BWX Technologies Delivers Record 2025 Results and Strong 2026 Outlook

Backlog Soars 50% to \$7.3 Billion; 2026 Guidance Points to Continued Growth

BWX Technologies, Inc. (NYSE: BWXT) has reported its fourth quarter and full-year 2025 financial results, highlighting a record year for the company and an exceptionally strong outlook for 2026. The company’s performance, backlog growth, and future guidance contain several key factors that could be highly relevant for investors and may impact share price.

Key Financial Highlights – Q4 and Full Year 2025

• Q4 2025 GAAP diluted EPS: \$1.01 (up 31% YoY)
• Q4 2025 Non-GAAP diluted EPS: \$1.08 (up 17% YoY)
• Q4 2025 Adjusted EBITDA: \$147.5 million (up 13% YoY)
• Full Year 2025 GAAP diluted EPS: \$3.58 (up 17% YoY)
• Full Year 2025 Non-GAAP diluted EPS: \$4.01 (up 20% YoY)
• Full Year 2025 Net Income: \$329.9 million (up 17% YoY)
• Full Year 2025 Adjusted EBITDA: \$574.3 million (up 15% YoY)
• Full Year 2025 Operating Cash Flow: \$479.8 million (up 17% YoY)
• Full Year 2025 Free Cash Flow: \$295.3 million (up 16% YoY)
• Backlog at 2025 year-end: \$7.3 billion (up 50% YoY)

2026 Guidance: Aggressive Growth Across All Key Metrics

• Revenue: Guidance for \$3.75 billion (from \$3.20 billion actual in 2025, ~17% growth)
• Adjusted EBITDA: \$645–\$660 million (up 12–15% YoY)
• Non-GAAP EPS: \$4.55–\$4.70 (up 13–17% YoY)
• Free Cash Flow: \$305–\$320 million (up 3–8% YoY)

Operational and Strategic Drivers

• Backlog Surge: The 50% increase in backlog was driven by large multi-year awards in naval propulsion, special materials, and commercial nuclear power. This backlog provides strong revenue visibility for upcoming years.
• Acquisitions: In 2025, BWXT completed two strategic acquisitions (contributions from A.O.T. in government and Kinectrics in commercial segments) to expand its service and product portfolio, which contributed to both revenue and backlog growth.
• Segment Performance:
  • Government Operations: Revenue for 2025 was \$2.35 billion (up 8%), driven by higher production of naval nuclear components and special materials, partially offset by lower microreactor revenue.
  • Commercial Operations: Revenue soared to \$853.1 million (up 63%), led by higher field services, nuclear fuel, components, medical sales, and the addition of Kinectrics.
• Capital Investments: Capital expenditures rose to \$184.6 million in 2025 (up 20%), including expansion of the Cambridge manufacturing facility to support commercial nuclear growth and investments to support new government program awards.
• Returns to Shareholders: BWXT paid \$92.5 million in dividends in 2025 and repurchased \$30 million in shares. The quarterly dividend was recently raised to \$0.27 per share.

Other Noteworthy Financial & Non-GAAP Figures

• Operating Income: For 2025, consolidated GAAP operating income increased to \$404.5 million (up 6%), while non-GAAP operating income was \$475.7 million (up 15%).
• Balance Sheet: Cash and equivalents jumped to \$507 million at year-end 2025 (vs. \$80 million at year-end 2024), and total assets rose to \$4.27 billion (from \$2.87 billion).
• Debt: Long-term debt increased to \$2.02 billion, with the company issuing \$1.25 billion in convertible senior notes and \$1.03 billion in new long-term debt, repaying \$1.28 billion in prior debt.
• Bookings: 2025 saw \$5.36 billion in new bookings, up from \$3.55 billion in 2024, reflecting robust demand across both segments.

Management Commentary

“In our tenth year as a standalone public company, 2025 was monumental for BWXT as we expanded our service and product offerings with two acquisitions and captured significant high-value awards across both Government and Commercial segments, driving 50% backlog growth. BWXT operates at the intersection of national security and commercial nuclear power markets, where demand for both remains exceptionally strong. Our strategy goes beyond capturing new awards; we are strengthening our competitive position through operational excellence and targeted investments to continue to expand our industrial scale and technical capabilities, enabling our ability to deliver on our customers’ most critical missions.”

– Rex D. Geveden, President and CEO

Potential Price-Sensitive Items for Shareholders

• Backlog Growth: The 50% YoY rise in backlog to \$7.3 billion is significant, providing increased visibility and de-risking future revenues. This is likely to be viewed very positively by the market.
• Strong Guidance for 2026: Management’s guidance for double-digit growth in revenue, adjusted EBITDA, and EPS underscores confidence in the company’s growth trajectory.
• Strategic Acquisitions: Successful integration and contribution of new businesses to both segments may enhance margins and market reach.
• Capital Deployment: Ongoing investments in facilities and technology point to capacity expansion and long-term growth, but also require continued execution.
• Dividend and Buybacks: Increased dividend payout and share repurchases signal confidence in cash flows and commitment to shareholder returns.
• Sector Positioning: BWXT’s exposure to defense/national security and commercial nuclear markets positions it well given ongoing geopolitical and clean energy trends.

Risks and Forward-Looking Statements

• Management notes various risks that could affect results, including execution of backlog, changes in government budgets and priorities, supply chain disruptions, regulatory challenges, labor market constraints, and timing of program awards.
• The company does not provide GAAP guidance due to the unpredictable nature of pension and post-retirement mark-to-market adjustments.

Conclusion

The report demonstrates BWXT’s momentum, with exceptional 2025 performance and robust expectations for 2026. The surge in backlog, strong cash flows, ongoing capital investments, and increasing shareholder returns are all factors that could positively influence investor sentiment and potentially drive share price appreciation.

Disclaimer: This article contains a summary of BWX Technologies’ financial results and outlook. It is for informational purposes only and does not constitute investment advice. Investors should review the full earnings release and consult their financial advisors before making any investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

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