down ~9% - ~4% significant inflection up Guidance assumptions o Modest labor progress including hiring/attrition Forward-Looking Statements Disclaimer 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-looking statements in this presentation include, but are not limi ...

BWX Technologies, Inc. (NYSE:BWXT) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Chase Jacobson - Vice President, Investor Relations Rex Geveden - President and Chief Executive Officer Robb LeMasters - Senior Vice President and Chief Financial Officer Conference Call Participants Peter Skibitski - Alembic Global Bob Labick - CJS Securities Peter Arment - Baird David Strauss - Barclays Michael Ciarmoli - Truist Securities Andre Madrid - Bank of America Operator Ladies and ge ...

PART I – FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents BWX Technologies' unaudited condensed consolidated financial statements for Q2 and H1 2023, including balance sheets, income, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet details changes in assets, liabilities, and equity, showing growth in total assets and stockholders' equity Balance Sheet Summary (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $839,201 | $771,619 | | **Total Assets** | **$2,740,574** | **$2,618,939** | | **Total Current Liabilities** | $348,061 | $367,860 | | **Long-Term Debt** | $1,330,523 | $1,282,624 | | **Total Liabilities** | $1,899,046 | $1,870,584 | | **Total Stockholders' Equity** | **$841,528** | **$748,355** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section highlights revenue growth for both Q2 and H1 2023, alongside a decrease in net income for both periods Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $612,445 | $554,208 | $1,180,805 | $1,084,946 | | **Operating Income** | $86,666 | $95,237 | $174,508 | $166,810 | | **Net Income Attributable to BWXT** | $58,597 | $74,613 | $119,689 | $133,623 | | **Diluted EPS** | $0.64 | $0.82 | $1.30 | $1.46 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details cash flow activities, showing a slight decrease in operating cash and a significant decrease in investing cash used Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $67,589 | $72,038 | | **Net Cash used in Investing Activities** | $(65,914) | $(164,751) | | **Net Cash (used in) from Financing Activities** | $(3,282) | $125,046 | | **Total (Decrease) Increase in Cash** | $(1,411) | $33,310 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of accounting policies, segment operations, revenue recognition, and other financial instrument details - The company operates in two reportable segments: Government Operations, which manufactures naval nuclear reactors and provides services to the U.S. Government, and Commercial Operations, which fabricates commercial nuclear components and provides medical radioisotopes[59](index=59&type=chunk)[70](index=70&type=chunk) - On April 11, 2022, the company acquired Dynamic Controls Limited and Cunico Corporation for approximately **$49.9 million**, which are reported as part of the Government Operations segment[98](index=98&type=chunk) - As of June 30, 2023, the company's remaining performance obligations (backlog) were **$4.115 billion**, with approximately **58%** expected to be recognized as revenue by the end of 2024[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q2 and H1 2023, covering consolidated revenues, operating income, segment performance, backlog, and liquidity Consolidated Results Summary (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $612,445 | $554,208 | $1,180,805 | $1,084,946 | | **Total Operating Income** | $86,666 | $95,237 | $174,508 | $166,810 | - Q2 2023 consolidated revenues increased **10.5%** YoY, while H1 2023 revenues increased **8.8%** YoY[147](index=147&type=chunk)[136](index=136&type=chunk) - Q2 2023 consolidated operating income decreased by **$8.6 million** YoY, while H1 2023 operating income increased by **$7.7 million** YoY[135](index=135&type=chunk)[148](index=148&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) This section details segment-level financial performance, highlighting revenue and operating income trends for Government and Commercial Operations Government Operations Performance (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $491,967 | $436,537 | $951,853 | $868,314 | | **Operating Income** | $82,208 | $83,783 | $172,768 | $156,014 | Commercial Operations Performance (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $120,920 | $118,522 | $229,844 | $218,472 | | **Operating Income** | $11,017 | $12,864 | $12,530 | $16,826 | - Unallocated corporate expenses increased by **$5.1 million** in Q2 and **$4.8 million** in H1 2023 compared to the prior year, mainly due to higher healthcare and compensation costs[158](index=158&type=chunk) [Backlog](index=24&type=section&id=Backlog) This section details the company's total backlog and its distribution by segment, including expected revenue recognition Backlog by Segment (in millions) | Segment | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Government Operations | $3,406 | $3,515 | | Commercial Operations | $709 | $629 | | **Total Backlog** | **$4,115** | **$4,144** | - The backlog is subject to the U.S. Government's budgetary and appropriations cycle, and projects may be cancelled or modified[170](index=170&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) This section outlines the company's financial position, debt structure, and cash flow activities, confirming sufficient liquidity - As of June 30, 2023, the company had **$246.9 million** outstanding on its Term Loan and **$300.0 million** in borrowings under its Revolving Credit Facility, with **$448.3 million** of availability[191](index=191&type=chunk) - Net cash provided by operating activities decreased by **$4.4 million** to **$67.6 million** in H1 2023, primarily due to the timing of project cash flows and income tax payments[209](index=209&type=chunk) - Net cash used in investing activities decreased by **$98.8 million** in H1 2023, mainly because of the **$47.3 million** acquisition of Dynamic and Cunico in the prior year and lower capital expenditures[210](index=210&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposures to market risks have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to the company's market risk exposures since the 2022 10-K filing[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of June 30, 2023[217](index=217&type=chunk) - No material changes were made to the internal control over financial reporting during the three months ended June 30, 2023[217](index=217&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 5 of the condensed consolidated financial statements for information regarding ongoing investigations and litigation, which states there were no material contingencies during the period - For information on legal proceedings, the report refers to Note 5 of the financial statements[220](index=220&type=chunk) - Note 5 indicates there were no material contingencies during the period covered by the Form 10-Q[109](index=109&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to the risk factors disclosed in the 2022 10-K[225](index=225&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details Q2 2023 share repurchases for tax withholding and remaining availability under the authorized repurchase program Share Repurchases - Q2 2023 | Period | Total Shares Purchased | Average Price Paid | Value Remaining Under Program (millions) | | :--- | :--- | :--- | :--- | | May 1 - May 31, 2023 | 717 | $64.81 | $397.6 | | **Total Q2 2023** | **717** | **$64.81** | **$397.6** | - The Board of Directors authorized a **$500 million** share repurchase program on April 30, 2021, with no expiration date[206](index=206&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) On August 2, 2023, the Board of Directors amended and restated the company's Bylaws, addressing universal proxy rules and other governance matters - The company's Bylaws were amended and restated on August 2, 2023, to address universal proxy rules and other governance matters[227](index=227&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the amended and restated bylaws, certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and XBRL data files - Filed exhibits include the Amended and Restated Bylaws (Exhibit 3.3), CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2), and XBRL interactive data files[229](index=229&type=chunk)

