BRC Group posts $243 million quarterly loss as Babcock & Wilcox investment slumps
Investing.com — BRC Group Holdings reported a sharp third-quarter loss on Thursday as heavy losses on its investment in Babcock & Wilcox and weaker capital markets activity weighed on results, while the company continued efforts to reduce debt and strengthen liquidity.
The diversified holding company posted a net loss available to common shareholders of $243.0 million, or $6.04 per diluted share, compared with net income of $89.1 million, or $2.91 per diluted share, a year earlier.
The results highlight the vulnerability of BRC Group’s investment-heavy business model to portfolio volatility, as losses tied to Babcock & Wilcox overwhelmed operating revenue. Management is seeking to strengthen the balance sheet through asset sales and debt reduction while expanding recurring revenue through the planned Sangoma acquisition.
Total revenue plunged to $33.0 million from $277.9 million, as investment losses of $128.3 million offset operating revenue of $161.3 million, which declined from $244.1 million in the prior-year quarter.
The quarterly loss primarily reflected $226.7 million in pre-tax losses on its Babcock & Wilcox investment and a $14.6 million non-cash impairment of its investment in GA Group. Excluding Babcock & Wilcox, the company’s other securities positions generated net gains of $4.8 million.
Capital Markets was the biggest drag, reporting a segment loss of $120.0 million compared with income of $54.8 million a year earlier. Trading losses reached $125.7 million, largely related to Babcock & Wilcox. Higher interest rates and wider credit spreads also weighed on transaction activity among small- and mid-cap issuers, while smaller deal sizes pressured underwriting fees.
BRC Group’s net debt fell 10% to $562.3 million at September 30, from $627.0 million at the end of 2025. Total debt declined to $1.14 billion from $1.43 billion, following repayments and senior note exchanges. The company redeemed $238.1 million in senior notes during the first nine months.
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BRC Group posts $243 million quarterly loss as Babcock & Wilcox investment slumps
