Shares of BWX Technologies Inc (BWXT) tumbled 5.03% in after-hours trading on Monday, despite the company reporting better-than-expected third-quarter earnings and raising its full-year guidance.

The nuclear components and fuel supplier posted adjusted earnings per share of $1.00 for Q3 2025, surpassing analysts' estimates of $0.86. Revenues came in at $866.3 million, up 29% year-over-year, driven by growth in both its Government Operations and Commercial Operations segments.

Despite the strong quarterly performance, investors appeared to focus on other factors. The company's backlog reached a record $7.4 billion, up 119% from the previous year, primarily due to large multi-year special materials projects. While this indicates strong future demand, it may have raised concerns about near-term growth prospects.

BWX Technologies also provided a preliminary 2026 outlook, projecting low-double-digit to low-teen adjusted EBITDA growth and high-single-digit to low-double-digit non-GAAP EPS growth. This outlook, while positive, may not have met some investors' more optimistic expectations, potentially contributing to the stock's after-hours decline.