BWX Technologies Inc (NYSE:BWXT) stock scored a price-target hike from BofA Global Research to $160 from $115 earlier today. The equity was last seen up 0.6% to trade at $132.88, and earlier hit a fresh record high of $136.31.On the charts, support at the 40-day moving average has been in place since September, and captured the shares' early-November pullback. On track for its sixth-straight daily win, the equity is up 72.9% year to date.There's still plenty of room for optimism amongst the brokerage bunch ...

My optimistic angle on BWX Technologies (NYSE: BWXT ) is drawn from Q3 '24 solid revenue increase by 14% compared to an 11% increase in Q2’24. The government operations revenue in Q3 '24 grew by 17% compared toFirst Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial and technology, enabling me to uncover overl ...

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $672 million, representing a 14% organic growth year-over-year [20] - Adjusted EBITDA increased by 19% to $127 million, driven by strong Government Operations growth [20] - Adjusted earnings per share rose 24% to $0.83 compared to $0.67 in the prior year quarter [22] - Free cash flow for the quarter was a use of $8 million, but the company reaffirmed its full year free cash flow outlook of $225 million to $250 million [24] Business Line Data and Key Metrics Changes - Government Operations revenue grew 17% to $560 million, with adjusted EBITDA increasing by 18% to $117 million [26] - Commercial Operations saw modest revenue growth, with adjusted EBITDA slightly down to $13.5 million from $13.9 million in the previous year [27] - The Medical segment is expected to grow about 25% year-to-date, driven by diagnostics and contract drug manufacturing [17] Market Data and Key Metrics Changes - The company anticipates mid- to high single-digit revenue, EBITDA, and earnings per share growth for 2025 compared to 2024 [5][29] - The demand for nuclear power is increasing, with significant investments from major companies like Microsoft, Amazon, and Google [13] Company Strategy and Development Direction - The acquisition of A.O.T. is seen as a strategic extension of the company's special materials portfolio, enhancing capabilities in defense applications [9][10] - The company aims to complement organic growth with strategic M&A opportunities to maximize exposure to government and commercial nuclear markets [11] - Focus remains on operational excellence and providing high-quality nuclear solutions to support critical government missions [12] Management's Comments on Operating Environment and Future Outlook - Management raised the 2024 adjusted earnings per share guidance to about $3.20, citing strong year-to-date performance despite weather-related challenges [4] - The company is optimistic about continued growth in Government Operations and accelerating growth in Commercial Operations for 2025 [5] - Management emphasized the importance of clean, reliable baseload nuclear power in light of climate change and increasing electricity demand [32] Other Important Information - The company is actively working on several contracts related to national security uranium enrichment and advanced nuclear fuel processing [8][9] - The impact of Hurricane Helene resulted in a temporary shutdown of the navy fuel processing facility, affecting working capital [24] Q&A Session Summary Question: Impact of supply chain issues at shipyards - Management indicated that they have not experienced significant supply chain pressures and feel well-equipped to meet customer demands [35] Question: Clarification on Government Operations growth - Management attributed strong growth to good execution across various programs, particularly in Advanced Technologies [36] Question: Competitive advantages in the nuclear space - Management highlighted their leadership in advanced nuclear fuels and large component manufacturing capabilities as key differentiators [38] Question: Timeline for growth in isotopes, microreactors, and SMRs - Management expects near-term growth from nuclear medicine and small modular reactors, with microreactors contributing in the mid-term [39] Question: Sequential decline in EPS from Q3 to Q4 - Management explained that the decline is due to various factors, including hurricane-related disruptions and typical seasonal dynamics [43][44] Question: Navy pricing agreement and future margins - Management expressed hope that the new pricing agreement would help maintain EBITDA margins in the Government Operations segment [48] Question: Potential for sole source supplier in enrichment market - Management confirmed they were the sole awardee for a contract related to enrichment capabilities, indicating a strong position in that market [78]

BWX Technologies (BWXT) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.79%. A quarter ago, it was expected that this supplier of nuclear fuel and components to the U.S. government would post earnings of $0.76 per share when it actually produced earnings of $0.82, delivering a surpr ...

