Company Performance - BWX Technologies (BWXT) reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and up from $0.67 per share a year ago [1] - The earnings surprise for this quarter was 7.79%, following a previous quarter surprise of 7.89% where actual earnings were $0.82 per share against an expectation of $0.76 [2] - The company achieved revenues of $671.96 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.10% and increasing from $589.99 million year-over-year [3] Stock Performance - BWX shares have increased approximately 59.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 20.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $700.93 million, and for the current fiscal year, it is $3.20 on revenues of $2.64 billion [8] Industry Outlook - BWX operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the top 39% of over 250 Zacks industries [9] - The industry ranking indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Revenue and Income Growth - Consolidated revenues increased by 13.9%, or $82.0 million, to $672.0 million for the three months ended September 30, 2024, compared to $590.0 million for the same period in 2023[88]. - For the nine months ended September 30, 2024, consolidated revenues increased by 10.5%, or $186.6 million, to $1,957.4 million compared to $1,770.8 million for the same period in 2023[90]. - Operating income for the three months ended September 30, 2024, increased by $11.2 million to $96.6 million, with Government Operations contributing an increase of $16.0 million[89]. - Operating income for the nine months ended September 30, 2024, increased by $28.5 million to $288.3 million, with Government Operations and Commercial Operations segments contributing increases of $21.4 million and $10.3 million, respectively[91]. - Operating income rose by $21.4 million to $279.8 million for the nine months ended September 30, 2024, compared to $258.4 million for the same period in 2023[96]. Segment Performance - Government Operations segment revenues rose by $82.2 million, reaching $560.1 million, driven by higher volume in nuclear components for U.S. Government programs and long-lead material procurements[93]. - The Government Operations segment's operating income margin was 18.1% for the three months ended September 30, 2024, compared to 17.9% for the same period in 2023[92]. - Commercial Operations segment revenues increased by $29.4 million for the nine months ended September 30, 2024, reaching $371.6 million[90]. - The increase in Government Operations revenues was partially offset by a decrease in revenues associated with downblending operations[93]. Expenses and Cash Flow - Unallocated Corporate expenses increased by $2.4 million for the three months ended September 30, 2024, compared to the same period in the prior year[89]. - Unallocated corporate expenses increased by $3.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[102]. - Net cash provided by operating activities decreased by $10.4 million to $131.5 million in the nine months ended September 30, 2024, compared to $141.9 million in the same period of 2023[136]. - Net cash used in financing activities increased by $47.7 million to $69.9 million in the nine months ended September 30, 2024, compared to $22.2 million in the same period of 2023[138]. Backlog and Future Revenue - Total backlog as of September 30, 2024, was $3,380.7 million, down from $3,998 million as of December 31, 2023[109]. - The company expects to recognize approximately 48% of the revenue associated with its backlog by the end of 2025[110]. Debt and Financing - As of September 30, 2024, borrowings under the Term Loan totaled $239.1 million, with $548.6 million available under the Revolving Credit Facility[119]. - The weighted average interest rate on outstanding borrowings under the Credit Facility was 6.31% as of September 30, 2024[119]. - The company issued $400 million aggregate principal amount of 4.125% senior notes due 2028, maturing on June 30, 2028[122]. - Interest on the senior notes due 2028 is payable semi-annually at a rate of 4.125% per annum[123]. Pension and Working Capital - As of September 30, 2024, the company had underfunded defined benefit pension and postretirement benefit plans with obligations totaling approximately $96.2 million[132]. - The company's working capital increased by $102.7 million to $545.5 million as of September 30, 2024, from $442.8 million at December 31, 2023[135]. Acquisition Plans - The company announced its intention to acquire Aerojet Ordinance Tennessee, Inc., expecting a significant cash investment during the fourth quarter of 2024[141]. Investments and Cash Equivalents - The company had long-term investments with a fair value of $10.7 million, primarily consisting of corporate bonds and mutual funds[140]. - As of September 30, 2024, letters of credit issued and outstanding under the bilateral letter of credit facility totaled approximately $35.6 million[131].

