Financial Performance - 4Q23 net income was $66.3 million, with adjusted EBITDA of $147.6 million[1] - Full year 2023 net income reached $246.3 million, and adjusted EBITDA was $471.9 million[1] - Operating income for the full year increased in both segments, with Government Operations up 12% and Commercial Operations up 9%[12] - Operating income for the three months ended December 31, 2023, was $123.2 million, with a non-GAAP operating income of $127.3 million[28] - Net income attributable to BWXT for the same period was $65.9 million, translating to diluted earnings per share of $0.72 GAAP and $1.01 non-GAAP[28] - Government Operations reported an operating income of $374.7 million for the year ended December 31, 2023, compared to $336.5 million in 2022, reflecting a 11.5% increase[33] - The company reported a net income of $246.3 million for the year ended December 31, 2023, compared to $238.6 million in 2022, a growth of 3.0%[34] - Net income for the year ended December 31, 2023, was $246.3 million, representing a 3.5% increase from $238.6 million in 2022[51] - Diluted earnings per share for the year was $2.68, compared to $2.60 in the previous year, reflecting a 3.1% increase[57] Revenue and Growth - Full year consolidated revenue increased to $2.5 billion, driven by higher naval nuclear component production and increased medical sales[12] - Fourth quarter revenue was $725.5 million, a 16% increase from $624.2 million in 4Q22[12] - 2024 guidance anticipates revenue exceeding $2.6 billion[8] - Total revenues for the year reached $2.5 billion, an increase from $2.2 billion in 2022, marking a growth of approximately 13.4%[57] - Total revenues for Q4 2023 reached $725.5 million, a 16.3% increase from $624.2 million in Q4 2022[37] - Government Operations revenue was $601.6 million, up 16.2% from $517.6 million year-over-year[37] Cash Flow and Assets - Free cash flow for 2023 was $212.4 million, a 358% increase compared to $46.4 million in 2022[12] - Net cash provided by operating activities for the year ended 2023 was $363.7 million, compared to $244.7 million in 2022, representing a 48.5% increase[34] - Cash and cash equivalents at the end of the period rose to $81.6 million, up from $40.99 million in 2022, marking a 99.5% increase[34] - Total current assets increased to $817.8 million as of December 31, 2023, from $771.6 million in 2022, showing a growth of 6.0%[35] Costs and Expenses - Depreciation and amortization expenses increased to $78.6 million in 2023 from $73.8 million in 2022, indicating a rise of 6.0%[34] - Research and development costs for the year were $7.6 million, down from $9.5 million in 2022, showing a reduction of about 20%[55] - The company incurred restructuring and transformation costs of $6.3 million during the year, compared to $8.2 million in the previous year[55] - Restructuring and transformation costs for the three months ended December 31, 2023, included $4.0 million in GAAP and $6.8 million in non-GAAP adjustments[28] Shareholder Returns - BWXT declared a quarterly cash dividend of $0.24 per common share, payable on March 28, 2024[38] - Adjusted EBITDA for the full year 2023 increased, with cash flows of $85.0 million distributed to shareholders[38] Future Outlook - 2024 guidance includes Non-GAAP EPS of $3.05-$3.20 and adjusted EBITDA of approximately $500 million, reflecting mid-single digit growth compared to 2023[2] - The Company will host its 2024 Investor Day on February 28, 2024, to provide further insights into its markets and strategy[20] Backlog and Bookings - The total backlog decreased to $3.997 billion from $4.144 billion year-over-year, indicating a 3.5% decline[37] - Bookings for Q4 2023 were $742.3 million, a 65.3% increase compared to $448.8 million in Q4 2022[37]