BWX Technologies, Inc. (NYSE:BWXT) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET Company Participants Chase Jacobson - VP of IR Rex Geveden - President and CEO Robb LeMasters - SVP and CFO Conference Call Participants Pete Skibitski - Alembic Global Peter Arment - Baird Bob Labick - CJS Securities Scott Deuschle - Credit Suisse Michael Ciarmoli - Truist Ron Epstein - Bank of America David Strauss - Barclays Tate Sullivan - Maxim Group Operator Ladies and gentlemen, welcome to BWX Technologies Firs ...

Commitment to innovation, operational 1Q 2022 non-GAAP reconciliations on ensuring the highest ESG standards Our Purpose: We employ nuclear technology to solve some of the world's most important problems First-Quarter 2023 Earnings Call medicine, and space exploration Commitment to innovation, operational Reported May 8, 2023 2 = announced YTD o 1Q23 financial performance ‒ Revenue up 7%, adjusted EBITDA(1) up 17%, non-GAAP EPS(1) up 2% to solve some of the world's most important problems ‒ Revenue: ~$2.4B ...

PART I – FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for BWX Technologies, Inc., detailing financial performance and position for Q1 2023 compared to Q1 2022 [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2023, shows total assets of **$2.72 billion**, an increase from **$2.62 billion** at December 31, 2022, primarily driven by increases in Property, Plant and Equipment and Contracts in progress Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $851,729 | $771,619 | | **Total Assets** | $2,718,908 | $2,618,939 | | **Total Current Liabilities** | $348,857 | $367,860 | | **Long-Term Debt** | $1,361,574 | $1,282,624 | | **Total Stockholders' Equity** | $788,008 | $748,355 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2023, revenues increased to **$568.4 million** from **$530.7 million**, with operating income growing to **$87.8 million** and net income attributable to the company reaching **$61.1 million** Q1 2023 vs Q1 2022 Income Statement (in thousands, except EPS) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Revenues** | $568,360 | $530,738 | | **Operating Income** | $87,842 | $71,573 | | **Net Income Attributable to BWXT** | $61,092 | $59,010 | | **Diluted EPS** | $0.67 | $0.64 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$13.0 million** in Q1 2023, while net cash used in investing activities decreased to **$29.8 million**, and net cash provided by financing activities was **$49.3 million** Cash Flow Summary for Three Months Ended March 31 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | $(13,024) | $(5,384) | | **Net Cash Used in Investing Activities** | $(29,780) | $(65,927) | | **Net Cash Provided by Financing Activities** | $49,336 | $60,574 | | **Cash and Equivalents at End of Period** | $47,529 | $29,315 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed information on accounting policies, segment operations, and financial instruments, including revenue recognition methods and debt structure - The company operates in two reportable segments: **Government Operations**, which manufactures naval nuclear reactors and provides services to the U.S. Government, and **Commercial Operations**, which fabricates commercial nuclear components and provides medical radioisotopes[63](index=63&type=chunk)[91](index=91&type=chunk) - Revenue is primarily recognized over time based on a cost-to-cost method, with net unfavorable changes in estimates resulting in a **$7.8 million** decrease in revenues for Q1 2023[92](index=92&type=chunk)[132](index=132&type=chunk) Disaggregated Segment Revenues - Q1 2023 vs Q1 2022 (in thousands) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Government Operations** | $459,886 | $431,777 | | **Commercial Operations** | $108,924 | $99,950 | | **Total Revenues** | $568,360 | $530,738 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2023, highlighting a **7.1%** increase in consolidated revenues driven by segment growth, an increase in operating income, and a total backlog of **$3.8 billion** - Consolidated revenues increased by **7.1%** (**$37.6 million**) in Q1 2023 compared to Q1 2022, driven by increases of **$28.1 million** in Government Operations and **$9.0 million** in Commercial Operations[29](index=29&type=chunk) - Consolidated operating