10-Q · August 4, 2026
BWXT posted a strong Q2, with revenue rising 18.0% year over year to $901.625 million and operating margin improving to 12.7% from 11.0% a year earlier and 9.9% in Q1 2026. Commercial Operations was the clear driver,…
Earnings analysis · 10-Q
BWXT earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
BWXT delivered a strong third quarter, with revenue up 10.0% year over year to $952.972 million and operating income up $18.728 million to $132.077 million, implying an operating margin of approximately 13.9%.…
Read full summary
BWXT delivered a strong third quarter, with revenue up 10.0% year over year to $952.972 million and operating income up $18.728 million to $132.077 million, implying an operating margin of approximately 13.9%. Government Operations drove the profit improvement through a 19.2% margin, while Commercial Operations grew revenue 25.2% but saw margin decline to 8.4%. Operating cash flow improved to $451.7 million for the first nine months, and liquidity was supported by $585.595 million of cash and investments plus $1,248.6 million of available revolver capacity. The principal offsets are $1.9709 billion of unfunded government backlog, commercial margin pressure and execution risk around the medical divestiture and PCG integration.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.26
- Operating margin
- 13.9%
What stood out
-
Revenue and operating income grew
Third-quarter revenue increased 10.0% year over year to $952.972 million from $866.286 million, while total operating income rose $18.728 million to $132.077 million. Consolidated operating margin was approximately 13.9%.
-
Government segment margin expanded
Government Operations revenue increased $22.379 million to $639.076 million, and operating income increased $25.226 million to $122.597 million. Segment margin expanded to 19.2% from 15.8% a year earlier.
-
Commercial revenue accelerated
Commercial Operations revenue rose $63.231 million, or 25.2%, to $314.202 million, driven partly by $26.2 million of revenue from the PCG acquisition and $15.3 million from higher on-site inspection, maintenance, modification and refurbishment work.
-
Operating cash flow improved
Nine-month operating cash flow increased $98.9 million year over year to $451.7 million, from $352.9 million. Cash growth was attributed to favorable timing of vendor payments, customer billings and project cash flows, plus higher net income.
-
Backlog reached a record level
Backlog increased to $8.5562 billion at September 30, 2026 from $7.261 billion at December 31, 2025. Government backlog was $6.482 billion and Commercial Operations backlog was $2.074 billion.
-
Liquidity remained strong
Cash, cash equivalents, restricted cash and investments increased to $585.595 million at September 30, 2026 from $515.447 million at December 31, 2025, while the company reported $1,248.6 million of available revolving-credit capacity and no outstanding borrowings.
What to watch
-
Unfunded government backlog
The filing reports $1.9709 billion of unfunded U.S. Government backlog within total backlog of $8.5562 billion. Government contracts remain subject to annual Congressional appropriations, continuing resolutions and potential program or schedule changes.
-
Commercial margin contraction
Commercial Operations operating margin declined to 8.4% from 9.5% a year earlier despite revenue growth of $63.231 million. Management cited a $1.2 million increase in acquisition and restructuring expenses and an unfavorable product mix.
-
Divestiture and debt execution risk
The medical business was classified as held for sale after BWXT entered an agreement valued at up to $800 million; completion is subject to regulatory approvals and is expected in 2026 or the first quarter of 2027. The company also carries $1.25 billion of 0% convertible notes due 2030.
-
Working-capital and obligations risk
Working capital declined $47.4 million to $840.9 million at September 30, 2026, despite higher cash. The company also reported $361.0 million of outstanding surety bonds and $37.6 million of bilateral letters of credit and bank guarantees.
Management's outlook
No explicit revenue or EPS guidance was provided. Management expects to recognize approximately 46% of the $8.5562 billion backlog by the end of 2027; approximately $1.9709 billion of backlog is unfunded. The filing states that $1.4 billion of unexercised options is excluded from backlog, including $900 million expected in 2030 and $500 million in 2035, subject to appropriations. Management expects sufficient liquidity to satisfy cash requirements for the next 12 months and beyond.
Earlier filings 4
10-Q · August 3, 2026
BWXT delivered $901.625 million of Q2 revenue, up 18.0% year over year, and operating income of $114.136 million, up $11.712 million; the resulting 12.7% operating margin improved from 11.0% a year ago and 9.9% in Q1…
10-Q · May 4, 2026
BWX Technologies reported robust Q1 2026 results with revenues of $860.2 million, a 26.1% increase year-over-year, and EPS of $1.12, exceeding expectations markedly. The Commercial Operations segment saw a significant…
10-K · February 23, 2026
BWXT reported a strong FY2025 top-line with pro forma revenue of ~$3.20B (sum of four quarters) and materially expanded backlog to $7,260.7 million at December 31, 2025 (up from $4,843 million at year-end 2024).…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.