Babcock & Wilcox Enterprises Inc (BW) 2025 Q2 法說會逐字稿

Good afternoon, and thank you for attending today's Babcock and Wilcox Enterprises second-quarter 2025 conference call. (Operator Instructions)

下午好，感謝您參加今天的 Babcock and Wilcox Enterprises 2025 年第二季電話會議。（操作員指示）

I would now like to turn the conference over to our host, Sharyn Brooks, B&W's Director of Communications. Thank you. You may proceed, Mrs. Brooks.

現在，我想將會議交給我們的主持人、B&W 的通訊總監 Sharyn Brooks。謝謝。您可以繼續，布魯克斯夫人。

Thank you, Jayla, and thanks to everyone for joining us on Babcock & Wilcox Enterprises second-quarter 2025 earnings conference call. As Jayla said, I'm Sharyn Brooks, Director of Communications and Marketing. Joining the call today are Kenny Young, B&W's Chairman and Chief Executive Officer; and Cameron Frymyer, Chief Financial Officer, to discuss our second-quarter results.

謝謝你，Jayla，也謝謝大家參加 Babcock & Wilcox Enterprises 2025 年第二季財報電話會議。正如 Jayla 所說，我是傳播和行銷總監 Sharyn Brooks。今天參加電話會議的有 B&W 董事長兼執行長 Kenny Young 和財務長 Cameron Frymyer，他們將討論我們的第二季業績。

During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings press release, and also in our Form 10-Q that was filed this afternoon and our Form 10-K that is on file with the SEC, and provide further detail about the risks related to our business.

在本次電話會議中，我們所做的某些陳述將具有前瞻性。這些聲明受到風險和不確定性的影響，包括我們的前瞻性聲明安全港條款中規定的風險和不確定性，這些條款可以在我們的收益新聞稿末尾找到，也可以在我們今天下午提交的 10-Q 表和向美國證券交易委員會提交的 10-K 表中找到，並提供了與我們的業務相關的風險的進一步詳細信息。

Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP.

此外，除非法律要求，我們不承擔更新任何前瞻性聲明的義務。我們還提供有關某些歷史和目標結果的非 GAAP 信息，以補充根據 GAAP 提供的結果。

This information should not be considered superior to, or as a substitute for, the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our second quarter earnings release published this afternoon and in our company overview presentation filed on Form 8-K this afternoon and posted on the Investor Relations section of our website at babcock.com.

此資訊不應被視為優於或替代可比較的 GAAP 指標。歷史非 GAAP 指標的對帳可以在我們今天下午發布的第二季度收益報告中以及我們今天下午以 8-K 表格形式提交的公司概況介紹中找到，並發佈在我們的網站 babcock.com 的投資者關係部分。

I will now turn the call over to Kenny.

我現在將電話轉給肯尼。

Thanks, Sharyn. Well, good afternoon, everyone, and thanks for joining us on our second-quarter 2025 earnings call. We generated strong operating results, highlighted by strong performance from our parts and services business, which posted a 31% increase in revenues compared to the second quarter of 2024. This growth has been spurred by the rising need for power and electricity due to the rapid expansion of AI-driven data centers, as well as increased baseload generation usage across the consumer, manufacturing, and industrial sectors.

謝謝，莎琳。大家下午好，感謝大家參加我們的 2025 年第二季財報電話會議。我們取得了強勁的經營業績，其中零件和服務業務表現強勁，與 2024 年第二季相比，該業務的營收成長了 31%。這一成長是由人工智慧驅動的資料中心的快速擴張所導致的電力需求不斷增長，以及消費者、製造業和工業部門基荷發電使用量的增加所推動的。

In fact, most of our clients expect increases in baseload generation by up to 120 gigawatts over the next 10 years from data centers alone. As a result, we continue to work with our customers to evaluate opportunities to further augment their power generation capacity with either biomass, hydrogen, natural gas, and coal. And we are working closely with our utility customers to help extend the life and improve the efficiency of their existing coal and natural gas power plants.

事實上，我們的大多數客戶預計，未來 10 年內，光是資料中心的基載發電量就將增加 120 千兆瓦。因此，我們繼續與客戶合作，評估利用生物質、氫氣、天然氣和煤炭進一步增強其發電能力的機會。我們正在與公用事業客戶密切合作，幫助延長其現有煤炭和天然氣發電廠的使用壽命並提高其效率。

We believe this increased demand continues to position us for sustained success across our higher-margin parts and services businesses and provides B&W with a strong outlook for the second half of 2025 and beyond. Adjusted EBITDA, including Diamond Power, was $21.6 million for the second quarter, which was over 70% greater than Street expectations and primarily driven by the 31% increase in higher-margin parts and services revenue coming from coal and fossil fuel power plants in the US and internationally as well.

