BWX Technologies' Q2 2025 revenue hits $764m amid strong bookings

Marine nuclear propulsion specialist BWX Technologies (BWXT) recently reported its second quarter 2025 financial results, highlights of which include revenues of US$764 million, net income of US$78.5 million, and adjusted gross operating profit of US$145.9 million.

Q2 2025 also saw the company enter into a pricing agreement for naval reactors and components and booked over US$1 billion of a US$2.6 billion total contract value.

“We had exceptionally strong second quarter 2025 financial results driven by solid operational performance and pacing of work, particularly in government operations, which was complemented by robust bookings in both segments, leading to record backlog,” said Rex D. Geveden, BWXT's President and Chief Executive Officer.

“The demand for nuclear solutions in the global security, clean energy, and medical markets continues to accelerate,” continued Geveden. “In our ten years as a standalone public company, BWXT has built significant industrial scale, leading to one of the broadest and highest quality portfolios in the nuclear market.”

“Based on our strong year-to-date results, robust bookings, and favorable market outlook, we are increasing our 2025 financial guidance metrics,” said Geveden.

“We now expect adjusted [gross operating profit] of US$565 million to US$575 million, adjusted EPS of US$3.65 to US$3.75, and free cash flow of US$275 million to US$285 million.”

Revenues

Second quarter revenue increased in both of BWXT's operating segments. The government operations segment revenue increase was driven by higher naval nuclear component production, special materials processing, and contribution from the acquisition of AOT, partially offset by lower microreactor volumes.

The commercial operations segment revenue increase was driven by higher revenue associated with commercial nuclear components, higher medical sales, and contribution from the acquisition of Kinectrics, partially offset by lower field services activity due to the timing of life-extension and outage projects, as well as lower fuel handling revenue.

Operating income and adjusted gross operating profit

Second quarter GAAP operating income increased as an increase in government operations was partially offset by lower commercial operations and higher corporate expense, as well as restructuring and transformation, and acquisition related costs.

Second quarter non-GAAP operating income increased as an increase in government operations and lower corporate expense was partially offset by lower commercial operations. The government operations increase was driven by higher revenue and solid operational performance.

The decrease in commercial operations was mainly due to revenue mix, related to the timing of life-extension and outage projects mentioned above, and growth investments.

Second quarter adjusted gross operating profit increased for the reasons noted above.

Cash flows

Second quarter operating cash flow increased driven by higher net income, working capital management, and timing of awards.

Capital expenditures increased slightly due to timing of select growth investments, including the previously announced expansion of the company's Cambridge manufacturing plant that supports the commercial nuclear market.