BWX Technologies (BWXT) Q4 2024 earnings summary

Executive summary

• 2024 delivered record annual revenue of $2.7B, adjusted EBITDA of $499M, and free cash flow of $255M, meeting or exceeding guidance.

• Backlog reached $4.84B, up 21% year-over-year, driven by strong bookings in both government and commercial segments.

• Strategic investments and acquisitions, including AOT and the pending Kinectrics deal, are expanding capabilities and market reach.

• Demand in national security, clean energy, and medical markets is at unprecedented levels, positioning for continued growth.

• Fourth quarter 2024 revenue increased 3% year-over-year, led by strong Commercial Operations, partially offset by a slight decline in Government Operations.

Financial highlights

• Q4 2024 revenue was $746.3M, up 3% year-over-year; full-year revenue reached $2.7B, up 8%.

• Q4 adjusted EBITDA was $130.3M (down 12% YoY); full-year adjusted EBITDA was $499M, up 6%.

• Q4 non-GAAP EPS was $0.92 (vs. $1.01 YoY); full-year non-GAAP EPS was $3.33, up from $3.02 in 2023.

• Q4 free cash flow was $224M, up from $171M in Q4 2023; full-year free cash flow was $255M, up 20% year-over-year.

• Adjusted effective tax rate for 2024 was 21.7%, below guidance, with a $6M Q4 benefit from tax planning.

Outlook and guidance

• 2025 revenue expected at ~$3B, with mid-single-digit growth in government and mid-teens organic growth in commercial operations.

• Adjusted EBITDA guidance for 2025 is $550M–$570M; non-GAAP EPS guidance is $3.40–$3.55.

• Free cash flow expected at $265M–$285M in 2025, with CapEx at 5–6% of sales.

• Commercial Operations revenue expected to grow nearly 50% in 2025, including Kinectrics acquisition.

• Medical revenue projected to grow at a similar 23% rate in 2025 as in 2024.