我們相信，這種不斷增長的需求將繼續使我們在高利潤的零件和服務業務中取得持續的成功，並為 B&W 在 2025 年下半年及以後帶來強勁的前景。第二季調整後的 EBITDA（包括 Diamond Power）為 2,160 萬美元，比華爾街預期高出 70% 以上，主要得益於來自美國和國際煤炭和化石燃料發電廠的高利潤零件和服務收入成長 31%。

This reflects our intent to exit from certain large new build projects internationally. And while we continue to expand our parts and services presence globally to support coal and fossil fuel customers around the world, we also are actively pursuing large upgrades and new builds in the US to support power generation needs and expect to make key announcements by the end of the year.

這反映了我們退出某些國際大型新建專案的意圖。在我們繼續擴大全球零件和服務業務以支援全球煤炭和化石燃料客戶的同時，我們也在美國積極尋求大規模升級和新建以滿足發電需求，並預計在今年年底前發布重要公告。

Large project revenue will remain up and down each quarter depending on timing and quarter-over-quarter overlap of new bookings. Company-wide revenues with Diamond Power came in at $170.8 million, which is just ahead of Street expectations. Revenue from continued operations, without Diamond Power, for the quarter came in at $144.1 million, which is roughly the same as second quarter 2024, again, mainly due to slightly lower projects, while parts and services, however, saw a dramatic increase.

大型專案收入每季都會保持上下波動，具體取決於新訂單的時間和季度間重疊情況。Diamond Power 的全公司營收達到 1.708 億美元，略高於華爾街的預期。本季不包括 Diamond Power 的持續經營收入為 1.441 億美元，與 2024 年第二季大致相同，主要歸因於項目略有減少，而零件和服務則大幅增加。

Overall, our revenues for the first half of 2025 from continuing operations without Diamond Power were up year over year to just under $300 million in top line revenues. Operating income increased to $8.1 million in the second quarter of 2025 and adjusted EBITDA without Diamond Power, otherwise called adjusted EBITDA from continuing operations, was $15.1 million in the second quarter of 2025, which is a 90% increase compared to $8 million in the second quarter of 2024.

整體而言，2025 年上半年，除 Diamond Power 外，我們持續經營業務的營收年增至近 3 億美元。2025 年第二季度，營業收入增至 810 萬美元，不包括 Diamond Power 的調整後 EBITDA（也稱為持續經營的調整後 EBITDA）在 2025 年第二季度為 1510 萬美元，與 2024 年第二季度的 800 萬美元相比增長了 90%。

Adjusted EBITDA from continuing operations more than doubled for the first six months of 2025 to $21.2 million compared to the first six months in 2024. The company's core business continues to perform ahead of expectations, and we anticipate returning to positive cash flows in 2025 when excluding BrightLoop.

2025 年前六個月，持續經營業務的調整後 EBITDA 與 2024 年前六個月相比增長了一倍多，達到 2,120 萬美元。該公司的核心業務持續表現超出預期，我們預計在 2025 年不包括 BrightLoop 後，現金流將恢復正值。

Additionally, through a combination of asset sales, debt reduction, and improved cash flows, the company has alleviated the previous doubt about continuing as a going concern. We believe we are well positioned now to win new plant conversions, plant upgrades, and behind-the-meter data center projects in North America and beyond, as we are in key discussions and negotiations on several opportunities and expect continued strong performance as we move forward through the year into 2026 and beyond.

此外，透過出售資產、減少債務和改善現金流等措施，該公司減輕了先前對持續經營的疑慮。我們相信，我們現在已做好準備，贏得北美及其他地區的新工廠改造、工廠升級和用戶側數據中心項目，因為我們正在就幾個機會進行關鍵的討論和談判，並預計在 2026 年及以後將繼續保持強勁的表現。

During the quarter, we completed the sale of Diamond Power International for gross proceeds of $177 million or roughly about 8 times EBITDA. This further improves our balance sheet and reinforces the mark-to-market value of our underlying assets as we recapitalize our business.

本季度，我們完成了 Diamond Power International 的出售，總收益為 1.77 億美元，約 EBITDA 的 8 倍。這進一步改善了我們的資產負債表，並在我們重組業務時增強了基礎資產的市值。

This represents a significant improvement in our net leverage ratios as we look to continue supporting our customers' long-term power needs and position the company for the advancement of our new technologies, such as BrightLoop.

這意味著我們的淨槓桿率有了顯著改善，因為我們希望繼續支持客戶的長期電力需求，並為公司推進 BrightLoop 等新技術做好準備。

We also recently entered into a private bond exchange with a limited number of note holders. These exchanges will help to reduce our annual interest expense by a little over $1 million annually while reducing outstanding debt and extending debt maturity to 2030.

