BWX Technologies (BWXT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 18% year-over-year to $901.6M–$902M, with strong performance in both Commercial and Government Operations; organic revenue up 9%.

• Adjusted EBITDA increased 7% to $155M–$156M, and non-GAAP EPS rose 5% to $1.07, supported by higher operating income and lower interest expense.

• Announced sale of over 80% of the medical business to Nordic Capital for up to $800M, retaining a minority stake and sharpening focus on core nuclear markets.

• Completed acquisition of Precision Components Group, expanding U.S. commercial nuclear manufacturing capacity and enabling supply chain synergies.

• Backlog reached $8.4B, up 40% year-over-year, with 55% expected to be recognized as revenue by end of 2027.

Financial highlights

• Q2 2026 revenue: $901.6M–$902M, up 18% year-over-year (9% organic).

• Adjusted EBITDA: $155M–$156M, up 7%; adjusted EPS: $1.70, non-GAAP EPS: $1.07; net income: $89M, up 14%.

• Free cash flow: $115M; adjusted effective tax rate: 21.6%–21.8%.

• Raised full-year free cash flow guidance by $30M to $345M–$360M.

• Capital expenditures: $41M in Q2; full-year expected at ~6% of sales.

Outlook and guidance

• 2026 revenue guidance raised to ~$3.8B (high teens growth vs. 2025); organic growth in mid-teens.

• Adjusted EBITDA guidance increased to $662M–$672M; non-GAAP EPS guidance raised to $4.70–$4.80.

• Free cash flow guidance increased to $345M–$360M.

• Commercial Operations revenue growth outlook increased to ~45%; adjusted EBITDA margin guidance at ~13%.

• Government Operations revenue growth expected in high single digits; adjusted EBITDA margin guidance raised to ~20.5%.