Financial Performance - 3Q24 revenues reached $672.0 million, a 14% increase from $590.0 million in 3Q23[1] - 3Q24 net income was $69.6 million, with non-GAAP EPS of $0.83, reflecting a 24% increase from $0.67 in 3Q23[1][3] - Adjusted EBITDA for 3Q24 was $127.0 million, up 19% from $106.5 million in 3Q23[1][3] - For the three months ended September 30, 2024, BWX Technologies reported a net income of $76.7 million, up from $61.5 million in the same period last year, representing a year-over-year increase of 24.5%[24][25] - The diluted earnings per share for Q3 2024 were $0.83, compared to $0.67 in Q3 2023, reflecting a 23.9% increase[24][25] - The company's operating income for Q3 2024 was $105.7 million, an increase from $86.7 million in Q3 2023, marking a growth of 22.8%[24][25] - BWX Technologies' adjusted EBITDA for Q3 2024 was $127.0 million, compared to $106.5 million in Q3 2023, indicating a 19.2% increase[27][28] - Revenues for the three months ended September 30, 2024, increased to $671,956 thousand, up 13.9% from $589,989 thousand in the same period last year[32] - Operating income rose to $96,578 thousand, representing a 13.0% increase compared to $85,358 thousand for the same period last year[32] - Net income attributable to BWX Technologies, Inc. for the three months ended September 30, 2024, was $69,483 thousand, a 15.4% increase from $60,273 thousand in the prior year[32] - Basic and diluted earnings per share for the three months ended September 30, 2024, were both $0.76, compared to $0.66 for the same period last year, reflecting a 15.2% increase[32] Government Operations - Government Operations revenue increased by 17% to $560.1 million, driven by higher naval nuclear component production[3][4] - Government operations generated an operating income of $101.7 million in Q3 2024, up from $85.6 million in Q3 2023, a growth of 18.8%[29] - Government Operations revenue reached $560,073 thousand, up 16.5% from $477,855 thousand year-over-year[37] - Government Operations bookings for the three months ended September 30, 2024, were $440,146 thousand, a 33.1% increase from $330,801 thousand in the same period of 2023[37] Commercial Operations - Commercial operations reported an operating income of $9.2 million in Q3 2024, compared to $9.4 million in Q3 2023, showing a slight decline[29] - Commercial Operations bookings decreased to $78,252 thousand from $125,061 thousand year-over-year, reflecting a decline of 37.5%[37] Cash Flow and Dividends - Operating cash flow decreased to $32.6 million, a 56% decline from $74.3 million in 3Q23 due to increased working capital needs[3][8] - BWXT paid $22.0 million in dividends, or $0.24 per common share, in 3Q24[9] - The company expects free cash flow growth to be sustained at 10% or higher in 2025[1][2] Guidance and Future Outlook - The company raised its 2024 non-GAAP EPS guidance to approximately $3.20, up from the previous range of $3.10 - $3.20[1][10] - Preliminary guidance for 2025 indicates mid-to-high-single-digit growth in revenue and non-GAAP EPS[1][2] Assets and Liabilities - Total current assets increased to $982,949 thousand as of September 30, 2024, compared to $817,801 thousand at the end of December 31, 2023, marking a 20.2% increase[34] - Long-term debt as of September 30, 2024, was $1,220,583 thousand, up from $1,203,422 thousand at the end of December 31, 2023[35] - The company reported a total of $2,947,460 thousand in total assets as of September 30, 2024, compared to $2,747,065 thousand at the end of December 31, 2023, indicating a 7.3% increase[34] - Total stockholders' equity increased to $1,058,671 thousand as of September 30, 2024, up from $933,301 thousand at the end of 2023, marking a growth of 13.4%[36] - The company’s retained earnings rose to $2,238,437 thousand as of September 30, 2024, compared to $2,093,917 thousand at the end of 2023, indicating an increase of 6.9%[36] Costs and Expenditures - BWX Technologies incurred restructuring and transformation costs of $6.0 million in Q3 2024, compared to $1.1 million in Q3 2023[24][25] - Capital expenditures for the three months ended September 30, 2024, totaled $40,301 thousand, an increase of 30.4% from $30,916 thousand in the same period of 2023[37] - The company incurred research and development costs of $4,842 thousand for the nine months ended September 30, 2024, down from $5,955 thousand in the same period last year[32] Backlog - The total backlog as of September 30, 2024, was $3,380,689 thousand, a decrease of 15.1% from $3,980,844 thousand in the previous year[37]