我們最近也與有限數量的債券持有人進行了私人債券交易。這些交換將幫助我們每年減少略高於 100 萬美元的年度利息支出，同時減少未償債務並將債務到期日延長至 2030 年。

This privately negotiated bond exchange resulted in $131.8 million of outstanding bonds due in 2026, being replaced with new bonds in the amount of $100.7 million that will be due in 2030. This represents a positive step in our restructuring and refinancing efforts while demonstrating continued support from our lenders and bondholders.

這次私下協商的債券交換導致 2026 年到期的 1.318 億美元未償還債券被 2030 年到期的 1.007 億美元新債券所取代。這是我們重組和再融資努力中邁出的積極一步，同時也表明了我們的貸方和債券持有人的持續支持。

Moving forward, we remain intently focused on our strategic vision and continue to explore the sale of other non-strategic assets as well as potential refinancing options to reduce our current and long-term debt obligations. We continue to see strong global demand for our diverse portfolio of technologies and are making progress in converting our $7.6 billion global pipeline of identified project opportunities.

展望未來，我們將繼續專注於我們的策略願景，並繼續探索出售其他非策略資產以及潛在的再融資選擇，以減少我們當前和長期的債務負擔。我們持續看到全球對我們多樣化技術組合的強勁需求，並且在轉化我們已確定的價值 76 億美元的全球專案機會方面正在取得進展。

Our backlog of $418.1 million at the end of second quarter was a 49% increase compared to the same period in 2024. This represents another extremely strong quarter for our backlog as we continue to perform based on higher baseload generation demand in North America. We believe these results affirm our strong foundation, while underpinning our pipeline and outlook for the year ahead.

截至第二季末，我們的積壓訂單為 4.181 億美元，與 2024 年同期相比成長了 49%。這對我們的積壓訂單來說意味著又一個極其強勁的季度，因為我們將繼續基於北美更高的基荷發電需求而表現良好。我們相信，這些結果鞏固了我們堅實的基礎，同時也鞏固了我們未來一年的計畫和前景。

Our efforts to progress BrightLoop are moving forward as we further the commercial development of existing projects and continue working to improve the overall operational effectiveness of these technologies to produce low-cost hydrogen or steam. We're seeing an increasing activity for our BrightLoop technology, both for steam generation as well as hydrogen production that can produce energy with lower cost and expenditures.

隨著我們進一步推進現有項目的商業開發並繼續努力提高這些技術的整體營運效率以生產低成本的氫氣或蒸汽，我們推進 BrightLoop 的努力正在向前推進。我們看到 BrightLoop 技術的應用日益廣泛，既可用於蒸汽生產，也可用於氫氣生產，能夠以更低的成本和支出生產能源。

In fact, we are in discussions with a number of oil and gas companies and large utilities about using BrightLoop for specific steam or hydrogen generation projects.

事實上，我們正​​在與一些石油和天然氣公司以及大型公用事業公司討論將 BrightLoop 用於特定的蒸汽或氫氣生產項目。

I'll now turn the call over to Cameron to discuss the financial details of the second quarter of 2025. Cameron?

現在我將把電話轉給卡梅倫，討論 2025 年第二季的財務細節。卡梅倫？

Thanks, Kenny. I am pleased to review our second-quarter results. Further details of which can be found in the 10-Q that is on file with the SEC. Our second-quarter consolidated revenues were $144.1 million, which is slightly lower compared to the second quarter of 2024. The difference is primarily related to timing of closing and starting of a select few large projects, offset partially by an increase in global parts and services of $15.4 million.

謝謝，肯尼。我很高興回顧我們第二季的業績。更多詳細資訊請參閱美國證券交易委員會 (SEC) 存檔的 10-Q 表。我們第二季的綜合收入為 1.441 億美元，與 2024 年第二季相比略有下降。這一差異主要與少數大型項目的結束和啟動時間有關，但全球零件和服務費用增加了 1,540 萬美元，部分抵消了這一差異。

First half 2025 revenue came in at $299.9 million, which is an increase compared to the $292.3 million in the first half of 2024. The increase is primarily driven by larger global parts and service volume, offset partially by timing of large project revenue recognition.

2025 年上半年的收入為 2.999 億美元，與 2024 年上半年的 2.923 億美元相比有所增加。這一增長主要得益於全球零件和服務量的增加，但部分抵消了大型專案收入確認時間的影響。

Global parts and service revenue in the second quarter of 2025 increased by $15.4 million compared to the second quarter of 2024 and increased $26.9 million in the first half when compared to the first half of 2024. This considerable improvement is primarily due to the increasing need for electricity from fossil fuels, driven by the demand from artificial intelligence, data centers, and expanding incomes -- economies.

2025 年第二季全球零件及服務收入較 2024 年第二季增加 1,540 萬美元，上半年較 2024 年上半年增加 2,690 萬美元。這項顯著改善主要歸因於對化石燃料電力的需求不斷增加，而這種需求的推動力來自於人工智慧、資料中心和不斷增長的收入——經濟。

Net loss from continuing operations in the second quarter of 2025 was $6.1 million which was a better result compared to a net loss of $20.5 million in the second quarter of 2024. Loss in the first half of 2025 was $20.1 million compared to a loss of $38.2 million in the first half of 2024.