Revenue and Income Growth - Consolidated revenues increased by 13.9%, or $82.0 million, to $672.0 million for the three months ended September 30, 2024, compared to $590.0 million for the same period in 2023[88]. - For the nine months ended September 30, 2024, consolidated revenues increased by 10.5%, or $186.6 million, to $1,957.4 million compared to $1,770.8 million for the same period in 2023[90]. - Operating income for the three months ended September 30, 2024, increased by $11.2 million to $96.6 million, with Government Operations contributing an increase of $16.0 million[89]. - Operating income for the nine months ended September 30, 2024, increased by $28.5 million to $288.3 million, with Government Operations and Commercial Operations segments contributing increases of $21.4 million and $10.3 million, respectively[91]. - Operating income rose by $21.4 million to $279.8 million for the nine months ended September 30, 2024, compared to $258.4 million for the same period in 2023[96]. Segment Performance - Government Operations segment revenues rose by $82.2 million, reaching $560.1 million, driven by higher volume in nuclear components for U.S. Government programs and long-lead material procurements[93]. - The Government Operations segment's operating income margin was 18.1% for the three months ended September 30, 2024, compared to 17.9% for the same period in 2023[92]. - Commercial Operations segment revenues increased by $29.4 million for the nine months ended September 30, 2024, reaching $371.6 million[90]. - The increase in Government Operations revenues was partially offset by a decrease in revenues associated with downblending operations[93]. Expenses and Cash Flow - Unallocated Corporate expenses increased by $2.4 million for the three months ended September 30, 2024, compared to the same period in the prior year[89]. - Unallocated corporate expenses increased by $3.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[102]. - Net cash provided by operating activities decreased by $10.4 million to $131.5 million in the nine months ended September 30, 2024, compared to $141.9 million in the same period of 2023[136]. - Net cash used in financing activities increased by $47.7 million to $69.9 million in the nine months ended September 30, 2024, compared to $22.2 million in the same period of 2023[138]. Backlog and Future Revenue - Total backlog as of September 30, 2024, was $3,380.7 million, down from $3,998 million as of December 31, 2023[109]. - The company expects to recognize approximately 48% of the revenue associated with its backlog by the end of 2025[110]. Debt and Financing - As of September 30, 2024, borrowings under the Term Loan totaled $239.1 million, with $548.6 million available under the Revolving Credit Facility[119]. - The weighted average interest rate on outstanding borrowings under the Credit Facility was 6.31% as of September 30, 2024[119]. - The company issued $400 million aggregate principal amount of 4.125% senior notes due 2028, maturing on June 30, 2028[122]. - Interest on the senior notes due 2028 is payable semi-annually at a rate of 4.125% per annum[123]. Pension and Working Capital - As of September 30, 2024, the company had underfunded defined benefit pension and postretirement benefit plans with obligations totaling approximately $96.2 million[132]. - The company's working capital increased by $102.7 million to $545.5 million as of September 30, 2024, from $442.8 million at December 31, 2023[135]. Acquisition Plans - The company announced its intention to acquire Aerojet Ordinance Tennessee, Inc., expecting a significant cash investment during the fourth quarter of 2024[141]. Investments and Cash Equivalents - The company had long-term investments with a fair value of $10.7 million, primarily consisting of corporate bonds and mutual funds[140]. - As of September 30, 2024, letters of credit issued and outstanding under the bilateral letter of credit facility totaled approximately $35.6 million[131].

