BWX Technologies (BWXT) Q4 2024 earnings summary

Executive summary

• 2024 delivered record annual revenue of $2.7B, adjusted EBITDA of $499M, adjusted EPS of $3.33, and free cash flow of $255M, all meeting or exceeding guidance.

• Q4 2024 revenue was $746M, up 3% year-over-year, led by strong Commercial Operations, while Government Operations saw a slight decline.

• Backlog ended at $4.84B, up 21% year-over-year, driven by large contract awards in both operating segments.

• Strategic investments and acquisitions, including the completed AOT acquisition and pending Kinectrics deal, are expanding capabilities and market reach.

• Strong demand in national security, clean energy, and medical markets is fueling growth and bookings.

Financial highlights

• Q4 revenue was $746M, up 3% organically; full-year free cash flow reached $255M, up 20% year-over-year.

• Adjusted EBITDA for Q4 was $130M (down 12% YoY); full-year adjusted EBITDA grew 6% to $499M.

• Adjusted EPS for Q4 was $0.92 (vs. $1.01 YoY); full-year adjusted EPS up 10% to $3.33.

• 2024 net income was $282.3M, up 15% year-over-year.

• Adjusted effective tax rate for 2024 was 21.7%, below guidance, with a $6M Q4 benefit from tax planning.

Outlook and guidance

• 2025 revenue expected at ~$3B, with mid-single-digit growth in government operations and mid-teens to nearly 50% growth in commercial operations, including Kinectrics.

• Adjusted EBITDA guidance for 2025 is $550M–$570M; non-GAAP EPS guidance is $3.40–$3.55.

• Free cash flow expected at $265M–$285M in 2025, with CapEx at 5–6% of sales.

• Kinectrics acquisition expected to close mid-2025, contributing ~$150M revenue and ~$20M EBITDA in 2025.

• Tax rate expected to rise 20–40bps in 2025 due to geographic mix shift.