BWX Technologies Q3 revenue rises less than expected; sees high-single-digit revenue growth in 2027

Overview

• US nuclear solutions provider's Q3 revenue rose 10% yr/yr but missed analyst expectations

• Q3 adjusted EBITDA beat analyst expectations; non-GAAP EPS grew 26% yr/yr

• Company tightened 2026 non-GAAP EPS and free cash flow guidance, introduced 2027 growth outlook

Outlook

• BWXT tightens 2026 non-GAAP EPS guidance to $4.72-$4.77 from $4.70-$4.80

• Company maintains 2026 revenue outlook at ~$3.8 bln

• BWXT introduces preliminary 2027 outlook for high-single-digit revenue and EPS growth

Result Drivers

• GOVERNMENT OPERATIONS - Q3 revenue growth in government segment driven by higher sales in special materials and advanced nuclear, partially offset by lower naval propulsion volume

• COMMERCIAL OPERATIONS - Q3 commercial segment revenue rose due to increased sales of nuclear components, services and medical, partially offset by slightly lower fuel handling revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for BWX Technologies Inc is $194.50, about 48.8% above its October 30 closing price of $130.70

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 34 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)