Financial Data and Key Metrics Changes - For the full year 2025, revenue grew by 18%, Adjusted EBITDA increased by 15%, earnings per share rose by 20%, and free cash flow grew by 16%, all exceeding initial guidance [4] - Fourth quarter revenue was $886 million, up 19% year-over-year, with organic revenue up 4% [13][14] - Adjusted EBITDA for the fourth quarter was $148 million, up 13% year-over-year, with an adjusted earnings per share of $1.08, up 17% [14] Business Line Data and Key Metrics Changes - Government operations revenue decreased by 1% in the fourth quarter, with Adjusted EBITDA down by 5% [7][17] - Commercial operations reported a 95% revenue growth, driven by 31% organic growth, with Adjusted EBITDA up 87% [10][18] - BWXT Medical achieved over $100 million in annual revenue, up about 20% from last year [11] Market Data and Key Metrics Changes - Backlog for government operations was $7.3 billion, up 15% year-over-year, while commercial operations backlog reached $1.7 billion, up 85% compared to last year [4][10] - The commercial nuclear power book-to-bill ratio was over 2 in the quarter, indicating strong demand [12] Company Strategy and Development Direction - The company aims to execute against its robust backlog, optimize processes, adopt new technologies, and make disciplined growth investments [24] - BWXT is focusing on expanding its capacity in the U.S. and exploring opportunities in Europe for small modular reactors [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current pricing agreements and operational efficiency in the naval propulsion business, anticipating a rebound in margins by 2027 [26] - The outlook for 2026 includes expected revenue of approximately $3.75 billion, with growth driven by both government and commercial operations [19][20] Other Important Information - The company completed a $1.25 billion convertible debt offering, enhancing financial flexibility and liquidity, which stood at $1.7 billion at year-end [16][17] - BWXT is actively pursuing M&A opportunities to strengthen its core business and increase capacity [39][40] Q&A Session Summary Question: Expectations for government operations margins in 2026 - Management does not foresee significant incremental pressure in 2027, expecting a rebound in margins [26] Question: Use of AI within BWXT - BWXT is utilizing machine learning to improve manufacturing processes and is exploring the use of large language models for functional efficiencies [29][30] Question: Impact of supply chain improvements - Management noted encouraging progress in shipyards and is pleased with the delivery schedules [37] Question: Capital deployment priorities and M&A - The company is well-positioned for potential M&A and is focused on increasing capacity to meet future customer needs [39][40] Question: Challenges in siting commercial facilities near defense operations - Management sees synergies between government and commercial operations at shared facilities [44] Question: Update on Canadian Competition Bureau's investigation - There has been no significant news regarding the investigation into the Kinectrics acquisition [90] Question: Approval timeline for Tech 99 - There are ongoing quality issues being addressed, and Tech 99 revenue is not included in the 2026 guidance [92][93]