize on the high-growth solar market in the U.S. and that the acquisition aligns with B&W’s aggressive growth and expansion of the Company's clean and renewable energy businesses. Fosler Construction is reported as part of the Company's B&W Renewable segment, and operates under the name Fosler Solar, a Babcock and Wilcox company.

The total fair value of consideration for the acquisition is $36.0 million, including $27.2 million in cash plus $8.8 million in estimated fair value of the contingent consideration arrangement. In connection with the acquisition, the Company agreed to pay contingent consideration based on the achievement of targeted revenue thresholds for the year ended December 31, 2022. The range of undiscounted amounts the Company could be required to pay under the contingent consideration arrangement was between $0.0 million and $10.0 million. The Company used the Monte Carlo simulation method to calculate the value of the contingent consideration and it was determined that the value of the liability should be zero at September 30, 2022. See Note 19 for more details.

The Company estimated fair values primarily using the discounted cash flow method at September 30, 2021 for the preliminary allocation of consideration to the assets acquired and liabilities assumed during the measurement period and up to September 30, 2022 when the purchase price allocation was finalized. During the first nine months of 2022, the Company recorded an increase in goodwill of $14.4 million resulting from the initial recognition of $14.1 million of accrued liabilities and $0.4 million of warranty accruals as preliminary measurement period adjustments, as described in Note 4.

During the three and nine months ended September 30, 2022, the Company recorded $8.6 million in net losses from changes in the estimated revenues and costs to complete the eleven Fosler Solar loss contracts, as described in Note 4. The Company has submitted insurance claims to recover a portion of these losses as of September 30, 2022. See Note 4 for more details.

On September 24, 2022, the Company acquired the remaining 40% ownership stake in Fosler Construction for $12.7 million. In addition to the transfer of the remaining ownership stake, the settlement and share transfer agreement released all parties from the aforementioned contingent consideration arrangement, as well as other claims known as of the effective date of the agreement. The Company will make payments of $3.0 million, $5.0 million, and $4.7 million on January 16, 2023, June 30, 2023, and January 15, 2024, respectively, for a present value of $12.1 million at September 30, 2022. The Company has recorded the payments due within one year within the Other accrued liabilities caption and the payment due longer than one year within the Other non-current liabilities caption in the Company’s Condensed Consolidated Balance Sheet. As a result of the agreement, the Company removed the remaining non-controlling interest balance of $20.7 million from the Condensed Consolidated Balance Sheet and recorded an increase to Capital in Excess of Par Value for the $8.6 million difference.

During the quarter ended September 30, 2022, the Company identified certain factors, including the acquisition of the remaining 40% ownership stake in Fosler Construction Company Inc., which contributed to the identification of a triggering event, requiring an interim quantitative goodwill impairment assessment and resulted in a goodwill impairment charge at Fosler Construction of $7.2 million. See Note 7 for more details.

VODA

On November 30, 2021, the Company acquired 100% ownership of VODA A/S (“VODA”) through its wholly-owned subsidiary, B&W PGG Luxembourg Finance SARL, for approximately $32.9 million. VODA is a Denmark-based multi-brand aftermarket parts and services provider, focusing on energy-producing incineration plants including waste-to-energy, biomass-to-energy or other fuels, providing service, engineering services, spare parts as well as general outage support and management. VODA has extensive experience in incineration technology, boiler and pressure parts, SRO, automation, and performance optimization. VODA is reported as part of the Company's B&W Renewable segment and is included in the B&W Renewable Services product line.

The Company estimated fair values primarily using the discounted cash flow method at November 30, 2021 for the preliminary allocation of consideration to the assets acquired and liabilities assumed. During the measurement period, the Company will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. Any subsequent changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

Fossil Power Systems

On February 1, 2022, the Company acquired 100% ownership of Fossil Power Systems, Inc. (“FPS”) for approximately $59.2 million. The consideration paid for FPS included a hold-back of $5.9 million, payable twelve months from the date of the acquisition if certain conditions of the purchase agreement are met and is recorded on the Company's Condensed Consolidated Balance Sheets in Restricted cash and cash equivalents and other accrued liabilities.

FPS is a leading designer and manufacturer of hydrogen, natural gas and renewable pulp and paper combustion equipment including ignitors, plant controls and safety systems based in Dartmouth, Nova Scotia, Canada and is reported as part of the Company's B&W Thermal segment.

The Company estimated fair values primarily using the discounted cash flow method at February 1, 2022 for the preliminary allocation of consideration to the assets acquired and liabilities assumed. During the measurement period, the Company will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. Any subsequent changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

Optimus Industries

On February 28, 2022, the Company acquired 100% ownership of Optimus Industries, LLC ("Optimus Industries") for approximately $19.2 million. Optimus Industries designs and manufactures waste heat recovery products for use in power generation, petrochemical, and process industries, including package boilers, watertube and firetube waste heat boilers, economizers, superheaters, waste heat recovery equipment and units for sulfuric acid plants and is based in Tulsa, Oklahoma and Chanute, Kansas. Optimus Industries is reported as part of the Company's B&W Thermal segment.

The Company estimated fair values primarily using the discounted cash flow method at February 28, 2022 for the preliminary allocation of consideration to the assets acquired and liabilities assumed. During the measurement period, the Company will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. Any subsequent changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

Hamon Holdings Corporation Industries

On July 28, 2022, the Company acquired certain assets of Hamon Holdings Corporation ("Hamon Holdings") through a competitive sale process, in connection with B. Riley Securities, Inc., a related party to the Company, had been engaged as Hamon Holdings’ investment banker and to serve as advisor to Hamon Holdings through a Chapter 11 363 Asset Sale of Hamon Holdings’ entire United States business or potential carve-out of any of its four main subsidiaries. B&W was the successful bidder for the assets of one of those subsidiaries, Hamon Research-Cottrell, Inc., ("Hamon") a major provider of air pollution control technology, for approximately $2.9 million.

Purchase Price Allocations

The purchase price allocation to assets acquired and liabilities assumed in the acquisitions are detailed in following tables. Specific to the Fosler Construction acquisition, the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed is based on estimated fair values at September 30, 2021, and was finalized during the quarter ended September 30, 2022. The following is a summary of the purchase price allocation to assets acquired and liabilities assumed in the Fosler Construction Acquisition:

	Fosler Construction
(in thousands)	Initial Allocation of Consideration		Measurement Period Adjustments(3)		Final Allocation
Accounts receivable	$	1,904	$	121	$	2,025
Contracts in progress	1,363		9,433		10,796
Other current assets	1,137		(835)		302
Property, plant and equipment	9,527		(7,860)		1,667
Goodwill(1) (4)	43,230		20,086		63,316
Other assets	17,497		(4,600)		12,897
Right of use assets	1,093		—		1,093
Debt	(7,625)		—		(7,625)
Current liabilities(4)	(5,073)		(15,472)		(20,545)
Advance billings on contracts	(1,557)		238		(1,319)
Non-current lease liabilities	(1,730)		—		(1,730)
Other non-current liabilities	(4,112)		3,218		(894)
Non-controlling interest(2)	(22,262)		(1,734)		(23,996)
Net acquisition cost	$	33,392	$	2,595	$	35,987

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Fosler Construction acquisition, goodwill represents Fosler's ability to significantly expand EPC and O&M services among new customers across the U.S. by leveraging B&W's access to capital and geographic reach.

(2) The fair value of the non-controlling interest was derived based on the fair value of the 60% controlling interest acquired by B&W. The transaction price paid by B&W reflects a Level 2 input involving an observable transaction involving an ownership interest in Fosler Construction. Also, as described above, a portion of the purchase consideration relates to the contingent consideration.

(3) The Company's purchase price allocation changed due to additional information and further analysis.

(4) The Company's goodwill and current liabilities adjustments increased $14.1 million, primarily due to additional accrued liabilities recognized attributable to the Fosler projects described in Note 4.

	VODA
(in thousands)	Initial Allocation of Consideration		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	4,737	$	—	$	4,737
Accounts receivable	5,654		—		5,654
Contracts in progress	258		—		258
Other current assets	825		—		825
Property, plant and equipment	253		—		253
Goodwill(1)	17,176		(61)		17,115
Other assets	14,321		—		14,321
Right of use assets	433		—		433
Current liabilities	(5,181)		—		(5,181)
Advance billings on contracts	(2,036)		—		(2,036)
Non-current lease liabilities	(302)		—		(302)
Other non-current liabilities	(3,264)		—		(3,264)
Net acquisition cost	$	32,874	$	(61)	$	32,813

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the VODA acquisition, goodwill represents VODA's ability to significantly expand within the aftermarket parts and services industries by leveraging B&W's access to capital and existing platform within the renewable service market. Goodwill is not expected to be deductible for U.S federal income tax purposes.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

	Fossil Power Systems
(in thousands)	Estimated Acquisition Date Fair Value		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	1,869	$	—	$	1,869
Accounts receivable	2,624		—		2,624
Contracts in progress	370		—		370
Other current assets	3,228		—		3,228
Property, plant and equipment, net	178		—		178
Goodwill(1)	35,392		270		35,662
Other assets	25,092		—		25,092
Right of use assets	1,115		—		1,115
Current liabilities	(1,792)		(18)		(1,810)
Advance billings on contracts	(645)		—		(645)
Non-current lease liabilities	(989)		—		(989)
Non-current liabilities	(7,384)		(106)		(7,490)
Net acquisition cost	$	59,058	$	146	$	59,204

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the FPS acquisition, goodwill represents

FPS's ability to significantly expand services among new customers by leveraging cross-selling opportunities and recognizing general cost synergies.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

	Optimus Industries
(in thousands)	Estimated Acquisition Date Fair Value		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	5,338	$	—	$	5,338
Accounts receivable	5,165		—		5,165
Contracts in progress	2,598		—		2,598
Other current assets	2,115		—		2,115
Property, plant and equipment, net	2,441		5,178		7,619
Goodwill(1)	11,081		(7,274)		3,807
Other assets	12		2,319		2,331
Right of use assets	94		11		105
Current liabilities	(4,240)		—		(4,240)
Advance billings on contracts	(3,779)		—		(3,779)
non-current lease liabilities	(2)		—		(2)
Non-current liabilities	(1,858)		—		(1,858)
Net acquisition cost	$	18,965	$	234	$	19,199

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Optimus Industries acquisition, goodwill represents Optimus Industries ability to significantly expand future customer relationships which are not in place today and recognize general cost synergies.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

Intangible assets are included in other assets above and consists of the following:

	Fosler Construction			VODA
(in thousands)	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life
Customer Relationships	$	9,400	12 years	$	13,855	11 years
Tradename	—		—	228		3 years
Backlog	3,100		5 months	—		—
Total intangible assets(1)	$	12,500		$	14,083
	Fossil Power Systems			Optimus Industries
	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life
Customer Relationships	$	20,451	9 years	2,100		10 years
Tradename	787		14 years	220		3 years
Patented Technology	578		12 years	—		—
Unpatented Technology	3,276		12 years	—		—
Total intangible assets(1)	$	25,092		$	2,320

(1) Intangible assets were valued using the income approach, which includes significant assumptions around future revenue growth, profitability, discount rates and customer attrition. Such assumptions are classified as level 3 inputs within the fair value hierarchy.

For the three and nine-month periods ended September 30, 2022, costs of $0.2 million and $1.0 million related to the Company's acquisitions of Fosler, VODA, Fossil Power Systems, and Optimus Industries were recorded as a component of its operating expenses in the Condensed Consolidated Statements of Operations.

Divestitures

On June 30, 2022 the Company sold development rights related to a future solar project for $8.0 million. In conjunction with the sale, the Company recognized a $7.0 million gain on sale and recorded an $8.0 million receivable within Accounts

receivable – other in the Company's Condensed Consolidated Balance Sheet. During the 3 months ended September 30, 2022, the Company received $2.5 million of proceeds from the sale.

