BWX Technologies Reports Strong 2025 Performance and Provides 2026 Guidance
BWX Technologies, Inc. announced its financial results for the fourth quarter and full year ended December 31, 2025, showcasing robust performance across both its Government and Commercial segments. The company highlighted record full-year results and strong momentum entering 2026, driven by strategic acquisitions, high-value contract awards, and operational initiatives designed to strengthen its industrial and technical capabilities. A detailed reconciliation of non-GAAP results can be found in Exhibit 1 of the company’s filings.
Rex D. Geveden, President and Chief Executive Officer of BWXT, commented, “We delivered a strong fourth quarter, and a record year for BWXT. In our tenth year as a standalone public company, 2025 was monumental for BWXT as we expanded our service and product offerings with two acquisitions and captured significant high-value awards across both Government and Commercial segments, driving 50% backlog growth. This performance reflects our continued focus on strategic growth and our commitment to delivering critical solutions for our customers.”
Geveden added, “BWXT operates at the intersection of national security and commercial nuclear power markets, where demand for both remains exceptionally strong. Our strategy goes beyond capturing new awards; we are strengthening our competitive position through operational excellence and targeted investments that expand our industrial scale and technical capabilities. This enables us to deliver on our customers’ most critical missions, ensuring we remain a trusted partner in advancing both government and commercial nuclear programs.”
Looking ahead, Geveden stated, “In 2026, we expect to further build on the momentum of the last several years. We are initiating guidance that calls for robust growth across all key financial metrics, including $4.55–$4.70 of non-GAAP EPS, $645–$660 million of adjusted EBITDA, and $305–$320 million of free cash flow.”
Financial Performance Overview
BWXT’s consolidated revenue for the fourth quarter of 2025 was $885.8 million, a 19% increase over the $746.3 million reported in the fourth quarter of 2024. This growth was primarily driven by a 95% increase in Commercial Operations revenue, which rose to $297.7 million from $152.3 million in the prior year period. Growth in Commercial Operations was attributed to higher sales of field services, nuclear fuel, components, and medical products, along with contributions from the company’s Kinectrics acquisition.
Government Operations revenue for the fourth quarter slightly declined by 1%, totaling $589.1 million compared to $595.0 million in the prior year. This modest decrease was primarily due to lower naval nuclear component material procurement and slightly lower microreactor revenue. Partially offsetting these decreases were higher contributions from special materials processing and the A.O.T. acquisition.
For the full year 2025, consolidated revenue reached $3,198.4 million, marking an 18% increase compared to $2,703.7 million in 2024. Government Operations revenue increased 8% to $2,350.1 million, reflecting higher naval nuclear component production, increased special materials processing, and contributions from A.O.T. Commercial Operations revenue grew 63% year-over-year to $853.1 million, supported by higher sales of nuclear components, fuel handling services, medical products, and the contribution from Kinectrics.
Operating Income and Adjusted EBITDA
GAAP operating income for the fourth quarter of 2025 was $92.1 million, essentially flat compared to $92.3 million in the same period in 2024. Government Operations operating income decreased 8% to $90.3 million, reflecting slightly lower revenue and fewer favorable contract adjustments relative to the prior year, partially offset by higher technical services income and contributions from A.O.T. Commercial Operations operating income increased 37% to $20.4 million due to higher revenue from product and service sales. Corporate unallocated expenses decreased to $18.7 million from $20.7 million, providing further support to consolidated operating income.
Non-GAAP operating income, which excludes certain one-time or non-recurring items, rose 12% to $121.1 million for the fourth quarter, compared to $107.9 million in the prior-year period. The increase was primarily driven by the Commercial Operations segment, which saw a 94% increase in non-GAAP operating income, coupled with lower corporate expenses.
For the full year, GAAP consolidated operating income grew 6% to $404.5 million, while non-GAAP operating income increased 15% to $475.7 million. Government Operations operating income for 2025 was $394.9 million, up 4% year-over-year, driven by higher revenue and technical services income, partially offset by acquisition integration and restructuring expenses. Commercial Operations operating income rose 23% to $57.7 million, supported by revenue growth, though partially offset by costs related to acquisition due diligence and integration.
Adjusted EBITDA, which measures earnings before interest, taxes, depreciation, and amortization on a non-GAAP basis, reached $147.5 million in the fourth quarter, up 13% from $130.3 million in the prior-year period. Full-year adjusted EBITDA totaled $574.3 million, a 15% increase from $498.7 million in 2024. The Government Operations segment accounted for $479.1 million of full-year adjusted EBITDA, while Commercial Operations contributed $110.1 million. Corporate expenses were $(14.9) million.