2025 年第二季持續經營淨虧損為 610 萬美元，與 2024 年第二季 2,050 萬美元的淨虧損相比有所改善。2025 年上半年虧損 2,010 萬美元，而 2024 年上半年虧損 3,820 萬美元。

Our net operating income in the second quarter of 2025 was $8.1 million, exceeding our quarterly expectations and outpacing an operating loss of $4.4 million in the second quarter of 2024. Operating income in the first half of 2025 was $8.4 million, compared to an operating loss of $3.5 million in the first half of 2024.

我們 2025 年第二季的淨營業收入為 810 萬美元，超出了我們的季度預期，並且超過了 2024 年第二季 440 萬美元的營業虧損。2025 年上半年的營業收入為 840 萬美元，而 2024 年上半年的營業虧損為 350 萬美元。

Our adjusted EBITDA was $15.1 million compared to $8 million in the second quarter of 2024, and adjusted EBITDA in the first half of 2025 was $21.2 million, an increase compared to the $10.8 million in the first half of 2024. These increases are primarily the result of higher global parts and service volume as a result of higher energy demand.

我們的調整後 EBITDA 為 1,510 萬美元，而 2024 年第二季為 800 萬美元，2025 年上半年的調整後 EBITDA 為 2,120 萬美元，與 2024 年上半年的 1,080 萬美元相比有所增加。這些成長主要是由於能源需求增加導致全球零件和服務量增加。

I will now turn to our balance sheet, cash flow, and liquidity. Total debt at June 30, 2025, was $471.3 million, and the company had cash, cash equivalents, and restricted cash balance of $109.1 million. However, as previously announced on July 31, B&W closed the sale of Diamond Power for gross proceeds of $177 million.

現在我將談談我們的資產負債表、現金流和流動性。截至 2025 年 6 月 30 日，公司總債務為 4.713 億美元，現金、現金等價物和受限現金餘額為 1.091 億美元。然而，正如 7 月 31 日宣布的那樣，B&W 以 1.77 億美元的總收益完成了對 Diamond Power 的出售。

These proceeds will be primarily used to pay down B&W's debt, and as of July 31, total debt is expected to be $421.3 million with a cash and cash equivalents and restricted cash balance of $217.4 million, this leaves the company with net debt of approximately $203.9 million.

這些收益將主要用於償還 B&W 的債務，截至 7 月 31 日，預計總債務為 4.213 億美元，現金及現金等價物和受限現金餘額為 2.174 億美元，這使得公司的淨債務約為 2.039 億美元。

The refinancing and reduction of our current debt obligations continues to be one of our top priorities. We have taken strategic steps to address our debt obligations. And today, we are extremely pleased to announce that B&W has alleviated the previous doubt about continuing as a going concern.

再融資和減少當前債務仍然是我們的首要任務之一。我們已採取策略措施來解決我們的債務問題。今天，我們非常高興地宣布，B&W 已經消除了先前對繼續經營的疑慮。

This is a major step forward for B&W and we believe that we are well positioned to support our customers in meeting the growing need for reliable and efficient energy, including opportunities for new plant conversions, upgrades, and behind the meter data center projects.

這是 B&W 向前邁出的重要一步，我們相信我們有能力支持我們的客戶滿足日益增長的可靠高效能源需求，包括新工廠改造、升級和電錶資料中心專案的機會。

We continue to explore the sale of additional nonstrategic assets as well as potential refinancing options to reduce our current and long-term debt obligations as mentioned earlier. The proceeds of these sales will be used primarily to pay down existing debt and enhanced working capital.

我們繼續探索出售額外的非策略性資產以及潛在的再融資選擇，以減少我們之前提到的當前和長期債務。這些銷售所得將主要用於償還現有債務和增加營運資金。

I will now turn the call back over to Kenny.

我現在將電話轉回給肯尼。

Thanks, Cameron. Well, in closing, again, we delivered strong operating results in the second quarter demonstrating the progress we continue to make as we execute our strategic plan and drive further improvements in our balance sheet.

謝謝，卡梅倫。最後，我們在第二季度再次取得了強勁的經營業績，這表明我們在執行策略計劃和推動資產負債表進一步改善方面繼續取得進展。

We expect continued strong financial performance throughout the remainder of the year, buoyed by a global pipeline of over $7.6 billion in identified project opportunities that remains healthy across all business segments. We believe B&W is well positioned to capitalize on the growing demand for baseload generation, while also supporting energy security and energy transition.