Certain real property assets for the Copley, Ohio location were sold on March 15, 2021 for $4.0 million. The Company received $3.3 million of net proceeds after adjustments and recognized a gain on sale of $1.9 million. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021, which expires on March 31, 2033.

Certain real property assets for the Lancaster, Ohio location were sold on August 13, 2021 for $18.9 million. The Company received $15.8 million of net proceeds after adjustments and expenses and recognized a gain on sale of $13.9 million. In conjunction with the sale, the Company executed a leaseback agreement commencing August 13, 2021, which expires on August 31, 2041.

Effective March 5, 2021, the Company sold all of the issued and outstanding capital stock of Diamond Power Machine (Hubei) Co., Inc, for $2.8 million. the Company received $2.0 million in gross proceeds before expenses and recorded an $0.8 million favorable contract asset for the amortization period from March 8, 2021 through December 31, 2023.

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NEW ACCOUNTING PRONOUNCEMENTS AND STANDARDS

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS AND STANDARDS

NEW ACCOUNTING PRONOUNCEMENTS AND STANDARDS

The Company adopted the following accounting standard during the first nine months of 2022:

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). The amendments in this update simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity by removing major separation models required under current U.S. GAAP. The amendments also improve the consistency of diluted earnings per share calculations. The impact of this standard on the Company's Condensed Consolidated Financial Statements was immaterial.

New accounting standards not yet adopted that could affect the Company's Condensed Consolidated Financial Statements in the future are summarized as follows:

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendment in this update provides an exception to fair value measurement for contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination. As a result, contract assets and contract liabilities will be recognized and measured by the acquirer in accordance with ASC 606, Revenue from Contracts with Customers. The amendment also improves consistency in revenue recognition in the post-acquisition period for acquired contracts as compared to contracts entered into after the business combination. The amendment in this update is effective for public business entities in January 2023; all other entities have an additional year to adopt. Early adoption is permitted; however, if the new guidance is adopted in an interim period, it is required to be applied retrospectively to all business combinations within the year of adoption. This amendment is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the standard on its Condensed Consolidated Financial Statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss ("CECL") model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on the Company's trade receivables, contracts in progress, and potentially its impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of both standards on its Condensed Consolidated Financial Statements.

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On October 14, 2022, the Company changed the name of Fosler Construction to Babcock & Wilcox Solar Energy, Inc.

On October 25, 2022, the Company executed a revision to the lease on its Akron, Ohio headquarters which modified the payments and extended the term of the lease through June 2038 from its original expiration date of June 2034.

On November 7, 2022 the Company executed an amendment to it’s Debt Documents with MSD which modified certain financial maintenance covenants for future periods beginning with fiscal quarters ending on December 31, 2022. The Fixed Charge Coverage Ratio was amended to 0.55:1.0 for the fiscal quarter ending December 31, 2022, 0.65 to 1.00 for the fiscal quarter ending March 31, 2023, 0.80 to 1.00 for the fiscal quarter ending June 30, 2023, 1.15 to 1.00 for the fiscal quarter ending September 30, 2023 and 1.25 to 1.00 for the fiscal quarter ending December 31, 2023 and thereafter. The Senior Net Leverage Ratio was amended to 2.00 to 1.00 for the fiscal quarter ending December 31, 2022, 1.75 to 1.00 for the fiscal quarter ending March 31, 2023, 1.60 to 1.00 for the fiscal quarter ending June 30, 2023, and 1.50 to 1.00 for the fiscal quarter ending September 30, 2023 and thereafter. The amendment also establishes minimum cash flow covenants, as defined, for the fiscal quarter ending December 31, 2022 of $20.0 million and $25.0 million for the fiscal year 2023 and each fiscal year thereafter. Further, the amendment also establishes a minimum liquidity covenant of $30.0 million at all times. In addition, the Company also executed an amendment to it's Debt Documents with PNC which modified the calculation of the Fixed Charge Coverage Ratio for the fiscal quarters ending December 31, 2022, March 31, 2023 and June 30, 2023. The calculation of the Fixed Charge Coverage ratio for the fiscal quarter ending September 30, 2023 and thereafter will revert to the original calculation as stated in the original Debt Documents.

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BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

New accounting standards

The Company adopted the following accounting standard during the first nine months of 2022:

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). The amendments in this update simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity by removing major separation models required under current U.S. GAAP. The amendments also improve the consistency of diluted earnings per share calculations. The impact of this standard on the Company's Condensed Consolidated Financial Statements was immaterial.

New accounting standards not yet adopted that could affect the Company's Condensed Consolidated Financial Statements in the future are summarized as follows:

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendment in this update provides an exception to fair value measurement for contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination. As a result, contract assets and contract liabilities will be recognized and measured by the acquirer in accordance with ASC 606, Revenue from Contracts with Customers. The amendment also improves consistency in revenue recognition in the post-acquisition period for acquired contracts as compared to contracts entered into after the business combination. The amendment in this update is effective for public business entities in January 2023; all other entities have an additional year to adopt. Early adoption is permitted; however, if the new guidance is adopted in an interim period, it is required to be applied retrospectively to all business combinations within the year of adoption. This amendment is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the standard on its Condensed Consolidated Financial Statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss ("CECL") model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on the Company's trade receivables, contracts in progress, and potentially its impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of both standards on its Condensed Consolidated Financial Statements.

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EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted (Loss) Earnings Per Share

The following table sets forth the computation of basic and diluted (loss) earnings per share of the Company's common stock, net of non-controlling interest and dividends on preferred stock:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2022		2021		2022		2021
Net (loss) income attributable to stockholders of common stock	$	(21,481)	$	9,962	$	(39,742)	$	(4,107)
Weighted average shares used to calculate basic and diluted (loss) earnings per share	88,321		86,002		88,115		81,088
Dilutive effect of stock options, restricted stock and performance units	—		962		—		—
Weighted average shares used to calculate diluted earnings (loss) per share	88,321		86,964		88,115		81,088
Basic (loss) earnings per share	$	(0.24)	$	0.12	$	(0.45)	$	(0.05)
Diluted (loss) earnings per share	$	(0.24)	$	0.11	$	(0.45)	$	(0.05)

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SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Revenues by segment exclude inter-segment sales. An analysis of the Company's operations by segment is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Revenues:
B&W Renewable segment
B&W Renewable	$	34,279	$	20,783	$	89,500	$	63,481
B&W Renewable Services (1)	30,164		2,036		57,996		10,889
Vølund	14,043		15,181		48,936		30,785
Fosler Solar	3,201		—		28,443		—
	81,687		38,000		224,875		105,155
B&W Environmental segment
B&W Environmental	25,773		14,338		56,759		42,766
SPIG	14,521		16,514		40,815		40,892
GMAB	4,332		7,397		13,612		14,109
	44,626		38,249		111,186		97,767
B&W Thermal segment
B&W Thermal	91,331		83,819		309,875		328,416
	91,331		83,819		309,875		328,416
Eliminations	(2,774)		(108)		(5,998)		(270)
Total Revenues	$	214,870	$	159,960	$	639,938	$	531,068

(1) B&W Renewable Services' 2021 revenues were reclassified from Vølund's prior year reported amount for year-over-year comparability.

Reconciliation from Net (Loss) Income to Adjusted EBITDA

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Adjusted EBITDA
B&W Renewable segment(1)	$	4,522	$	11,399	$	14,846	$	15,030
B&W Environmental segment	3,082		3,476		5,112		7,286
B&W Thermal segment	10,761		9,329		41,276		32,436
Corporate	(4,419)		(5,866)		(13,018)		(11,548)
Research and development costs	(891)		513		(2,532)		(560)
	$	13,055	$	18,851	$	45,684	$	42,644

(1) Adjusted EBITDA for the nine months ended September 30, 2022 includes a $7.0 million non-recurring gain on sale related to development rights of a future solar project that was sold as well as the reduction to Selling, General and Administrative Costs of $9.6 million for the three and nine months ended September 30, 2022 that resulted from the reversal of the contingent consideration related to an acquisition.

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REVENUE RECOGNITION AND CONTRACTS (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Contracts in Progress and Advance Billings on Contracts

The following represents the components of the Company's Contracts in progress and Advance billings on contracts included in its Condensed Consolidated Balance Sheets:

(in thousands)	September 30, 2022		December 31, 2021		$ Change		% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized	$	60,182	$	35,939	$	24,243	67	%
Revenues recognized less billings to customers	64,849		44,237		20,612		47	%
Contracts in progress	$	125,031	$	80,176	$	44,855	56	%
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized	$	87,033	$	68,615	$	18,418	27	%
Costs of revenue recognized less cost incurred	10,927		(235)		11,162		(4,750)	%
Advance billings on contracts	$	97,960	$	68,380	$	29,580	43	%
Net contract balance	$	27,071	$	11,796	$	15,275	129	%
Accrued contract losses	$	3,859	$	378	$	3,481	921	%

Schedule of Recognized Changes in Estimated Gross Profit

During the three and nine-month periods ended September 30, 2022 and 2021, the Company recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Increases in gross profit for changes in estimates for over time contracts	$	1,690	$	7,001	$	11,343	$	12,340
Decreases in gross profit for changes in estimates for over time contracts	(10,353)		(1,523)		(20,004)		(6,018)
Net changes in gross profit for changes in estimates for over time contracts	$	(8,663)	$	5,478	$	(8,661)	$	6,322

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INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

The components of inventories are as follows:

(in thousands)	September 30, 2022		December 31, 2021
Raw materials and supplies	$	79,911	$	56,352
Work in progress	4,950		5,723
Finished goods	12,971		17,452
Total inventories	$	97,832	$	79,527

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PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASES (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment less accumulated depreciation is as follows:

(in thousands)	September 30, 2022		December 31, 2021
Land	$	2,378	$	1,489
Buildings	33,842		31,895
Machinery and equipment	148,032		144,325
Property under construction	7,771		12,480
	192,023		190,189
Less accumulated depreciation	135,158		133,137
Net property, plant and equipment	56,865		57,052
Finance leases	30,548		34,159
Less finance lease accumulated amortization	5,676		5,584
Net property, plant and equipment, and finance lease	$	81,737	$	85,627

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GOODWILL (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following summarizes the changes in the net carrying amount of goodwill as of September 30, 2022:

(in thousands)	B&W Renewable		B&W Environmental		B&W Thermal		Total
Balance at December 31, 2021	$	79,357	$	5,667	$	31,438	$	116,462
Addition - Fossil Power(1)					35,392		35,392
Addition - Optimus Industries(1)					11,081		11,081
Measurement period adjustments - Fosler(2)	10,697						10,697
Measurement period adjustments - VODA(1)(2)	(61)						(61)
Measurement period adjustments - Fossil Power(1)(2)					270		270
Measurement period adjustments - Optimus Industries(1)(2)					(7,273)		(7,273)
Goodwill impairment - Fosler	(7,224)						(7,224)
Currency translation adjustments	(1,041)		(786)		(2,288)		(4,115)
Balance at September 30, 2022	$	81,728	$	4,881	$	68,622	$	155,229

(1) As described in Note 21, the Company is in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the provisional measurements of goodwill associated with these acquisitions are subject to change.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

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INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The Company's intangible assets are as follows:

(in thousands)	September 30, 2022		December 31, 2021
Definite-lived intangible assets(1) (2)
Customer relationships	$	67,027	$	46,903
Unpatented technology	17,819		15,410
Patented technology	3,646		3,103
Tradename	13,029		12,747
Acquired backlog	3,100		3,100
All other	9,138		9,319
Gross value of definite-lived intangible assets	113,759		90,582
Customer relationships amortization	(24,705)		(20,800)
Unpatented technology amortization	(9,584)		(8,313)
Patented technology amortization	(2,845)		(2,729)
Tradename amortization	(5,962)		(5,425)
Acquired backlog	(3,100)		(1,620)
All other amortization	(9,074)		(9,205)
Accumulated amortization	(55,270)		(48,092)
Net definite-lived intangible assets	$	58,489	$	42,490
Indefinite-lived intangible assets
Trademarks and trade names	$	1,305	$	1,305
Total intangible assets, net	$	59,794	$	43,795

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result the intangible assets associated with these acquisitions are subject to change.

