BWX Tightens 2026 Outlook After Profit Growth Reaccelerates

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter revenue was $953.0 million as GAAP earnings rose to $1.11 a share and the company introduced a preliminary 2027 growth outlook.

BWX Technologies (BWXT) reported third-quarter 2026 revenue of $953.0 million, up 10% from a year earlier, after 18% growth in the second quarter and 26% growth in the first.

The nuclear solutions manufacturer said the slowdown in the year-over-year rate was concentrated in Commercial Operations, which rose 25% to $314.2 million after 72% growth in the second quarter and 121% growth in the first. Government Operations revenue increased 4% to $639.1 million, matching the first-quarter year-over-year rate after a 2% increase in the second quarter.

The company attributed the Government Operations increase to growth in special materials and advanced nuclear, partially offset by lower volume in naval propulsion. Commercial Operations growth came from commercial nuclear components, services and medical, partially offset by slightly lower fuel handling revenue.

Profit growth reaccelerated. Consolidated GAAP operating income increased 17% to $132.1 million, after 11% growth in the second quarter. Non-GAAP operating income increased 19% to $149.7 million, after 5% growth in the second quarter.

Government Operations operating income rose 26% to $122.6 million, reversing a 3% year-over-year decline in the second quarter. The company said the segment’s non-GAAP operating income increased on higher revenue and strong operating performance across business lines. Commercial Operations operating income rose 10% to $26.3 million, after 254% growth in the second quarter; the company said higher revenue was partially offset by product and service line mix and SG&A investment to support growth. Unallocated corporate expense widened to $16.8 million from $8.0 million a year earlier.

GAAP diluted earnings were $1.11 a share, up 25% from a year earlier, after 14% growth in the second quarter. Non-GAAP earnings were $1.26 a share, up 26%, after 5% growth in the second quarter. GAAP net income rose 24% to $102.0 million. The company said GAAP EPS increased on higher operating income, lower interest expense and a lower effective tax rate, partially offset by lower other income and higher restructuring and transformation and acquisition-related costs.

Consolidated adjusted EBITDA rose 19% to $179.7 million, after 7% growth in the second quarter. Government Operations adjusted EBITDA rose 22% to $144.2 million, reversing a 5% year-over-year decline in the second quarter. Commercial Operations adjusted EBITDA rose 17% to $41.4 million.

Cash generation also reaccelerated. Operating cash flow rose 42% to $202.7 million, after a 2% year-over-year decline in the second quarter. Free cash flow rose 59% to $150.5 million, after a 9% year-over-year decline in the second quarter. The company said operating cash flow increased on higher net income, an increase in advanced billings, and good working capital management, partially offset by timing of income tax payments. Capital expenditures were $52.3 million. BWXT paid a $0.27 a share quarterly dividend of $24.7 million and declared another $0.27 a share dividend payable Dec. 10, 2026.

The company reaffirmed 2026 revenue guidance of about $3.80 billion and tightened non-GAAP EPS guidance to $4.72–$4.77 from $4.70–$4.80 and free cash flow guidance to $350 million–$360 million from $345 million–$360 million. Adjusted EBITDA guidance was held at the midpoint of the prior $662 million–$672 million range.

BWXT introduced a preliminary 2027 outlook calling for high-single-digit revenue growth and high-single-digit to low-double-digit adjusted EBITDA and non-GAAP EPS growth, with adjusted EBITDA growth ahead of the framework provided at its 2026 Investor Day.

BANR technology was selected for the U.S. Army’s Janus Program at Fort Campbell and Prodigy Clean Energy’s Transportable Nuclear Power Plant project in Canada. President and Chief Executive Officer Rex D. Geveden said the company is in the early stages of a multi-decadal investment cycle and expects continued demand momentum for nuclear solutions and increased conversion of its bid pipeline into firm awards.