BWX Technologies Q1 Earnings Call Highlights

Key Points

• Q1 beat expectations: Revenue rose 26% year‑over‑year (11% organic), adjusted EBITDA was up 14% and adjusted EPS increased 22% to $1.12, while total backlog jumped to $8.7 billion, up 77% year‑over‑year.
• Commercial manufacturing push and PCG deal: BWXT agreed to acquire Precision Components Group for roughly $200 million to add two U.S. facilities (400+ employees) and shift capacity toward commercial nuclear work, while also exploring a greenfield plant at Mount Vernon for larger components.
• Updated 2026 outlook: BWXT raised adjusted EBITDA guidance to $650–$665 million, reaffirmed revenue of at least $3.75 billion and FCF of $315–$330 million, with capex around 6% of sales but potentially ~7% if a new greenfield plant proceeds.

BWX Technologies NYSE: BWXT reported what President and CEO Rex Geveden called “a great start to 2026,” posting first-quarter results that came in ahead of management expectations and were supported by higher throughput, favorable pacing of work, and operational execution across business lines.

First-quarter results and backlog growth

Geveden said first-quarter revenue increased 26% year-over-year, including 11% organic growth. Adjusted EBITDA rose 14% and earnings per share increased 22%.

Senior Vice President and CFO Mike Fitzgerald said first-quarter revenue totaled $860 million, while adjusted EBITDA was $148 million. Adjusted EPS was $1.12, up 22%, which Fitzgerald said reflected “strong operating performance” and about $0.08 of higher non-operating contributions. The adjusted effective tax rate was 15.8%, benefiting from the timing of stock compensation, and free cash flow was $50 million, which Fitzgerald called “a strong result for what is typically our seasonally weakest quarter.”

BWXT ended the quarter with total backlog of $8.7 billion, which Geveden said was up 77% year-over-year and 19% sequentially, driven by “robust bookings in government and consistent backlog in commercial.”

Commercial expansion plans and the PCG acquisition

BWXT emphasized rising demand for commercial nuclear components and services across the U.S., Canada, and Europe, and management outlined steps to expand domestic manufacturing capacity. Geveden said the company views localized manufacturing as an increasingly important differentiator as new nuclear projects launch.

In April, BWXT announced plans to acquire Precision Components Group (PCG), which Geveden described as a U.S.-based manufacturer of complex heat transfer components serving U.S. naval and commercial nuclear markets. The business has two facilities and “more than 400 highly skilled employees,” and Geveden said it represents BWXT’s “first step toward building domestic U.S. commercial nuclear manufacturing capacity.”

During Q&A, Fitzgerald said BWXT did not include the purchase price in the public release, but it was “roughly around $200 million.” Fitzgerald also said the acquisition is expected to close in the second half of 2026 and will be included in the Commercial Operations segment.

Management said most of PCG’s current revenue and backlog is tied to naval programs, but the facilities have available capacity BWXT intends to utilize for the commercial market, including products such as reactor internals, pressurizers, heat exchangers, and reactor head assemblies. Geveden added that PCG is currently “about 70/30 Navy and commercial nuclear,” and the company expects over time to shift the mix more toward commercial, while still meeting existing naval commitments.

Fitzgerald said PCG generated approximately $125 million of revenue in 2025 with low double-digit EBITDA margins, and BWXT anticipates mid single-digit revenue growth at PCG in 2026. He noted BWXT believes there is “about 50% capacity that can be utilized,” though ramping up would take time and hiring.

Separately, Geveden said BWXT is considering additional U.S. commercial manufacturing expansion, “likely with a greenfield plant” at its Mount Vernon, Indiana site, intended to produce larger equipment such as steam generators and reactor pressure vessels. In response to analyst questions, Geveden estimated the Mount Vernon capacity would be roughly 100,000 square feet—about “50%-60% more” than the company’s 60,000 square foot Cambridge expansion—and said it would cost “kind of twice what we’re doing at Cambridge in rough terms.” Geveden said the site’s rail spur, crane capacity, and radiography facilities could provide cost synergies with BWXT’s existing operations.

Segment performance: Government steady, commercial surges

Government Operations revenue increased 4% and adjusted EBITDA rose 1% in the quarter, which Geveden said was slightly ahead of expectations. Fitzgerald reported Government Operations adjusted EBITDA of $118 million and an adjusted EBITDA margin of 20.4%. Based on first-quarter performance, Fitzgerald said BWXT now expects Government Operations margins to exceed 19% for the year.