我們預計，今年剩餘時間公司的財務表現將繼續保持強勁，這得益於全球範圍內超過 76 億美元的已確定專案機會，這些專案機會在所有業務部門都保持著良好的發展勢頭。我們相信，B&W 完全有能力利用日益增長的基載發電需求，同時支持能源安全和能源轉型。

Also want to recognize and thank our experienced and talented employees who continue to help drive the company's success. We greatly appreciate their efforts as well as the continued support of our global customer base and suppliers, and we remain excited about the growth prospects ahead of us.

也要表揚和感謝我們經驗豐富、才華洋溢的員工，他們繼續幫助推動公司的成功。我們非常感謝他們的努力以及我們全球客戶群和供應商的持續支持，我們對未來的成長前景感到興奮。

We look forward to continuing to demonstrate B&W's role and a leader of innovate -- a leader and innovator, providing leading powered generation and environmental solutions that meet the world's need for reliable power today while advancing technologies for tomorrow.

我們期待繼續展現 B&W 作為創新領導者的角色——領導者和創新者，提供領先的發電和環境解決方案，滿足當今世界對可靠電力的需求，同時推動未來技術的發展。

I'll now turn the call over to Jayla, who will help us with a couple of questions. Jayla?

現在我將把電話轉給 Jayla，她將幫助我們解答幾個問題。杰拉？

(Operator Instructions) Aaron Spychalla, Craig-Hallum.

（操作員指示）Aaron Spychalla，Craig-Hallum。

Yea. Hi, Kenny and Cameron. Thanks for taking the questions. Maybe first, can you just talk about the current demand for energy that you're seeing on the thermal side of the business with everything going on? You talked about some potential large upgrades and new builds later this year. And it sounds like you're hearing the possibility of some new coal-fired generation being built. So can you just maybe give an update there, please?

是的。嗨，肯尼和卡梅倫。感謝您回答這些問題。首先，您能否談談目前在熱能業務方面對能源的需求？您談到了今年稍後的一些潛在的大型升級和新建。聽起來你聽說了建造一些新的燃煤發電廠的可能性。那麼，您能否提供一下最新消息呢？

Yeah. No, thanks, Aaron. We are, actually. So as I mentioned, in the US North America alone, right, we're seeing the overall need in the next 10 years go up to by 120 gigawatts which is about a 10% base load generation increase.

是的。不，謝謝，亞倫。事實上，我們確實如此。正如我所提到的，僅在美國北美，我們看到未來 10 年的整體需求將上升至 120 吉瓦，這相當於基本負載發電量增加 10%。

Think about that in context of a baseload demand in the US, it's been relatively flat over the years. And now the entire aspect of the generation plus the grid infrastructure has to be enhanced and upgraded to hit that demand.

想想美國基本負載需求的背景，多年來相對穩定。現在，必須增強和升級整個發電系統以及電網基礎設施，以滿足此需求。

Specifically, without giving names, we do have a handful of customers that are now looking to build out up to 20 gigawatts within those potential areas of new generation to support data center demand that's taking place within those specific territories. And they're looking at right now, all aspects of energy generation, including, as you mentioned, which is exciting for us, obviously, the potential around new coal generation or new coal power plants here in the US.

具體來說，我們不透露姓名，我們確實有少數客戶現在希望在新一代的潛在領域內建造高達 20 千兆瓦的電力，以支援這些特定地區內的資料中心需求。他們目前正在研究能源生產的各個方面，包括如您所說，這顯然令我們興奮的，即美國新煤炭生產或新燃煤電廠的潛力。

Obviously, a lot of support is given towards the fossil fuel aspect and coal and natural gas are key drivers to support that baseload generation. Exciting to us, if we took that to the next step, obviously, and a lot of work to still be done, but the BrightLoop represents an opportunity there to actually use in that particular case because we can produce steam from BrightLoop than have to produce hydrogen, but we can just produce steam directly from cold but isolate and capture the CO2, which can either be sequestered or used for other beneficial purposes, enhanced oil recovery or other capabilities either now or sometime in the future.

顯然，化石燃料方面得到了大量支持，而煤炭和天然氣是支持基載發電的關鍵驅動力。令我們興奮的是，如果我們將其推進到下一步，顯然還有很多工作要做，但 BrightLoop 代表了在特定情況下實際使用的機會，因為我們可以從 BrightLoop 生產蒸汽，而不必生產氫氣，但我們可以直接從冷源生產蒸汽，但隔離和捕獲二氧化碳，這些二氧化碳可以被封存或用於其他有益目的，提高未來採收率或現在或現在其他有益的功能。

So as we're continuing to work with those customers on that specifically, a few customers where we're in discussions on projects with them to actually augment their power generation as they're trying to respond to these data centers, it opens the door for us on a wide variety of technologies inclusive BrightLoop leveraging coal as well.

因此，當我們繼續與這些客戶就此進行具體合作時，我們正在與一些客戶討論項目，以實際增強他們的發電量，因為他們正試圖響應這些數據中心，這為我們打開了各種技術的大門，包括利用煤炭的 BrightLoop。

So we're excited about those opportunities. We're in discussions on several of those and anticipate, hopefully, an announcement or two yet this year, obviously. So we still have a ways to go, but a lot of momentum right now taking place.