(2) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments

Schedule of Finite-Lived Intangible Assets

The following summarizes the changes in the carrying amount of intangible assets, net:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	43,795	$	23,908
Business acquisitions and adjustments(1) (2)	27,412		17,100
Impairment of intangible assets	—		—
Amortization expense	(7,111)		(2,531)
Currency translation adjustments	(4,302)		(949)
Balance at end of the period	$	59,794	$	37,528

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the increase in intangible assets associated with these acquisitions are subject to change.

(3) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments.

Schedule of Indefinite-Lived Intangible Assets

The following summarizes the changes in the carrying amount of intangible assets, net:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	43,795	$	23,908
Business acquisitions and adjustments(1) (2)	27,412		17,100
Impairment of intangible assets	—		—
Amortization expense	(7,111)		(2,531)
Currency translation adjustments	(4,302)		(949)
Balance at end of the period	$	59,794	$	37,528

(1) As described in Note 21, we are in the process of completing the purchase price allocation associated with the VODA, Fossil Power and Optimus Industries acquisitions and as a result, the increase in intangible assets associated with these acquisitions are subject to change.

(3) The Company finalized the purchase price allocation for the Fosler Construction acquisition on September 30, 2022 which resulted in several measurement period adjustments.

Schedule of Estimated Future Intangible Asset Amortization Expense

Estimated future intangible asset amortization expense as of September 30, 2022 is as follows (in thousands):

	Amortization Expense
Year ending December 31, 2022	1,926
Year ending December 31, 2023	7,701
Year ending December 31, 2024	7,629
Year ending December 31, 2025	6,832
Year ending December 31, 2026	5,757
Year ending December 31, 2027	5,156
Thereafter	23,489

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ACCRUED WARRANTY EXPENSE (Tables)

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

Schedule of Changes in Carrying Amount of Accrued Warranty Expense

Changes in the carrying amount of accrued warranty expense are as follows:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	12,925	$	25,399
Additions	3,799		5,155
Expirations and other changes	(3,257)		(4,790)
Payments	(2,159)		(10,212)
Translation and other	(687)		(342)
Balance at end of period	$	10,621	$	15,210

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RESTRUCTURING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Summary of Restructuring Activity

The following tables summarizes the restructuring activity incurred by segment:

	Three Months Ended September 30,						Three Months Ended September 30,
	2022						2021
(in thousands)	Total		Severance and related costs (benefit)		Other (1)		Total		Severance and related costs		Other(1)
B&W Renewable segment	$	78	$	6	$	72	$	715	$	382	$	333
B&W Environmental segment	73		8		65		332		128		204
B&W Thermal segment	204		14		190		1,242		362		880
Corporate	4		1		3		2,286		124		2,162
	$	359	$	29	$	330	$	4,575	$	996	$	3,579

	Nine Months Ended September 30,						Nine Months Ended September 30,
	2022						2021
(in thousands)	Total		Severance and related costs (benefit)		Other (1)		Total		Severance and related costs		Other(1)
B&W Renewable segment	$	865	$	743	$	122	$	1,781	$	1,301	$	480
B&W Environmental segment	176		27		149		630		335		295
B&W Thermal segment	484		130		354		3,132		1,409		1,723
Corporate	(1,174)		(1,227)		53		2,425		132		2,293
	$	351	$	(327)	$	678	$	7,968	$	3,177	$	4,791
Cumulative costs to date	$	45,534	36,925		8,609

(1) Other amounts consist primarily of exit, relocation, COVID-19 related and other costs.

Activity Related to the Restructuring Liabilities

Activity related to the restructuring liabilities is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	4,136	$	7,945	$	6,561	$	8,146
Restructuring (benefit) expense	359		4,575		351		7,968
Payments	(1,943)		(5,482)		(4,360)		(9,076)
Balance at end of period	$	2,552	$	7,038	$	2,552	$	7,038

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

Components of net periodic cost (benefit) included in net (loss) income are as follows:

	Pension Benefits								Other Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021		2022		2021		2022		2021
Interest cost	$	6,685	$	5,603	$	19,958	$	16,883	$	49	$	109	$	147	$	187
Expected return on plan assets	(14,358)		(13,527)		(42,985)		(40,309)		—		—		—		—
Amortization of prior service cost	27		28		82		84		173		173		519		519
Recognized net actuarial gain	—		(2,253)		—		(2,253)		—		—		—		—
Benefit plans, net (1)	(7,646)		(10,149)		(22,945)		(25,595)		222		282		666		706
Service cost included in COS (2)	195		217		594		652		5		6		15		18
Net periodic benefit cost (benefit)	$	(7,451)	$	(9,932)	$	(22,351)	$	(24,943)	$	227	$	288	$	681	$	724

(1)    Benefit plans, net, which is presented separately in the Company's Condensed Consolidated Statements of Operations, is not allocated to the segments.

(2)    Service cost related to a small group of active participants is presented within Cost of operations in the Company's Condensed Consolidated Statements of Operations and is allocated to the B&W Thermal segment.

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DEBT (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Components of Senior Notes

The components of the Company's senior notes at September 30, 2022 are as follows:

	Senior Notes
(in thousands)	8.125%		6.50%		Total
Senior notes due 2026	$	191,640	$	151,440	$	343,080
Unamortized deferred financing costs	(4,442)		(5,633)		(10,075)
Unamortized premium	493		—		493
Net debt balance	$	187,691	$	145,807	$	333,498

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

Supplemental Cash Flow Information [Abstract]

Schedule of Interest Expenses

Interest expense in the Company's Condensed Consolidated Financial Statements consisted of the following components:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Components associated with borrowings from:
Senior notes	$	6,385	$	3,801	$	18,715	$	8,993
Last Out Term Loans - cash interest	—		—		—		4,349
U.S. Revolving Credit Facility	—		—		—		1,416
	6,385		3,801		18,715		14,758
Components associated with amortization or accretion of:
Revolving Credit Agreement	1,237		1,057		3,465		1,057
Senior notes	657		335		1,950		2,101
U.S. Revolving Credit Facility	—		—		—		5,995
	1,894		1,392		5,415		9,153
Components associated with interest from:
Lease liabilities	707		870		2,112		2,194
Other interest expense	2,334		2,267		7,007		4,469
	3,041		3,137		9,119		6,663
Total interest expense	$	11,320	$	8,330	$	33,249	$	30,574

Schedule of Cash and Cash Equivalents Reconciliation

The following table provides a reconciliation of Cash, cash equivalents and Short-term and Long-term restricted cash reporting within the Company's Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Cash Flows:

(in thousands)	September 30, 2022		December 31, 2021		September 30, 2021
Held by foreign entities	$	27,435	$	42,070	$	39,238
Held by U.S. entities	21,036		182,804		67,817
Cash and cash equivalents	48,471		224,874		107,055
Reinsurance reserve requirements	648		443		774
Bank guarantee collateral	1,892		997		1,026
Letters of credit collateral	1,190		401		6,892
Hold-back for acquisition purchase price (1)	5,900		—		—
Escrow for long-term project (2)	11,397		—		—
Current and Long-term restricted cash and cash equivalents	21,027		1,841		8,692
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	69,498	$	226,715	$	115,747

(1) The purchase price for Fossil Power Systems ("FPS") was $59.2 million, including a hold-back of $5.9 million which is included in Current restricted cash and cash equivalents and Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. The hold-back is being held in escrow for potential payment of up to the maximum amount twelve months from the February 1, 2022 date of acquisition if the conditions are met.

(2) On December 15, 2021, the Company entered into an agreement to place $11.5 million in an escrow account as security to ensure project performance. On April 30, 2023, $2.5 million of the total amount held in escrow will be reclassified from Long-Term restricted cash to Current restricted cash in anticipation of the initial payment on April 20, 2024. The remaining amount of $9.0 million will be reclassified from Long-term restricted cash to Current restricted cash on September 30, 2024, with a scheduled final settlement on September 30, 2025.

Schedule of Restricted Cash and Cash Equivalents

The following table provides a reconciliation of Cash, cash equivalents and Short-term and Long-term restricted cash reporting within the Company's Condensed Consolidated Balance Sheets and in the Condensed Consolidated Statements of Cash Flows:

(in thousands)	September 30, 2022		December 31, 2021		September 30, 2021
Held by foreign entities	$	27,435	$	42,070	$	39,238
Held by U.S. entities	21,036		182,804		67,817
Cash and cash equivalents	48,471		224,874		107,055
Reinsurance reserve requirements	648		443		774
Bank guarantee collateral	1,892		997		1,026
Letters of credit collateral	1,190		401		6,892
Hold-back for acquisition purchase price (1)	5,900		—		—
Escrow for long-term project (2)	11,397		—		—
Current and Long-term restricted cash and cash equivalents	21,027		1,841		8,692
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	69,498	$	226,715	$	115,747

(1) The purchase price for Fossil Power Systems ("FPS") was $59.2 million, including a hold-back of $5.9 million which is included in Current restricted cash and cash equivalents and Other accrued liabilities on the Company's Condensed Consolidated Balance Sheets. The hold-back is being held in escrow for potential payment of up to the maximum amount twelve months from the February 1, 2022 date of acquisition if the conditions are met.

(2) On December 15, 2021, the Company entered into an agreement to place $11.5 million in an escrow account as security to ensure project performance. On April 30, 2023, $2.5 million of the total amount held in escrow will be reclassified from Long-Term restricted cash to Current restricted cash in anticipation of the initial payment on April 20, 2024. The remaining amount of $9.0 million will be reclassified from Long-term restricted cash to Current restricted cash on September 30, 2024, with a scheduled final settlement on September 30, 2025.

Schedule of Supplemental Cash Flow Disclosures

The following cash activity is presented as a supplement to the Company's Condensed Consolidated Statements of Cash Flows and is included in Net cash used in operating activities:

	Nine Months Ended September 30,
(in thousands)	2022		2021
Income tax payments, net	$	2,693	$	6,094
Interest payments - 8.125% Senior Notes due 2026	$	11,444	$	6,681
Interest payments - 6.50% Senior Notes due 2026	7,848		—
Interest payments on U.S. Revolving Credit Facility	—		5,979
Interest payments on Last Out Term Loans	—		6,140
Total cash paid for interest	$	19,292	$	18,800

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COMPREHENSIVE INCOME (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income

The changes in the components of AOCI, net of tax, for the first, second and third quarters of 2022 and 2021 were as follows:

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2021	$	(55,499)	$	(3,323)	$	(58,822)
Other comprehensive loss before reclassifications	(4,285)		—		(4,285)
Reclassified from AOCI to net loss	—		593		593
Net other comprehensive (loss) income	(4,285)		593		(3,692)
Balance at March 31, 2022	$	(59,784)	$	(2,730)	$	(62,514)
Other comprehensive loss before reclassifications	(6,634)		—		(6,634)
Reclassified from AOCI to net loss	—		(198)		(198)
Net other comprehensive loss	(6,634)		(198)		(6,832)
Balance at June 30, 2022	$	(66,418)	$	(2,928)	$	(69,346)
Other comprehensive loss before reclassifications	$	(13,344)	$	—	(13,344)
Reclassified from AOCI to net loss			$	198	198
Net other comprehensive loss	(13,344)		198		(13,146)
Balance at September 30, 2022	$	(79,762)	$	(2,730)	$	(82,492)

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2020	$	(47,575)	$	(4,815)	$	(52,390)
Other comprehensive loss before reclassifications	(70)		—		(70)
Reclassified from AOCI to net (loss) income	(4,512)		198		(4,314)
Net other comprehensive (loss) income	(4,582)		198		(4,384)
Balance at March 31, 2021	$	(52,157)	$	(4,617)	$	(56,774)
Other comprehensive loss before reclassifications	(1,478)		—		(1,478)
Reclassified from AOCI to net income	—		198		198
Net other comprehensive (loss) income	(1,478)		198		(1,280)
Balance at June 30, 2021	$	(53,635)	$	(4,419)	$	(58,054)
Other comprehensive loss before reclassifications	(1,292)		—		(1,292)
Reclassified from AOCI to net income (loss)	—		197		197
Net other comprehensive (loss) income	(1,292)		197		(1,095)
Balance at September 30, 2021	$	(54,927)	$	(4,222)	$	(59,149)

Schedule of Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands):

AOCI component	Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI	Three Months Ended September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Release of currency translation adjustment with the sale of business	Loss on sale of business	$	—	$	—	$	—	$	4,512
Pension and post retirement adjustments, net of tax	Benefit plans, net	198		(197)		593		(593)
	Net (loss) income	$	198	$	(197)	$	593	$	3,919

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities

The following tables summarize the Company's financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic, Fair Value Measurements and Disclosures).