Geveden said the Government segment saw strong bookings, including $1.4 billion from the second portion of a Naval Reactors pricing agreement awarded last year, as well as long-lead material procurement contracts, driving segment backlog to nearly $7 billion—up 25% sequentially and 93% year-over-year. He said BWXT anticipates continued revenue growth supported by Virginia-class production, growth in the Columbia-class, and early work on the next Ford-class ship set.

Commercial Operations delivered the largest year-over-year increase. Geveden said results were “well ahead of our expectations,” with organic revenue up 39% and total revenue up 121%, supported by growth in commercial nuclear and medical and contributions from Kinectrics. Fitzgerald attributed upside performance to increased throughput on large commercial component projects “mainly associated with the Pickering Life Extension” and “better than expected performance from Kinectrics.” Commercial adjusted EBITDA was $36 million, up 162%, with a 12.9% adjusted EBITDA margin.

Geveden said commercial backlog was flat sequentially after an 85% increase in 2025, but remained up 33% year-over-year, supporting BWXT’s expectation for low-teens organic growth in commercial power in 2026. He also said Kinectrics was selected as the design and fabrication partner for a U.K. tritium loop facility, which he described as “the world’s largest and most advanced tritium fuel cycle facility,” and said it provides an entry point into the nuclear fusion market.

Advanced nuclear, enrichment programs, and medical isotopes

In Special Materials, Geveden said legacy programs delivered solid results and that defense fuels enrichment and HPDU programs are progressing in line with early schedules. He said BWXT completed construction of a centrifuge manufacturing development facility and has begun prototyping initial units. Geveden also said BWXT engaged with the Nuclear Regulatory Commission in April regarding plans to build an HEU enrichment facility in Erwin, Tennessee, calling it an important milestone for alignment in the approval process.

On microreactors and advanced fuels, Geveden said demand is evolving rapidly across land-based defense, commercial, and space markets, including demand for TRISO fuel. In Q&A, he said BWXT is “the only producer of TRISO at any scale at this point,” producing hundreds of kilograms per year, including fuel for BWXT’s Pele reactor and other customers. He said BWXT is considering brownfield and greenfield opportunities to scale production and has discussed “doing something on a larger scale in Wyoming.”

Geveden also discussed space-related opportunities, separating them into civil space—where he cited NASA interest in nuclear electric propulsion and fission surface power—and “national security space,” which he said could be “more fertile ground” for BWXT.

In medical, Geveden said BWXT is forecasting “high teens growth” in 2026 after three years of 20% compounded growth. He cited strength across products including Strontium, Germanium, and TheraSphere, and said Actinium-225 is growing quickly off a small base. On Tc-99m, he said there was “fundamentally no different news,” and that BWXT is continuing work but has nothing in its 2026 forecast for Tc-99m.

Updated 2026 guidance and capital spending outlook

Fitzgerald said BWXT increased its adjusted EBITDA guidance by $5 million at both ends, to $650 million to $665 million, while reaffirming revenue guidance of at least $3.75 billion. He said full-year results are expected to be “slightly more back half weighted than usual,” with about 55% of full-year EBITDA in the second half, and second-quarter EBITDA expected to be roughly in line with slightly below first-quarter levels. Non-GAAP EPS guidance is $4.60 to $4.75, and free cash flow guidance is $315 million to $330 million. The guidance does not include PCG.

BWXT expects 2026 capital expenditures to be around 6% of sales, but Fitzgerald said CapEx could rise if the company proceeds with a new greenfield manufacturing facility, potentially “somewhere around the 7%-ish range,” while aiming to avoid returning to the “9%-10%” levels seen in prior periods.

Closing the call, Geveden said BWXT expects its 2026 guidance to support meeting or exceeding medium-term financial targets introduced at the company’s 2024 Investor Day, and said BWXT plans to provide an update at its next Investor Day this fall.

About BWX Technologies NYSE: BWXT

BWX Technologies, Inc NYSE: BWXT is a specialized supplier of nuclear components and services, primarily serving the U.S. government and commercial markets. The company's core expertise lies in the design, fabrication and servicing of nuclear propulsion systems for the U.S. Navy, where it supports the maintenance and overhaul of naval nuclear reactors. In addition to defense applications, BWXT develops small modular reactors (SMRs), nuclear fuel and related technologies for non‐defense power generation, offering scalable solutions to meet evolving energy and industrial demands.

Beyond propulsion and power systems, BWXT is a leading producer of medical radioisotopes used in diagnostic imaging and cancer treatment.

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