BWX Technologies Reports Second Quarter 2026 Results

2Q26 revenues of $901.6 million 2Q26 net income of $89.1 million, adjusted EBITDA(1) of $155.5 million 2Q26 diluted GAAP EPS of $0.97, non-GAAP(1) EPS of $1.07 Announced the sale of the medical business, enabling increased focus on core nuclear national defense and commercial nuclear power markets Closed the acquisition of Precision Components Group, LLC (PCG) on July 1, 2026, establishing a U.S. footprint for commercial nuclear component manufacturing Raising adjusted EBITDA(1) guidance to $662 million-$672 million, non-GAAP EPS(1) guidance to $4.70-$4.80, and free cash flow(1) guidance to $345 million-$360 million LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported second quarter 2026 results. A reconciliation of non-GAAP results is detailed in Exhibit 1. “We had strong second quarter 2026 results that were ahead of our expectations,” said Rex. D. Geveden, president and chief executive officer. “Once again we saw strong execution across our business, high growth in Commercial Operations, and good free cash flow generation.” “Demand for new nuclear solutions is remarkably deep and broad, complementing our strong and growing base of highly predictable revenue streams in our Government and Commercial segments,” continued Geveden. “In line with our strategy to bolster BWXT’s competitive positioning in the nuclear national security and commercial nuclear power markets, the announced sale of our medical business enables us to increase focus and resources in these core business lines. This strategy is already in action through our commercial manufacturing expansion in the U.S. and ongoing investments to drive capacity and modernization across our manufacturing footprint.” “Reflecting our strong first half performance, contribution from the recently completed PCG acquisition, and confidence in our execution over the remainder of the year, we are raising our 2026 financial guidance,” said Geveden. “We now anticipate adjusted EBITDA of $662 million-$672 million, non-GAAP EPS of $4.70-$4.80, and $345 million-$360 million of free cash flow.” (1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors. Financial Results Summary Three Months Ended June 30, 2026 2025 $ Change % Change (Unaudited) (In millions, except per share amounts) Revenues Government Operations $ 601.3 $ 589.0 $ 12.3 2% Commercial Operations $ 302.5 $ 176.1 $ 126.4 72% Consolidated $ 901.6 $ 764.0 $ 137.6 18% Operating Income Government Operations $ 105.7 $ 109.4 $ (3.7 ) (3)% Commercial Operations $ 24.3 $ 6.9 $ 17.5 254% Unallocated Corporate (Expense) $ (15.9 ) $ (13.9 ) $ (2.0 ) 14% Consolidated $ 114.1 $ 102.4 $ 11.7 11% Consolidated non-GAAP(1) $ 126.6 $ 121.1 $ 5.5 5% EPS (Diluted) GAAP $ 0.97 $ 0.85 $ 0.12 14% Non-GAAP(1) $ 1.07 $ 1.02 $ 0.05 5% Net Income GAAP $ 89.1 $ 78.5 $ 10.6 14% Non-GAAP(1) $ 98.6 $ 93.2 $ 5.5 6% Adjusted EBITDA(1) Government Operations $ 126.5 $ 133.0 $ (6.5 ) (5)% Commercial Operations $ 36.1 $ 16.2 $ 20.0 123% Unallocated Corporate $ (7.1 ) $ (3.3 ) $ (3.8 ) 116% Consolidated $ 155.5 $ 145.9 $ 9.6 7% Cash Flows Operating Cash Flow(2) $ 156.4 $ 159.0 $ (2.6 ) (2)% Capital Expenditures(2) $ 41.4 $ 32.7 $ 8.7 27% Free Cash Flow(1) $ 115.0 $ 126.3 $ (11.3 ) (9)% Dividends Paid(2) $ 24.7 $ 23.1 $ 1.5 6% NM = Not Meaningful (2) Items named in the Financial Results Summary differ from names in BWXT Financial Statement. Operating Cash Flow = Net Cash Provided by Operating Activities; Capital Expenditures = Purchases of Property, Plant and Equipment; Dividends Paid = Dividends Paid to Common Shareholders Revenues Second quarter revenue increased in both operating segments. The Government Operations increase was driven by growth in naval propulsion and special materials, partially offset lower advanced nuclear volumes. The Commercial Operations increase was driven by growth in commercial nuclear components, field services, fuel handling, medical, and contribution from Kinectrics, partially offset by slightly lower fuel revenue. Operating Income and Adjusted EBITDA(1) Second quarter GAAP operating income increased primarily due to growth in Commercial Operations, partially offset by lower Government Operations and higher corporate expense. Second quarter non-GAAP(1) operating income increased driven by growth in Commercial Operations, partially offset by lower Government Operations and higher corporate expense. The Commercial Operations increase was driven by higher revenue and solid operational performance, partially offset by SG&A investment to support growth. The decrease in Government Operations