(in thousands)
Available-for-sale securities	September 30, 2022		Level 1		Level 2
Corporate notes and bonds	$	6,147	$	6,147	$	—
Mutual funds	620		—		620
United States Government and agency securities	3,787		3,787		—
Total fair value of available-for-sale securities	$	10,554	$	9,934	$	620

(in thousands)
Available-for-sale securities	December 31, 2021		Level 1		Level 2
Corporate notes and bonds	$	9,477	$	9,477	$	—
Mutual funds	714		—		714
United States Government and agency securities	2,017		2,017		—
Total fair value of available-for-sale securities	$	12,208	$	11,494	$	714

The fair value of the senior notes is based on readily available quoted market prices as of September 30, 2022.

(in thousands)	September 30, 2022
Senior Notes	Carrying Value		Estimated Fair Value
8.125% Senior Notes due 2026 ('BWSN')	$	191,640	$	184,800
6.50% Senior Notes due 2026 ('BWNB')	$	151,440	$	144,898

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ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The purchase price allocation to assets acquired and liabilities assumed in the acquisitions are detailed in following tables. Specific to the Fosler Construction acquisition, the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed is based on estimated fair values at September 30, 2021, and was finalized during the quarter ended September 30, 2022. The following is a summary of the purchase price allocation to assets acquired and liabilities assumed in the Fosler Construction Acquisition:

	Fosler Construction
(in thousands)	Initial Allocation of Consideration		Measurement Period Adjustments(3)		Final Allocation
Accounts receivable	$	1,904	$	121	$	2,025
Contracts in progress	1,363		9,433		10,796
Other current assets	1,137		(835)		302
Property, plant and equipment	9,527		(7,860)		1,667
Goodwill(1) (4)	43,230		20,086		63,316
Other assets	17,497		(4,600)		12,897
Right of use assets	1,093		—		1,093
Debt	(7,625)		—		(7,625)
Current liabilities(4)	(5,073)		(15,472)		(20,545)
Advance billings on contracts	(1,557)		238		(1,319)
Non-current lease liabilities	(1,730)		—		(1,730)
Other non-current liabilities	(4,112)		3,218		(894)
Non-controlling interest(2)	(22,262)		(1,734)		(23,996)
Net acquisition cost	$	33,392	$	2,595	$	35,987

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Fosler Construction acquisition, goodwill represents Fosler's ability to significantly expand EPC and O&M services among new customers across the U.S. by leveraging B&W's access to capital and geographic reach.

(2) The fair value of the non-controlling interest was derived based on the fair value of the 60% controlling interest acquired by B&W. The transaction price paid by B&W reflects a Level 2 input involving an observable transaction involving an ownership interest in Fosler Construction. Also, as described above, a portion of the purchase consideration relates to the contingent consideration.

(3) The Company's purchase price allocation changed due to additional information and further analysis.

(4) The Company's goodwill and current liabilities adjustments increased $14.1 million, primarily due to additional accrued liabilities recognized attributable to the Fosler projects described in Note 4.

	VODA
(in thousands)	Initial Allocation of Consideration		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	4,737	$	—	$	4,737
Accounts receivable	5,654		—		5,654
Contracts in progress	258		—		258
Other current assets	825		—		825
Property, plant and equipment	253		—		253
Goodwill(1)	17,176		(61)		17,115
Other assets	14,321		—		14,321
Right of use assets	433		—		433
Current liabilities	(5,181)		—		(5,181)
Advance billings on contracts	(2,036)		—		(2,036)
Non-current lease liabilities	(302)		—		(302)
Other non-current liabilities	(3,264)		—		(3,264)
Net acquisition cost	$	32,874	$	(61)	$	32,813

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the VODA acquisition, goodwill represents VODA's ability to significantly expand within the aftermarket parts and services industries by leveraging B&W's access to capital and existing platform within the renewable service market. Goodwill is not expected to be deductible for U.S federal income tax purposes.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

	Fossil Power Systems
(in thousands)	Estimated Acquisition Date Fair Value		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	1,869	$	—	$	1,869
Accounts receivable	2,624		—		2,624
Contracts in progress	370		—		370
Other current assets	3,228		—		3,228
Property, plant and equipment, net	178		—		178
Goodwill(1)	35,392		270		35,662
Other assets	25,092		—		25,092
Right of use assets	1,115		—		1,115
Current liabilities	(1,792)		(18)		(1,810)
Advance billings on contracts	(645)		—		(645)
Non-current lease liabilities	(989)		—		(989)
Non-current liabilities	(7,384)		(106)		(7,490)
Net acquisition cost	$	59,058	$	146	$	59,204

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the FPS acquisition, goodwill represents

FPS's ability to significantly expand services among new customers by leveraging cross-selling opportunities and recognizing general cost synergies.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

	Optimus Industries
(in thousands)	Estimated Acquisition Date Fair Value		Measurement Period Adjustments(2)		Updated Preliminary Allocation
Cash	$	5,338	$	—	$	5,338
Accounts receivable	5,165		—		5,165
Contracts in progress	2,598		—		2,598
Other current assets	2,115		—		2,115
Property, plant and equipment, net	2,441		5,178		7,619
Goodwill(1)	11,081		(7,274)		3,807
Other assets	12		2,319		2,331
Right of use assets	94		11		105
Current liabilities	(4,240)		—		(4,240)
Advance billings on contracts	(3,779)		—		(3,779)
non-current lease liabilities	(2)		—		(2)
Non-current liabilities	(1,858)		—		(1,858)
Net acquisition cost	$	18,965	$	234	$	19,199

(1) Goodwill is calculated as the excess of the purchase price over the net assets acquired. With respect to the Optimus Industries acquisition, goodwill represents Optimus Industries ability to significantly expand future customer relationships which are not in place today and recognize general cost synergies.

(2) The Company's preliminary purchase price allocation changed due to additional information and further analysis.

Schedule of Finite-Lived Intangible Assets Acquired in Business Combination

Intangible assets are included in other assets above and consists of the following:

	Fosler Construction			VODA
(in thousands)	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life
Customer Relationships	$	9,400	12 years	$	13,855	11 years
Tradename	—		—	228		3 years
Backlog	3,100		5 months	—		—
Total intangible assets(1)	$	12,500		$	14,083
	Fossil Power Systems			Optimus Industries
	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life	Estimated Acquisition Date Fair Value		Weighted Average Estimated Useful Life
Customer Relationships	$	20,451	9 years	2,100		10 years
Tradename	787		14 years	220		3 years
Patented Technology	578		12 years	—		—
Unpatented Technology	3,276		12 years	—		—
Total intangible assets(1)	$	25,092		$	2,320

(1) Intangible assets were valued using the income approach, which includes significant assumptions around future revenue growth, profitability, discount rates and customer attrition. Such assumptions are classified as level 3 inputs within the fair value hierarchy.

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EARNINGS PER SHARE - Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net (loss) income attributable to stockholders of common stock, basic	$ (21,481)	$ 9,962	$ (39,742)	$ (4,107)
Net (loss) income attributable to stockholders of common stock, diluted	$ (21,481)	$ 9,962	$ (39,742)	$ (4,107)
Weighted average shares used to calculate basic (loss) earnings per share (in shares)	88,321	86,002	88,115	81,088
Dilutive effect of stock options, restricted stock and performance units (in shares)	0	962	0	0
Weighted average shares used to calculate diluted earnings (loss) per share (in shares)	88,321	86,964	88,115	81,088
Basic (loss) earnings per share (in dollars per share)	$ (0.24)	$ 0.12	$ (0.45)	$ (0.05)
Diluted (loss) earnings per share (in dollars per share)	$ (0.24)	$ 0.11	$ (0.45)	$ (0.05)

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EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Excluded shares that would have been included with net income (in shares)	0.8		0.9	1.3
Antidilutive securities excluded from computing of earnings per share (in shares)	0.3	0.9	0.4	1.0

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SEGMENT REPORTING - Narrative (Details)	9 Months Ended
	Sep. 30, 2022 segment
Segment Reporting [Abstract]
Number of reportable segments	3

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SEGMENT REPORTING - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Revenues	$ 214,870	$ 159,960	$ 639,938	$ 531,068
Eliminations
Segment Reporting Information [Line Items]
Revenues	(2,774)	(108)	(5,998)	(270)
B&W Renewable segment | Operating Segments
Segment Reporting Information [Line Items]
Revenues	81,687	38,000	224,875	105,155
B&W Renewable segment | B&W Renewable | Operating Segments
Segment Reporting Information [Line Items]
Revenues	34,279	20,783	89,500	63,481
B&W Renewable segment | B&W Renewable Services | Operating Segments
Segment Reporting Information [Line Items]
Revenues	30,164	2,036	57,996	10,889
B&W Renewable segment | Vølund | Operating Segments
Segment Reporting Information [Line Items]
Revenues	14,043	15,181	48,936	30,785
B&W Renewable segment | Fosler Solar | Operating Segments
Segment Reporting Information [Line Items]
Revenues	3,201	0	28,443	0
B&W Environmental segment | Operating Segments
Segment Reporting Information [Line Items]
Revenues	44,626	38,249	111,186	97,767
B&W Environmental segment | B&W Environmental | Operating Segments
Segment Reporting Information [Line Items]
Revenues	25,773	14,338	56,759	42,766
B&W Environmental segment | SPIG | Operating Segments
Segment Reporting Information [Line Items]
Revenues	14,521	16,514	40,815	40,892
B&W Environmental segment | GMAB | Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,332	7,397	13,612	14,109
B&W Thermal segment | Operating Segments
Segment Reporting Information [Line Items]
Revenues	91,331	83,819	309,875	328,416
B&W Thermal segment | B&W Thermal | Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 91,331	$ 83,819	$ 309,875	$ 328,416

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SEGMENT REPORTING - Reconciliation of Adjusted EBITDA to Consolidated Net Loss (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Adjusted EBITDA		$ 13,055	$ 18,851	$ 45,684	$ 42,644
Gain on sale of development rights	$ 7,000			7,000
Decrease in contingent consideration liability		9,600		9,567	0
Operating Segments | B&W Renewable segment
Segment Reporting Information [Line Items]
Adjusted EBITDA		4,522	11,399	14,846	15,030
Operating Segments | B&W Environmental
Segment Reporting Information [Line Items]
Adjusted EBITDA		3,082	3,476	5,112	7,286
Operating Segments | B&W Thermal segment
Segment Reporting Information [Line Items]
Adjusted EBITDA		10,761	9,329	41,276	32,436
Corporate
Segment Reporting Information [Line Items]
Adjusted EBITDA		(4,419)	(5,866)	(13,018)	(11,548)
Research and development costs
Segment Reporting Information [Line Items]
Research and development costs		$ (891)	$ 513	$ (2,532)	$ (560)

