Inquired if the new Mount Vernon facility would have limitations for building components for specific customers (e.g., GE Hitachi, Westinghouse, Rolls-Royce) and if the PCG acquisition benefits the naval business.

Mike Fitzgerald confirmed no limitations for the Mount Vernon facility, stating it would serve multiple customers and platforms. Rex Geveden noted PCG's qualified nuclear workforce and certifications are immediately beneficial for the Navy customer, but more importantly, provide critical manufacturing credentials for commercial expansion. “No limitations at all. I mean I think when we look at our demand signals, we're certainly seeing some capacity constraints even in our Cambridge facility as we look out multiple years.”

Asked about the desired capacity addition, capital required for a U.S. greenfield plant, timeline, and if customer funding for commercial capacity growth is being explored.

Rex Geveden estimated the Mount Vernon facility would be 50-60% larger than the Cambridge expansion (roughly 100,000 sq ft) and cost about twice the Cambridge build-out, leveraging existing synergies. He stated BWXT has the balance sheet to fund capacity expansion without customer funding. “the capacity we're looking for in Mount Vernon would be 50%, 60% more than that, let's rough it out at 100,000 square feet... In terms of budget, it would be -- think of it as kind of twice what we're doing at Cambridge in rough terms.”

Asked for details on initiatives driving improved throughput and BWXT's stance on the recent Air Force ANPI awards.

Rex Geveden attributed improved throughput to formal "Driving Performance Excellence" initiatives and dedicated projects (e.g., Pickering steam generators, TheraSphere). He clarified BWXT did not pursue the ANPI awards as they were for smaller, non-transportable reactors, and BWXT's focus remains on Pele follow-on work, Janus, and TRISO fuel. “no disappointment because we didn't pursue those opportunities. Those were more about some smaller scale reactors for lower power output. And none of those reactors is transportable like our Pele reactors.”

BWXT

BWX Technologies (BWXT) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Industrials· May 4, 2026

Source: earnings call transcript

Executive summary

BWX Technologies Q1 FY26 — Strong Organic Growth and Strategic Capacity Expansion

BWX Technologies delivered a strong first quarter, exceeding expectations with significant organic revenue growth and robust adjusted EBITDA and EPS expansion. The company is strategically investing in capacity, including the acquisition of PCG and plans for a new U.S. commercial manufacturing facility, to meet accelerating demand in both defense and commercial nuclear markets. This proactive approach aims to capitalize on unprecedented demand and a record backlog, positioning BWXT for sustained long-term value creation.

Highlights

Total revenue grew 26% year-over-year to $860 million, with 11% organic growth.
Adjusted EBITDA increased 14% year-over-year to $148 million, driven by robust commercial operations.
Adjusted EPS grew 22% year-over-year to $1.12, reflecting strong operating performance.
Ended the quarter with a record backlog of $8.7 billion, up 77% year-over-year and 19% sequentially.
Commercial Operations revenue surged 121% year-over-year, including 39% organic growth.

Concerns

Higher corporate expense partially offset adjusted EBITDA growth relative to an unusually low level in Q1 FY25.
Full-year adjusted effective tax rate guidance of less than 21.5% is modestly higher than last year due to strong growth in international earnings.
Capital expenditures may exceed 6% of sales in future periods due to strategic growth investments, potentially reaching 7%.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year Revenue	at least $3.75 billion high materiality	FY26	High
Government Operations Revenue Growth	low teens growth medium materiality	FY26	High
Commercial Operations Revenue Growth	approximately 30% medium materiality	FY26	High
Adjusted EBITDA	$650 million to $665 million high materiality	FY26	High
Full-year EBITDA Cadence	approximately 55% in the second half low materiality	FY26	Medium
Q2 EBITDA	roughly in line with to slightly below first quarter levels low materiality	Q2 · FY26	Medium
Non-GAAP Earnings Per Share	$4.60 to $4.75 high materiality	FY26	High
Free Cash Flow	$315 million to $330 million high materiality	FY26	High
Adjusted Effective Tax Rate	less than 21.5% low materiality	FY26	Medium
Full-year Capital Expenditures	around 6% of sales medium materiality	FY26	High
PCG Acquisition Contribution to FY26 Guidance	does not include contributions low materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Government Operations Growth in special materials and naval propulsion offset lower microreactor volumes. Solid operating performance and timing of technical services income benefited margin. Adjusted EBITDA: $118 millionAdjusted EBITDA growth: 1%	$578 million	4%	—	20.4%
Commercial Operations Growth exceeded expectations due to increased throughput on large commercial nuclear component projects (Pickering life extension) and better-than-expected performance from Kinectrics. Higher sales and strong execution offset growth investments. Organic revenue growth: 39%Adjusted EBITDA: $36 millionAdjusted EBITDA growth: 162%	$282 million	121%	—	12.9%