Financial Performance - 3Q24 revenues reached $672.0 million, a 14% increase from $590.0 million in 3Q23[1] - 3Q24 net income was $69.6 million, with non-GAAP EPS of $0.83, reflecting a 24% increase from $0.67 in 3Q23[1][3] - Adjusted EBITDA for 3Q24 was $127.0 million, up 19% from $106.5 million in 3Q23[1][3] - For the three months ended September 30, 2024, BWX Technologies reported a net income of $76.7 million, up from $61.5 million in the same period last year, representing a year-over-year increase of 24.5%[24][25] - The diluted earnings per share for Q3 2024 were $0.83, compared to $0.67 in Q3 2023, reflecting a 23.9% increase[24][25] - The company's operating income for Q3 2024 was $105.7 million, an increase from $86.7 million in Q3 2023, marking a growth of 22.8%[24][25] - BWX Technologies' adjusted EBITDA for Q3 2024 was $127.0 million, compared to $106.5 million in Q3 2023, indicating a 19.2% increase[27][28] - Revenues for the three months ended September 30, 2024, increased to $671,956 thousand, up 13.9% from $589,989 thousand in the same period last year[32] - Operating income rose to $96,578 thousand, representing a 13.0% increase compared to $85,358 thousand for the same period last year[32] - Net income attributable to BWX Technologies, Inc. for the three months ended September 30, 2024, was $69,483 thousand, a 15.4% increase from $60,273 thousand in the prior year[32] - Basic and diluted earnings per share for the three months ended September 30, 2024, were both $0.76, compared to $0.66 for the same period last year, reflecting a 15.2% increase[32] Government Operations - Government Operations revenue increased by 17% to $560.1 million, driven by higher naval nuclear component production[3][4] - Government operations generated an operating income of $101.7 million in Q3 2024, up from $85.6 million in Q3 2023, a growth of 18.8%[29] - Government Operations revenue reached $560,073 thousand, up 16.5% from $477,855 thousand year-over-year[37] - Government Operations bookings for the three months ended September 30, 2024, were $440,146 thousand, a 33.1% increase from $330,801 thousand in the same period of 2023[37] Commercial Operations - Commercial operations reported an operating income of $9.2 million in Q3 2024, compared to $9.4 million in Q3 2023, showing a slight decline[29] - Commercial Operations bookings decreased to $78,252 thousand from $125,061 thousand year-over-year, reflecting a decline of 37.5%[37] Cash Flow and Dividends - Operating cash flow decreased to $32.6 million, a 56% decline from $74.3 million in 3Q23 due to increased working capital needs[3][8] - BWXT paid $22.0 million in dividends, or $0.24 per common share, in 3Q24[9] - The company expects free cash flow growth to be sustained at 10% or higher in 2025[1][2] Guidance and Future Outlook - The company raised its 2024 non-GAAP EPS guidance to approximately $3.20, up from the previous range of $3.10 - $3.20[1][10] - Preliminary guidance for 2025 indicates mid-to-high-single-digit growth in revenue and non-GAAP EPS[1][2] Assets and Liabilities - Total current assets increased to $982,949 thousand as of September 30, 2024, compared to $817,801 thousand at the end of December 31, 2023, marking a 20.2% increase[34] - Long-term debt as of September 30, 2024, was $1,220,583 thousand, up from $1,203,422 thousand at the end of December 31, 2023[35] - The company reported a total of $2,947,460 thousand in total assets as of September 30, 2024, compared to $2,747,065 thousand at the end of December 31, 2023, indicating a 7.3% increase[34] - Total stockholders' equity increased to $1,058,671 thousand as of September 30, 2024, up from $933,301 thousand at the end of 2023, marking a growth of 13.4%[36] - The company’s retained earnings rose to $2,238,437 thousand as of September 30, 2024, compared to $2,093,917 thousand at the end of 2023, indicating an increase of 6.9%[36] Costs and Expenditures - BWX Technologies incurred restructuring and transformation costs of $6.0 million in Q3 2024, compared to $1.1 million in Q3 2023[24][25] - Capital expenditures for the three months ended September 30, 2024, totaled $40,301 thousand, an increase of 30.4% from $30,916 thousand in the same period of 2023[37] - The company incurred research and development costs of $4,842 thousand for the nine months ended September 30, 2024, down from $5,955 thousand in the same period last year[32] Backlog - The total backlog as of September 30, 2024, was $3,380,689 thousand, a decrease of 15.1% from $3,980,844 thousand in the previous year[37]

Nuclear energy stocks have transformed into one of the hottest areas on Wall Street as investors dive into the industry ready to power the energy transition and the artificial intelligence (AI) age.See the Zacks Earnings Calendar to stay ahead of market-making news. The Bull Case for Nuclear Energy StocksNuclear energy stocks from Oklo to NuScale have soared in the last few months, driven by blockbuster deals between technology giants such as Google, Microsoft, and Amazon and nuclear energy companies.Nuclea ...

BWX Technologies (BWXT) is expected to beat expectations when it reports third-quarter 2024 results after market close on Nov. 4. The Zacks Consensus Estimate for third-quarter earnings is pinned at 77 cents per share, indicating an increase of 14.9% from the year-ago quarter, unchanged over the past 60 days. The consensus mark for revenues is pegged at $658.2 million, suggesting an 11.6% increase from the year-ago quarter. BWXT's earnings beat the Zacks Consensus Estimate in each of the trailing four quart ...

BWX Technologies (BWXT) shares soared 4.9% in the last trading session to close at $124.70. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 21.6% gain over the past four weeks. The optimism surrounding the stock can be attributed to the growing demand for its manufactured components and services for the commercial nuclear power industry. BWX Technologies' strong position in the nuclear technology sector, especially with its gover ...

imaginima/iStock via Getty Images Investment thesis For investors who consider nuclear energy for their green portfolios, a growth candidate is BWX Technologies, Inc. (NYSE:BWXT). It is having a renaissance of sorts, after delivering three consecutive quarters of higher earnings, reversing a previous trend. Those earnings are expected to keep growing this year and for the two following years. Based on this expected growth, I believe the share price will increase by more than 11% in the next year, and rate i ...