BWX Technologies Reports Second Quarter 2024 Results • 2Q24 revenues of $681.5 million (1) • 2Q24 net income of $73.0 million, adjusted EBITDA of $126.2 million • 2Q24 diluted GAAP EPS of $0.79, non-GAAP EPS of $0.82 (1) • BWXT-led JV awarded management and operations contract for the NNSA's Pantex Plant • 2024 non-GAAP EPS guidance revised to $3.10-$3.20 (1) Lynchburg, VA – August 5, 2024 - BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported second quarter 2024 results. A rec ...

Company Overview - BWX Technologies (BWXT) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended June 2024 [1] - The earnings report is anticipated to be released on August 5, 2024, with a consensus EPS estimate of $0.76, reflecting a +16.9% change year-over-year [3][4] Revenue Expectations - Revenues for BWX are projected to be $643.87 million, which is a 5.1% increase from the same quarter last year [4] Estimate Revisions - The consensus EPS estimate has been revised 2.3% higher in the last 30 days, indicating a positive reassessment by analysts [5] - BWX has an Earnings ESP of +0.88%, suggesting analysts have become more optimistic about the company's earnings prospects [11] Historical Performance - In the last reported quarter, BWX exceeded the expected EPS of $0.67 by delivering $0.76, resulting in a surprise of +13.43% [14] - The company has beaten consensus EPS estimates in each of the last four quarters [15] Earnings Prediction Insights - A positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9] - BWX currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12][13]

When looking at the last two reports, this supplier of nuclear fuel and components to the U.S. government has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 10.44%, on average, in the last two quarters. Thanks in part to this history, there has been a favorable change in earnings estimates for BWX lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when c ...

The uranium sector plays a crucial role in the global energy market, particularly in nuclear power generation. Uranium stocks represent companies engaged in the exploration, mining, and processing of uranium, as well as those involved in the production of nuclear fuel. As the demand for cleaner energy sources increases, these stocks have gained attention for their role in supporting carbon-neutral energy goals. Cameco (CCJ Stock) In 2024 thus far, shares of CCJ stock moved higher by 24.22%. Moreover, during ...

Financial Performance and Key Metrics - The company reported first quarter revenue of $604 million, representing a 6% organic growth on a consolidated basis, with adjusted EBITDA of $115 million, up 4% year-over-year [63] - Adjusted earnings per share increased by 9% to $0.76 compared to $0.70 in the prior year quarter [36] - The adjusted effective tax rate for the quarter was 22.5%, with expectations for a full-year tax rate of approximately 23.5% [4] Business Line Performance - In commercial operations, revenue grew by 7%, driven by increased field service activity in the commercial nuclear business and robust growth in BWXT medical revenue, leading to an adjusted EBITDA of $14 million, up about $5 million [11] - Government operations saw a revenue increase of 6% to $487 million, driven by higher naval nuclear component production and microreactor volume, partially offset by lower long-lead material procurement [38] - The commercial operations segment is expected to grow in high single digits to low double digits in 2024, with higher EBITDA margins compared to 2023 [40] Market Data and Key Metrics - The company is experiencing strong demand in the commercial nuclear markets, with a backlog of over $700 million and ongoing life extensions of CANDU reactors in Canada [50] - The expansion of the Cambridge facility is expected to enhance the company's position as a leading supplier of large nuclear equipment in North America, particularly for small modular reactors (SMRs) [3][22] - The fiscal year 2025 budget request supports clean energy investments, including advanced nuclear technology development, which is crucial for growth in the micro and small modular reactor markets [8] Company Strategy and Industry Competition - The company is focused on capturing growth opportunities in core businesses, innovating to pursue new markets, and driving operational excellence [69] - Investments in the Cambridge plant are aimed at preparing for anticipated demand in the nuclear sector, particularly for SMRs and naval propulsion [23][50] - The company is positioned to benefit from government support for critical technologies, such as the DRACO project, which could provide a strategic advantage in military applications [28] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, expecting mid-single-digit revenue and adjusted EBITDA growth, leading to adjusted earnings per share of $3.05 to $3.20 [1][41] - The company remains vigilant regarding labor and supply chain issues but has successfully navigated challenges post-COVID [26] - Management highlighted the importance of maintaining a strong backlog and the strategic priority of the Virginia-class submarine program, despite potential delays in shipbuilding schedules [54][106] Other Important Information - The company is the only commercial supplier of non-carrier-added actinium and plans to ramp up commercial sales of lutetium significantly next year [61] - Capital expenditures for the quarter were $30 million, with expectations for full-year CapEx to be flat to slightly down compared to 2023 [65] - The company is maintaining free cash flow guidance of $225 million to $250 million, driven by EBITDA growth and improved working capital management [80] Q&A Session Summary Question: Update on the drug master file for lutetium - Management indicated that the process for seeking Canadian approval for the irradiation of ytterbium is progressing well, with expectations to be in business on lutetium sometime next year [75][76] Question: Insights on the multi-year pricing negotiation - Management acknowledged delays in the multi-year pricing negotiation due to uncertainties around fiscal year 2024 appropriations but expressed optimism about finalizing the agreement soon [73] Question: Impact of Navy shipbuilding delays - Management noted that while Navy shipbuilding delays could affect schedules, the company is somewhat decoupled from shipyard operations, focusing instead on fulfilling orders for naval reactors [101][106] Question: Updates on the Pickering project - Management confirmed that the Pickering project is significant, with expectations for substantial opportunities related to steam generators and other components [90][113]

First-Quarter 2024 Earnings Call problems energy, environmental remediation, nuclear Commitment to innovation, operational 2 excellence, a strong safety record, and a focus nuclear solutions for global security, clean Presentation Reported May 6, 2024 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 forw ...