BWXT operating KPIs by quarter

BWXT operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Backlog	$8.7B We ended the quarter with a backlog of $8.7 billion, up 77% year-over-year and 19% sequentially. Source: earnings call transcript	$8.4B We ended the quarter with backlog of $8.4 billion, an increase of 40% year-over-year. Source: earnings call transcript	-3.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total Backlog $8.7 billion Q1 FY26 end

up 77% year-over-year and 19% sequentially

Supported by robust bookings in government and consistent backlog in commercial, providing clear visibility to future growth.

Government Operations Backlog nearly $7 billion Q1 FY26 end

up 25% sequentially and 93% year-over-year

Led by strong bookings, including $1.4 billion from Naval reactors and long lead material procurement contracts.

Commercial Operations Backlog flat sequentially Q1 FY26 end

up 33% year-over-year

Following an 85% increase in backlog in 2025, supporting expectation for low teens organic growth in commercial power this year.

Deals & partnerships

Precision Components Group (PCG) U.S.-based manufacturer of complex heat transfer components for the U.S. naval and commercial nuclear markets approximately $200 million

Acquisition includes 2 facilities and more than 400 highly skilled employees, representing the first step toward building domestic U.S. commercial nuclear manufacturing capacity. Most current revenue and backlog related to naval programs, but facilities have immediately available capacity for commercial market.

Kairos collaboration agreement on TRISO

Kairos recently began construction of its Hermes 2 reactor for Google in Oak Ridge, Tennessee.

U.K. design and fabrication partner for a U.K. Tritium loop facility

The facility will be the world's largest and most advanced tritium fuel cycle facility.

Capital programs

Mount Vernon Greenfield Plant planned roughly twice Cambridge build-out

Funding: balance sheet

Benefit:capable of producing larger heavy nuclear equipment, including steam generators and reactor pressure vessels; 50-60% more capacity than Cambridge expansion (roughly 100,000 sq ft)

Intended to expand U.S. commercial manufacturing footprint, leveraging existing rail spur, crane capacity, and radiography facilities at the Mount Vernon site.

Centrifuge Manufacturing Development Facility completed

Benefit:prototyping the first units for defense fuels enrichment

Completed construction earlier in the year in Oak Ridge, Tennessee, and has begun prototyping the first units for defense fuels enrichment.

HPDU Facility Construction preparing for construction

Benefit:new facility for HPDU program

Organizing the supply chain and preparing for construction of the new facility in Jonesborough, Tennessee. Program will ramp through 2026.

Cambridge Plant Capacity Expansion underway

Benefit:60,000 square foot capacity expansion

Presently going through a 60,000 square foot capacity expansion at our Cambridge plant, expected to come in under budget and on time.

Risks & headwinds

Higher corporate expense Q1 FY26

partially offset adjusted EBITDA growth relative to an unusually low level in last year's first quarter

Increased adjusted effective tax rate FY26

updated full year tax rate guidance of less than 21.5% is modestly higher than last year's rate

Mitigation:reflecting strong growth in international earnings, mainly from Canada

Capital expenditures potentially exceeding 6% of sales future periods

possible that CapEx may exceed that level in future periods

Mitigation:carefully balancing these strategic investments with our financial return metrics as we evaluate the numerous growth initiatives across the business

Existential delivery risk for nuclear projects (E&C, labor) long-term

probably the biggest risk in the market just to be able to deliver those projects

Mitigation:requires the injection of higher levels of talent. Maybe AI can help on the planning side of it, maybe even on robotic construction in the long run, but it's something the industry has to address.