PART I [Business](index=5&type=section&id=Item%201.%20Business) BWXT is a specialty manufacturer of nuclear components and nuclear technologies, primarily serving the U.S. Government and commercial nuclear industry [Business Segments](index=5&type=section&id=Business%20Segments) The company's Government Operations segment focuses on naval nuclear components, while Commercial Operations serves the commercial nuclear industry and produces medical radioisotopes - The Government Operations segment is the largest domestic supplier of research reactor fuel elements and downblends high-enriched uranium from Cold War stockpiles, having supplied nuclear components for DOE programs since the 1950s[7](index=7&type=chunk) - The Commercial Operations segment is the only commercial heavy nuclear component manufacturer in North America and is a leading supplier for CANDU nuclear power plants[22](index=22&type=chunk) - The medical products division within Commercial Operations manufactures radioisotopes, radiopharmaceuticals, and medical devices, and partners with pharmaceutical companies on new drug development[11](index=11&type=chunk) [Backlog](index=8&type=section&id=Backlog) Total backlog decreased to approximately **$4.0 billion** in 2023, with **80%** from Government Operations, and **51%** expected as revenue by 2024 Backlog by Segment (as of December 31) | Segment | 2023 (in millions) | % of Total | 2022 (in millions) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Government Operations | $3,217 | 80% | $3,515 | 85% | | Commercial Operations | $781 | 20% | $629 | 15% | | **Total Backlog** | **$3,998** | **100%** | **$4,144** | **100%** | - The company expects to recognize approximately **51%** of its **$4.0 billion** backlog as revenue by the end of 2024[39](index=39&type=chunk) - The value of unexercised options, not included in backlog, was approximately **$100 million** as of December 31, 2023, expected to be awarded in 2024 subject to Congressional appropriations[41](index=41&type=chunk) [Customers](index=10&type=section&id=Customers) The U.S. Government is the company's largest customer, accounting for approximately **75%** of consolidated revenues in 2023 - The U.S. Government represented approximately **75%** of total consolidated revenues in 2023, compared to **76%** in both 2022 and 2021[55](index=55&type=chunk) [Human Capital Management](index=11&type=section&id=Human%20Capital%20Management) BWXT employed approximately **7,800** people globally as of December 31, 2023, with a strong focus on employee development, diversity, and safety in nuclear operations - The company employed approximately **7,800** people worldwide at the end of 2023, with **6,200** in the U.S. and **1,600** in Canada[65](index=65&type=chunk) - Approximately **2,000** employees were members of labor unions, and the company considers its employee relations to be satisfactory[65](index=65&type=chunk) - A core value is a culture that prioritizes safety, with a vision of zero injuries and incidents, essential for a manufacturer of nuclear products and operator of high-consequence nuclear facilities[100](index=100&type=chunk)[95](index=95&type=chunk) [Governmental Regulations and Environmental Matters](index=15&type=section&id=Governmental%20Regulations%20and%20Environmental%20Matters) BWXT's operations are subject to stringent environmental regulations, incurring **$20.0 million** in pre-tax compliance expenses and holding **$101.1 million** in environmental accruals in 2023 Environmental Compliance Costs | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Pre-tax Expense (in millions) | $20.0 | $20.0 | $17.5 | | Capital Expenditures (in millions) | $0.7 | $1.6 | $3.1 | - Total environmental accruals, including asset retirement obligations, were **$101.1 million** at December 31, 2023, compared to **$101.8 million** at the end of 2022[121](index=121&type=chunk) - The company is required to provide financial assurance for the decommissioning of its licensed facilities, totaling **$68.1 million** for Government Operations and **$44.3 million** for Commercial Operations in 2023[120](index=120&type=chunk)[92](index=92&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from reliance on U.S. Government contracts, fixed-price contract cost overruns, cybersecurity threats, nuclear operational hazards, and the potential non-renewal of the Price-Anderson Act - A substantial percentage of revenue (approx. **75%** in 2023) comes from U.S. Government contracts, subject to uncertainties like Congressional appropriations, budget reductions, and termination for convenience[117](index=117&type=chunk)[118](index=118&type=chunk) - The company faces risks on fixed-price contracts where actual costs could exceed projections, leading to reduced profit or losses[115](index=115&type=chunk) - As a U.S. Government contractor, the company is a target for advanced and persistent cybersecurity threats, which could compromise sensitive information and impact its reputation and business[116](index=116&type=chunk)[131](index=131&type=chunk) - The Price-Anderson Act, providing crucial liability indemnification for the nuclear industry, is set to expire on December 31, 2025, and its non-extension could adversely affect future business[73](index=73&type=chunk)[196](index=196&type=chunk) [Cybersecurity](index=32&type=section&id=Item%201C.%20Cybersecurity) BWXT maintains a comprehensive cybersecurity risk management program overseen by the Board, with no material impact from threats to date despite its heightened risk profile as a government contractor - The Governance Committee of the Board of Directors oversees the company's cybersecurity risk management policies and processes[207](index=207&type=chunk) - A Cybersecurity Incident Management Team (CIMT) is in place to coordinate the response to any cybersecurity incidents[232](index=232&type=chunk) - As of the filing date, risks from cybersecurity threats have not materially affected the company's business strategy, results of operations, or financial condition[222](index=222&type=chunk) [Properties](index=34&type=section&id=Item%202.%20Properties) The company owns and leases principal manufacturing and administrative properties across the U.S. and Canada, supporting both Government and Commercial Operations Principal Properties | Segment | Location | Principal Use | Owned/Leased | | :--- | :--- | :--- | :--- | | Government Operations | Lynchburg, VA | Manufacturing facility | Owned | | Government Operations | Barberton, OH | Manufacturing facility | Owned | | Government Operations | Euclid, OH | Manufacturing facility | Owned | | Government Operations | Mount Vernon, IN | Manufacturing facility | Owned | | Government Operations | Erwin, TN | Manufacturing facility | Owned | | Commercial Operations | Cambridge, Ontario, Canada | Manufacturing facility | Owned | | Commercial Operations | Peterborough, Ontario, Canada | Manufacturing facility | Leased (2036) | | Commercial Operations | Kanata, Ontario, Canada | Manufacturing facility | Leased (2038) | PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) BWXT common stock trades on the NYSE, with **$397.6 million** remaining under its **$500 million** share repurchase authorization as of December 