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 ...

PART I – FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company reported increased revenues and net income for both the three and six months ended June 30, 2024, compared to the same periods in 2023, with total assets growing to **$2.84 billion** primarily driven by an increase in contracts in progress, and cash flow from operations significantly increasing to **$98.9 million** for the first six months of 2024 [Condensed Consolidated Statements of Income](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the second quarter of 2024, revenues increased by **11.3%** year-over-year to **$681.5 million**, and net income attributable to the company rose by **24.5%** to **$73.0 million**, while for the first six months, revenues grew by **8.9%** to **$1.29 billion**, with net income increasing by **18.2%** to **$141.4 million** Key Financial Performance (Three and Six Months Ended June 30) | Metric | Q2 2024 | Q2 2023 | YoY Change | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $681.5M | $612.4M | +11.3% | $1,285.4M | $1,180.8M | +8.9% | | **Operating Income** | $98.8M | $86.7M | +14.0% | $191.8M | $174.5M | +9.9% | | **Net Income Attributable to BWXT** | $73.0M | $58.6M | +24.5% | $141.4M | $119.7M | +18.2% | | **Diluted EPS** | $0.79 | $0.64 | +23.4% | $1.54 | $1.30 | +18.5% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets stood at **$2.84 billion**, an increase from **$2.75 billion** at year-end 2023, primarily driven by an increase in 'Contracts in progress', while total liabilities rose to **$1.84 billion** from **$1.81 billion**, and total stockholders' equity increased to **$998.3 million** from **$933.3 million** over the same period Balance Sheet Summary (as of June 30, 2024 vs. Dec 31, 2023) | Account | June 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $48,341 | $75,766 | | Contracts in progress | $622,062 | $533,155 | | Total Current Assets | $909,843 | $817,801 | | Total Assets | $2,840,633 | $2,747,065 | | Long-Term Debt | $1,203,196 | $1,203,422 | | Total Liabilities | $1,842,382 | $1,813,764 | | Total Stockholders' Equity | $998,251 | $933,301 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by operating activities increased to **$98.9 million** from **$67.6 million** in the prior-year period, while net cash used in investing activities decreased slightly to **$60.6 million**, and net cash used in financing activities increased significantly to **$65.0 million**, driven by lower debt borrowings and **$20.0 million** in common stock repurchases Cash Flow Summary (Six Months Ended June 30) | Activity | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $98,920 | $67,589 | | Net Cash Used in Investing Activities | ($60,624) | ($65,914) | | Net Cash Used in Financing Activities | ($65,004) | ($3,282) | | **Total Decrease in Cash** | **($27,016)** | **($1,411)** | - The increase in cash used for financing activities was primarily due to a **$20.0 million** repurchase of common stock in H1 2024, which did not occur in H1 2023, and a reduction in net borrowings of long-term debt[17](index=17&type=chunk)[115](index=115&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) The notes detail the company's accounting policies, segment operations, and financial instruments, highlighting that the company operates in two segments, with revenue primarily recognized over time using a cost-to-cost method, an effective tax rate of **21.3%** for the first six months of 2024, and remaining performance obligations (backlog) of **$3.53 billion** - The company operates in two reportable segments: Government Operations (manufacturing naval nuclear reactors and providing services to the U.S Government) and Commercial Operations (fabricating commercial nuclear components and providing medical radioisotopes)[21](index=21&type=chunk) - The effective tax rate for the six months ended June 30, 2024, was **21.3%**, compared to **24.1%** for the same period in 2023, primarily due to the revaluation of Canadian net deferred tax liabilities following a temporary reduction in the Canadian federal tax rate for qualifying nuclear manufacturers[27](index=27&type=chunk) - At June 30, 2024, the company's remaining performance obligations (backlog) were **$3.53 billion**, with approximately **68%** expected to be recognized as revenue by the end of 2025[53](index=53&type=chunk) Segment Revenues and Operating Income (Six Months Ended June 30) | Segment | Revenue 2024 | Revenue 2023 | Operating Income 2024 | Operating Income 2023 | | :--- | :--- | :--- | :--- | :--- | | Government Operations | $1,028.0M | $951.9M | $178.2M | $172.8M | | Commercial Operations | $258.5M | $229.8M | $25.2M | $12.5M | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **11.3%** consolidated revenue growth in Q2 2024 to higher volumes in both the Government and Commercial Operations segments, leading to increased operating income, with the company's backlog at **$3.5 billion** and strong liquidity of **$568.3 million** available under its revolving credit facility [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Consolidated revenues for Q2 2024 increased by **$69.0 million** (**11.3%**) year-over-year, driven by a **$48.9 million** increase in Government Operations and a **$20.6 million** increase in Commercial Operations, reflecting higher volume in nuclear component