Factual Summary
BWX Technologies reported Q2 2026 (announced 2026-08-03) revenue of 901.6 million USD (+18% YoY) and GAAP diluted EPS of 0.97 USD, with Government Operations accounting for 66.7% of revenue and Commercial Operations 33.6%. The same day, the company raised its full-year 2026 revenue outlook to approximately 3.80 billion USD and signed an agreement to divest more than an 80% stake in its medical and stable isotopes businesses to Nordic Capital for up to 800 million USD. As of Q2 2026, the backlog stood at 8.4 billion USD, up 40% year-over-year.
Price-Change Context Note
On 2026-08-03, the day of the earnings announcement, the stock rose +3.02% during regular trading but fell -3.23% in after-hours trading, reportedly reflecting revenue slightly missing consensus (905.4 million USD) and a downward revision of the Commercial Operations adjusted EBITDA margin outlook from approximately 14% to approximately 13% (Investing.com, 2026-08-03). Total liabilities at year-end 2025 increased 69.8% year-over-year, a period that included acquisitions such as Precision Components Group and Kinectrics.
Business Composition
BWXT operates in two business segments. Government Operations manufactures reactors and related nuclear fuel for the U.S. Navy's nuclear propulsion program (submarines and aircraft carriers), while Commercial Operations produces steam generators, fuel, fuel-handling systems, and pressure vessels for commercial reactors (stockanalysis.com Company Profile, accessed 2026-08-09). In Q2 2026, Government Operations revenue was 601.3 million USD (+2% YoY) and Commercial Operations revenue was 302.5 million USD (+72% YoY), with Commercial Operations showing strong organic growth.
5-Year Revenue Trend (Based on Annual Reports)
| Period | Revenue (million USD) | Operating Income (million USD) | Net Income (million USD) | Operating Margin |
|---|---|---|---|---|
| 2021 | 2,124 | 346 | 306 | 16.3% |
| 2022 | 2,233 | 349 | 238 | 15.6% |
| 2023 | 2,496 | 383 | 246 | 15.3% |
| 2024 | 2,704 | 381 | 282 | 14.1% |
| 2025 | 3,198 | 404 | 329 | 12.6% |
Revenue CAGR (2021→2025) approximately +10.8%/year. Operating margin gradually declined from 16.3% in 2021 to 12.6% in 2025 (calculated based on audited financial data, A).
Valuation (Factual Multiples)
Based on web-aggregated figures (non-GAAP, differing methodology), trailing PER is also reported at 47.90x and EV/EBITDA at 38.17x (stockanalysis.com, accessed 2026-08). Because cash-and-equivalents figures needed to calculate net debt were not available in audited data, EV/EBITDA was not independently calculated (not available).
Peer Comparison
BWXT is classified as one of a small number of companies in North America that produce specialized nuclear components, nuclear fuel systems, and naval reactor systems at scale (Motley Fool, accessed 2026-08-09). Key peers for comparison are Curtiss-Wright (CW, which supplies reactor components across three segments including Naval & Power) and small modular reactor designer NuScale Power (SMR).
| Item | BWXT | Curtiss-Wright | NuScale Power |
|---|---|---|---|
| 2025 Revenue | 3.198 billion USD (A) | approximately 3.50 billion USD (E) | approximately 31.48 million USD (E) |
| 2025 Net Income | 329 million USD (A) | approximately 484 million USD (E) | approximately -356 million USD (E) |
| Government Customer Revenue Share | approximately 66.7% (A, Q2 2026) | approximately 58% (E, 2025) | Not available |
| Backlog | 8.4 billion USD (A, +40% YoY) | approximately 4.1 billion USD (E, 2025) | Not applicable |
Capital Structure & Financial Health
On 2025-11-10, the company issued 1.25 billion USD (up to 1.4 billion USD including the option) of 0% convertible preferred notes due 2030 and entered into a 1.25 billion USD revolving credit facility, coinciding with acquisitions including Precision Components Group and Kinectrics (SEC 8-K, cross-checked with financials.md and news.md). The U.S. 10-year Treasury yield was approximately 4.65–4.68% as of 2026-08-07, with a 61.9% probability of a rate hike at the September FOMC meeting (as of 2026-08-04) cited as a headwind for new and refinancing funding costs (macro.md).
