BWX Technologies Revenue Jumps 10% to $953 Million in Third Quarter
Key Facts
BWX Technologies said on November 2 that revenue for the third quarter ended September 30 was $953.0 million, up 10% from the year-earlier period. Net income was $102.0 million, while adjusted earnings before interest, taxes, depreciation and amortization rose 19% to $179.7 million. GAAP diluted earnings per share increased to $1.11 from $0.89, while Non-GAAP earnings per share were $1.26, compared with $1.00. The comparison of per-share results reflects the use of different measures; it is not appropriate to describe the result as a miss without specifying that the estimate relates to a different accounting measure.
The two segments delivered different performances: government operations revenue rose 4% to $639.1 million, from $616.7 million a year earlier, while commercial operations revenue increased 25% to $314.2 million from $251.0 million. The company attributed growth in government operations to increased special materials and advanced nuclear energy work, partly offset by lower naval propulsion volume. In commercial operations, revenue was supported by commercial nuclear power components, services and medical, while fuel handling recorded a slight decline. Faster commercial growth made the segment the main driver of the annual revenue increase, although government operations remained the larger of the two segments by quarterly revenue. Backlog stood at $8.56 billion on September 30, 2026, compared with about $7.39 billion on the same date a year earlier.
Cash flow measures improved alongside earnings growth: operating cash flow was $202.7 million, up 42% year over year, and free cash flow rose 59% to $150.5 million. BWXT said higher net income, increased advance billings and improved working capital management supported operating cash flow. These factors were partly offset by the timing of income tax payments. In the second quarter of 2026, the company reported revenue of $901.6 million and Non-GAAP earnings per share of $1.07. Third-quarter revenue therefore exceeded the prior quarter's level, and adjusted earnings per share also increased from the second quarter.
The company reaffirmed its fiscal 2026 revenue guidance at about $3.8 billion and kept adjusted earnings before interest, taxes, depreciation and amortization near the midpoint of its previous range, at about $667 million. Its Non-GAAP earnings-per-share outlook narrowed to a range of $4.72–$4.77, from a previous range of $4.70–$4.80. It also set expected free cash flow at between $350 million and $360 million, compared with a previous range of $345 million to $360 million. BWXT had raised its annual outlook in the second quarter, including the contribution from its acquisition of Precision Components Group, which closed on July 1, 2026. The current update combines an unchanged revenue outlook with narrower ranges for earnings per share and free cash flow.
BWXT provided preliminary 2027 guidance pointing to high-single-digit revenue growth and adjusted earnings and Non-GAAP earnings-per-share growth ranging from high single digits to low double digits. Chief Executive Rex Geveden said the company expects "continued momentum in demand for nuclear solutions and increased conversion of our strong bid pipeline into confirmed awards." Geveden described the company as being in the early stages of a decades-long investment cycle, as customers seek nuclear solutions to address economic, national and energy security challenges. The company announced that its advanced nuclear reactor technology was selected for the U.S. Army's Janus program at Fort Campbell, as well as for a transportable nuclear power plant project in Canada. The U.S. Army selected the BANR reactor for the Janus program in August, with a tailored 20-megawatt-electric version, while the company announced in October a multiyear agreement with Antares to produce TRISO fuel that includes an initial allocation of one metric ton of uranium.
Regarding shareholder returns, the company announced on October 28 a quarterly cash dividend of $0.27 per share, payable on December 10 to shareholders of record on November 19. The results discussion call was scheduled for November 2 at 5 p.m. Eastern time. These dates accompany the preliminary 2027 outlook and the updated fiscal 2026 ranges, while the operating outlook presented by management is tied to continued demand for nuclear solutions and the conversion of bids into confirmed awards through the remainder of 2026 and in 2027.