BWX Technologies (BWXT) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.43%. A quarter ago, it was expected that this supplier of nuclear fuel and components to the U.S. government would post earnings of $0.94 per share when it actually produced earnings of $1.01, delivering a surp ...

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. for the three months ended March 31, 2024, and 2023, including the Statements of Income, Comprehensive Income, Balance Sheets, Stockholders' Equity, and Cash Flows, along with accompanying notes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported increased revenues and net income for the first quarter of 2024 compared to the same period in 2023, with revenues growing to $604.0 million and net income attributable to the company rising to $68.5 million, or $0.75 per diluted share Condensed Consolidated Statements of Income (Unaudited) | Indicator | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Revenues** | **$603,966** | **$568,360** | | Cost of operations | $455,357 | $431,130 | | **Operating Income** | **$92,961** | **$87,842** | | Income before Provision for Income Taxes | $88,377 | $79,674 | | **Net Income Attributable to BWX Technologies, Inc.** | **$68,468** | **$61,092** | | **Diluted Earnings per Common Share** | **$0.75** | **$0.67** | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income attributable to the company was $57.4 million for Q1 2024, a decrease from $64.0 million in Q1 2023, primarily driven by a negative currency translation adjustment in the current period Condensed Consolidated Statements of Comprehensive Income (Unaudited) | Indicator | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net Income | $68,534 | $60,993 | | Other Comprehensive Income (Loss) | $(11,056) | $2,896 | | **Total Comprehensive Income** | **$57,478** | **$63,889** | | **Comprehensive Income Attributable to BWX Technologies, Inc.** | **$57,412** | **$63,988** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased slightly to $2.79 billion from $2.75 billion at year-end 2023, with total stockholders' equity also rising to $946.1 million from $933.3 million Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | **$864,663** | **$817,801** | | Property, Plant and Equipment, Net | $1,231,473 | $1,228,520 | | **Total Assets** | **$2,788,010** | **$2,747,065** | | **Total Current Liabilities** | **$386,825** | **$375,046** | | Long-Term Debt | $1,220,809 | $1,203,422 | | **Total Liabilities** | **$1,841,944** | **$1,813,764** | | **Total Stockholders' Equity** | **$946,066** | **$933,301** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $33.0 million in Q1 2024 from a $13.0 million usage in Q1 2023, while investing and financing activities used $30.3 million and $32.2 million respectively, resulting in a $29.6 million decrease in total cash Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided By (Used In) Operating Activities** | **$33,026** | **$(13,024)** | | **Net Cash Used In Investing Activities** | **$(30,323)** | **$(29,780)** | | **Net Cash (Used In) Provided By Financing Activities** | **$(32,156)** | **$49,336** | | **Total (Decrease) Increase in Cash** | **$(29,624)** | **$6,539** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on the company's accounting policies, revenue recognition, and segment reporting, highlighting its two reportable segments: Government Operations and Commercial Operations - The company's operations are divided into 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 manufacturing medical radioisotopes)[98](index=98&type=chunk) - At March 31, 2024, the company's remaining performance obligations (backlog) were **$3.64 billion**, with approximately **80%** of this revenue expected to be recognized by the end of 2025[57](index=57&type=chunk) Segment Revenues and Operating Income (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Revenue (in thousands) | Q1 2023 Revenue (in thousands) | Q1 2024 Operating Income (in thousands) | Q1 2023 Operating Income (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Government Operations | $487,121 | $459,886 | $85,686 | $90,560 | | Commercial Operations | $117,038 | $108,924 | $8,591 | $1,513 | | **Total** | **$603,966** | **$568,360** | **$94,277** | **$92,073** | - The effective tax rate for Q1 2024 was **22.5%**, compared to **23.4%** for Q1 2023, primarily higher than the U.S. statutory rate of **21%** due to state income taxes and foreign earnings[82](index=82&type=chunk) [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 2024, highlighting a 6.3% increase in consolidated revenues, a $5.1 million increase in operating income, a $3.6 billion backlog, and the company's strong liquidity and debt compliance [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Consolidated revenues for Q1 2024 increased by 6.3% to $604.0 million, driven by growth in both Government and Commercial Operations, despite a decrease in Government Operations operating income due to product mix and higher SG&A Consolidated Results of Operations (Q1 2024 vs Q1 2023) | Indicator | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | Change ($) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$603,966** | **$568,360** | **$35,606** | | **Total Operating Income** | **$92,961** | **$87,842** | **$5,119** | - Government Operations revenue increased by **$27.2 million**, primarily from advanced technologies business (**$23.8 million**) and higher volume in nuclear components manufacturing[117](index=117&type=chunk) - Commercial Operations revenue increased by **$8.1 million**, mainly due to higher revenues for in-plant inspection, maintenance, and refurbishment services (**$9.3 