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REVENUE RECOGNITION AND CONTRACTS - Revenue Recognition (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Transferred at Point in Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue	25.00%	21.00%	23.00%	20.00%
Transferred over Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue	75.00%	79.00%	77.00%	80.00%

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REVENUE RECOGNITION AND CONTRACTS - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Contract assets - included in contracts in progress:
Contract assets - included in contracts in progress	$ 125,031	$ 80,176
Contract assets - included in contracts in progress, change	$ 44,855
Contract assets - included in contracts in progress, change	56.00%
Contract liabilities - included in advance billings on contracts:
Contract liabilities - included in advance billings on contracts	$ 97,960	68,380
Contract liabilities - included in advance billings on contracts, change	$ 29,580
Contract liabilities - included in advance billings on contracts, change	43.00%
Net contract balance	$ 27,071	11,796
Net contract balance, change	$ 15,275
Net contract balance, change	129.00%
Accrued contract losses	$ 3,859	378
Accrued contract losses, change	$ 3,481
Accrued contract losses, change	921.00%
Billings to customers less revenues recognized
Contract liabilities - included in advance billings on contracts:
Contract liabilities - included in advance billings on contracts	$ 87,033	68,615
Contract liabilities - included in advance billings on contracts, change	$ 18,418
Contract liabilities - included in advance billings on contracts, change	27.00%
Costs of revenue recognized less cost incurred
Contract liabilities - included in advance billings on contracts:
Contract liabilities - included in advance billings on contracts	$ 10,927	(235)
Contract liabilities - included in advance billings on contracts, change	$ 11,162
Contract liabilities - included in advance billings on contracts, change	(4750.00%)
Costs incurred less costs of revenue recognized
Contract assets - included in contracts in progress:
Contract assets - included in contracts in progress	$ 60,182	35,939
Contract assets - included in contracts in progress, change	$ 24,243
Contract assets - included in contracts in progress, change	67.00%
Revenues recognized less billings to customers
Contract assets - included in contracts in progress:
Contract assets - included in contracts in progress	$ 64,849	$ 44,237
Contract assets - included in contracts in progress, change	$ 20,612
Contract assets - included in contracts in progress, change	47.00%

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REVENUE RECOGNITION AND CONTRACTS - Backlog (Details) $ in Millions	Sep. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 730.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations (as a percent)	32.50%
Expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations (as a percent)	46.40%
Expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations (as a percent)	21.10%
Expected timing of satisfaction, period

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REVENUE RECOGNITION AND CONTRACTS - Changes in Contract Estimates (Details) - Transferred over Time - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Increases in gross profit for changes in estimates for over time contracts	$ 1,690	$ 7,001	$ 11,343	$ 12,340
Decreases in gross profit for changes in estimates for over time contracts	(10,353)	(1,523)	(20,004)	(6,018)
Net changes in gross profit for changes in estimates for over time contracts	$ (8,663)	$ 5,478	$ (8,661)	$ 6,322

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REVENUE RECOGNITION AND CONTRACTS - B&W Renewable Projects (Details) - Fosler Construction $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2022 project	Sep. 30, 2022 USD ($) contract	Sep. 30, 2022 USD ($) contract	Sep. 30, 2022 USD ($) contract
Disaggregation of Revenue [Line Items]
Increase of goodwill			$ 14.4
Measurement period adjustment, goodwill and current liabilities change			14.1	$ 14.1
Measurement period adjustment, warranty accruals			$ 0.4
Number of contracts in a loss position | contract		2	2	2
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs		$ 8.6	$ 8.6
Fosler Solar Reporting Unit
Disaggregation of Revenue [Line Items]
Number of projects | project	9

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INVENTORIES - Components of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 79,911	$ 56,352
Work in progress	4,950	5,723
Finished goods	12,971	17,452
Total inventories	$ 97,832	$ 79,527

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PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASES (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	$ 192,023	$ 190,189
Less accumulated depreciation	135,158	133,137
Net property, plant and equipment	56,865	57,052
Finance leases	30,548	34,159
Less finance lease accumulated amortization	5,676	5,584
Net property, plant and equipment, and finance lease	81,737	85,627
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	2,378	1,489
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	33,842	31,895
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	148,032	144,325
Property under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	$ 7,771	$ 12,480

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GOODWILL - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	7 Months Ended	9 Months Ended	10 Months Ended	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022
Goodwill [Roll Forward]
Beginning balance			$ 116,462
Currency translation adjustments			(4,115)
Ending balance	$ 155,229	$ 155,229	155,229	$ 155,229	$ 155,229
B&W Renewable segment
Goodwill [Roll Forward]
Beginning balance			79,357
Currency translation adjustments			(1,041)
Ending balance	81,728	81,728	81,728	81,728	81,728
B&W Environmental
Goodwill [Roll Forward]
Beginning balance			5,667
Currency translation adjustments			(786)
Ending balance	4,881	4,881	4,881	4,881	4,881
B&W Thermal segment
Goodwill [Roll Forward]
Beginning balance			31,438
Currency translation adjustments			(2,288)
Ending balance	68,622	68,622	68,622	68,622	68,622
Fossil Power
Goodwill [Roll Forward]
Addition			35,392
Measurement period adjustment, goodwill			270
Fossil Power | B&W Renewable segment
Goodwill [Roll Forward]
Addition
Measurement period adjustment, goodwill
Fossil Power | B&W Environmental
Goodwill [Roll Forward]
Addition
Measurement period adjustment, goodwill
Fossil Power | B&W Thermal segment
Goodwill [Roll Forward]
Addition			35,392
Measurement period adjustment, goodwill			270
Optimus Industries
Goodwill [Roll Forward]
Beginning balance		11,081
Addition			11,081
Measurement period adjustment, goodwill		(7,274)	(7,273)
Ending balance	3,807	3,807	3,807	3,807	3,807
Optimus Industries | B&W Renewable segment
Goodwill [Roll Forward]
Addition
Measurement period adjustment, goodwill
Optimus Industries | B&W Environmental
Goodwill [Roll Forward]
Addition
Measurement period adjustment, goodwill
Optimus Industries | B&W Thermal segment
Goodwill [Roll Forward]
Addition			11,081
Measurement period adjustment, goodwill			(7,273)
Fosler Construction
Goodwill [Roll Forward]
Beginning balance					43,230
Measurement period adjustment, goodwill			10,697		20,086
Goodwill impairment - Fosler	(7,200)		(7,224)
Ending balance	63,316	63,316	63,316	63,316	63,316
Fosler Construction | B&W Renewable segment
Goodwill [Roll Forward]
Measurement period adjustment, goodwill			10,697
Goodwill impairment - Fosler			(7,224)
Fosler Construction | B&W Environmental
Goodwill [Roll Forward]
Measurement period adjustment, goodwill
Goodwill impairment - Fosler
Fosler Construction | B&W Thermal segment
Goodwill [Roll Forward]
Measurement period adjustment, goodwill
Goodwill impairment - Fosler
VODA
Goodwill [Roll Forward]
Beginning balance				17,176
Measurement period adjustment, goodwill			(61)	(61)
Ending balance	$ 17,115	$ 17,115	17,115	$ 17,115	$ 17,115
VODA | B&W Renewable segment
Goodwill [Roll Forward]
Measurement period adjustment, goodwill			(61)
VODA | B&W Environmental
Goodwill [Roll Forward]
Measurement period adjustment, goodwill
VODA | B&W Thermal segment
Goodwill [Roll Forward]
Measurement period adjustment, goodwill

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GOODWILL - Narrative (Details) - Fosler Construction - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 24, 2022	Sep. 30, 2021
Goodwill [Line Items]
Business acquisition, percentage acquired	40.00%	40.00%	40.00%	60.00%
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs	$ 8,600	$ 8,600
Goodwill impairment charge	$ 7,200	$ 7,224

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INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Definite-lived intangible assets
Gross value of definite-lived intangible assets	$ 113,759	$ 90,582
Accumulated amortization	(55,270)	(48,092)
Net definite-lived intangible assets	58,489	42,490
Indefinite-lived intangible assets
Total intangible assets, net	59,794	43,795	$ 37,528	$ 23,908
Trademarks and trade names
Indefinite-lived intangible assets
Trademarks and trade names	1,305	1,305
Customer relationships
Definite-lived intangible assets
Gross value of definite-lived intangible assets	67,027	46,903
Accumulated amortization	(24,705)	(20,800)
Unpatented technology
Definite-lived intangible assets
Gross value of definite-lived intangible assets	17,819	15,410
Accumulated amortization	(9,584)	(8,313)
Patented technology
Definite-lived intangible assets
Gross value of definite-lived intangible assets	3,646	3,103
Accumulated amortization	(2,845)	(2,729)
Tradename
Definite-lived intangible assets
Gross value of definite-lived intangible assets	13,029	12,747
Accumulated amortization	(5,962)	(5,425)
Acquired backlog
Definite-lived intangible assets
Gross value of definite-lived intangible assets	3,100	3,100
Accumulated amortization	(3,100)	(1,620)
All other
Definite-lived intangible assets
Gross value of definite-lived intangible assets	9,138	9,319
Accumulated amortization	$ (9,074)	$ (9,205)

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INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Intangible Assets [Roll Forward]
Balance at beginning of period	$ 43,795	$ 23,908
Business acquisitions and adjustments	27,412	17,100
Impairment of intangible assets	0	0
Amortization expense	(7,111)	(2,531)
Currency translation adjustments	(4,302)	(949)
Balance at end of the period	$ 59,794	$ 37,528

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INTANGIBLE ASSETS - Estimated Future Intangible Asset Amortization (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Year ending December 31, 2022	$ 1,926
Year ending December 31, 2023	7,701
Year ending December 31, 2024	7,629
Year ending December 31, 2025	6,832
Year ending December 31, 2026	5,757
Year ending December 31, 2027	5,156
Thereafter	$ 23,489

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ACCRUED WARRANTY EXPENSE (Details) - USD ($) $ in Thousands		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period		$ 12,925	$ 25,399
Additions		3,799	5,155
Expirations and other changes		(3,257)	(4,790)
Payments		(2,159)	(10,212)
Translation and other		(687)	(342)
Balance at end of period	$ 10,621	$ 10,621	$ 15,210
Fosler Construction
Movement in Extended Product Warranty Accrual [Roll Forward]
Additions	$ 400