income increased by **$16.3 million** to **$87.8 million** in Q1 2023, mainly due to an **$18.3 million** increase in the Government Operations segment[175](index=175&type=chunk) - Total backlog at March 31, 2023, was **$3.8 billion**, with approximately **65%** expected to be recognized as revenue by the end of 2024[134](index=134&type=chunk)[159](index=159&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) This section provides a detailed breakdown of the operational performance by segment, showing revenue growth in both Government and Commercial Operations, alongside changes in operating income Segment Performance - Q1 2023 vs Q1 2022 (in thousands) | Segment | Revenue (Q1 2023) | Revenue (Q1 2022) | Operating Income (Q1 2023) | Operating Income (Q1 2022) | | :--- | :--- | :--- | :--- | :--- | | **Government Operations** | $459,886 | $431,777 | $90,560 | $72,231 | | **Commercial Operations** | $108,924 | $99,950 | $1,513 | $3,962 | - The increase in **Government Operations** revenue was primarily driven by higher volume in the manufacture of nuclear components for U.S. Government programs[153](index=153&type=chunk) - The decrease in **Commercial Operations** operating income was due to a shift in project/product mix and a **$1.2 million** increase in restructuring-related costs[177](index=177&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by a Credit Facility, including a revolving credit facility and a term loan, alongside two series of senior notes, providing sufficient cash and borrowing capacity - The company maintains a Credit Facility with a **$750 million** revolver and a **$250 million** term loan, maturing in October 2027[161](index=161&type=chunk) - As of March 31, 2023, borrowings under the Term Loan were **$248.4 million**, and borrowings under the Revolving Credit Facility were **$330.0 million**, with **$417.4 million** of availability remaining[189](index=189&type=chunk) - The company has two outstanding senior notes: **$400 million** due 2028 and **$400 million** due 2029, both with an interest rate of **4.125%**[206](index=206&type=chunk)[208](index=208&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposures to market risks have not changed materially from those disclosed in its 2022 Form 10-K - There have been **no material changes** to the company's market risk exposures from those disclosed in the 2022 10-K[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** as of March 31, 2023[202](index=202&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[202](index=202&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The report refers to Note 5 of the financial statements for information on legal proceedings and states there were no material contingencies during the period - For information regarding ongoing investigations and litigation, the report incorporates by reference Note 5 to the unaudited condensed consolidated financial statements[228](index=228&type=chunk) - There were **no material contingencies** during the period covered by this Form 10-Q[136](index=136&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its 2022 Form 10-K - **No material changes** have occurred in the company's risk factors since those disclosed in the 2022 Form 10-K[2](index=2&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company repurchased 112,376 shares at an average price of **$61.42** per share, primarily for tax withholding obligations, with **$397.6 million** remaining for future repurchases Share Repurchases for Q1 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2023 | 143 | $57.67 | | Feb 1 - Feb 28, 2023 | 112,199 | $61.43 | | Mar 1 - Mar 30, 2023 | 34 | $61.87 | | **Total** | **112,376** | **$61.42** | - As of March 30, 2023, approximately **$397.6 million** remained available for share repurchases under the publicly announced plan authorized on April 30, 2021[3](index=3&type=chunk)[230](index=230&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, stock grant agreements, CEO and CFO certifications, and XBRL data files - The exhibits include CEO and CFO certifications pursuant to Rule 13a-14(a)/15d-14(a) and Section 1350[203](index=203&type=chunk) - Forms of 2023 stock option and restricted stock unit grant agreements for employees are included as exhibits[203](index=203&type=chunk)