million**) and increased volume in medical radioisotopes and fuel businesses[135](index=135&type=chunk) - Commercial Operations operating income increased significantly by **$7.1 million**, attributed to higher revenues, a favorable product mix, and a **$2.2 million** decrease in restructuring costs[120](index=120&type=chunk) [Backlog](index=21&type=section&id=Backlog) As of March 31, 2024, the company's total backlog was approximately $3.64 billion, a decrease from $4.0 billion at the end of 2023, with Government Operations accounting for $2.9 billion and Commercial Operations holding $727 million Backlog by Segment (in millions) | Segment | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Government Operations | $2,909 | $3,217 | | Commercial Operations | $727 | $781 | | **Total Backlog** | **$3,636** | **$3,998** | - The backlog at March 31, 2024, included **$416.6 million** of unfunded backlog related to U.S. Government contracts[167](index=167&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with a Credit Facility including a $750 million revolving credit facility and a $250 million term loan, and management believes existing cash and borrowing capacity are sufficient to meet future requirements - The company has a Credit Facility maturing in October 2027, which includes a **$750M** Revolving Credit Facility and a **$250M** Term Loan[168](index=168&type=chunk) - As of March 31, 2024, borrowings under the Term Loan were **$242.2 million**, and borrowings under the Revolving Credit Facility were **$195.0 million**, with **$553.3 million** available[145](index=145&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2024, including a maximum total net leverage ratio of **4.00 to 1.00** and a minimum interest coverage ratio of **3.00 to 1.00**[144](index=144&type=chunk) - Net cash from operating activities increased by **$46.1 million** to **$33.0 million** in Q1 2024, primarily due to the timing of project cash flows[181](index=181&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's primary market risk exposure is from foreign currency exchange rate changes, which it mitigates using FX forward contracts for hedging purposes, with no material changes to these exposures from the prior year - The company uses FX forward contracts to reduce the impact of changes in foreign exchange rates on its operating results, particularly for long-term contracts[126](index=126&type=chunk) - As of March 31, 2024, the total notional value of outstanding FX forward contracts was **$460.2 million**, with maturities extending to December 2025, primarily hedging Canadian dollars and Euros[127](index=127&type=chunk) - Market risk exposures have not changed materially from those disclosed in the company's 2023 10-K[197](index=197&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on management's evaluation, including the CEO and CFO, the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of March 31, 2024[158](index=158&type=chunk) - There were no material changes in the company's internal control over financial reporting during the first quarter of 2024[158](index=158&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 4 of the condensed consolidated financial statements for information regarding ongoing investigations and litigation, which indicates no material contingencies during the reporting period - For information on legal proceedings, the report refers to Note 4 of the financial statements[201](index=201&type=chunk) - Note 4 states there were no material contingencies during the period covered by this Form 10-Q[58](index=58&type=chunk) [Item 1A. Risk Factors](index=27&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, 2023 - There have been no material changes to the company's risk factors from those disclosed in the 2023 10-K[187](index=187&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2024, the company repurchased 326,885 shares at an average price of $82.31 per share, as part of a $500 million share repurchase program with approximately $377.6 million remaining Share Repurchases (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2024 | 183,472 | $78.85 | | Feb 2024 | 143,413 | $86.74 | | Mar 2024 | 0 | $— | | **Total** | **326,885** | **$82.31** | - The Board of Directors authorized a share repurchase program of up to **$500 million** on April 30, 2021, with no expiration date[189](index=189&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20Other%20Information) The company reports that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of 2024 - During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'[203](index=203&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, employee stock grants, CEO and CFO certifications, and Interactive Data Files (XBRL) - The report includes CEO and CFO certifications pursuant to Rule 13a-14(a)/15d-14(a) and Section 1350[191](index=191&type=chunk) - Exhibits include forms of stock option and restricted stock unit grants for employees[191](index=191&type=chunk)

• 1Q24 diluted GAAP EPS of $0.75, non-GAAP EPS of $0.76 (1) "We are reaffirming our 2024 financial guidance and remain focused on operational excellence, innovation and providing our customers with nuclear technologies as we drive toward achieving the medium-term financial targets we provided at our recent Investor Day," continued Geveden. (1) First quarter adjusted EBITDA increased for the reasons noted above. (1) BWX Technologies Reports First Quarter 2024 Results Lynchburg, VA – May 6, 2024 - BWX Technol ...

BWX Technologies (BWXT) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 6, 2024, might help the stock move higher if these key numbers are better than ex ...