What to watch in Q2 FY26

PCG Acquisition Close

second half of the year

Current expected to close in the second half of the year

Target closed

Why it matters

The acquisition of PCG is a strategic first step in building U.S. commercial nuclear manufacturing capacity and its closure will enable BWXT to begin integrating its operations and leveraging its capacity.

The acquisition, which will be included in our Commercial Operations segment, is expected to close in the second half of the year.

Find out whether BWXT delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked for the acquisition price of PCG and clarification on the multi-step approach to building U.S. commercial nuclear manufacturing capacity (capacity, technology, headcount).

CFO Mike Fitzgerald stated the PCG acquisition was approximately $200 million. Rex Geveden explained PCG provides immediate capacity and a qualified workforce, but a new facility (like the planned Mount Vernon site) is needed for larger, heavier components, indicating a multi-pronged approach for capacity and workforce.

“So from a purchase price standpoint, we didn't put it in the public release, but it was roughly around $200 million.”

asked by Matthew Akers · answered by Michael Fitzgerald

2 min read 5 chapters

Detailed narrative

Strategic Capacity Expansion for Commercial Nuclear

BWXT is aggressively expanding its U.S. commercial nuclear manufacturing footprint to meet rising demand. This includes the recent acquisition of Precision Components Group (PCG) for approximately $200 million, which provides immediate capacity and a qualified workforce. The company also plans a greenfield plant at its Mount Vernon, Indiana site, capable of producing larger heavy nuclear equipment like steam generators and reactor pressure vessels, with an estimated cost roughly twice that of the Cambridge expansion.

This strategy aims to localize the supply chain and create a competitive advantage in the U.S. market, anticipating hundreds of new reactors globally.

Government Operations Program Progress

The Government Operations segment saw strong bookings, including a $1.4 billion award for Naval reactors and long-lead material procurement. Key programs like defense fuels enrichment and HPDU are progressing on schedule, with the Centrifuge Manufacturing Development facility completed and prototyping underway.

Engagement with the NRC for the HEU enrichment facility in Erwin, Tennessee, is a significant milestone, and the HPDU facility in Jonesborough, Tennessee, is preparing for construction. These initiatives position BWXT for long-term growth in national security applications.

Commercial Operations Outperformance and Market Outlook

Commercial Operations significantly outperformed expectations with 39% organic revenue growth, driven by increased throughput on large component projects and strong performance from Kinectrics. The outlook for new build nuclear projects remains very positive, with notable announcements like the U.S. and Japan's $40 billion investment for GE Hitachi SMRs.

BWXT's role as a reactor vessel supplier for the first GE Hitachi BWRX-300 SMR in Canada positions it well for future projects, with expectations for further backlog growth in the next 12 months.

TRISO Fuel and Microreactor Leadership

BWXT is the sole producer of TRISO fuel at scale, currently producing hundreds of kilograms annually for its Pele reactor and other clients. The company is exploring brownfield and greenfield opportunities, including a potential large-scale plant in Wyoming, to significantly increase TRISO production capacity and drive down costs for commercial viability.

This strategic focus on the fuel side of microreactors and small modular reactors aligns with BWXT's "betting on the race, not the horse" philosophy, ensuring a strong position across various competitive outcomes in the advanced nuclear market.

Kinectrics and Fusion Market Entry

Kinectrics continues to exceed acquisition expectations, delivering another strong quarter. A key highlight was its selection as the design and fabrication partner for a U.K. Tritium loop facility, which will be the world's largest and most advanced tritium fuel cycle facility. This project provides BWXT with an entry point into the exciting nuclear fusion market, leveraging Kinectrics' engineering services and specialty equipment manufacturing capabilities.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.