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Investing.com -- BWX Technologies, Inc. (NYSE:BWXT) shares surged 8.3% after the nuclear solutions provider reported second quarter earnings that significantly exceeded analyst expectations, driven by strong operational performance particularly in its Government Operations segment.
The company reported second quarter adjusted earnings per share of $1.02, beating the analyst consensus of $0.79 by 29%. Revenue came in at $764 million, substantially above the consensus estimate of $708.55 million and up 12% YoY. The strong performance was led by the Government Operations segment, which saw a 9% revenue increase to $589 million, while Commercial Operations revenue jumped 24% to $176.1 million.
BWXT’s stock rally was fueled by both the earnings beat and raised full-year guidance. The company now expects adjusted earnings of $3.65 to $3.75 per share for fiscal 2025, above the analyst consensus of $3.55, and projects revenue of approximately $3.1 billion.
"We had exceptionally strong second quarter 2025 financial results driven by solid operational performance and pacing of work, particularly in Government Operations, which was complemented by robust bookings in both segments, leading to record backlog," said Rex D. Geveden, president and chief executive officer.
The company’s adjusted EBITDA rose 16% to $145.9 million compared to the same quarter last year. Free cash flow showed remarkable improvement, reaching $126.3 million, a 256% increase from $35.5 million in the second quarter of 2024.
Government Operations operating income increased 18% to $109.4 million, driven by higher naval nuclear component production and special materials processing. However, Commercial Operations operating income declined 59% to $6.9 million due to revenue mix and timing of projects.
The company maintained its quarterly dividend of $0.25 per share, payable on September 5 to shareholders of record on August 18.
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