BWX Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for the three months ended September 30, 2026, was $953.0 million, a 10% increase from $866.3 million in the prior year period.
• Government Operations revenue was $639.1 million (up 4% year-over-year), driven by growth in special materials and advanced nuclear, partially offset by lower volume in naval propulsion.
• Commercial Operations revenue was $314.2 million (up 25% year-over-year), driven by growth in commercial nuclear components, services, and medical, partially offset by slightly lower fuel handling revenue.
• Consolidated GAAP operating income was $132.1 million, up 17% from $113.3 million in the prior year.
• Consolidated non-GAAP operating income was $149.7 million, up 19% from $125.9 million in the prior year.
• Consolidated GAAP net income was $102.0 million, up 24% from $82.2 million in the prior year.
• Consolidated non-GAAP net income was $116.3 million, up 27% from $91.7 million in the prior year.
• Diluted GAAP EPS was $1.11, up 25% from $0.89 in the prior year.
• Diluted non-GAAP EPS was $1.26, up 26% from $1.00 in the prior year.
• Consolidated adjusted EBITDA was $179.7 million, up 19% from $151.1 million in the prior year.
• Operating cash flow was $202.7 million, up 42% from $143.2 million in the prior year.
• Free cash flow was $150.5 million, up 59% from $94.9 million in the prior year.
• Capital expenditures were $52.3 million, up 8% from $48.3 million in the prior year.
• Dividends paid were $24.7 million ($0.27 per share), up 8% from $22.9 million in the prior year.

Guidance and Future Outlook:

• Reaffirmed 2026 revenue guidance of approximately $3,800 million.
• Tightened 2026 non-GAAP EPS guidance to $4.72–$4.77 (prior range: $4.70–$4.80).
• Tightened 2026 free cash flow guidance to $350 million–$360 million (prior range: $345 million–$360 million).
• Maintained adjusted EBITDA guidance at the midpoint of the prior range of $662 million–$672 million, approximately $667 million.
• Introduced preliminary 2027 outlook calling for high-single-digit revenue growth.
• Preliminary 2027 outlook calls for high-single-digit to low-double-digit adjusted EBITDA and non-GAAP EPS growth, with adjusted EBITDA growth ahead of the framework provided at the 2026 Investor Day.
• Management expects continued demand momentum for nuclear solutions and increased conversion of the robust bid pipeline into firm awards.

Business Segments and Product Lines:

• Government Operations non-GAAP operating income increased, driven by higher revenue and strong operating performance across business lines.
• Commercial Operations non-GAAP operating income increased as higher revenue was partially offset by product and service line mix and SG&A investment to support growth.
• BWXT Advanced Nuclear Reactor (BANR) technology was selected for the U.S. Army's Janus Program at Fort Campbell.
• BANR technology was selected for Prodigy Clean Energy's Transportable Nuclear Power Plant project in Canada.
• Total backlog was $8,556.2 million as of September 30, 2026, compared to $7,389.1 million in the prior year.
• Government Operations backlog was $6,481.8 million; Commercial Operations backlog was $2,074.4 million.
• Total bookings for the quarter were $538.2 million, compared to $2,245.4 million in the prior year period.

Market and Competitive Landscape:

• Management describes the company as being in the early stages of a multi-decadal investment cycle as customers seek to address economic, national, and energy security challenges with nuclear solutions.
• The company cites deep technical capabilities across the nuclear value chain, unmatched infrastructure, and over 11,000 employees dedicated to serving customers in nuclear national security and commercial power markets.
• Management expects continued demand momentum for nuclear solutions.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to execute contracts in backlog.
• Risks include federal budget uncertainty, future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling, potential government shutdowns, and changing funding and acquisition priorities.
• Risks include the demand for and competitiveness of nuclear products and services, capital priorities of power-generating utilities, timing of technology development, regulatory approvals, and automation of production.
• Risks include receipt and timing of government approvals, potential recurrence of disease waves, labor market challenges (retention and recruitment), adverse industry changes, and delays, changes, or termination of contracts in backlog.

Management Commentary and Tone:

• CEO Rex D. Geveden stated the company had "strong third quarter 2026 earnings performance," highlighting an intense focus on operational excellence and cash generation.
• Management expressed confidence in the company's position to benefit from multi-decadal investment cycles in nuclear solutions.
• Geveden noted that the preliminary 2027 outlook, combined with robust demand, a strong balance sheet, and a disciplined capital allocation strategy, positions the company well to continue compounding growth and shareholder value.

Other Key Points:

• On October 28, 2026, the Board of Directors declared a quarterly cash dividend of $0.27 per common share, payable on December 10, 2026, to shareholders of record on November 19, 2026.
• The company reported $186.967 million in cash used for acquisitions in the nine months ended September 30, 2026, compared to $536 million in the prior year period.
• Total assets increased to $4.75 billion as of September 30, 2026, from $4.27 billion as of December 31, 2025.
• Long-term debt was $2.02 billion as of September 30, 2026, compared to $2.02 billion as of December 31, 2025.
• Cash and cash equivalents increased to $568.5 million as of September 30, 2026, from $499.8 million as of December 31, 2025.