Babcock & Wilcox Enterprises, Inc.

Liquidity

Our primary liquidity requirements include debt service, funding 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 Credit Agreement, senior notes, equity offerings and our Preferred Stock, each of which are described below and in the Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report in further detail. We believe that our current operating plan and borrowings available under our Credit Agreement will be sufficient to satisfy our foreseeable liquidity needs and capital expenditure requirements, including for at least the next twelve months. We may elect to raise additional capital through the sale of additional equity or debt financing to fund business activities such as strategic acquisitions, capital expenditures, working capital needs or other purposes beyond the next twelve months. Additional financing may not be available on terms favorable to us or at all, and may also be impacted by any disruptions in the financial markets. In addition, our existing indebtedness could limit our ability to obtain additional financing.

Cash and Cash Flows

The following discussion on our cash flows is inclusive of continued and discontinued operations, consistent with our presentation on the Condensed Consolidated Statements of Cash Flows in accordance with GAAP.

At September 30, 2026, our cash and cash equivalents, and restricted cash totaled $128.9 million, and we had total debt of $202.5 million, of which $22.0 million is unamortized premium. We also had $191.7 million of gross Preferred Stock outstanding. Our foreign cash was $10.3 million of our total cash and cash equivalents and restricted cash as of September 30, 2026. 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 have not made a provision for in our results of operations. We have no plans to repatriate these funds to the U.S. We had $36.9 million of restricted cash as of September 30, 2026 related to collateral for certain letters of credit as part of funding for several ongoing projects.

Cash flows used in operating activities was $130.3 million in the nine months ended September 30, 2026, which is primarily attributable to movements in certain operating assets and liabilities, such as increases to accounts receivable trade, net of $152.9 million related to larger projects and contracts in progress of $29.3 million, and decreases in advance billings on contracts of $53.2 million, partially offset by increases in accounts payable of $93.2 million. Also offsetting these movements is net income of $31.2 million and non-cash stock compensation expense of $12.9 million, partially offset by the change in fair value of customer warrants of $20.8 million, which is also non-cash. Advance billings on contracts and construction in progress are primarily impacted by timing differences related to progress made on ongoing projects, billings, and collections, and may fluctuate significantly period to period. Operating cash flow decreases from pension liabilities, accrued postretirement benefits and employee benefits of $14.6 million is a result of contributions made to the plan.

Cash flows used in operating activities was $65.9 million in the nine months ended September 30, 2025, which was primarily attributable to the year-to-date net loss of $45.4 million and non-cash adjustments arising from gain on sale of business of $17.3 million, partially offset by the impairment of long-lived assets of $9.9 million. Cash flows used in operating activities also included movements in certain operating assets and liabilities such as decreases in accounts payable of $33.2 million and increases in accounts receivable trade, net of $6.3 million, partially offset by decreases in contracts in progress of $11.9 million and increases in advanced billings on contracts of $16.6 million, which are primarily impacted by timing differences related to progress made on ongoing projects, billings, and collections and may fluctuate significantly period to period. Operating cash flow decreases from pension liabilities, accrued postretirement benefits and employee benefits of $6.8 million is a result of contributions made to the plan. Operating cash flow increases from accrued and other current liabilities of $12.8 million is the result of timing of payments to vendors offset by the decrease in accounts payable of $33.2 million.

Cash flows used in investing activities was $14.8 million in the nine months ended September 30, 2026, primarily due to purchases of fixed assets relating to BrightLoop™projects, partially offset by proceeds from the sale of businesses and other asset disposals of $3.9 million. Cash flows provided by investing activities were $172.4 million in the nine months ended September 30, 2025, primarily due to proceeds from the sale of our Vølund and Diamond Power businesses of $187.5 million, partially offset by purchases of fixed assets relating to BrightLoop™projects.

Cash flows provided by financing activities was $73.2 million in the nine months ended September 30, 2026, primarily related to the proceeds of $259.6 million pursuant to our equity offerings as described in Note 14 to the Condensed Consolidated Financial Statements, partially offset by buybacks of our Senior Notes due 2026 of $84.8 million, net repayments on the Credit Agreement of $30.3 million, repurchases of Common stock of $42.9 million and Preferred Stock dividend payments of $11.1 million. Cash flows used in financing activities was $37.4 million in the nine months ended September 30, 2025, primarily related to net repayments on the Credit Agreement of $51.4 million and Preferred Stock dividend payments of $11.1 million, partially offset by proceeds of $32.5 million pursuant to our equity offering as described in Note 14 to the Condensed Consolidated Financial Statements.

Debt and Credit Facility

Information related to our debt and Credit Facility is described in Note 13 to the Condensed Consolidated Financial Statements and is incorporated herein by reference.

Share Repurchase Program

Information related to our share repurchase program is described in Note 14 to the Condensed Consolidated Financial Statements and is incorporated herein by reference.