BWXT Raises 2026 Free Cash Flow Guidance Floor to $350 Million
Key Facts
BWX Technologies on November 2 raised the floor of its 2026 free cash flow guidance to $350 million, while keeping the top end at $360 million. The previous range was $345 million to $360 million, representing a $5 million increase in the floor with no change to the ceiling. The update came with third-quarter results, which showed free cash flow rising 59% year over year to $150.5 million. Chief Executive Rex Geveden said the performance reflected "our intense focus on operational excellence and cash generation." Revenue for the quarter, however, came in below analysts’ estimates, despite adjusted earnings per share topping expectations.
The company reported third-quarter revenue of $953 million, up 10% from $866.3 million in the same period of 2025. But revenue fell short of analysts’ estimate of $970.42 million, according to Investing.com. Adjusted earnings per share were $1.26, above analysts’ consensus of $1.18. Net income also rose to $102 million from $82.2 million a year earlier, an increase of 24%. Results varied between the company’s two segments, with commercial operations growing faster while government operations remained larger by revenue.
Commercial operations revenue rose 25% to $314.2 million in the third quarter, while government operations revenue increased 4% to $639.1 million. The company attributed growth in government operations to specialty materials and advanced nuclear power, partly offset by lower naval propulsion work. In commercial operations, commercial nuclear power components and services and the medical sector supported revenue, while fuel handling revenue edged down. Adjusted earnings before interest, taxes, depreciation and amortization were $179.7 million, compared with $151.1 million a year earlier, an increase of 19%. The figures reflect contributions from growth in both segments to higher revenue and earnings, with different sources of growth in each.
BWXT said third-quarter operating cash flow rose 42% to $202.7 million, while free cash flow was $150.5 million, up 59% from the same period a year earlier. The company linked the improvement in operating cash flow to higher net income, advance billings and effective working capital management. These factors were partly offset by the timing of income tax payments. In 2025, the company recorded free cash flow of $295.3 million. It also ended the year with a backlog of $7.3 billion, up 50% year over year.
The company announced its 2030 goals at its September 29 Investor Day, not as part of the November 2 guidance update. The goals include revenue of $5.5 billion to $6 billion, compared with a forecast of about $3.8 billion for 2026. It also targets adjusted earnings before interest, taxes, depreciation and amortization of $1.1 billion to $1.2 billion in 2030; the definition of this metric excludes acquisition amortization. The company set a free cash flow target of $525 million to $575 million. It said the targets’ compound annual growth rates are measured against the midpoint of 2026 guidance, while the November update kept that year’s free cash flow range at $350 million to $360 million.
After the announcement, BWXT shares fell 1.9%, according to Investing.com, despite adjusted earnings per share beating expectations, as revenue came in below analysts’ estimates. The stock closed at $130.47 on November 2, according to EL7 data. The company provided preliminary 2027 guidance pointing to high-single-digit revenue growth. It also expects high-single-digit to low-double-digit growth in adjusted earnings before interest, taxes, depreciation and amortization and non-GAAP earnings per share. It announced a quarterly cash dividend of $0.27 per share, payable December 10 to shareholders of record on November 19, 2026.