Governance
| Date | Event |
|---|---|
| 2025-11-10 | Issued 1.25 billion USD of 0% convertible preferred notes due 2030 and entered into a new 1.25 billion USD revolving credit facility |
| 2026-02-20 | Board expanded from 9 to 10 members; Daniel L. Jablonsky appointed as new outside director |
| 2026-04-30 | Annual shareholders meeting; all 10 directors re-elected |
| 2026-07-06 | Completed acquisition of Precision Components Group |
| 2026-08-03 | Signed agreement to divest medical and stable isotopes businesses (Nordic Capital, up to 800 million USD) |
BWXT was spun off from Babcock & Wilcox Company in 2015 and has no individual controlling shareholder; only BlackRock and Vanguard have reported holdings of 5% or more (DEF 14A, as of 2026-03-18).
Supply-Demand Trends
In May 2026, share dispositions by CEO Rex D. Geveden (10,000 common shares) and CFO Michael Thomas Fitzgerald (2,417 common shares) were disclosed as routine sales under a 10b5-1 pre-arranged plan adopted on 2025-08-11 (SEC Form 4, StockTitan). 10b5-1 pre-arranged plan Short interest is reported in a range of 2.75–3.29% depending on the source, and is confirmed to be similar to or slightly below the industry average (3.59%, per Sahm Capital).
Macro Linkages
| Factor | Current Value | Transmission Path to BWXT |
|---|---|---|
| U.S. Navy FY2027 Shipbuilding Budget | 65.8 billion USD (+23% YoY) | Expanded construction volume for Virginia- and Columbia-class submarines and Ford-class carriers → increased orders for naval reactor components and nuclear fuel |
| DOE SMR & Nuclear Expansion Policy | 8 companies selected for SMR program on 2026-05-14; 21.4 million USD awarded to BWXT | Expanded support policy for next-generation reactors → growth in Commercial Operations orders and backlog |
| Data Center-Driven Power Demand | Backlog of 8.4 billion USD (+40% YoY) | Spread of nuclear power offtake agreements by major tech companies amid growing data center power demand → contributing to commercial backlog growth |
| U.S. Federal Funds Rate | 3.50–3.75% (held steady 2026-07-29) | Upward pressure on new and refinancing funding costs (limited near-term impact since existing debt is fixed-rate) |
Recent Event Timeline
| Date | Event |
|---|---|
| 2026-07-06 | Completed acquisition of Precision Components Group (expanding U.S. manufacturing capacity) |
| 2026-07-31 | Board declared quarterly cash dividend of 0.27 USD per share (payment date 2026-09-04) |
| 2026-08-03 | Announced Q2 2026 results (revenue 901.6 million USD, EPS 0.97 USD) and raised full-year outlook |
| 2026-08-03 | Signed agreement to divest medical and stable isotopes businesses (Nordic Capital, up to 800 million USD) |
Fact-Based Risk Factors
- A significant portion of revenue (Government Operations accounted for 66.7% as of Q2 2026) depends on U.S. government contracts and is subject to congressional budget appropriations (compiled from 10-K disclosures).
- At the 2026-08-03 earnings announcement, the Commercial Operations adjusted EBITDA margin outlook was revised down from approximately 14% to approximately 13% (reflecting the impact of upfront investment in capacity expansion and hiring).
- The debt ratio rose sharply to 246.5% at the end of 2025 from 165.6% a year earlier, and remained elevated at 231.5% at mid-2026.
- The stock is trading at trailing PER of 43.83x (A) to 47.90x (E) and EV/EBITDA of approximately 38x, multiples that are elevated relative to historical averages.
- Given the nature of the business, risks to human life, property, and the environment are ever-present, and the company is subject to ongoing review by the EPA, NRC, and other regulators (compiled from 10-K disclosures).
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Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR