BWX Technologies (BWXT) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with revenue up 18% to $3.2 billion, Adjusted EBITDA up 15% to $574 million, EPS up 20%, and free cash flow up 16%, all exceeding initial guidance.

• Backlog reached $7.3 billion, up 50% year-over-year, driven by large multi-year awards in both government and commercial segments.

• Completed strategic acquisitions (AOT and Kinectrics), expanding capabilities and enabling major contract wins.

• Delivered the first full core of TRISO nuclear fuel for Project Pele and secured significant contracts in defense and commercial nuclear markets.

• Strategy focused on operational excellence, targeted investments, and strengthening competitive position in national security and commercial nuclear markets.

Financial highlights

• Q4 2025 revenue was $886 million, up 19% year-over-year; organic revenue up 4%.

• Q4 Adjusted EBITDA was $148 million, up 13% year-over-year; Adjusted EPS was $1.08, up 17%.

• Full-year free cash flow was $295 million, up 16% year-over-year; CapEx was $185 million (5.8% of sales).

• 2025 net income was $329.9 million (GAAP), up 17% year-over-year; non-GAAP EPS was $4.01.

• Liquidity at year-end was $1.7 billion after a $1.25 billion convertible debt offering.

Outlook and guidance

• 2026 revenue guidance is ~$3.75 billion, up high-teens percent from 2025.

• Adjusted EBITDA guidance for 2026 is $645–$660 million, up low-to-mid-teens percent.

• Non-GAAP EPS guidance is $4.55–$4.70, up mid-to-high teens; free cash flow expected at $305–$320 million.

• Commercial operations expected to grow ~25% in 2026, with Kinectrics contribution; government operations expected to grow low- to mid-teens.

• Margins in government operations expected to be slightly lower in 2026 due to new program ramp-up, with rebound anticipated in 2027.