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RESTRUCTURING ACTIVITIES - Summary of Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring activities	$ 359	$ 4,575	$ 351	$ 7,968
Cumulative costs to date	45,534		45,534
Severance and related costs (benefit)
Restructuring Cost and Reserve [Line Items]
Restructuring activities	29	996	(327)	3,177
Cumulative costs to date	36,925		36,925
Other
Restructuring Cost and Reserve [Line Items]
Restructuring activities	330	3,579	678	4,791
Cumulative costs to date	8,609		8,609
Operating Segments | B&W Renewable segment
Restructuring Cost and Reserve [Line Items]
Restructuring activities	78	715	865	1,781
Operating Segments | B&W Renewable segment | Severance and related costs (benefit)
Restructuring Cost and Reserve [Line Items]
Restructuring activities	6	382	743	1,301
Operating Segments | B&W Renewable segment | Other
Restructuring Cost and Reserve [Line Items]
Restructuring activities	72	333	122	480
Operating Segments | B&W Environmental segment
Restructuring Cost and Reserve [Line Items]
Restructuring activities	73	332	176	630
Operating Segments | B&W Environmental segment | Severance and related costs (benefit)
Restructuring Cost and Reserve [Line Items]
Restructuring activities	8	128	27	335
Operating Segments | B&W Environmental segment | Other
Restructuring Cost and Reserve [Line Items]
Restructuring activities	65	204	149	295
Operating Segments | B&W Thermal segment
Restructuring Cost and Reserve [Line Items]
Restructuring activities	204	1,242	484	3,132
Operating Segments | B&W Thermal segment | Severance and related costs (benefit)
Restructuring Cost and Reserve [Line Items]
Restructuring activities	14	362	130	1,409
Operating Segments | B&W Thermal segment | Other
Restructuring Cost and Reserve [Line Items]
Restructuring activities	190	880	354	1,723
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring activities	4	2,286	(1,174)	2,425
Corporate | Severance and related costs (benefit)
Restructuring Cost and Reserve [Line Items]
Restructuring activities	1	124	(1,227)	132
Corporate | Other
Restructuring Cost and Reserve [Line Items]
Restructuring activities	$ 3	$ 2,162	$ 53	$ 2,293

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RESTRUCTURING ACTIVITIES - Restructuring Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 4,136	$ 7,945	$ 6,561	$ 8,146
Restructuring (benefit) expense	359	4,575	351	7,968
Payments	(1,943)	(5,482)	(4,360)	(9,076)
Balance at end of period	$ 2,552	$ 7,038	$ 2,552	$ 7,038

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 6,685	$ 5,603	$ 19,958	$ 16,883
Expected return on plan assets	(14,358)	(13,527)	(42,985)	(40,309)
Amortization of prior service cost	27	28	82	84
Recognized net actuarial gain	0	(2,253)	0	(2,253)
Benefit plans, net	(7,646)	(10,149)	(22,945)	(25,595)
Service cost included in COS	195	217	594	652
Net periodic benefit cost (benefit)	(7,451)	(9,932)	(22,351)	(24,943)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	49	109	147	187
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	173	173	519	519
Recognized net actuarial gain	0	0	0	0
Benefit plans, net	222	282	666	706
Service cost included in COS	5	6	15	18
Net periodic benefit cost (benefit)	$ 227	$ 288	$ 681	$ 724

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Retirement Benefits [Abstract]
Pension and other postretirement benefit plans	$ 1.7	$ 0.4	$ 2.5	$ 24.7

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DEBT - Senior notes (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 30, 2021	Dec. 28, 2021	Mar. 31, 2021	Feb. 12, 2021
Debt Instrument [Line Items]
Issuance of senior notes	$ 5,455,000	$ 151,239,000
Senior notes | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Debt face amount							$ 35,000,000
8.125% Senior Notes due 2026 | Senior notes
Debt Instrument [Line Items]
Issuance of senior notes	5,400,000		$ 151,200,000
Debt interest rate per annum			8.125%				8.125%
Proceeds from issuance of debt, net			$ 146,600,000
Aggregate principal amount of Senior Notes sold	$ 5,400,000
8.125% Senior Notes due 2026 | Senior notes | B. Riley Securities, Inc.
Debt Instrument [Line Items]
Debt face amount						$ 150,000,000
6.50% Senior Notes | Senior notes
Debt Instrument [Line Items]
Issuance of senior notes			$ 151,400,000
Debt interest rate per annum	6.50%		6.50%	6.50%	6.50%
Proceeds from issuance of debt, net			$ 145,800,000
Debt face amount					$ 11,400,000

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DEBT - Components of The Senior Notes (Details) - Senior notes - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Dec. 30, 2021	Dec. 28, 2021	Feb. 12, 2021
Debt Instrument [Line Items]
Senior notes due 2026	$ 343,080
Unamortized deferred financing costs	(10,075)
Unamortized premium	493
Net debt balance	333,498
8.125% Senior Notes due 2026
Debt Instrument [Line Items]
Fixed rate per annum		8.125%			8.125%
Senior notes due 2026	191,640
Unamortized deferred financing costs	(4,442)
Unamortized premium	493
Net debt balance	$ 187,691
6.50% Senior Notes
Debt Instrument [Line Items]
Fixed rate per annum	6.50%	6.50%	6.50%	6.50%
Senior notes due 2026	$ 151,440
Unamortized deferred financing costs	(5,633)
Unamortized premium	0
Net debt balance	$ 145,807

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DEBT - Revolving Debt (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
Letter of credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 110,000,000
Administrative fees, percentage	0.75%
Fronting fees, percentage	0.25%
Commitment fee percentage	3.00%
Letter of credit fronting fees, percentage	0.25%
Revolving credit facility
Debt Instrument [Line Items]
Line of credit amount	$ 0
Commitment fee for unused capacity, percentage	0.375%
Revolving credit facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Prior A&R Credit Agreement
Debt Instrument [Line Items]
Quarterly fixed charge coverage test ratio (no less than)	1.00
Maximum senior leverage ratio	2.50
Non-guarantor cash repatriation covenant	$ 35,000,000
Minimum liquidity covenant	$ 30,000,000
Debt covenant, current ratio (not less than)	1.25
Annual cap maintenance capital expenditures	$ 7,500,000
Prior A&R Credit Agreement | Financial letters of credit
Debt Instrument [Line Items]
Letters of credit outstanding amount	15,100,000
Prior A&R Credit Agreement | Performance letters of credit
Debt Instrument [Line Items]
Letters of credit outstanding amount	$ 94,300,000
Reimbursement agreement | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Annual fees agreed for guaranty		$ 900,000
Reimbursement agreement | First year after closing
Debt Instrument [Line Items]
Prepayment fees, percentage	2.25%
Reimbursement agreement | Second year after closing
Debt Instrument [Line Items]
Prepayment fees, percentage	2.00%
Reimbursement agreement | Third year after closing
Debt Instrument [Line Items]
Prepayment fees, percentage	1.25%
Reimbursement agreement | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	6.50%
Reimbursement agreement | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	7.50%

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DEBT - Letters of Credit, Bank Guarantees and Surety Bonds (Details) $ in Millions	Sep. 30, 2022 USD ($)
Surety Bond
Debt Instrument [Line Items]
Letters of credit outstanding amount	$ 8.7
Guarantor obligations	333.9
Letters of Credit, and Bank Guarantees
Debt Instrument [Line Items]
Line of credit amount	45.1
Letters of credit outstanding amount	36.7
Letters of credit outstanding amount subject to foreign currency revaluation	$ 58.8

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DEBT - Other Indebtedness - Loans Payable (Details) $ in Millions	Sep. 30, 2022 USD ($)
Government Loan Program Related To COVID-19
Debt Instrument [Line Items]
Loans payable	$ 0.7
Loans Payable In April 2023
Debt Instrument [Line Items]
Loans payable	1.6
Vehicle and Equipment Loans
Debt Instrument [Line Items]
Loans payable	$ 0.5

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PREFERRED STOCK (Details) - USD ($)				1 Months Ended	6 Months Ended	9 Months Ended
	Jun. 01, 2021	May 26, 2021	Feb. 12, 2021	May 31, 2021	Dec. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Jul. 07, 2021
Debt Instrument [Line Items]
Sale of stock, number of shares issued (in shares)			29,487,180
Proceeds from sale of preferred stock						$ (40,000)	$ 111,850,000
Preferred stock, par value (in dollars per share)					$ 0.01	$ 0.01
Dividends paid						$ 11,100,000
Sale of stock, consideration received			$ 163,000,000
B. Riley Financial, Inc. | Last Out Term Loan Tranche A-3
Debt Instrument [Line Items]
Payment to related party in exchange for debt prepayment	$ 400,000
Cash paid for accrued interest	900,000
Debt prepayment amount	$ 73,300,000
B. Riley Securities, Inc.
Debt Instrument [Line Items]
Stock sale agreement, aggregate amount offered (up to)								$ 76,000,000
7.75% Series A Cumulative Perpetual Preferred Stock
Debt Instrument [Line Items]
Preferred stock, dividend rate				7.75%
Sale of stock, number of shares issued (in shares)		444,700		4,444,700
Price per share (In dollars per share)				$ 25.00
Proceeds from sale of preferred stock				$ 106,400,000	$ 7,700,000
Preferred stock, par value (in dollars per share)				$ 0.01
Liquidation preference (in dollars per share)				25.00
Preferred stock, equivalent dividend per year (in dollars per share)				$ 1.9375
Cumulative undeclared dividends of the preferred stock						$ 0
Sale of stock, consideration received					$ 7,700,000
7.75% Series A Cumulative Perpetual Preferred Stock | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Sale of stock, number of shares issued (in shares)	2,916,880
Price per share (In dollars per share)	$ 25.00

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COMMON STOCK (Details) - USD ($) $ in Millions	Feb. 12, 2021	May 19, 2022
Class of Stock [Line Items]
Sale of stock, number of shares issued (in shares)	29,487,180
Sale of stock, consideration received	$ 163.0
2021 Plan
Class of Stock [Line Items]
Common stock authorized for award grants (in shares)		1,250,000
Number of shares available for grant (in shares)		5,250,000
2015 Plan
Class of Stock [Line Items]
Common stock authorized for award grants (in shares)		5,250,000

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Summary of Interest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Interest expense on borrowings	$ 6,385	$ 3,801	$ 18,715	$ 14,758
Interest expense associated with amortization (accretion) of debt instruments	1,894	1,392	5,415	9,153
Lease liabilities	707	870	2,112	2,194
Other interest expense	2,334	2,267	7,007	4,469
Finance lease interest expense and other	3,041	3,137	9,119	6,663
Total interest expense	11,320	8,330	33,249	30,574
Senior notes
Debt Instrument [Line Items]
Interest expense on borrowings	6,385	3,801	18,715	8,993
Interest expense associated with amortization (accretion) of debt instruments	657	335	1,950	2,101
Last Out Term Loans - cash interest
Debt Instrument [Line Items]
Interest expense on borrowings	0	0	0	4,349
U.S. Revolving Credit Facility
Debt Instrument [Line Items]
Interest expense on borrowings	0	0	0	1,416
Interest expense associated with amortization (accretion) of debt instruments	0	0	0	5,995
Revolving Credit Agreement
Debt Instrument [Line Items]
Interest expense associated with amortization (accretion) of debt instruments	$ 1,237	$ 1,057	$ 3,465	$ 1,057

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Cash and Cash Equivalents Reconciliation (Details) - USD ($) $ in Thousands	Feb. 01, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 15, 2021	Sep. 30, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents		$ 48,471	$ 224,874		$ 107,055
Current and Long-term restricted cash and cash equivalents		21,027	1,841		8,692
Total cash, cash equivalents and restricted cash at end of period		69,498	226,715		115,747	$ 67,423
Escrow deposit				$ 11,500
Initial Payment Due On April 20, 2024
Cash and Cash Equivalents [Line Items]
Escrow deposit				2,500
Initial Payment Due On September 30, 2024
Cash and Cash Equivalents [Line Items]
Escrow deposit				$ 9,000
Fossil Power Systems
Cash and Cash Equivalents [Line Items]
Business combination, consideration transferred	$ 59,200
Held by foreign entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents		27,435	42,070		39,238
Held by U.S. entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents		21,036	182,804		67,817
Reinsurance reserve requirements
Cash and Cash Equivalents [Line Items]
Current and Long-term restricted cash and cash equivalents		648	443		774
Bank guarantee collateral
Cash and Cash Equivalents [Line Items]
Current and Long-term restricted cash and cash equivalents		1,892	997		1,026
Letters of credit collateral
Cash and Cash Equivalents [Line Items]
Current and Long-term restricted cash and cash equivalents		1,190	401		6,892
Hold-back for acquisition purchase price
Cash and Cash Equivalents [Line Items]
Current and Long-term restricted cash and cash equivalents		5,900	0		0
Escrow for Project Kelvin
Cash and Cash Equivalents [Line Items]
Current and Long-term restricted cash and cash equivalents		$ 11,397	$ 0		$ 0