所以我們對這些機會感到非常興奮。我們正在就其中幾個問題進行討論，並希望今年能夠發布一兩個公告。因此，我們還有很長的路要走，但現在已經形成了許多勢頭。

That also adds that currently as I mentioned, such an increase in our parts and services because a lot of the power demands to keep the current fossil fuel plants open, including coal plants, is really driven right now. And so those are running full.

這也補充了目前我所提到的，我們的零件和服務需求如此之大，是因為目前需要大量的電力來維持現有的化石燃料電廠（包括燃煤電廠）的運作。所以它們都運行滿了。

Good news is, though, a lot of them now are being extended out for a longer-term period of time. And so there's a lot of opportunities for us to get in and work with those customers on making them as efficient as possible, continue to work on providing the parts and services on this particular plant.

不過，好消息是，其中許多協議現在都延長了期限。因此，我們有很多機會與這些客戶合作，使他們盡可能高效，繼續為這個特定的工廠提供零件和服務。

So we're in a good position to support them on accomplishing both directions. One, keeping everything going, two, obviously, supplant or increase baseload generation.

因此，我們有能力支持他們實現這兩個方向的目標。一是維持一切運轉，二是顯然取代或增加基載發電。

Thanks for that. And then just any thoughts on what that might look like from a size or order perspective?

謝謝。那麼從尺寸或順序的角度來看，您有什麼想法嗎？

Too early to tell, I always get into the size of negotiations on these, but -- out there, but some of these, it typically would be in the in the low 100s and some of those might be a little bit higher than that and the size itself. So we're -- we continue to work on those and -- on those plants, but they're going to vary in size depending on the actual outputs on those particular sites that we're working on.

現在說還為時過早，我總是會參與這些談判的規模，但是 - 但其中一些，通常會在 100 以下，而其中一些可能會略高於這個數字以及規模本身。因此，我們將繼續致力於這些工廠的建設，但它們的規模將根據我們正在建設的特定地點的實際產出而有所不同。

But to soon to give too much guidance there. But it's a positive outcome for us all around. The good news is that revenue would be spread over a few year period of time. And the backside of those is that we'd continue to provide parts and services those plants. So it provides a base for us to continue to grow our core business on as well.

但目前還不能給太多指引。但這對我們所有人來說都是一個積極的結果。好消息是收入將分散在幾年的時間內。而背後的意義是，我們將繼續為這些工廠提供零件和服務。因此，它也為我們繼續發展核心業務提供了基礎。

No, I appreciate that. And then just any thoughts on the second half. I know you have -- you had some guidance out there before the sale of Diamond Power and you noted improvements expected in the back half. Just any other color there?

不，我很感激。然後談談對下半場的一些想法。我知道您在出售 Diamond Power 之前給了一些指導，您指出預計下半年會有改善。還有其它顏色嗎？

Not yet. We're still working through -- I mean, it should be -- we're anticipating a strong year, obviously, because of the parts and services aspect, which is higher margin for us for the rest of the year, but also getting ready for 2026 as well too, which we're seeing as a potentially strong year for us, too. So we're trying to work on both right now. And obviously, we'll come out with guidance before the end of the year on that. That's our intended way, but still working through both of those.

還沒有。我們仍在努力——我的意思是，應該是這樣——我們預計今年將是強勁的一年，顯然，因為零件和服務方面，這為我們在今年剩餘時間內帶來了更高的利潤率，同時也為 2026 年做好了準備，我們認為 2026 年對我們來說也可能是強勁的一年。因此我們現在正努力解決這兩個問題。顯然，我們將在今年年底前就此提出指導意見。這是我們想要的方式，但仍在努力實現這兩種方式。

Understood. And then maybe last question. Just on free cash flow, you noted continuing to expect to return to positive free cash flow in 2025. Can you just speak to confidence there with the ramp that will be needed there in the back half?

明白了。這也許是最後一個問題。僅就自由現金流而言，您指出預計 2025 年自由現金流將繼續恢復為正值。您能否對後半部所需的坡道表示有信心？

Yeah. I think when you look at the second half of the year, I think just taking the following six months will be cash positive. We'll work on getting the -- with these -- the sale of the assets, getting the interest down. So that will help out quite a bit. And as we ramp up on some of our -- the natural gas conversion project that will bring in some cash.

是的。我認為，當你展望下半年時，我認為接下來的六個月就會產生現金流。我們將努力出售這些資產，降低利息。這將會有很大幫助。隨著我們加大天然氣轉換專案的力度，我們將獲得一些現金。

As Kenny mentioned, to the parts and services is growing, which is helping cash flow as well. So yeah, we have pretty good confidence that second half of the year will generate positive cash.

