BWX Technologies soars after big Q2 beat, raised outlook, record backlog

Shares of BWX Technologies (NYSE:BWXT) surged 10% in extended trading Monday after the nuclear components and services provider posted second-quarter results that beat Wall Street estimates and raised its full-year outlook, fueled by strong government operations performance and robust demand across its nuclear portfolio.

The company reported adjusted earnings of $1.02 a share, well above the consensus estimate of $0.79, and revenue of $764 million, topping forecasts of $710.8 million. Net income rose 7% to $78.5 million, while adjusted earnings before interest, taxes, depreciation and amortization increased 16% year-over-year to $145.9 million.

Investors cheered not only the earnings beat but also BWXT’s (NYSE:BWXT) bullish outlook. The company raised its full-year 2025 guidance, now expecting adjusted ebitda of $565 million to $575 million, non-GAAP earnings of $3.65 to $3.75 a share, and free cash flow of up to $285 million, citing strong year-to-date execution and accelerating momentum in nuclear markets.

In the announcement, Chief Executive Rex Geveden credited the quarter’s outperformance to “solid operational performance and pacing of work, particularly in government operations,” where revenues jumped 9% to $589 million. BWXT’s (BWXT) commercial operations also saw a 24% revenue increase, driven by higher sales in medical isotopes and commercial nuclear components, despite a dip in field services activity.

The company also closed its acquisition of Kinectrics in May and signed a pricing agreement for more than $1 billion in U.S. naval reactor and component contracts, contributing to a record $6 billion backlog, up 70% year-over-year. Bookings in the quarter totaled $1.64 billion.

“The demand for nuclear solutions in the global security, clean energy, and medical markets continues to accelerate,” Geveden said in prepared remarks.

Cash flow was another bright spot, with free cash flow more than tripling to $126 million, driven by improved working capital and timing of awards. The company also maintained its dividend, paying $0.25 a share in the quarter and announcing the next payout for Sept. 5.