Earnings Per Share and Net Income
Fourth-quarter GAAP diluted earnings per share (EPS) was $1.01, an increase of 31% from $0.77 in the same quarter of 2024. Non-GAAP EPS rose 17% to $1.08 from $0.92. The increase was driven by higher operating income, lower interest expense, and favorable tax impacts, partially offset by higher tax rates under the non-GAAP framework.
Full-year GAAP EPS increased 17% to $3.58, up from $3.07 in 2024, while non-GAAP EPS rose 20% to $4.01 from $3.33. Net income for the fourth quarter was $93.7 million GAAP and $100.0 million non-GAAP, representing year-over-year growth of 32% and 18%, respectively. Full-year net income totaled $329.9 million GAAP and $368.9 million non-GAAP, an increase of 17% and 20%, respectively, compared to 2024.
Cash Flow and Capital Deployment
Operating cash flow for the fourth quarter was $127.0 million, down 54% from $276.9 million in the prior-year period, primarily due to the timing of cash flows throughout the year. Capital expenditures increased 34% to $70.2 million, driven by ongoing growth investments including the expansion of BWXT’s Cambridge manufacturing plant, which supports the commercial nuclear market.
Full-year operating cash flow increased 17% to $479.8 million, reflecting strong net income, improved working capital management, and the timing of advanced billings on new contract awards. Full-year capital expenditures totaled $184.6 million, up 20% compared to 2024, supporting both new government program awards and expansion of commercial facilities.
Free cash flow, defined as operating cash flow less capital expenditures, was $56.8 million for the fourth quarter, down 75% year-over-year. Full-year free cash flow increased 16% to $295.3 million.
During 2025, BWXT repurchased $30.0 million of its common stock and paid dividends totaling $92.5 million, including $22.8 million in the fourth quarter. On February 18, 2026, BWXT declared a quarterly cash dividend of $0.27 per common share, payable on March 27, 2026, to shareholders of record as of March 11, 2026.
Segment Analysis
Government Operations: This segment includes production of naval nuclear components, special materials processing, microreactor programs, and related technical services. Fourth-quarter revenue totaled $589.1 million, slightly lower than the prior year, primarily due to timing of naval nuclear procurement and microreactor projects. Full-year revenue increased 8% to $2,350.1 million. Operating income and adjusted EBITDA reflected similar trends, with modest decreases in the fourth quarter but full-year growth due to higher volume and technical services.
Commercial Operations: This segment encompasses commercial nuclear fuel, components, field services, and medical applications. Revenue and operating income experienced strong growth in both the fourth quarter and full year. Contributions from acquisitions such as Kinectrics helped boost revenue, while investments in growth initiatives supported future expansion. Non-GAAP operating income in Commercial Operations increased 94% in the fourth quarter and 55% for the full year, highlighting the success of strategic expansion initiatives.
Corporate Expenses: Unallocated corporate expenses declined in 2025 compared to 2024, reflecting disciplined cost management. Non-GAAP adjustments, including restructuring and transformation costs, acquisition-related costs, and one-time integration expenses, were detailed in Exhibit 1 of the company’s filings.
2026 Guidance
BWXT provided guidance for fiscal year 2026, anticipating continued growth across all key financial metrics. The company expects consolidated revenue of approximately $3.75 billion, adjusted EBITDA in the range of $645–$660 million, non-GAAP EPS of $4.55–$4.70, and free cash flow between $305–$320 million. GAAP guidance was not provided due to challenges in forecasting mark-to-market pension adjustments and other non-GAAP adjustments.
Outlook and Strategic Focus
Looking forward, BWXT intends to leverage its growing backlog, expanded product and service offerings, and investments in industrial scale and technical capabilities to drive continued growth. The company remains focused on operational excellence, targeted acquisitions, and high-value awards across both government and commercial markets.
Geveden concluded, “BWXT is well-positioned to continue delivering value to our shareholders and critical solutions to our customers. Our 2025 performance reflects both our operational capabilities and strategic initiatives. As we move into 2026, we remain committed to expanding our industrial and technical capacity while driving long-term sustainable growth.”
Conference Call and Investor Resources
BWXT will host a conference call to discuss its fourth-quarter 2025 results on Monday, February 23, 2026, at 5:00 p.m. EST. The live webcast will be available through the BWXT Investor Relations website at investors.bwxt.com. Additional information, including the fourth-quarter earnings call presentation and non-GAAP reconciliations, can be accessed on the company’s investor relations site.
BWXT also emphasizes the use of non-GAAP financial measures, including adjusted EBITDA, non-GAAP EPS, and free cash flow, to provide investors with supplemental insights into operational performance and facilitate comparisons with prior periods. These measures exclude certain one-time, non-recurring, or non-operational items such as restructuring, acquisition-related costs, and pension mark-to-market adjustments. While non-GAAP measures provide transparency and operational insights, they should not be considered superior to GAAP results.
