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    BWXT
    Earnings call· Mar 2026(Q1 FY26)

    BWX Technologies Q1 FY26 earnings call BWXT

    May 4, 2026 Source

    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

    5

    • 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

    3

    • 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

    11
    CategoryTargetConfidence
    Full-year Revenue
    at least $3.75 billion
    high materiality
    High
    Government Operations Revenue Growth
    low teens growth
    medium materiality
    High
    Commercial Operations Revenue Growth
    approximately 30%
    medium materiality
    High
    Adjusted EBITDA
    $650 million to $665 million
    high materiality
    High
    Full-year EBITDA Cadence
    approximately 55% in the second half
    low materiality
    Medium
    Q2 EBITDA
    roughly in line with to slightly below first quarter levels
    low materiality
    Medium
    Non-GAAP Earnings Per Share
    $4.60 to $4.75
    high materiality
    High
    Free Cash Flow
    $315 million to $330 million
    high materiality
    High
    Adjusted Effective Tax Rate
    less than 21.5%
    low materiality
    Medium
    Full-year Capital Expenditures
    around 6% of sales
    medium materiality
    High
    PCG Acquisition Contribution to FY26 Guidance
    does not include contributions
    low materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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 million4%—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 million121%—12.9%

    Operational metrics

    8
    Total Revenue
    $860 millionup 26% year-over-year
    Q1 FY26

    Strong performance in commercial operations was complemented by steady growth in Government Operations.

    Adjusted EBITDA
    $148 millionup 14% year-over-year
    Q1 FY26

    Driven by robust growth in commercial operations and modestly higher Government Operations, partially offset by higher corporate expense relative to an unusually low level in last year's first quarter.

    Adjusted EPS
    $1.12up 22%
    Q1 FY26

    Reflecting strong operating performance and approximately $0.08 of higher nonoperating contributions.

    Adjusted Effective Tax Rate
    15.8%
    Q1 FY26

    Benefiting from timing of stock compensation.

    Capital Expenditures
    $43 million
    Q1 FY26

    We continue to expect our full year capital expenditures to be around 6% of sales.

    Government Operations Bookings
    $1.4 billion
    Q1 FY26

    This led to segment backlog of nearly $7 billion.

    Medical Segment Growth
    high teensfollowing 3 years of 20% compounded growth
    FY26

    We see strength in strontium, germanium, TheraSphere. Actinium-225 is growing at an outsized pace, but that's off a pretty small revenue base and we're ramping up production of stabilized isotopes with ytterbium 176.

    Kinectrics Non-Nuclear Revenue Share
    10%
    current

    This includes high-voltage testing and cable commissioning.

    Industry KPIs

    4
    MetricValueDetails
    Total company backlog$8.7 billionUSD
    Defense program awards$1.4 billionUSD
    Program segment backlognearly $7 billionUSD
    Production capacity expansion50-60% more than Cambridge expansion%

    Orderbook & backlog

    3
    Total Backlog$8.7 billionQ1 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 Backlognearly $7 billionQ1 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 Backlogflat sequentiallyQ1 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

    3
    Precision Components Group (PCG)U.S.-based manufacturer of complex heat transfer components for the U.S. naval and commercial nuclear marketsapproximately $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.

    Kairoscollaboration 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

    4
    Mount Vernon Greenfield Plantplannedroughly 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 Facilitycompleted

    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 Constructionpreparing 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 Expansionunderway

    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

    4
    Higher corporate expenseQ1 FY26

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

    Increased adjusted effective tax rateFY26

    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 salesfuture 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

    5

    PCG Acquisition Close

    second half of the year
    Currentexpected to close in the second half of the year
    Targetclosed

    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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.