Babcock & Wilcox Enterprises (Babcock & Wilcox Enterprises) Gross Margin %

: 24.48% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Babcock & Wilcox Enterprises's Gross Profit for the three months ended in Dec. 2023 was $56 Mil. Babcock & Wilcox Enterprises's Revenue for the three months ended in Dec. 2023 was $227 Mil. Therefore, Babcock & Wilcox Enterprises's Gross Margin % for the quarter that ended in Dec. 2023 was 24.48%.

The historical rank and industry rank for Babcock & Wilcox Enterprises's Gross Margin % or its related term are showing as below:

BW' s Gross Margin % Range Over the Past 10 Years
Min: -12.2 Med: 18.1 Max: 29.29
Current: 21.72

During the past 12 years, the highest Gross Margin % of Babcock & Wilcox Enterprises was 29.29%. The lowest was -12.20%. And the median was 18.10%.

BW's Gross Margin % is ranked worse than
63.75% of 2935 companies
in the Industrial Products industry
Industry Median: 26.44 vs BW: 21.72

Babcock & Wilcox Enterprises had a gross margin of 24.48% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Babcock & Wilcox Enterprises was 0.00% per year.

Babcock & Wilcox Enterprises Gross Margin % Historical Data

The historical data trend for Babcock & Wilcox Enterprises's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Babcock & Wilcox Enterprises Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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18.65

29.29

24.62

22.05

22.42

Babcock & Wilcox Enterprises Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															22.70	20.79	19.98	22.30	24.48

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Babcock & Wilcox Enterprises's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Babcock & Wilcox Enterprises Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, Babcock & Wilcox Enterprises's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Babcock & Wilcox Enterprises's Gross Margin % falls into.

Babcock & Wilcox Enterprises Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Babcock & Wilcox Enterprises's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	224.1	/	999.354
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(999.354 - 775.267)	/	999.354
	=	22.42 %

Babcock & Wilcox Enterprises's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	55.6	/	227.167
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(227.167 - 171.552)	/	227.167
	=	24.48 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Babcock & Wilcox Enterprises (NYSE:BW) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Babcock & Wilcox Enterprises had a gross margin of 24.48% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Babcock & Wilcox Enterprises Gross Margin % Related Terms

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Babcock & Wilcox Enterprises (Babcock & Wilcox Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Babcock & Wilcox Enterprises Inc (NYSE:BW) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BWpA.PFD:USA UBW1:Germany

Address

1200 East Market Street, Suite 650, Akron, OH, USA, 44305

Website

https://www.babcock.com

Babcock & Wilcox Enterprises is a power generation equipment supplier and servicing company that operates in three segments: B&W Renewable, B&W Environmental, and B&W Thermal. B&W Thermal, which focuses on steam generation products and solutions for plants in the power generation, oil and gas, and industrial sectors, generates the majority of the company's revenue. B&W Renewable focuses on sustainable power and heat generation while B&W Environmental focuses on emissions control. The company's customer base spans the industrial, electrical utility, and municipal industries located predominantly in the United States, Canada, Denmark, and the United Kingdom. Business in the U.S. contributes the vast majority of its revenue.

Executives

Henry E Bartoli	director, officer: Chief Strategy Officer	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Christopher S Riker	officer: Senior Vice President	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Louis Jr Salamone	officer: Chief Financial Officer	7925 JONES BRANCH DRIVE, MCLEAN VA 22102
Joseph A Tato	director	580 INDIAN HARBOR ROAD, VERO BEACH FL 32963
B. Riley Financial, Inc.	10 percent owner	11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Kenneth M Young	officer: Chief Executive Officer	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Alan B Howe	director	1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081
John J Dziewisz	officer: SVP & Corp. Secy.	1200 E. MARKET STREET, SUITE 650, SUITE 650, AKRON OH 44305
Joseph T Buckler	officer: Senior Vice President	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Jimmy B Morgan	officer: SVP, Babcock & Wilcox	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Philip D Moeller	director	2306 CHAIN BRIDGE ROAD, NW, WASHINGTON DC 20016
Rebecca L Stahl	director	2106 SOUTH BAY LANE, RESTON VA 20191
Brf Investments, Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Brc Partners Opportunity Fund, Lp	10 percent owner	11100 SANTA MONICA BLVD. SUITE 800, LOS ANGELES CA 90025
Vintage Capital Management Llc	10 percent owner	4705 S APOPKA VINELAND ROAD SUITE 210, ORLANDO FL 32819