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]

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 ...

Financial Data and Key Metrics Changes - Adjusted EBITDA grew 6% year-over-year to $107 million, driven by higher revenue and improved margins in commercial operations, though partially offset by lower margins in government operations and increased corporate expenses [3][18][63] - Adjusted earnings per share declined 3% to $0.67, primarily due to non-operating items such as lower pension income and higher interest expenses [4][41][63] - Free cash flow improved to $43 million compared to $25 million in the same quarter last year, attributed to better working capital management and lower capital expenditures [19][63] Business Line Data and Key Metrics Changes - Government operations revenue increased 13% to $478 million, supported by higher naval nuclear component production and microreactor volume, despite lower long lead material procurement [40][42] - Commercial operations revenue grew 10%, with significant contributions from commercial nuclear and medical segments, and a backlog increase of 14% year-over-year [13][40][65] - BWXT Medical revenue growth accelerated approximately 30% in the quarter, driven by strong demand for isotopes used in cardiac and cancer imaging studies [15][63] Market Data and Key Metrics Changes - The naval propulsion business remains robust, supported by a 30-year shipbuilding plan and increased demand from the AUKUS trilateral security agreement [6][29] - International momentum is evident, particularly in Europe, with countries like the UK, Poland, and Romania seeking to enhance energy security through nuclear power [14][36] - The Ontario government aims to double the power grid by 2050, committing to nuclear solutions, which positions the company favorably in the CANDU reactor market [36][37] Company Strategy and Development Direction - The company is focused on operational excellence and continuous improvement, leveraging government program funding to advance novel commercial nuclear concepts [4][9][16] - Investments in AI and automation are being made to enhance operational efficiency and maintain competitiveness in the market [16][38] - The company anticipates continued growth in government operations, particularly in microreactor projects and special materials processing [22][34][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong organic growth despite economic challenges, with expectations for mid-single-digit growth in revenue, adjusted EBITDA, and EPS in 2024 [4][27][66] - The company is optimistic about the demand for nuclear solutions driven by national security and clean energy initiatives [5][47] - Management highlighted the importance of supporting U.S. and allied military operations, reinforcing the strategic significance of their work [39][47] Other Important Information - The company announced a $300 million award for naval nuclear fuel manufacturing through mid-2025, indicating strong government support [7][29] - A $200 million contract for the DRACO project, a nuclear thermal rocket engine demonstration, was booked during the quarter [8][28] - The company is actively engaging with the Department of Energy and other agencies to expand its special materials business [12][34] Q&A Session Summary Question: What is the outlook for government operations margins? - Management indicated that onboarding new team members and a less favorable product mix may continue to impact margins in the near term [71][73] Question: What is the status of the FDA approval for the tech 99 product? - Management confirmed that they expect to commercialize the tech 99 product in 2024, with no changes to their outlook [77][78] Question: How is the company preparing for increased submarine production under the AUKUS agreement? - Management noted that investments from Australia and the U.S. are expected to support incremental demand, with a focus on maintaining production rates [107][108] Question: What are the expectations for commercial operations in 2024? - Management anticipates continued solid growth in commercial operations, driven by a better mix in commercial nuclear and higher profitability in medical [60][66] Question: How does the company view the impact of depreciation on EBIT margins? - Management explained that depreciation will be layered in as assets are deployed, and they are prepared for the associated fixed costs [89][91]

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 ...

Financial Performance - Consolidated revenues increased 12.7%, or $66.3 million, to $590.0 million for the three months ended September 30, 2023, compared to $523.7 million for the same period in 2022[97]. - Revenues for the nine months ended September 30, 2023, increased 10.8%, or $138.9 million, to $1,429.7 million compared to $1,290.8 million for the same period in 2022, driven by higher volumes in nuclear components and naval nuclear fuel[99]. - Operating income for the three months ended September 30, 2023, increased to $85.6 million, up $7.9 million from $77.7 million in the same period of 2022[126]. - Revenues in the Commercial Operations segment for the three months ended September 30, 2023, increased by 10.4%, or $10.6 million, to $112.4 million compared to $101.8 million in the same period of 2022[100]. - The net cash provided by operating activities increased by $4.9 million to $141.9 million for the nine months ended September 30, 2023, compared to $137.0 million for the same period in 2022[142]. Backlog and Contracts - The backlog as of September 30, 2023, was $3,980.8 million, including $455.3 million of unfunded backlog related to U.S. Government contracts, with approximately 57% expected to be recognized by the end of 2024[132]. - The company expects significant working capital contributions will be required for the first 12 months of a DOE contract if re-awarded, anticipated to transition in the first half of 2024[144]. Financing and Debt - The company’s total borrowings under the Term Loan as of September 30, 2023, totaled $245.3 million, with a weighted average interest rate of 6.93%[108]. - Cash used in financing activities increased by $98.5 million to $22.2 million in the nine months ended September 30, 2023, compared to $76.3 million cash provided in the same period of 2022[115]. - The company issued $400 million aggregate principal amount of 4.125% senior notes due 2028, guaranteed by its wholly owned domestic subsidiaries[137]. Compliance and Risk Management - As of September 30, 2023, the company was in compliance with all covenants set forth in the Credit Facility, which includes a maximum permitted total net leverage ratio of 4.00 to 1.00 and a minimum consolidated interest coverage ratio of 3.00 to 1.00[135]. - The company was in compliance with all covenants set forth in the 2021 Indenture and the Senior Notes due 2029 as of September 30, 2023[139]. - There have been no material changes to the company's risk factors from those disclosed in the 2022 10-K[147]. - If any default occurs under the Credit Facility, the company will be unable to borrow funds or have letters of credit issued[136]. Cash Management - The company has sufficient cash and cash equivalents, along with borrowing capacity, to satisfy cash requirements for the next 12 months and beyond[144]. - The company’s cash requirements have not changed materially from those disclosed in the 2022 10-K[144]. Operational Effectiveness - The effective tax rate for the three months ended September 30, 2023, was 22.8%, down from 24.6% in the same period of 2022[102]. - Long-term benefit obligations increased to $64.97 million as of September 30, 2023, compared to $52.89 million as of December 31, 2022[114]. - The design and operation of the company's disclosure controls and procedures were deemed effective as of September 30, 2023[145]. Acquisitions - The company acquired Dynamic Controls Limited and Citadel Capital Corporation on April 11, 2022, enhancing its capabilities in supplying engineered valves and fittings for naval and commercial vessels[93].

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 ...