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 30, 2021	Dec. 28, 2021	Feb. 12, 2021
Debt Instrument [Line Items]
Income tax payments, net	$ 2,693	$ 6,094
Total cash paid for interest	19,292	18,800
U.S. Revolving Credit Facility
Debt Instrument [Line Items]
Total cash paid for interest	0	5,979
Interest payments on Last Out Term Loans
Debt Instrument [Line Items]
Total cash paid for interest	0	6,140
8.125% Senior Notes due 2026 | Senior notes
Debt Instrument [Line Items]
Fixed rate per annum			8.125%			8.125%
Total cash paid for interest	$ 11,444	6,681
6.50% Senior Notes due 2026 | Senior notes
Debt Instrument [Line Items]
Fixed rate per annum	6.50%		6.50%	6.50%	6.50%
Total cash paid for interest	$ 7,848	$ 0

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PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Tax Credit Carryforward [Line Items]
Income tax expense	$ 4,902	$ 301	$ 4,777	$ 6,683
Effective tax rate	(31.30%)	2.20%	(17.40%)	83.20%
Unfavorable discrete items	$ 700	$ 600	$ 1,200	$ 2,900
Minimum | Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Effective tax rate			19.00%
Maximum | Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Effective tax rate			30.00%

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CONTINGENCIES (Details) - USD ($) $ in Thousands					3 Months Ended		9 Months Ended
	Jun. 10, 2022	Jan. 11, 2021	Dec. 14, 2020	Dec. 27, 2019	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Loss Contingencies [Line Items]
Loss contingency, damages sought, contractual cap			$ 11,700
Revenues					$ 214,870	$ 159,960	$ 639,938	$ 531,068
Affiliated Entity | Wholly-Owned Italian Subsidiary | Russian Invasion Of Ukraine
Loss Contingencies [Line Items]
Revenues							$ 3,100
Stockholder Litigation
Loss Contingencies [Line Items]
Litigation settlement, total payment	$ 9,500
Payments for legal settlements	4,750
Litigation settlement, insurance proceeds amount	$ 4,750
Pending Litigation
Loss Contingencies [Line Items]
Alleged damages		$ 2,900		$ 58,900

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COMPREHENSIVE INCOME - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 31,717	$ 43,942	$ 58,622	$ (15,719)	$ (195,444)	$ (338,262)	$ 58,622	$ (338,262)
Other comprehensive loss before reclassifications	(13,344)	(6,634)	(4,285)	(1,292)	(1,478)	(70)
Reclassified from AOCI to net (loss) income	198	(198)	593	197	198	(4,314)
Other comprehensive loss	(13,146)	(6,832)	(3,692)	(1,095)	(1,280)	(4,384)	(23,670)	(6,759)
Ending balance	(17,128)	31,717	43,942	20,400	(15,719)	(195,444)	(17,128)	20,400
Accumulated Other Comprehensive (Loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(69,346)	(62,514)	(58,822)	(58,054)	(56,774)	(52,390)	(58,822)	(52,390)
Ending balance	(82,492)	(69,346)	(62,514)	(59,149)	(58,054)	(56,774)	(82,492)	(59,149)
Currency translation loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(66,418)	(59,784)	(55,499)	(53,635)	(52,157)	(47,575)	(55,499)	(47,575)
Other comprehensive loss before reclassifications	(13,344)	(6,634)	(4,285)	(1,292)	(1,478)	(70)
Reclassified from AOCI to net (loss) income		0	0	0	0	(4,512)
Other comprehensive loss	(13,344)	(6,634)	(4,285)	(1,292)	(1,478)	(4,582)
Ending balance	(79,762)	(66,418)	(59,784)	(54,927)	(53,635)	(52,157)	(79,762)	(54,927)
Net unrecognized loss related to benefit plans (net of tax)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(2,928)	(2,730)	(3,323)	(4,419)	(4,617)	(4,815)	(3,323)	(4,815)
Other comprehensive loss before reclassifications	0	0	0	0	0	0
Reclassified from AOCI to net (loss) income	198	(198)	593	197	198	198
Other comprehensive loss	198	(198)	593	197	198	198
Ending balance	$ (2,730)	$ (2,928)	$ (2,730)	$ (4,222)	$ (4,419)	$ (4,617)	$ (2,730)	$ (4,222)

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COMPREHENSIVE INCOME - Reclassification out of Accumulated other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Loss on sale of business	$ 0	$ 0	$ 0	$ (2,240)
Benefit plans, net	7,424	9,867	22,279	24,889
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net (loss) income	198	(197)	593	3,919
Reclassification out of Accumulated Other Comprehensive Income | Release of currency translation adjustment with the sale of business
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Loss on sale of business	0	0	0	4,512
Reclassification out of Accumulated Other Comprehensive Income | Pension and post retirement adjustments, net of tax
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Benefit plans, net	$ 198	$ (197)	$ 593	$ (593)

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FAIR VALUE MEASUREMENTS - Summary of Available-for-Sale Securities Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	$ 10,554	$ 12,208
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	9,934	11,494
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	620	714
Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	6,147	9,477
Corporate notes and bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	6,147	9,477
Corporate notes and bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	0	0
Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	620	714
Mutual funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	0	0
Mutual funds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	620	714
United States Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	3,787	2,017
United States Government and agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	3,787	2,017
United States Government and agency securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)		3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Decrease in contingent consideration liability		$ 9,600,000	$ 9,567,000	$ 0
Fosler Construction
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, value, high, low	$ 0
Contingent consideration, value, high	10,000,000
Business combination, contingent consideration, fair value	$ 8,800,000	$ 0	0	$ 8,800,000
Decrease in contingent consideration liability			$ 9,600,000
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities contractual maturities		0 years	0 years
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities contractual maturities		5 years	5 years

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FAIR VALUE MEASUREMENTS - Senior Notes (Details) - Senior notes - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Dec. 30, 2021	Dec. 28, 2021	Feb. 12, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	$ 343,080
8.125% Senior Notes due 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed rate per annum		8.125%			8.125%
Carrying Value	191,640
Estimated Fair Value	$ 184,800
6.50% Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed rate per annum	6.50%	6.50%	6.50%	6.50%
Carrying Value	$ 151,440
Estimated Fair Value	$ 144,898

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RELATED PARTY TRANSACTIONS (Details) $ / shares in Units, € in Millions											1 Months Ended	3 Months Ended		9 Months Ended		15 Months Ended	18 Months Ended
	Jul. 28, 2022 USD ($) subsidiary	Jun. 10, 2022 USD ($)	Dec. 30, 2021 USD ($)	Dec. 17, 2021 USD ($)	Dec. 17, 2021 EUR (€)	Dec. 13, 2021 USD ($)	Jun. 01, 2021 USD ($) shares	May 26, 2021 USD ($) shares	Feb. 12, 2021 USD ($) shares	Nov. 19, 2018 USD ($)	May 31, 2021 USD ($) shares	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jul. 20, 2022 $ / shares shares	Dec. 31, 2021	Dec. 28, 2021 USD ($)	Jul. 07, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Sale of stock, number of shares issued (in shares) | shares									29,487,180
Hamon Holdings Corporation
Related Party Transaction [Line Items]
Acquiree potential carve-out, number of subsidiary | subsidiary	4
Business acquisition, bidder price	$ 2,900,000
7.75% Series A Cumulative Perpetual Preferred Stock
Related Party Transaction [Line Items]
Preferred stock, dividend rate											7.75%
Sale of stock, number of shares issued (in shares) | shares								444,700			4,444,700
8.125% Senior Notes due 2026 | Senior notes
Related Party Transaction [Line Items]
Debt interest rate per annum									8.125%										8.125%
Last Out Term Loan Tranche A | Senior notes
Related Party Transaction [Line Items]
Debt instrument, allowed prepayment, amount									$ 35,000,000
6.50% Senior Notes | Senior notes
Related Party Transaction [Line Items]
Debt interest rate per annum			6.50%									6.50%		6.50%		6.50%	6.50%		6.50%	6.50%
Debt face amount																				$ 11,400,000
Underwriting fees and other transaction cost related to overallotment			$ 500,000
Stockholder Litigation
Related Party Transaction [Line Items]
Litigation settlement, total payment		$ 9,500,000
Payments for legal settlements		$ 4,750,000
BPRI Executive Consulting, LLC | Financial advisory services
Related Party Transaction [Line Items]
Related party transaction, period with written notice to terminate agreement										30 days
Related party transaction monthly payments										$ 750,000
B. Riley Financial, Inc.
Related Party Transaction [Line Items]
Total fees												$ 200,000	$ 200,000	$ 600,000	$ 400,000
Performance bond amount | €					€ 30.0
Indemnity rider fee				$ 1,700,000
Indemnity rider fee, percentage of bonded obligation				5.00%	5.00%
B. Riley Financial, Inc. | Reimbursement agreement
Related Party Transaction [Line Items]
Annual fees agreed for guaranty																						$ 900,000
B. Riley Financial, Inc. | 7.75% Series A Cumulative Perpetual Preferred Stock
Related Party Transaction [Line Items]
Sale of stock, number of shares issued (in shares) | shares							2,916,880
B. Riley Financial, Inc. | Senior notes
Related Party Transaction [Line Items]
Debt face amount									35,000,000
B. Riley Financial, Inc. | Last Out Term Loan Tranche A-3
Related Party Transaction [Line Items]
Payment to related party in exchange for debt prepayment							$ 400,000
Debt prepayment amount							73,300,000
Cash paid for accrued interest							$ 900,000
B. Riley Securities, Inc.
Related Party Transaction [Line Items]
Payments of stock issuance costs									9,500,000							$ 200,000
Stock sale agreement, aggregate amount offered (up to)																					$ 76,000,000
B. Riley Securities, Inc. | 7.75% Series A Cumulative Perpetual Preferred Stock
Related Party Transaction [Line Items]
Payment of debt issuance costs								$ 400,000			$ 4,300,000
B. Riley Securities, Inc. | Senior notes
Related Party Transaction [Line Items]
Payment of debt issuance costs									$ 5,200,000
B. Riley Securities, Inc. | 8.125% Senior Notes due 2026 | Senior notes
Related Party Transaction [Line Items]
Payment of debt issuance costs														$ 100,000			$ 600,000
Debt face amount																							$ 150,000,000
B. Riley Securities, Inc. | 6.50% Senior Notes | Senior notes
Related Party Transaction [Line Items]
Payment of debt issuance costs						$ 5,500,000
BRF Investments, LLC | Affiliated Entity
Related Party Transaction [Line Items]
Warrants exercised (in shares) | shares																		1,541,666.7
Number of common stock purchased by warrants exercise (in shares) | shares																		1,541,666
Warrant exercise price (in dollars per share) | $ / shares																		$ 0.01
Babcock & Wilcox Enterprises, Inc. | B. Riley Capital Management, LLC
Related Party Transaction [Line Items]
Ownership percent of common stock														30.50%

