Q2 2026 BWX Technologies Inc Earnings Call Transcript
Key Points
- BWX Technologies Inc (BWXT) delivered strong Q2 2026 results with revenue up 18% (9% organic) and adjusted EPS up 5%, driven by excellent execution and robust demand in commercial nuclear.
- The company announced the sale of its medical business for up to $800 million, sharpening its focus on core nuclear national security and commercial power markets while retaining a minority stake.
- Backlog reached $8.4 billion, up 40% year-over-year, with a robust trailing 12-month book-to-bill of 1.7 times, demonstrating strong customer demand.
- The acquisition of Precision Components Group (PCG) closed in early July, establishing a commercial nuclear manufacturing platform in the U.S. and creating opportunities for in-house supply chain synergies.
- The Navy's updated 30-year shipbuilding plan accelerates Ford-class aircraft carriers to a four-year procurement cadence, which should improve manufacturing volume stability and efficiency for BWX Technologies Inc (BWXT).
- Adjusted EBITDA growth of 7% lagged revenue growth of 18%, reflecting margin pressure from investments in capacity expansion and higher corporate expenses.
- Government operations revenue growth guidance was revised down to high single-digits from low-teens due to stronger cost performance, which reduces reported revenue despite favorable economics.
- Commercial operations adjusted EBITDA margin guidance was lowered to approximately 13% from 14% due to incremental investments in U.S. capacity expansion and continued investment in Canada.
- Backlog was modestly lower sequentially, highlighting the timing unpredictability of large multi-year contract awards, which can cause fluctuations.
- The company faces challenges in finding qualified tradespeople, particularly steel workers in Canada, which could impact labor acquisition and project timelines.
Ladies and gentlemen, welcome to BWX Technologies' Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Following the company's prepared remarks, we will conduct a question-and-answer session, and instructions will be given at that time.
I would now like to turn the call over to our host, Chase Jacobson, BWX's Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good evening, and welcome to today's call. Joining me are Rex Jevitin, President and CEO, and Mike Fitzgerald, Senior Vice President and CFO.
On today's call, we will reference the second quarter 2026 earnings presentation that is available on the investor section of the VWXP website. We will also discuss certain matters that constitute forward-looking statements. These statements involve risks and uncertainties, including those described in the safe harbor provision found in the investor materials in the company's SEC filings.
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