BWX Technologies, Inc. (BWXT), a leading nuclear technology and services company, reported impressive financial performance in the second quarter of 2025. The company, operating in both government and commercial segments, showed growth in sales, improved profitability, and strong free cash flow. Following the positive results, BWXT raised its full-year guidance, which underscores its confidence in its growth potential, particularly in advanced nuclear technology.

Financial Highlights: Double-Digit Growth and Raised Outlook

In the second quarter of 2025, BWXT recorded revenues of $764 million, a 12% increase compared to the same period last year. Organic revenue growth was 4%. Adjusted EBITDA (a non-GAAP measure) rose 16% to $146 million, and non-GAAP adjusted earnings per share (EPS) jumped 24% to $1.02, up from $0.82 in the prior-year quarter. These increases were driven by higher operating earnings and modestly higher other income.

Free cash flow was significantly up, reaching $126 million in Q2 2025, compared to $36 million in the prior-year quarter. Year-to-date free cash flow amounted to $144 million. The company ended the quarter with a record backlog of $6.0 billion, a 70% increase year-over-year.

Following the strong results, BWXT raised its full-year 2025 guidance. The company now anticipates revenues of approximately $3.1 billion, an increase from its previous forecast of around $3.0 billion. The forecast for adjusted EBITDA was raised to a range of $565 million to $575 million, and adjusted EPS guidance was increased to a range of $3.65 to $3.75. Full-year free cash flow is now expected to be between $275 million and $285 million.

Segment Performance: Leading Growth and Strategic Acquisitions

BWXT’s operating segments showed varied but positive performance. The Government Operations segment posted a 9% increase in revenue, driven by an accelerated pace of material procurement, special materials, and the acquisition of A.O.T. Organic revenue growth in this segment was 6%. Adjusted EBITDA rose by 23% to $133 million, with an EBITDA margin of 22.6%. The segment signed a $2.6 billion pricing agreement for naval reactor components and equipment.

The Commercial Operations segment recorded a 24% increase in revenue, fueled by double-digit growth in medical, robust commercial nuclear components growth, and the contribution from the Kinectrics acquisition. Organic revenue in this segment was down 3%. The commercial backlog reached $1.6 billion, a 22% increase quarter-over-quarter and 136% year-over-year, which supports the outlook for mid-teens organic revenue growth in commercial power in 2025. The company completed the acquisition of Kinectrics, Inc. on May 20, 2025, which enhanced its service offerings to the nuclear power and medical markets.

Risks and Future Considerations

BWXT notes that its reports include forward-looking statements subject to risks and uncertainties. These risks include federal budget uncertainty, potential future budget cuts, the ability to win new contracts, and the receipt of government approvals. Additionally, the company faces potential supply chain disruptions, labor market challenges, and regulatory changes. The company states that its 2025 forecasts do not include adjustments for any future changes in market conditions, trade policy, or regulation.

Summary: BWXT – Positive Momentum in Nuclear Technology

BWX Technologies delivered a strong second quarter in 2025, demonstrating its ability to drive growth in both of its operating segments. With notable increases in revenue, adjusted operating profit, and EPS, alongside strong free cash flow and a record backlog, the company is well-positioned for continued growth. Strategic acquisitions in key areas, such as Kinectrics, strengthen the company’s service offerings and enhance its market position. The raised full-year guidance reflects management’s confidence in the company’s potential to capitalize on the new opportunities ahead. This information is provided for professional review purposes only and does not constitute financial or investment advice.