正如肯尼所提到的，零件和服務正在成長，這也有助於現金流。所以，是的，我們非常有信心今年下半年將產生正現金。

All right. Thanks for taking the question. I'll turn it over.

好的。感謝您回答這個問題。我把它翻過來。

Thanks, sir.

謝謝，先生。

Rob Brown, Lake Street Capital Markets.

羅布布朗 (Rob Brown)，Lake Street Capital Markets。

Good afternoon. Congratulations on all the progress. Yeah, in the parts and service business, as you get these plants running longer, maybe you can just explain a little bit the dynamic of how the extending life helps your parts and service business and what that incremental opportunity is?

午安.祝賀你取得的所有進展。是的，在零件和服務業務中，隨著這些工廠的運行時間越來越長，也許您可以稍微解釋一下延長使用壽命如何幫助您的零件和服務業務，以及增量機會是什麼？

Yeah. So some of these plants, obviously, they vary in all of the states that are out there here in the US. But some that may have had a shorter lifespan where they may look to convert some of those or perhaps close some of those, started to slow down and ramp down.

是的。因此，顯然，這些植物在美國各州都有差異。但有些業務的壽命可能較短，他們可能會考慮轉換其中一些業務，或關閉其中一些業務，然後開始放慢速度並逐步減少。

They're buying a parts and services to work on those plants. So when they extend them out for a longer period of time, they have to go back and start looking at some of the bigger pieces, right, and as well as the efficiency of those plants and maybe relook at some of the environmental aspects and blah, blah, blah.. So there's follow-on aspects to keeping those plants running for a little bit longer term, or longer term that bode well for us in the short order. So that's all a positive.

他們正在購買零件和服務來為這些工廠提供服務。因此，當他們將其延長一段時間時，他們必須回過頭來開始研究一些更大的部分，對吧，以及這些工廠的效率，也許還要重新審視一些環境方面的問題等等。因此，還有後續措施可以讓這些工廠運作更長時間，或者說更長期，這在短期內對我們有利。所以這一切都是正面的。

And clearly, as the plants run longer on that particular past -- aspect of it, it just extends out the revenues that we realize from those plants in a longer period of time. So both of those are solid for us and very helpful to us. But that's really the reason why the extension is good for us. short term.

顯然，隨著工廠運作時間的延長，我們從這些工廠獲得的收入也會延長。所以這兩者對我們來說都是可靠的並且對我們非常有幫助。但這確實是延期對我們有利的原因。短期內。

Okay. Got it. And then on the BrightLoop pipeline out there, I think you talked about some steam projects, but could you give a sense of a number of projects in the pipeline and some of the potential there?

好的。知道了。然後關於 BrightLoop 管道，我想您談到了一些蒸汽項目，但您能否介紹一下管道中的一些項目以及其中的一些潛力？

On BrightLoop specifically?

具體來說，是 BrightLoop 嗎？

Yeah. Correct.

是的。正確的。

Yeah. So there's quite a few. I'm going to give a number just as a quick range here, but well over 10, that we're working on in BrightLoop. But the -- I think the exciting part and always the hardest part about a new technology is that it does multiple things.

是的。所以有很多。我將在這裡給出一個數字作為快速範圍，但遠遠超過 10，這是我們在 BrightLoop 中研究的。但是——我認為新技術最令人興奮的部分和最困難的部分是它可以做多種事情。

So BrightLoop fundamentally can produce syngas such as hydrogen, nitrogen, other aspects that we can actually create ammonia from it as well, or we can just produce steam from BrightLoop. Same fuels as hydrogen doesn't matter. For us, it's just we have a less one reactor. So if it's just steam, we have a fuel reactor and a steam output. If it's hydrogen, we have three reactors to produce the hydrogen from.

因此，BrightLoop 從根本上可以生產合成氣，例如氫氣、氮氣，其他方面，我們實際上也可以從中製造氨，或者我們可以直接從 BrightLoop 生產蒸汽。與氫相同的燃料並不重要。對我們來說，只是少了一個反應爐。因此，如果它只是蒸汽，我們就有一個燃料反應器和一個蒸汽輸出。如果是氫氣，我們有三個反應器來生產氫氣。

So it just depends on the application. But the exciting part is that BrightLoop by itself actually can produce steam from coal or natural gas or steam from biomass and other fuels as well to drive a turbine for electric generation that's out there on that. So when we look at working with a lot of operators, not only here, but some on the international front.

所以這只取決於應用程式。但令人興奮的是，BrightLoop 本身實際上可以從煤炭或天然氣中產生蒸汽，或從生物質和其他燃料中產生蒸汽，從而驅動渦輪機進行發電。因此，我們考慮與許多營運商合作，不僅是這裡的營運商，還有一些國際上的營運商。

In some cases, if it's steam-related just and I'll just focus on after a second, we are in discussions with a few utilities and power plants around the concept of just creating steam from coal or natural gas. But giving the option to capture the CO2, they may not need to capture the CO2 today but under a different environmental aspect or decision to incur more CO2 in the future, they would have the luxury to curb capture, or store, sequester pretty cost effectively because it wouldn't require a lot of incremental capital or operational expense to make that happen compared to other technologies to capture the CO2.

