BWX Technologies(BWXT) - 2024 Q3 - Quarterly Results

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]