manufacturing, advanced technologies, in-plant services, and medical radioisotopes, which also contributed to a **$12.1 million** rise in consolidated operating income - Government Operations revenue increased by **$48.9 million** (**9.9%**) in Q2 2024, primarily from higher volume in manufacturing nuclear components for U.S Government programs and a **$15.2 million** increase from the advanced technologies business[85](index=85&type=chunk)[86](index=86&type=chunk) - Commercial Operations revenue increased by **$20.6 million** (**17.0%**) in Q2 2024, driven by higher demand for in-plant inspection, maintenance, and modification services (**$8.4 million**), nuclear components (**$4.4 million**), and increased volume in fuel handling and medical radioisotopes[89](index=89&type=chunk) - Unallocated corporate expenses increased by **$3.8 million** in Q2 2024, mainly due to initiatives to transform IT infrastructure and improve the digital framework, which are expected to continue into 2026[91](index=91&type=chunk)[92](index=92&type=chunk) [Backlog](index=24&type=section&id=Backlog) As of June 30, 2024, the company's total backlog was **$3.53 billion**, a decrease from **$4.00 billion** at the end of 2023, with Government Operations accounting for **$2.87 billion** and Commercial Operations contributing **$0.67 billion**, and approximately **68%** expected to be recognized as revenue by the end of 2025 Backlog by Segment (in millions) | Segment | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Government Operations | $2,865 | $3,217 | | Commercial Operations | $669 | $781 | | **Total Backlog** | **$3,534** | **$3,998** | - The backlog includes **$379.4 million** of unfunded U.S Government contracts, with approximately **$100 million** in unexercised options excluded from backlog expected to be awarded in 2024[97](index=97&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$568.3 million** available under its **$750 million** revolving credit facility as of June 30, 2024, with total debt including a **$240.6 million** Term Loan and **$800 million** in Senior Notes, and working capital increasing by **$58.5 million** to **$501.3 million** during the first half of 2024 - The company's Credit Facility consists of a **$750 million** revolving credit facility and a **$250 million** term loan, both maturing in October 2027[98](index=98&type=chunk) - As of June 30, 2024, borrowings under the Term Loan were **$240.6 million**, and borrowings under the Revolving Credit Facility were **$180.0 million**, leaving **$568.3 million** available[103](index=103&type=chunk) - The company has two sets of senior notes outstanding: **$400 million** at **4.125%** due 2028 and **$400 million** at **4.125%** due 2029[105](index=105&type=chunk)[107](index=107&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&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, 2023 - There have been no material changes to the company's market risk exposures since the 2023 10-K filing[118](index=118&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, 2024, with no material changes in internal control over financial reporting during the second quarter of 2024 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of June 30, 2024[119](index=119&type=chunk) - No changes occurred in the company's internal control over financial reporting during the three months ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, these controls[119](index=119&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 4 of its financial statements for information on legal proceedings, where it was stated that there were no material contingencies during the period - There were no material contingencies or legal proceedings during the period covered by the report[56](index=56&type=chunk)[121](index=121&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to risk factors have occurred since the filing of the 2023 10-K[122](index=122&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) During the second quarter of 2024, the company repurchased **358** shares at an average price of **$96.52** per share to satisfy tax withholding obligations for employee benefit plans, not as part of the publicly announced share repurchase program, with approximately **$377.6 million** remaining available for repurchases under the board's authorization as of June 30, 2024 Share Repurchases (Q2 2024) | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | April 2024 | 89 | $98.20 | | May 2024 | 269 | $95.97 | | June 2024 | 0 | N/A | | **Total** | **358** | **$96.52** | - The shares purchased were to satisfy statutory tax withholding obligations and not part of the publicly announced repurchase plan[123](index=123&type=chunk)[124](index=124&type=chunk) - As of June 30, 2024, approximately **$377.6 million** remained authorized for future share repurchases under the existing program[124](index=124&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205%20Other%20Information) During the second quarter of 2024, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2024[125](index=125&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 corporate governance documents, CEO and CFO certifications (Rule 13a-14(a)/15d-14(a) and Section 1350), and Interactive Data Files (Inline XBRL) - Key exhibits filed include CEO and CFO certifications as required by the Sarbanes-Oxley Act[127](index=127&type=chunk)