BWX Technologies Reports First Quarter 2025 Results

   -- 1Q25 revenues of $682.3 million 
 
   -- 1Q25 net income of $75.5 million, adjusted EBITDA(1) of $129.8 million 
 
   -- 1Q25 diluted GAAP EPS of $0.82, non-GAAP(1) EPS of $0.91 
 
   -- Acquisition of Kinectrics Inc. on track to close in mid-2025 
 
   -- Land purchase in Oak Ridge, Tennessee to ultimately support the U.S. 
      Department of Energy's National Nuclear Security Administration Domestic 
      Uranium Enrichment Centrifuge Experiment 
 
   -- Reaffirms 2025 non-GAAP EPS(1) guidance of $3.40-$3.55 
LYNCHBURG, Va.--(BUSINESS WIRE)--May 05, 2025-- 

BWX Technologies, Inc. $(BWXT)$ ("BWXT", "we", "us" or the "Company") reported first quarter 2025 results. A reconciliation of non-GAAP results is detailed in Exhibit 1.

"We had a solid start to 2025 with financial results that were ahead of expectations, driven by an increased pace of work and good operational performance," said Rex D. Geveden, president and chief executive officer. "We had another quarter of strong Commercial backlog growth and see robust opportunities for growth in our Government markets, highlighted by our recent land purchase to support the National Nuclear Security Administration's domestic uranium enrichment program."

"BWXT's foundation is providing our customers with mission critical nuclear products and solutions, and I am proud of the diversified and resilient portfolio we have built over our nearly ten years as a standalone company," continued Geveden. "Our vertically integrated nuclear capabilities, unique infrastructure, and highly-skilled workforce enable our customers to put their trust in BWXT to support their most important programs through all economic cycles in the global security, clean energy, and nuclear medicine markets."

"Our robust backlog, strong demand in our end-markets, operational excellence programs, and recent acquisitions, including the pending Kinectrics acquisition, provide confidence in our near and medium-term outlook," said Geveden. "As such, we are reaffirming our 2025 financial guidance."

Financial Results Summary

 
                      Three Months Ended 
                           March 31, 
                       2025        2024     $ Change   % Change 
                       -----       -----   ----------  -------- 
                                     (Unaudited) 
                       (In millions, except per share amounts) 
Revenues 
   Government 
    Operations        $555.3      $487.1     $  68.2     14% 
   Commercial 
    Operations        $128.3      $117.0     $  11.3     10% 
   Consolidated       $682.3      $604.0     $  78.3     13% 
Operating Income 
    Government 
     Operations       $ 97.7      $ 85.7     $  12.1     14% 
    Commercial 
     Operations       $  6.5      $  8.6     $  (2.1)   (25)% 
    Unallocated 
     Corporate 
     (Expense)        $ (7.6)     $ (1.3)    $  (6.3)     NM 
    Consolidated      $ 96.6      $ 93.0     $   3.7      4% 
    Consolidated 
     non-GAAP(1)      $105.8      $ 94.6     $  11.2     12% 
EPS (Diluted) 
    GAAP              $ 0.82      $ 0.75     $  0.07      9% 
    Non-GAAP(1)       $ 0.91      $ 0.76     $  0.15     20% 
Net Income 
    GAAP              $ 75.5      $ 68.5     $   7.0     10% 
    Non-GAAP(1)       $ 84.0      $ 69.8     $  14.2     20% 
Adjusted EBITDA(1) 
   Government 
    Operations        $116.9      $ 99.9     $  17.0     17% 
   Commercial 
    Operations        $ 14.0      $ 13.9     $   0.1     --% 
   Unallocated 
    Corporate         $ (1.1)     $  1.3     $  (2.5)     NM 
   Consolidated       $129.8      $115.2     $  14.6     13% 
Cash Flows 
   Operating Cash 
    Flow(2)           $ 50.7      $ 33.0     $  17.6     53% 
   Capital 
    Expenditures(2)   $ 33.4      $ 30.4     $   2.9     10% 
   Free Cash Flow(1)  $ 17.3      $  2.6     $  14.7     565% 
   Dividends Paid(2)  $ 23.7      $ 22.4     $   1.3      6% 
NM = Not Meaningful 
(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. 
(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

First quarter revenue increased in both operating segments. The Government Operations increase was driven by higher naval nuclear component production, special materials processing, and contribution from the acquisition of A.O.T., partially offset by lower microreactor volumes. The Commercial Operations increase was driven by higher revenue associated with commercial nuclear components and fuel handling, as well as higher medical sales, partially offset by lower field services activity due to timing on life-extension and outage projects.

Operating Income and Adjusted EBITDA(1)

First quarter GAAP operating income increased as an increase in Government Operations was partially offset by lower Commercial Operations and higher corporate expense, as well as restructuring and transformation, and acquisition related costs. First quarter non-GAAP(1) operating income increased as increases in both operating segments were partially offset by higher corporate expense. The Government Operations increase was driven by higher revenue and solid operational performance. The Commercial Operations increase was driven by higher revenue and partially offset by revenue mix, material procurement costs, and growth investment.

First quarter adjusted EBITDA(1) increased for the reasons noted above.

EPS

First quarter GAAP EPS increased as higher operating income, a lower tax rate, and slightly lower interest expense, were partially offset by lower other income. Non-GAAP EPS(1) increased driven by the items noted above.

Cash Flows

First quarter operating cash flow increased driven by higher net income, working capital management, and timing of awards. Capital expenditures increased slightly due to timing of select growth investments, including the previously announced expansion of the Cambridge manufacturing plant that supports the commercial nuclear market.

Dividend

BWXT paid $23.7 million, or $0.25 per common share, to shareholders in the first quarter of 2025. On May 1, 2025, the BWXT Board of Directors declared a quarterly cash dividend of $0.25 per common share payable on June 5, 2025, to shareholders of record on May 19, 2025.

2025 Guidance

BWXT reaffirmed all components of its 2025 financial guidance.

 
(In millions, except per share 
amounts)                               Year Ended         Year Ending 
                                    December 31, 2024  December 31, 2025 
                                         Results       Current Guidance 
                                    -----------------  ----------------- 
Revenue                                  $2,704             $3,000 
Adjusted EBITDA(1)                        $499           $550 - $570 
Non-GAAP(1) Earnings Per Share            $3.33         $3.40 - $3.55 
Free Cash Flow(1)                         $255            $265 - $285 
 

Additional information can be found in the first quarter 2025 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 First Quarter 2025 Results

 
Date:          Monday, May 5, 2025, 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/1Q2025-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.

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