BWX Technologies Q2 revenue growth slightly misses estimates

BWX Technologies

03/08/2026 21:24

Overview
U.S. nuclear components provider's Q2 revenue grew 18% but slightly missed analyst expectations
Adjusted EPS and adjusted EBITDA for Q2 beat analyst estimates
Company announced sale of medical business and closed Precision Components Group acquisition

Outlook
BWX Technologies raises 2026 revenue guidance to about $3.8 bln from above $3.75 bln
Company now sees 2026 adj EBITDA of $662 mln-$672 mln, up from $650 mln-$665 mln
BWXT expects 2026 non-GAAP EPS of $4.70-$4.80, up from $4.60-$4.75
Company raises 2026 free cash flow guidance to $345 mln-$360 mln from $315 mln-$330 mln

Result Drivers
COMMERCIAL OPERATIONS GROWTH - Revenue and operating income gains in Commercial Operations were driven by higher demand for commercial nuclear components, field services, fuel handling, medical, and contribution from Kinectrics, partially offset by slightly lower fuel revenue
GOVERNMENT OPERATIONS MIX - Government Operations revenue rose on growth in naval propulsion and special materials, but was partially offset by lower advanced nuclear volumes
OPERATING INCOME DRIVERS - Operating income growth was primarily due to Commercial Operations, while Government Operations declined due to less favorable contract adjustments and mix, partially offset by higher technical services equity income

Company press release: ID:nBw6JlMN8a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$901.60 mln
$902.63 mln (12 Analysts)
Q2 Adjusted EPS
Beat
$1.07
$1.04 (11 Analysts)
Q2 EPS
 
$0.97
 
Q2 Net Income
 
$89.10 mln
 
Q2 Adjusted EBITDA
Beat
$155.50 mln
$150.47 mln (11 Analysts)
Q2 Free Cash Flow
 
$115 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for BWX Technologies Inc is $232.50, about 37.8% above its July 31 closing price of $168.70
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 45 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)