BWX Technologies(US:BWXT)2025-11-03 21:21Revenue Growth - Consolidated revenues increased by 28.9%, or $194.3 million, to $866.3 million for the three months ended September 30, 2025, compared to $672.0 million for the same period in 2024[97] - For the nine months ended September 30, 2025, consolidated revenues increased by 18.1%, or $355.2 million, to $2,312.6 million compared to $1,957.4 million for the same period in 2024[99] - Revenues for the three months ended September 30, 2025, increased by $56.6 million, or 10.1%, to $616.7 million compared to $560.1 million for the same period in 2024[102] - Revenues for the nine months ended September 30, 2025, increased by $172.9 million, or 10.9%, to $1,760.9 million compared to $1,588.0 million for the same period in 2024[104] - Revenues for the three months ended September 30, 2025, increased by 121.9%, or $137.9 million, to $251.0 million, primarily due to the acquisition of Kinectrics[107] Operating Income - Consolidated operating income increased by $16.8 million to $113.3 million for the three months ended September 30, 2025, compared to $96.6 million for the same period in 2024[98] - Operating income for the nine months ended September 30, 2025, increased by $24.1 million to $312.4 million compared to $288.3 million for the same period in 2024[100] - The Government Operations segment's operating income increased by $24.7 million, while the Commercial Operations segment's operating income rose by $5.4 million for the nine months ended September 30, 2025[100] - Operating income for the three months ended September 30, 2025, decreased by $4.2 million to $97.4 million, primarily due to expenses associated with the integration of the A.O.T. acquisition[103] - Operating income for the nine months ended September 30, 2025, increased by $24.7 million to $304.5 million, driven by revenue changes[105] Acquisitions - The acquisition of Aerojet Ordnance Tennessee, Inc. on January 3, 2025, enhances the company's capabilities in advanced materials for commercial, military, and space applications[90] - Kinectrics Inc. was acquired on May 20, 2025, expanding the company's portfolio in lifecycle management services for the nuclear power and radiopharmaceutical industries[91] Financial Position - The total backlog as of September 30, 2025, was $7,389.1 million, including $2,172.2 million of unfunded backlog related to U.S. Government contracts[119] - The company expects to recognize approximately 35% of the revenue associated with its backlog by the end of 2026[119] - The Credit Facility consists of a $750 million senior secured revolving credit facility and a $250 million senior secured term A loan, maturing on October 12, 2027[122] - As of September 30, 2025, the company was in compliance with all covenants set forth in the Credit Facility[126] - As of September 30, 2025, borrowings under the Term Loan totaled $228.1 million, and borrowings and letters of credit issued under the Revolving Credit Facility totaled $485.0 million and $1.4 million, respectively[128] - The weighted-average interest rate on outstanding borrowings under the Credit Facility was 5.75% as of September 30, 2025[128] - The company issued $400 million aggregate principal amount of 4.125% senior notes due 2028, with interest payable semi-annually[131][132] - The company had underfunded defined benefit pension and postretirement benefit plans with obligations totaling approximately $184.1 million as of September 30, 2025[141] Cash Flow - Net cash provided by operating activities increased by $221.3 million to $352.9 million in the nine months ended September 30, 2025, compared to $131.5 million in the same period of 2024[143] - Net cash used in investing activities increased by $573.0 million to $673.9 million in the nine months ended September 30, 2025, primarily due to acquisitions of A.O.T. and Kinectrics for $101.1 million and $434.9 million, respectively[144] - Net cash provided by financing activities increased by $409.5 million to $339.6 million in the nine months ended September 30, 2025, compared to cash used in financing activities of $69.9 million in the same period of 2024[145] - As of September 30, 2025, letters of credit and bank guarantees issued and outstanding under the bilateral letter of credit facility totaled approximately $53.5 million[140] - The company had long-term investments with a fair value of $8.0 million as of September 30, 2025, consisting entirely of mutual funds[147] - The company believes it has sufficient cash and cash equivalents and borrowing capacity to satisfy cash requirements for the next 12 months and beyond[148] Taxation - The effective tax rate for the three months ended September 30, 2025, was 23.6%, compared to 23.2% for the same period in 2024[114]