31, 2023 - The company's common stock is listed on the New York Stock Exchange under the trading symbol BWXT[2](index=2&type=chunk)[235](index=235&type=chunk) - A **$500 million** share repurchase program was authorized in April 2021 with no expiration date; as of December 31, 2023, **$397.6 million** remained available for repurchases[236](index=236&type=chunk)[230](index=230&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Public Program | | :--- | :--- | :--- | :--- | | Oct 1 - Oct 31, 2023 | 1,092 | $76.00 | — | | Nov 1 - Nov 30, 2023 | 26 | $78.10 | — | | Dec 1 - Dec 31, 2023 | — | — | — | | **Total** | **1,118** | **$76.05** | **—** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, consolidated revenues grew **11.8%** to **$2.5 billion**, with operating income increasing to **$383.1 million**, driven by growth in both Government and Commercial Operations segments [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Consolidated revenues increased **11.8%** to **$2.50 billion** in 2023, with operating income rising to **$383.1 million**, driven by growth in both Government and Commercial Operations Consolidated Results of Operations (Year Ended Dec 31) | Metric (in millions) | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $2,496.3 | $2,232.8 | +$263.5 | | Operating Income | $383.1 | $348.6 | +$34.5 | - Government Operations revenue increased by **$222.9 million** (**12.3%**) in 2023, driven by higher volume in nuclear components manufacturing (+$100.0M), advanced technologies (+$61.6M), and uranium processing (+$58.6M)[281](index=281&type=chunk) - Commercial Operations revenue increased by **$39.0 million** (**9.1%**) in 2023, primarily from higher in-plant services (+$24.1M) and medical radioisotopes business (+$14.6M)[285](index=285&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity increased to **$649.1 million** in 2023, with net cash from operating activities rising significantly to **$363.7 million**, supported by a **$750 million** revolver and **$800 million** in senior notes - Overall liquidity increased by **$116.3 million** to **$649.1 million** at December 31, 2023[300](index=300&type=chunk) - Net cash provided by operating activities increased by **$119.0 million** to **$363.7 million** in 2023, compared to **$244.7 million** in 2022, primarily due to the timing of project cash flows[484](index=484&type=chunk) - As of December 31, 2023, the company had **$418.8 million** in outstanding borrowings under its Credit Facility and **$800.0 million** in aggregate principal of Senior Notes due 2028 and 2029[501](index=501&type=chunk) [Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents BWXT's audited consolidated financial statements for 2023, including statements of income, balance sheets, cash flows, and comprehensive notes [Consolidated Statements of Income](index=53&type=section&id=Consolidated%20Statements%20of%20Income) For 2023, BWXT reported revenues of **$2.50 billion**, net income of **$246.3 million**, and diluted earnings per share of **$2.68** Key Financial Results (Year Ended Dec 31) | Metric (in thousands, except per share) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Revenues | $2,496,309 | $2,232,834 | $2,124,074 | | Operating Income | $383,059 | $348,571 | $345,848 | | Net Income | $246,321 | $238,620 | $306,288 | | Diluted EPS | $2.68 | $2.60 | $3.24 | [Consolidated Balance Sheets](index=55&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets were **$2.75 billion**, total liabilities **$1.81 billion**, and total stockholders' equity **$933.3 million** Balance Sheet Highlights (as of Dec 31) | Metric (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total Current Assets | $817,801 | $771,619 | | Total Assets | $2,747,065 | $2,618,939 | | Total Current Liabilities | $375,046 | $367,860 | | Long-Term Debt | $1,203,422 | $1,282,624 | | Total Liabilities | $1,813,764 | $1,870,584 | | Total Stockholders' Equity | $933,301 | $748,355 | [Consolidated Statements of Cash Flows](index=58&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2023, net cash from operating activities was **$363.7 million**, with **$155.6 million** used in investing and **$169.4 million** in financing activities Cash Flow Summary (Year Ended Dec 31, 2023) | Cash Flow Activity (in thousands) | Amount | | :--- | :--- | | Net Cash Provided by Operating Activities | $363,701 | | Net Cash Used in Investing Activities | ($155,642) | | Net Cash Used in Financing Activities | ($169,371) | | **Net Increase in Cash** | **$40,625** | [Notes to Consolidated Financial Statements](index=59&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, revenue recognition, equity investments, income taxes, long-term debt, pension obligations, and segment financial performance [Controls and Procedures](index=98&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[716](index=716&type=chunk) - Based on an assessment using the COSO framework, management concluded that internal control over financial reporting was effective as of December 31, 2023[720](index=720&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of 2023 that materially affected, or are reasonably likely to materially affect, internal controls[721](index=721&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=101&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Required information for this item is incorporated by reference from the Proxy Statement for the 2024 Annual Meeting of Stockholders[742](index=742&type=chunk) [Executive Compensation](index=101&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive and director compensation is incorporated by reference from the 2024 Proxy Statement - Required information for this item is incorporated by reference from the Proxy Statement for the 2024 Annual Meeting of Stockholders[743](index=743&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=101&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2024 Proxy Statement - Required information for this item is incorporated by reference from the Proxy Statement for the 2024 Annual Meeting of Stockholders[734](index=734&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=101&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2024 Proxy Statement - Required information for this item is incorporated by reference from the Proxy Statement for the 2024 Annual Meeting of Stockholders[754](index=754&type=chunk) [Principal Accounting Fees and Services](index=101&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on fees paid to and services provided by the independent registered public accounting firm is incorporated by reference from the 2024 Proxy Statement - Required information for this item is incorporated by reference from the Proxy Statement for the 2024 Annual Meeting of Stockholders[744](index=744&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=102&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including consolidated financial statements and other required documents - The consolidated financial statements are filed as part of this report[746](index=746&type=chunk) - All financial statement schedules have been omitted because they are not required or the information is included in the financial statements or notes[747](index=747&type=chunk)

Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of TE Connectivity (TEL) and BWX Technologies (BWXT) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank ...

LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) today announced that its Nuclear Fuel Services, Inc. (NFS) subsidiary was awarded a $122 million contract extension from the Tennessee Valley Authority (TVA) for the downblending of highly enriched uranium (HEU) into low enriched uranium (LEU). Under this contract, NFS will continue to provide downblending services to the TVA in support of the National Nuclear Security Administration’s (NNSA) defense programs objectives. This contract e ...

Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of TE Connectivity (TEL) and BWX Technologies (BWXT) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emp ...

LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) will issue a press release detailing fourth quarter and full-year 2023 results on Tuesday, February 27, 2024 after market close and will host a conference call at 5:00 p.m. EST. Listen-only participants are encouraged to participate and view the supporting presentation via the internet at investors.bwxt.com. The dial-in numbers for participants are (U.S.) 1-888-550-5326 and (International) 1-646-960-0829; conference ID: 5948806. A replay ...

LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) announced today that Nicole W. Piasecki has been appointed to its board of directors effective January 2, 2024. Piasecki spent 25 years with The Boeing Company in a number of senior leadership positions, including the role of vice president and general manager of the Propulsion Systems Division for Boeing Commercial Airplanes. She currently serves on the boards of BAE Systems and Weyerhaeuser Company. Piasecki is also a senior advisor to ...

BWX Technologies, Inc. (NYSE:BWXT) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Chase Jacobson - Vice President, Investor Relations Rex Geveden - President & Chief Executive Officer Robb LeMasters - Senior Vice President & Chief Financial Officer Conference Call Participants Peter Arment - Baird Michael Ciarmoli - Truist Securities Scott Deuschle - Deutsche Bank Ron Epstein - Bank of America Pete Skibitski - Alembic Global Bob Labick - CJS Securities David Strauss - Barc ...

Our Purpose: We employ nuclear technology to solve some of the world's most important problems Our Mission: We provide safe and effective Third-Quarter 2023 Earnings Call Presentation Reported November 1, 2023 BWX Technologies, Inc. ("BWXT") cautions that statements in this presentation that are forward-looking and provide other than historical information involve risks and uncertainties that may impact actual results and any future performance suggested in the forward-looking statements. The forward-lookin ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was ...