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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $953 mln | $970.40 mln (15 Analysts) |
Q3 EPS | $1.11 | ||
Q3 Net Income | $102 mln | ||
Q3 Adjusted EBITDA | Beat | $179.7 mln | $167.53 mln (14 Analysts) |
Q3 Free Cash Flow | $150.5 mln |
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
Reuters Recommended Reads
Nov 2 - Guerrilla RF Q3 revenue rises 61% on aerospace & defense demand
Nov 2 - Military production for navies up 50% in past two years, Naval Group says
Nov 2 - Greece finalises deal to buy Embraer KC-390 aircraft
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)