Babcock & Wilcox Enterprises, Inc.

We are subject to various risks and uncertainties in the course of our business. The discussion of such risks and uncertainties may be found under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as described below, there have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025.

A nationwide shortage of skilled labor, particularly boilermakers and other construction trades, has increased and may continue to increase our costs, reduce productivity and adversely affect our ability to execute projects and our operating results.

Our construction, depends on a availability of skilled craft labor, including boilermakers, welders, pipe fitters and other skilled trades. An increase in power demand, including from data centers, industrial growth and the electrification of the economy, has led to more construction of new generation capacity resulting in a nationwide shortfall of skilled labor. These labor constraints can increase our construction costs and affect productivity on certain projects.

We may not be able to pass increased labor costs on to customers or recover them through escalation clauses, change orders or claims.