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ACQUISITIONS AND DIVESTITURES - Narrative (Details)														3 Months Ended	9 Months Ended		12 Months Ended
	Jan. 15, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jan. 16, 2023 USD ($)	Sep. 24, 2022 USD ($)	Jul. 28, 2022 USD ($) subsidiary	Jun. 30, 2022 USD ($)	Feb. 28, 2022 USD ($)	Feb. 01, 2022 USD ($)	Nov. 30, 2021 USD ($)	Sep. 30, 2021 USD ($) project	Aug. 13, 2021 USD ($)	Mar. 15, 2021 USD ($)	Mar. 08, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Mar. 05, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase of Fosler Construction non-controlling interest														$ (12,109,000)
Sale of intangible assets, consideration						$ 8,000,000
Gain on sale of development rights						7,000,000									$ 7,000,000
Accounts receivable from sale of intangible assets						$ 8,000,000
Proceeds from sale of development rights														2,500,000
Proceeds from sale of certain fixed assets, gross											$ 18,900,000	$ 4,000,000
Proceeds from sale of certain fixed assets, net											15,800,000	3,300,000
Gain on sale of fixed assets											$ 13,900,000	$ 1,900,000			0	$ (2,240,000)
Proceeds from sale of business and assets, net															2,500,000	$ 23,770,000
Capital In Excess of Par Value
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase of Fosler Construction non-controlling interest														8,626,000
Disposal Group, Disposed of by Sale | Diamond Power Machine (Hubei) Co., Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration from divestitures																		$ 2,800,000
Proceeds from sale of business and assets, net													$ 2,000,000
Favorable contract asset recognized													$ 800,000
Operating Expense
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Acquisition related costs														$ 200,000	$ 1,000,000
Fosler Construction
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of community solar projects | project										2
Fosler Construction
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, percentage acquired				40.00%						60.00%				40.00%	40.00%	60.00%	40.00%
Business combination, consideration transferred				$ 12,700,000						$ 36,000,000
Payments to acquire businesses										27,200,000
Business combination, contingent consideration										8,800,000				$ 0	$ 0	$ 8,800,000	$ 0
Contingent consideration, value, high, low										0
Contingent consideration, value, high										10,000,000
Increase of goodwill															14,400,000
Measurement period adjustment, goodwill and current liabilities change															14,100,000		14,100,000
Measurement period adjustment, warranty accruals															400,000
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs														8,600,000	8,600,000
Business combination, consideration transferred, present value				12,100,000
Remaining non-controlling interest				$ 20,700,000						$ 22,262,000				23,996,000	23,996,000	$ 22,262,000	$ 23,996,000
Goodwill impairment charge														$ 7,200,000	$ 7,224,000
Fosler Construction | Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments to acquire businesses	$ 4,700,000	$ 5,000,000	$ 3,000,000.0
VODA
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, percentage acquired									100.00%
Business combination, consideration transferred									$ 32,900,000
Fossil Power Systems
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, percentage acquired								100.00%
Business combination, consideration transferred								$ 59,200,000
Business combination, consideration hold-back amount								$ 5,900,000
Business combination, consideration hold-back period								12 months
Optimus Industries
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, percentage acquired							100.00%
Business combination, consideration transferred							$ 19,200,000
Hamon Holdings Corporation
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Acquiree potential carve-out, number of subsidiary | subsidiary					4
Business acquisition, bidder price					$ 2,900,000

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ACQUISITIONS AND DIVESTITURES - Purchase Price Allocation (Details) - USD ($) $ in Thousands	7 Months Ended	8 Months Ended	9 Months Ended	10 Months Ended	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2022	Sep. 24, 2022	Feb. 28, 2022	Feb. 01, 2022	Dec. 31, 2021	Nov. 30, 2021	Sep. 30, 2021
Business Acquisition [Line Items]
Goodwill	$ 155,229	$ 155,229	$ 155,229	$ 155,229	$ 155,229				$ 116,462
Fosler Construction
Business Acquisition [Line Items]
Accounts receivable	2,025	2,025	2,025	2,025	2,025						$ 1,904
Contracts in progress	10,796	10,796	10,796	10,796	10,796						1,363
Other current assets	302	302	302	302	302						1,137
Property, plant and equipment	1,667	1,667	1,667	1,667	1,667						9,527
Goodwill	63,316	63,316	63,316	63,316	63,316						43,230
Other assets	12,897	12,897	12,897	12,897	12,897						17,497
Right of use assets	1,093	1,093	1,093	1,093	1,093						1,093
Debt	(7,625)	(7,625)	(7,625)	(7,625)	(7,625)						(7,625)
Current liabilities	(20,545)	(20,545)	(20,545)	(20,545)	(20,545)						(5,073)
Advance billings on contracts	(1,319)	(1,319)	(1,319)	(1,319)	(1,319)						(1,557)
Non-current lease liabilities	(1,730)	(1,730)	(1,730)	(1,730)	(1,730)						(1,730)
Other non-current liabilities	(894)	(894)	(894)	(894)	(894)						(4,112)
Non-controlling interest	(23,996)	(23,996)	(23,996)	(23,996)	(23,996)	$ (20,700)					(22,262)
Net acquisition cost	$ 35,987	$ 35,987	35,987	$ 35,987	35,987						$ 33,392
Measurement period adjustment, accounts receivable					121
Measurement period adjustment, contracts in progress					9,433
Measurement period adjustment, other current assets					(835)
Measurement period adjustment, property, plant, and equipment					(7,860)
Measurement period adjustment, goodwill			$ 10,697		20,086
Measurement period adjustment, other assets					(4,600)
Measurement period adjustment, right of use assets					0
Measurement period adjustment, debt					0
Measurement period adjustment, current liabilities					(15,472)
Measurement period adjustment, advance billings on contracts					238
Measurement period adjustment, non-current lease liabilities					0
Measurement period adjustment, other non-current liabilities					3,218
Measurement period adjustment, non-controlling interest					(1,734)
Measurement period adjustment, net acquisition cost					$ 2,595
Business acquisition, percentage acquired	40.00%	40.00%	40.00%	40.00%	40.00%	40.00%					60.00%
Measurement period adjustment, goodwill and current liabilities change			$ 14,100		$ 14,100
VODA
Business Acquisition [Line Items]
Cash	$ 4,737	$ 4,737	4,737	$ 4,737	4,737					$ 4,737
Accounts receivable	5,654	5,654	5,654	5,654	5,654					5,654
Contracts in progress	258	258	258	258	258					258
Other current assets	825	825	825	825	825					825
Property, plant and equipment	253	253	253	253	253					253
Goodwill	17,115	17,115	17,115	17,115	17,115					17,176
Other assets	14,321	14,321	14,321	14,321	14,321					14,321
Right of use assets	433	433	433	433	433					433
Current liabilities	(5,181)	(5,181)	(5,181)	(5,181)	(5,181)					(5,181)
Advance billings on contracts	(2,036)	(2,036)	(2,036)	(2,036)	(2,036)					(2,036)
Non-current lease liabilities	(302)	(302)	(302)	(302)	(302)					(302)
Other non-current liabilities	(3,264)	(3,264)	(3,264)	(3,264)	(3,264)					(3,264)
Net acquisition cost	32,813	32,813	32,813	32,813	32,813					$ 32,874
Measurement period adjustment, goodwill			(61)	(61)
Measurement period adjustment, net acquisition cost				(61)
Business acquisition, percentage acquired										100.00%
Fossil Power Systems
Business Acquisition [Line Items]
Cash	1,869	1,869	1,869	1,869	1,869			$ 1,869
Accounts receivable	2,624	2,624	2,624	2,624	2,624			2,624
Contracts in progress	370	370	370	370	370			370
Other current assets	3,228	3,228	3,228	3,228	3,228			3,228
Property, plant and equipment	178	178	178	178	178			178
Goodwill	35,662	35,662	35,662	35,662	35,662			35,392
Other assets	25,092	25,092	25,092	25,092	25,092			25,092
Right of use assets	1,115	1,115	1,115	1,115	1,115			1,115
Current liabilities	(1,810)	(1,810)	(1,810)	(1,810)	(1,810)			(1,792)
Advance billings on contracts	(645)	(645)	(645)	(645)	(645)			(645)
Non-current lease liabilities	(989)	(989)	(989)	(989)	(989)			(989)
Non-current liabilities	(7,490)	(7,490)	(7,490)	(7,490)	(7,490)			(7,384)
Net acquisition cost	59,204	59,204	59,204	59,204	59,204			$ 59,058
Measurement period adjustment, goodwill		270
Measurement period adjustment, current liabilities		(18)
Measurement period adjustment, non-current liabilities		(106)
Measurement period adjustment, net acquisition cost		146
Business acquisition, percentage acquired								100.00%
Optimus Industries
Business Acquisition [Line Items]
Cash	5,338	5,338	5,338	5,338	5,338		$ 5,338
Accounts receivable	5,165	5,165	5,165	5,165	5,165		5,165
Contracts in progress	2,598	2,598	2,598	2,598	2,598		2,598
Other current assets	2,115	2,115	2,115	2,115	2,115		2,115
Property, plant and equipment	7,619	7,619	7,619	7,619	7,619		2,441
Goodwill	3,807	3,807	3,807	3,807	3,807		11,081
Other assets	2,331	2,331	2,331	2,331	2,331		12
Right of use assets	105	105	105	105	105		94
Current liabilities	(4,240)	(4,240)	(4,240)	(4,240)	(4,240)		(4,240)
Advance billings on contracts	(3,779)	(3,779)	(3,779)	(3,779)	(3,779)		(3,779)
Non-current lease liabilities	(2)	(2)	(2)	(2)	(2)		(2)
Non-current liabilities	(1,858)	(1,858)	(1,858)	(1,858)	(1,858)		(1,858)
Net acquisition cost	19,199	$ 19,199	19,199	$ 19,199	$ 19,199		$ 18,965
Measurement period adjustment, property, plant, and equipment	5,178
Measurement period adjustment, goodwill	(7,274)		$ (7,273)
Measurement period adjustment, other assets	2,319
Measurement period adjustment, right of use assets	11
Measurement period adjustment, net acquisition cost	$ 234
Business acquisition, percentage acquired							100.00%

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ACQUISITIONS AND DIVESTITURES - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands	Feb. 28, 2022	Feb. 01, 2022	Nov. 30, 2021	Sep. 30, 2021
Fosler Construction
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value				$ 12,500
VODA
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value			$ 14,083
Fossil Power Systems
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value		$ 25,092
Optimus Industries
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value	$ 2,320
Customer relationships | Fosler Construction
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value				$ 9,400
Weighted average estimated useful life (in years)				12 years
Customer relationships | VODA
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value			$ 13,855
Weighted average estimated useful life (in years)			11 years
Customer relationships | Fossil Power Systems
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value		$ 20,451
Weighted average estimated useful life (in years)		9 years
Customer relationships | Optimus Industries
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value	$ 2,100
Weighted average estimated useful life (in years)	10 years
Tradename | VODA
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value			$ 228
Weighted average estimated useful life (in years)			3 years
Tradename | Fossil Power Systems
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value		$ 787
Weighted average estimated useful life (in years)		14 years
Tradename | Optimus Industries
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value	$ 220
Weighted average estimated useful life (in years)	3 years
Backlog | Fosler Construction
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value				$ 3,100
Weighted average estimated useful life (in years)				5 months
Patented Technology | Fossil Power Systems
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value		$ 578
Weighted average estimated useful life (in years)		12 years
Unpatented technology | Fossil Power Systems
Business Acquisition [Line Items]
Estimated Acquisition Date Fair Value		$ 3,276
Weighted average estimated useful life (in years)		12 years

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SUBSEQUENT EVENTS (Details) - Debt Agreements With MSD - USD ($) $ in Millions	3 Months Ended					12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Nov. 07, 2022
Subsequent Event
Subsequent Event [Line Items]
Minimum liquidity covenant							$ 30.0
Forecast
Subsequent Event [Line Items]
Debt instrument, covenant, fixed charge coverage ratio	125.00%	115.00%	80.00%	65.00%	55.00%
Debt instrument, covenant, senior net leverage ratio		150.00%	160.00%	175.00%	200.00%
Debt instrument, covenant, minimum cash flow requirement					$ 20.0	$ 25.0