was driven by higher positive contract adjustments in the same quarter last year and less favorable mix, partially offset by higher technical services equity income. Second quarter adjusted EBITDA(1) increased due to higher non-GAAP(1) operating income as discussed above. EPS Second quarter GAAP and non-GAAP(1) EPS increased as higher operating income and lower interest expense were partially offset by lower other income and a higher tax rate. Cash Flows Second quarter operating cash flow was modestly lower as higher net income, an increase in advanced billings, and good working capital management were offset by timing of income tax payments. Capital expenditures increased mainly due to timing of various growth projects, primarily in Commercial Operations. Dividend BWXT paid $24.7 million, or $0.27 per common share, to shareholders in the second quarter of 2026. On July 31, 2026, the BWXT Board of Directors declared a quarterly cash dividend of $0.27 per common share payable on September 4, 2026, to shareholders of record on August 18, 2026. 2026 Guidance BWXT raised its 2026 guidance for revenue, adjusted EBITDA, non-GAAP EPS(1), and free cash flow(1). 2026 guidance includes contribution from the Precision Components Group, LLC acquisition, which closed on July 1, 2026. (In millions, except per share amounts) Year Ended Year Ending Year Ending December 31, 2025 December 31, 2026 December 31, 2026 Results Current Guidance Prior Guidance Revenue $3,198 ~$3,800 >$3,750 Adjusted EBITDA(1) $574 $662 - $672 $650 - $665 Non-GAAP(1) Earnings Per Share $4.01 $4.70 - $4.80 $4.60 - $4.75 Free Cash Flow(1) $295 $345 - $360 $315 - $330 Additional information can be found in the second quarter 2026 earnings call presentation on the BWXT investor relations website at www.bwxt.com/investors. The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results. Conference Call to Discuss Second Quarter 2026 Results Date: Monday, August 3, 2026, at 5:00 p.m. EDT Live Webcast: Investor Relations section of website at www.bwxt.com Full Earnings Release Available on BWXT Website A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/2Q2026-release. BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com. Non-GAAP Measures BWXT uses and makes reference to adjusted EBITDA, non-GAAP EPS, free cash flow and free cash flow conversion, which are not recognized measures under GAAP. BWXT is providing these non-GAAP measures to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations. Definitions for the non-GAAP measures are provided below and reconciliations are detailed in Exhibit 1, except that reconciliations of forward-looking GAAP measures are not provided because the company is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. Other companies may define these measures differently or may utilize different non-GAAP measures, thus impacting comparability. Non-GAAP Earnings Per Share (EPS) is calculated using GAAP EPS less the non-operational tax effected per share impact of pension & OPEB mark-to-market gains or losses and other one-time items, such as restructuring, transformation, acquisition-related costs, and acquisition-related amortization. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is calculated using non-GAAP net income, plus provision for income taxes, less other – net, less interest income, plus interest expense, plus depreciation and amortization. Adjusted pre-tax income is non-GAAP income before provision for income taxes. Free Cash Flow (FCF) is calculated using net income to derive net cash provided by (used in) operating activities less purchases of property, plant and equipment. Free Cash Flow conversion is free cash flow divided by net income. Non-GAAP Adjustments Our GAAP financial results detailed in Exhibit 1 have been adjusted for the following items: Restructuring and Transformation Costs: Restructuring and transformation costs include restructuring charges as well as costs associated with our efforts to optimize underlying business processes through investments in information technology, process improvements and the implementation of strategic actions and initiatives which we deem to be incremental and non-recurring in nature. Acquisition-related Costs: Acquisition-related costs relate to third-party professional service costs and one-time incremental costs associated with due diligence activities and efforts to integrate the acquired business with our legacy operations. Forward-Looking StatementsRead the full story here

BWX Technologies Reports Second Quarter 2026 Results

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