BWX Technologies tops Q3 profit estimates, misses on revenue

BWX Technologies (BWXT) said on Nov. 2 that third-quarter adjusted profit rose to $1.26 per share, topping the consensus estimate. Revenue of $953.0 million fell short of the estimate.

Net income attributable to the company rose to $101.7 million on a GAAP basis, up from $82.1 million a year earlier. Revenue rose 10% from $866.3 million a year earlier, with growth in both operating segments.

Here's how the company did:

• Adjusted EPS: $1.26 vs. $1.00 a year earlier, $1.21 expected
• GAAP EPS: $1.11 vs. $0.89 a year earlier
• Revenue: $953.0 million vs. $866.3 million a year earlier, $989.81 million expected
• Adjusted EBITDA: $179.7 million vs. $151.1 million a year earlier

The company also said its BWXT Advanced Nuclear Reactor (BANR) technology was selected for the U.S. Army's Janus Program at Fort Campbell, and for Prodigy Clean Energy's Transportable Nuclear Power Plant project in Canada.

Segment results

Government Operations revenue rose 4% to $639.1 million, driven by special materials and advanced nuclear, partly offset by lower naval propulsion volume.

Commercial Operations revenue rose 25% to $314.2 million, led by commercial nuclear components, services and medical, partly offset by slightly lower fuel handling revenue.

Consolidated operating income rose 17% to $132.1 million. The company excluded $9.0 million of restructuring and transformation costs from its adjusted figures.

2026 guidance

The company tightened its 2026 non-GAAP EPS guidance to $4.72 to $4.77, from the $4.70 to $4.80 range it gave on Aug. 3.

Free cash flow guidance was narrowed to $350 million to $360 million, from $345 million to $360 million. Adjusted EBITDA stays at the midpoint of its prior range, about $667 million. The company reaffirmed its 2026 revenue guidance.

Rex D. Geveden, president and chief executive officer, said: “We had strong third quarter 2026 earnings performance, highlighting our intense focus on operational excellence and cash generation.”

2027 outlook

The company gave a preliminary 2027 outlook calling for high-single-digit revenue growth, and high-single-digit to low-double-digit growth in adjusted EBITDA and non-GAAP EPS.

Geveden said: “Our preliminary outlook for 2027 points to another year of solid earnings and cash flow growth.”

Cash and dividend

Operating cash flow rose 42% to $202.7 million, and free cash flow rose 59% to $150.5 million. Capital expenditures were $52.3 million.

The board declared a quarterly cash dividend of $0.27 per common share, payable Dec. 10 to shareholders of record on Nov. 19.