BWX Technologies (BWXT, Financial) has secured contracts valued at around $2.6 billion from the U.S. Naval Nuclear Propulsion Program. These contracts, which include options for future years, focus on the production of nuclear reactor components for naval use. The primary beneficiaries of this agreement are the Virginia and Columbia-class submarines, along with certain components for Ford-class aircraft carriers. The delivery of these products is scheduled over a period of six to eight years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for BWX Technologies Inc (BWXT, Financial) is $142.96 with a high estimate of $177.60 and a low estimate of $105.00. The average target implies an upside of 2.23% from the current price of $139.85. More detailed estimate data can be found on the BWX Technologies Inc (BWXT) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, BWX Technologies Inc's (BWXT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BWX Technologies Inc (BWXT, Financial) in one year is $104.44, suggesting a downside of 25.32% from the current price of $139.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BWX Technologies Inc (BWXT) Summary page.
BWXT Key Business Developments
Release Date: May 05, 2025
- Revenue: $682 million, up 13% year-over-year.
- Adjusted EBITDA: $130 million, up 13% year-over-year.
- Adjusted Earnings Per Share (EPS): $0.91, up 20% from $0.76 last year.
- Government Operations Revenue Growth: 14% increase.
- Government Operations Adjusted EBITDA Margin: 21.1%.
- Commercial Operations Revenue: $128 million, up 10% year-over-year.
- Commercial Operations Adjusted EBITDA Margin: 10.9%, down 100 basis points.
- Free Cash Flow: $17 million for the quarter.
- Capital Expenditures: $33 million or 4.9% of sales.
- Backlog: $1.3 billion in commercial operations, up 78% year-over-year.
- Adjusted Effective Tax Rate: 18.3% for the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BWX Technologies Inc (BWXT, Financial) reported double-digit year-over-year growth in revenue, adjusted EBITDA, and adjusted earnings per share for the first quarter of 2025.
- The company achieved a robust bookings performance, with a commercial operations backlog of $1.3 billion, up 78% year-over-year.
- BWXT secured significant contracts, including the management and operations contract for the Department of Energy's Strategic Petroleum Reserve and a sole-source contract for domestic uranium enrichment.
- The company is expanding its nuclear services portfolio through the pending acquisition of Connectrix and increasing capacity at its Cambridge manufacturing plant.
- BWXT's medical segment experienced double-digit revenue and adjusted EBITDA growth, driven by its pet diagnostic product lines, and remains on track for over 20% full-year revenue growth.
Negative Points
- BWXT faced negative EACs (Estimate at Completion) of about $11 million, impacting both government and commercial operations.
- The company experienced heightened inflation for specialized raw materials in its Candu fuel business line, affecting margins in the first half of the year.
- There is uncertainty around the ANPI program, with unclear funding and potential outcomes, despite BWXT being selected as an eligible supplier.
- The zirconium cost impact due to geopolitical factors and tariffs poses a challenge, although BWXT has mechanisms to manage this risk.
- The timeline for FDA approval of BWXT's moly product remains uncertain, with potential delays into early 2026, affecting the company's entry into contracted sales.