Industry Overview - Nuclear energy stocks have become a significant focus on Wall Street, driven by the industry's potential to support the energy transition and the growth of artificial intelligence (AI) [1][2] - In 2023, nuclear energy accounted for 50% of America's carbon-free electricity, establishing it as the leading domestic source of clean energy [2] Nuclear Energy Growth Potential - The U.S. aims to triple its nuclear energy capacity by 2050, with nuclear power plants operating at maximum capacity over 92% of the time, making them nearly twice as reliable as natural gas and three times more reliable than wind and solar [3] - Despite the recent surge in nuclear energy stocks, there remains an opportunity for investors to enter the market at an early stage of the nuclear energy renaissance [3] BWX Technologies (BWXT) - BWX Technologies is a key supplier of nuclear technologies and is expanding its commercial nuclear power segment, with Q3 FY24 earnings results expected on November 4 [4][5] - The company is developing a large production facility in Ontario to support investments in Small Modular Reactors and advanced reactors globally [5] - BWXT is projected to grow its adjusted EPS by approximately 6% in FY24 and FY25, with sales increases of 6% and 5% respectively [6] - BWXT stock has increased by 110% over the past two years, including a 60% year-to-date surge [7] - The stock currently trades at a 40% discount to its highs, with a PEG ratio of 4.3, indicating potential for future growth [8] Constellation Energy (CEG) - Constellation Energy is the largest U.S. nuclear power plant operator, with over 20 reactors across various regions [10] - The company has secured a 20-year power purchase agreement with Microsoft, positioning itself as a key player in the AI nuclear power sector [11] - Constellation plans to enhance its operations through mergers and acquisitions, alongside increasing its dividend per share by 25% in 2024 [12] - The U.S. government is providing support to stabilize nuclear power prices, aiding the industry's expansion [13] - Constellation's stock has risen by 125% in 2024 and over 400% since its 2022 IPO, although it has recently experienced a 9% dip [14] - The stock trades at a 37% discount to its highs, with a PEG ratio of 1.3, reflecting a strong long-term earnings growth outlook [15]

BWX Technologies (BWXT) is expected to beat expectations when it reports third-quarter 2024 results after market close on Nov. 4. The Zacks Consensus Estimate for third-quarter earnings is pinned at 77 cents per share, indicating an increase of 14.9% from the year-ago quarter, unchanged over the past 60 days. The consensus mark for revenues is pegged at $658.2 million, suggesting an 11.6% increase from the year-ago quarter. BWXT's earnings beat the Zacks Consensus Estimate in each of the trailing four quart ...

BWX Technologies (BWXT) shares soared 4.9% in the last trading session to close at $124.70. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.6% gain over the past four weeks. The optimism surrounding the stock can be attributed to the growing demand for its manufactured components and services for the commercial nuclear power industry. BWX Technologies' strong position in the nuclear technology sector, especially with its gover ...

imaginima/iStock via Getty Images Investment thesis For investors who consider nuclear energy for their green portfolios, a growth candidate is BWX Technologies, Inc. (NYSE:BWXT). It is having a renaissance of sorts, after delivering three consecutive quarters of higher earnings, reversing a previous trend. Those earnings are expected to keep growing this year and for the two following years. Based on this expected growth, I believe the share price will increase by more than 11% in the next year, and rate i ...

The company had a good quarter, but some investors found its full-year guidance wanting. The stock market staged a robust recovery on Tuesday, but not every company surged ahead in price. Advancing only cautiously was nuclear engineering specialist BWX Technologies (BWXT 0.93%), which published its latest set of quarterly results after market hours Monday night. The following day, the stock closed 0.9% higher, against the more than 1% rise of the S&P 500 index. A double beat, and double-digit growth For its ...

BWX Technologies, Inc. (NYSE:BWXT) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Company Participants Chase Jacobson - Vice President of Investor Relations Rex Geveden - President and CEO Robb LeMasters - Senior Vice President and CFO Conference Call Participants Scott Deuschle - Deutsche Bank Rob Labick - CJS Securities Pete Skibitski - Alembic Global Peter Arment - Baird Josh Korn - Barclays Andre Madrid - BTIG Michael Ciarmoli - Truist Securities Ron Epstein - Bank of America Thomas Meric - ...

Our Purpose: We employ nuclear technology to solve some of the world's most important excellence, a strong safety record, and a focus problems Our Mission: We provide safe and effective nuclear solutions for global security, clean Second-Quarter 2024 Earnings energy, environmental remediation, nuclear medicine, and space exploration Call Presentation Commitment to innovation, operational on ensuring the highest ESG standards Reported August 5, 2024 Forward-Looking Statements Disclaimer 2 BWX Technologies, I ...