BWX Technologies, Inc. (NYSE:BWXT) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Mark Kratz - Vice President of Investor Relations Rex Geveden - President & Chief Executive Officer Robb LeMasters - Senior Vice President & Chief Financial Officer Conference Call Participants Pete Skibitski - Alembic Global Michael Ciarmoli - Truist Scott Deuschle - Credit Suisse Pete Lukas - CJS Securities Operator Ladies and gentlemen, welcome to BWX Technologies' Fourth Quarter and Full ...

1) CAS – Cost accounting standards in accordance with the Federal Acquisition Regulation and the related U.S. Government Cost Accounting Standards – used as basis for recovery of costs on government contracts 2) FAS – Financial accounting standards in accordance with GAAP and the way we report our financial results 3) Presentation of 2015 amounts reflects adoption of ASU 2017-07 which requires non-service cost components of net periodic benefit cost to be classified outside of operating income Our Mission: ...

Revenue Recognition - The company expects to recognize approximately 42% of the revenue associated with its backlog by the end of 2023, with the remainder to be recognized thereafter[35]. Government Operations - The Government Operations segment's revenues are largely driven by national security spending by the U.S. Government, with no negative impact from federal budget reductions to date[36]. - The company is a significant participant in the defense industry, supplying high-end equipment for U.S. Navy submarines and aircraft carriers[36]. Financial Position - The company had $500.0 million in outstanding borrowings and $497.5 million available under the Credit Facility as of December 31, 2022[429]. - The company has an aggregate principal amount of $400.0 million of Senior Notes due 2028 and another $400.0 million due 2029[429]. Business Segments - The company operates in two reportable segments: Government Operations and Commercial Operations, reflecting a strategic alignment of its businesses[33]. Growth Strategies - The company is exploring growth strategies through strategic investments and acquisitions, expecting to fund these opportunities with cash generated from operations or by raising additional capital[32]. Valuation Approaches - The company utilizes both income and market valuation approaches to assess the fair value of its reporting units, which may be affected by external market conditions[28][29]. Pension and Benefits - The company recognizes net actuarial gains and losses in earnings in the fourth quarter, which can significantly impact estimated pension and postretirement benefit costs[24]. Joint Ventures - The company’s operations include joint ventures that typically earn fees, accounted for using the equity method[37].

BWX Technologies, Inc. (NYSE:BWXT) Q3 2022 Earnings Conference Call November 7, 2022 5:00 PM ET Company Participants Mark Kratz - Vice President-Investor Relations Rex Geveden - President & Chief Executive Officer Robb LeMasters - Senior Vice President & Chief Financial Officer Conference Call Participants Bob Labick - CJS Securities Scott Deuschle - Credit Suisse Pete Osterland - Truist Securities David Strauss - Barclays Peter Arment - Baird Tate Sullivan - Maxim Group Operator Ladies and gentlemen, welco ...