BWX Technologies (BWXT) Q1 2025 earnings summary

Executive summary

• Revenue increased 13% year-over-year in Q1 2025 to $682.3 million, driven by both Government and Commercial Operations.

• Adjusted EBITDA rose 13% to $130 million, and non-GAAP EPS grew 20% to $0.91, supported by higher operating earnings and a lower tax rate.

• Net income was $75.5 million, up from $68.5 million in Q1 2024.

• Major contract wins included a $2.6 billion, 10-year DOE contract and selection for advanced nuclear and national security projects.

• Announced and closed key acquisitions, including Aerojet Ordnance Tennessee and the pending Kinectrics deal, expanding advanced materials and nuclear services.

Financial highlights

• Q1 2025 revenue was $682.3 million, up from $604 million in Q1 2024 (+13% year-over-year).

• Adjusted EBITDA reached $130 million, up from $115 million in Q1 2024 (+13% year-over-year).

• Non-GAAP EPS was $0.91, up from $0.76 in Q1 2024 (+20% year-over-year); diluted GAAP EPS was $0.82, up from $0.75.

• Free cash flow for Q1 2025 was $17 million, up from $3 million in Q1 2024.

• Backlog reached $4.88 billion, with 61% expected to be recognized by end of 2026.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: revenue ~$3.0 billion, adjusted EBITDA $550–$570 million, non-GAAP EPS $3.40–$3.55, and free cash flow $265–$285 million.

• Government Operations revenue expected to grow mid-single digits; Commercial Operations revenue expected to grow ~50% (including Kinectrics acquisition).

• Commercial Operations EBITDA margin guided to 14%-15%, with margin recovery expected in H2 2025.

• Over half of full-year EPS expected in the second half of 2025.

• Sufficient liquidity and borrowing capacity to meet requirements for the next 12 months and beyond.