BWXT Q2 2025 presentation: Revenue up 12%, company raises full-year guidance

BWX Technologies (NYSE:BWXT) reported strong second-quarter 2025 results on August 4, with double-digit growth across key financial metrics and a significant increase to its full-year guidance. The nuclear technology provider saw its stock rise 3.35% to $149.50 during regular trading, with an additional 1.67% gain to $152 in aftermarket trading following the earnings release.

Quarterly Performance Highlights

BWXT delivered robust financial performance in Q2 2025, with revenue increasing 12% year-over-year to $764 million, driven by growth in both government and commercial segments. The company reported adjusted EBITDA of $146 million, up 16% from the prior year, with margins expanding to 19.1%. Non-GAAP earnings per share jumped 24% to $1.02, significantly outpacing revenue growth.

Free cash flow reached $126 million for the quarter, with year-to-date free cash flow totaling $144 million. The company ended the quarter with a record backlog of $6.0 billion, representing a 70% increase from the same period last year.

As shown in the following financial summary chart, BWXT demonstrated strong performance across multiple metrics compared to Q2 2024:

The company’s earnings growth was driven by several factors, as illustrated in this bridge from Q2 2024 to Q2 2025 non-GAAP EPS:

Segment Analysis

BWXT operates through two primary segments: Government Operations and Commercial Operations, both of which showed significant revenue growth in the second quarter.

Government Operations, which includes naval nuclear propulsion systems and components, posted 9% revenue growth to $589 million, with organic growth of 6%. The segment’s adjusted EBITDA margin expanded to 22.6%, up from 20.0% in the prior year, reflecting strong operational performance. During the quarter, BWXT signed a $2.6 billion pricing agreement for naval reactor components and equipment, further solidifying its position in this market.

Commercial Operations, which encompasses medical radioisotopes and commercial nuclear power services, saw revenue increase 24% to $176 million, primarily driven by double-digit growth in medical products and robust commercial nuclear components growth. However, the segment’s adjusted EBITDA margin contracted to 9.2% from 15.9% in Q2 2024, indicating some challenges despite the top-line growth. Organic revenue in this segment declined 3%, with growth from acquisitions offsetting this decrease.

The following chart details the performance of both segments:

Strategic Initiatives and Acquisitions

BWXT completed the acquisition of Kinectrics, Inc. on May 20, 2025, enhancing its service offerings to nuclear power and medical markets. This acquisition, along with the previously completed A.O.T. acquisition, contributed to the company’s revenue growth during the quarter.

In the medical radioisotopes business, BWXT received regulatory approval to irradiate Y-90 and Lu-177 on the Target (NYSE:TGT) Delivery System at Darlington, in partnership with Laurentis Energy Partners. This approval represents a significant milestone in the company’s medical isotope strategy.

The Commercial Operations segment’s backlog grew to $1.6 billion, up 22% sequentially and 136% year-over-year, supporting the outlook for mid-teens organic revenue growth in commercial power for 2025.

Updated 2025 Guidance

Based on strong first-half performance and positive outlook, BWXT raised its full-year 2025 guidance across all key metrics. The company now expects:

• Revenue of approximately $3.1 billion, up from previous guidance of $3.0 billion
• Adjusted EBITDA of $565-575 million, increased from $550-570 million
• Non-GAAP EPS of $3.65-3.75, up from $3.40-3.55
• Free cash flow of $275-285 million, tightened from the previous range of $265-285 million

The updated guidance is presented in the following chart:

The company provided a detailed bridge explaining the factors contributing to its increased 2025 EPS guidance compared to 2024 results:

Market Reaction and Outlook

The market responded positively to BWXT’s results and raised guidance, with the stock gaining in both regular and after-hours trading. The company’s record backlog of $6.0 billion provides strong visibility into future revenue, while strategic acquisitions position BWXT for continued growth in both government and commercial markets.

BWXT’s Government Operations segment continues to benefit from strong demand for naval nuclear propulsion systems, while the Commercial Operations segment is poised for growth despite current margin pressures. The company is tracking multiple large special materials opportunities in defense fuels and high-purity depleted uranium, which could further enhance its growth trajectory.

While the Commercial Operations segment experienced margin contraction in Q2, the substantial growth in backlog suggests improved performance in coming quarters. The integration of recent acquisitions and expansion in medical radioisotopes represent significant growth opportunities for BWXT as it continues to execute its strategic initiatives in nuclear technology markets.

Full presentation:

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