Free cash flow generation is consistently negative, evidenced by a $37.6M cash burn in 2025Q3, which complicates the sustainability of the company's $3.8M dividend distribution in 2025Q4.
| Cash from Operations | -68.9M | -118.73M | -42.27M | -30.64M | -111.2M | -40.8M | -176.32M | -281.88M | -189.83M | 2.3M | 145.21M | -28.67M | -12.32M |
| Operating CF Margin % | -11.72% | -16.55% | -5.81% | -5.03% | -15.64% | -7.2% | -20.52% | -26.53% | -12.19% | 0.15% | 8.26% | -1.8% | -0.7% |
| Operating CF Growth % | 41.97% | -180.9% | -37.97% | 72.45% | -172.54% | 76.86% | 37.45% | -48.49% | -8353.61% | -98.42% | 606.43% | -132.67% | - |
| Net Income | -32.8M | -59.78M | -78.87M | -26.58M | 31.54M | -10.3M | -129.04M | -652.55M | -379.01M | -115.1M | 19.34M | -26.16M | 174.82M |
| Depreciation & Amortization | 10.1M | 16.71M | 21M | 23.99M | 18.34M | 16.8M | 23.61M | 32M | 40.14M | 39.6M | 34.93M | 36.45M | 23.03M |
| Stock-Based Compensation | 0 | 4.69M | 8.7M | 9.98M | 7.8M | 4.56M | 3.08M | 2.25M | 11.81M | 16.1M | 7.77M | -11K | -172K |
| Deferred Taxes | 800K | 7.1M | -1.46M | 5.9M | -7.75M | 1.8M | -855K | 98.06M | 50.3M | -9M | -32.12M | -39.38M | 56.11M |
| Other Non-Cash Items | -21M | 12.42M | -6.5M | -4.09M | -17.83M | 2.54M | 76.11M | 158.41M | 142.51M | 36.2M | 40.37M | 128.97M | -115.51M |
| Working Capital Changes | -26M | -99.88M | 14.87M | -39.83M | -143.3M | -56.2M | -149.22M | 79.93M | -55.58M | 34.5M | 74.91M | -128.54M | -150.6M |
| Change in Receivables | 3.2M | -54.97M | 71.39M | -82.33M | -19.87M | 21.7M | 112.41M | 80.38M | 9.41M | 58.9M | -33.98M | -19.52M | 4.9M |
| Change in Inventory | -7.8M | -6.41M | -8.13M | -19M | -3.05M | -4.1M | -4.14M | 10.34M | 11.87M | 2.9M | 6.06M | 2.96M | 10.77M |
| Change in Payables | -57.9M | 8.14M | 12.93M | 52.68M | 7.08M | -42M | -80.46M | -4.36M | -14.66M | 4.5M | 17.86M | -7.76M | -13.35M |
| Cash from Investing | 197M | 109.96M | -7.94M | -68.8M | -33.54M | 2.2M | 8.78M | 179.22M | -62.14M | -180.8M | -45.88M | -149.57M | -18.66M |
| Capital Expenditures | -16.8M | -11.21M | -9.8M | -13.24M | -6.68M | -8.2M | -3.8M | -5.47M | -14.28M | -22.5M | -35.4M | -17.93M | -11.59M |
| CapEx % of Revenue | 2.86% | 1.56% | 1.35% | 2.17% | 0.94% | 1.45% | 0.44% | 0.52% | 0.92% | 1.43% | 2.01% | 1.13% | 0.66% |
| Acquisitions | 216.3M | 120.91M | 0 | -59.42M | -29.95M | 8M | 7.45M | 183.78M | -52.55M | -153.1M | -7.42M | -132.6M | -6.88M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 34K | -102K | 466K | 0 | 4.9M | 2.5M | 534K | -1.55M | 10.2M | 5.69M | -6.09M | 6.95M |
| Cash from Financing | -58.7M | 69.73M | 8.56M | -11.16M | 302.81M | 44.1M | 167.02M | 82.61M | 206.13M | -83.4M | 53.61M | 211.7M | 47.77M |
| Debt Issued (Net) | -171.5M | 92.31M | 24.72M | 8.01M | 67.55M | 55.31M | 143.08M | 50.6M | 239.85M | -4.77M | -1.08M | -1.57M | -212K |
| Equity Issued (Net) | 1000K | 1000K | -1000K | -1000K | 1000K | -283K | 1000K | 438K | -1000K | -1000K | -1000K | 0 | 0 |
| Dividends Paid | -14.9M | -18.57M | -11.14M | -14.86M | -9.13M | 0 | 0 | 0 | 0 | 0 | -242K | 0 | 0 |
| Share Repurchases | -400K | -336K | -1.41M | -2.82M | -4.94M | -283K | -117K | -805K | -17.64M | -78.41M | -25.41M | 0 | 0 |
| Other Financing | -2M | -11.61M | -3.61M | -1.5M | -24.78M | -10.93M | 22.66M | 31.57M | -16.08M | -246K | 80.34M | 213.27M | 47.99M |
| Net Change in Cash | 70.3M | 59.7M | -42.09M | -113.25M | 159.29M | 10.5M | -3.34M | -9.42M | -39.22M | -269.3M | 146.53M | 20.61M | 15.78M |
| Free Cash Flow | -85.7M | -129.94M | -52.07M | -43.88M | -117.88M | -49M | -180.12M | -287.36M | -204.11M | -20.2M | 109.81M | -46.6M | -23.91M |