在某些情況下，如果它只是與蒸汽有關，我稍後會集中討論，我們正在與一些公用事業公司和發電廠討論利用煤炭或天然氣產生蒸汽的概念。但是，如果可以選擇捕獲二氧化碳，他們可能不需要現在就捕獲二氧化碳，但在不同的環境因素或未來產生更多二氧化碳的決定下，他們將能夠以相當經濟的方式抑制捕獲，或儲存、封存，因為與其他捕獲二氧化碳的技術相比，這不需要大量的增量資本或運營費用來實現。

So while we have momentum here, especially in the US with the baseload generation demand, the abilities to use more fossil fuels given the current administration aspect around it. And some of the plants and sites now are taking a close look at how BrightLoop either under FEED studies or further engineering studies, would be able to meet or be a part of meeting that new baseload generation.

因此，雖然我們在這裡有發展勢頭，特別是在美國有基載發電需求，但考慮到當前的管理情況，我們有能力使用更多的化石燃料。目前，一些工廠和站點正在密切關注 BrightLoop 如何透過 FEED 研究或進一步的工程研究來滿足或參與滿足新的基載發電需求。

But allow for them to hedge against the future if there is a point at which they needed, wanted or there was some incentive or some other requirement to isolate the CO2, they could do that in a very economical fashion.

但是，如果他們需要、想要或有某種激勵或其他要求來隔離二氧化碳，他們可以以非常經濟的方式做到這一點。

So with a standard boiler in a coal plant or a standard combined cycle plant or whatever might be considered today, you would have to add a post-combustion technology to capture the CO2. BrightLoop eliminates the post-combustion aspect of that.

因此，對於燃煤電廠的標準鍋爐或標準聯合循環電廠或任何當今可能考慮的電廠，您必須添加後燃燒技術來捕獲二氧化碳。BrightLoop 消除了後燃燒現象。

So you can build out a power plant today, isolate CO2, if you want to let CO2 go in the atmosphere, got it. want to sequester the CO2, you can. The point of it is, is that we give that optionality to the customer and not have a dramatic increase on any future CapEx nor is there an impact on the parasitic load to the plant. So you keep the efficiency overall of that particular plant at bay.

所以你今天可以建造一座發電廠，隔離二氧化碳，如果你想讓二氧化碳進入大氣，明白了。想要封存二氧化碳，你可以。這樣做的目的是，我們向客戶提供了這種選擇權，並且不會大幅增加未來的資本支出，也不會對工廠的寄生負荷產生影響。因此，您可以抑制該特定工廠的整體效率。

So it's a very intriguing technology. And with the momentum that we're seeing here around that concept around BrightLoop is becoming realized in some of these opportunities. And so we'll see where it goes. But clearly, we're working with our customers on those.

所以這是一項非常有趣的技術。隨著我們所看到的勢頭，BrightLoop 的概念正在一些機會中實現。我們將拭目以待。但顯然，我們正在與客戶合作解決這些問題。

We are seeing in parallel some opportunities around biomass to steam actually here in the US, some of that with an oxy combustion, carbon capture process where they're looking at those opportunities, and we're in discussions on those.

我們同時看到了美國在生物質蒸汽生產方面的一些機會，其中一些是採用氧燃燒、碳捕獲工藝，他們正在尋找這些機會，我們正在就這些機會進行討論。

And there are some other home waste or other aspects on power plants that are in discussions right now here in North America about providing steam for those plants to drive a turbine and providing baseload generation using alternative forms of fuel.

目前，北美正在討論一些其他家庭垃圾或發電廠的其他方面，包括為這些電廠提供蒸汽來驅動渦輪機，並使用替代燃料提供基載發電。

So all of those are exciting for us, and we are in direct dialogue on specific projects across each of those areas right now.

因此，所有這些對我們來說都是令人興奮的，我們目前正在就每個領域的具體項目進行直接對話。

Great. Thank you. I'll turn it over.

偉大的。謝謝。我把它翻過來。

At this time, there are no more questions placed queue. I'd like to pass the conference back over to our hosting team for closing remarks.

目前，隊列中沒有其他問題。我想將會議交還給我們的主辦團隊，讓他們作閉幕詞。

This concludes our conference call today. A replay of the call will be available for a limited time on our website. Thank you for joining us.

今天的電話會議到此結束。這次通話的重播將在我們的網站上限時提供。感謝您加入我們。

That will conclude today's conference call. Thank you for your participation, and enjoy the rest of your day.

今天的電話會議到此結束。感謝您的參與，祝您今天過得愉快。