BWX Technologies (BWXT) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 10% YoY to $953.0M, adjusted EBITDA increased 19% to $179.8M, and non-GAAP EPS advanced 26% to $1.26.

• Long-term 2030 targets are $5.5B-$6B revenue and $1.1B-$1.2B adjusted EBITDA, supported by core growth, new awards, capacity expansion, and operational execution.

• Backlog reached $8.556B at September 30, with ~46% expected to convert to revenue by end-2027.

Financial highlights

• Q3 organic revenue growth was 7%; GAAP net income was $102.0M versus $82.2M, and adjusted net income was $116.3M versus $91.7M.

• GAAP diluted EPS rose to $1.11 from $0.89; non-GAAP EPS increased to $1.26 from $1.00.

• Operating cash flow was $202.7M versus $143.2M; free cash flow was $150.5M versus $94.9M on $52.3M capex.

• Consolidated adjusted EBITDA margin was 18.9%, up 150 bps YoY; GAAP operating income increased 17% to $132.1M.

Outlook and guidance

• 2026 guidance: ~$3.80B revenue, ~$667M adjusted EBITDA, non-GAAP EPS of $4.72-$4.77, and free cash flow of $350M-$360M.

• 2026 Government Operations revenue is forecast to grow high-single digits; Commercial Operations revenue growth is ~45%, including mid- to high-teens organic growth and Kinectrics and PCG contributions.

• Preliminary 2027 outlook calls for high-single-digit revenue growth and high-single- to low-double-digit adjusted EBITDA and non-GAAP EPS growth; free cash flow is expected flat to slightly higher.

• 2027 Commercial Operations growth is expected in the low single digits total, with high-single-digit organic growth partly offset by the planned Medical sale; adjusted EBITDA margin is expected to improve 50-100 bps.

• Capex is expected at ~6% of revenue in 2026 and 2027; modest 2027 share repurchases are included in the preliminary EPS outlook.