| FCF Margin % | -14.58% | -18.11% | -7.16% | -7.2% | -16.58% | -8.65% | -20.97% | -27.05% | -13.1% | -1.28% | 6.25% | -2.93% | -1.35% |
| FCF Growth % | 34.05% | -149.55% | -18.68% | 62.78% | -140.56% | 72.8% | 37.32% | -40.79% | -910.45% | -118.4% | 335.65% | -94.88% | - |
| FCF per Share | -0.81 | -1.42 | -0.59 | -0.50 | -1.41 | -1.01 | -5.72 | -20.78 | -21.68 | -2.01 | 10.19 | -4.34 | -2.23 |
| FCF Conversion (FCF/Net Income) | 1.91x | 1.98x | 0.21x | 1.34x | -3.60x | 3.95x | 1.45x | 0.39x | 0.50x | -0.02x | 7.59x | 1.08x | -0.07x |
| Interest Paid | 0 | 37.32M | 23.07M | 25.67M | 20.23M | 17.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 7.76M | 6.73M | 7.95M | 4.99M | 6.96M | 0 | 0 | 0 | 0 | 0 | 8.21M | 0 |
Persistent negative operating cash
According to the provided financial data, BWSN consistently fails to convert net income into positive operating cash flow, as evidenced by the 2025Q3 period where a $35.1M profit resulted in a $32.1M cash outflow, highlighting a fundamental breakdown in earnings quality and working capital efficiency.
The recurring divergence between reported net income and operating cash flow suggests that accounting profits are frequently decoupled from actual liquidity generation. Investors should monitor whether this trend reflects aggressive revenue recognition or an inability to collect on long-term project milestones.
As reported in financial statements, BWSN has struggled to maintain positive free cash flow, with the company recording a $37.6M cash burn in 2025Q3 alone, indicating that the business model is currently unable to self-fund its operations or capital expenditure requirements through internal cash generation.
The consistent negative FCF trajectory underscores the structural challenges of the firm's project-based business model. This pattern suggests that the company may remain reliant on external financing or asset divestitures to sustain its ongoing operations.
Based on the company's reported figures, working capital fluctuations have been a significant drag on cash flow, most notably in 2024Q3 when a $31.1M outflow occurred, suggesting that the timing of project payments and inventory management remains a primary source of liquidity instability for the firm.
The erratic nature of working capital changes implies that the company faces significant challenges in aligning cash inflows with the progress of its engineering projects. This volatility warrants further investigation into the firm's credit terms and the effectiveness of its accounts receivable collection processes.
As indicated by the historical data, BWSN has continued to pay dividends despite persistent negative free cash flow, with $3.8M distributed in 2025Q4, a practice that appears difficult to reconcile with the company's ongoing need to preserve liquidity for its core industrial operations.
The decision to prioritize shareholder distributions while burning cash suggests a potential misalignment between capital allocation strategy and the firm's current financial reality. Investors should monitor whether this dividend policy is sustainable given the company's strained cash position and negative net margins.
Quick answers to the most common questions about buying BWSN stock.
Babcock & Wilcox Enterprises, I (BWSN) generated $-68.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Babcock & Wilcox Enterprises, I (BWSN) reported negative free cash flow of $85.7M in 2025, indicating capital requirements exceeded cash from operations.
Babcock & Wilcox Enterprises, I (BWSN) spent $16.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Babcock & Wilcox Enterprises, I (BWSN) returned $14.9M to shareholders via cash dividends and spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.