Why Babcock & Wilcox Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) shares surged after selling its Denmark-based subsidiary for $87 million. The company plans to use the proceeds to reduce debt and increase liquidity. BW reiterated its full-year 2024 adjusted EBITDA outlook and highlighted a strong pipeline of opportunities.
July 01, 2024 | 3:55 pm
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Babcock & Wilcox Enterprises, Inc. (NYSE:BW) shares surged 14.4% after the company sold its Denmark-based subsidiary for $87 million. The proceeds will be used to reduce debt, increase liquidity, and support working capital. The company reiterated its full-year 2024 adjusted EBITDA outlook and highlighted a strong pipeline of opportunities.
The sale of the subsidiary for $87 million provides immediate financial benefits by reducing debt and increasing liquidity. The positive outlook for 2024 adjusted EBITDA and a strong pipeline of opportunities further boosts investor confidence, leading to a significant surge in stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100