BWX Technologies, Inc.

BWX Technologies, Inc. (NYSE: BWXT) supplies nuclear components, fuel, engineering and services. Government work includes naval propulsion and specialized materials. Commercial customers buy nuclear equipment, plant services and fuel-handling systems.

Third-quarter performance

Amounts are USD millions, except per-share figures, for the three months ended September 30.

Adjusted EBITDA excludes interest, taxes, depreciation and amortization, along with specified restructuring, transformation and acquisition costs. Adjusted earnings per share also remove acquisition-related amortization. Free cash flow is operating cash flow less cash purchases of property, plant and equipment.

Government revenue rose 4% to $639.1 million. Commercial revenue rose 25% to $314.2 million, helped by the completed PCG acquisition and more inspection, maintenance and refurbishment work.

The path from 2026 guidance to 2027

In August, BWXT raised its 2026 adjusted EBITDA range to $662 million to $672 million, adjusted earnings per share to $4.70 to $4.80 and free cash flow to $345 million to $360 million.

The November update puts adjusted EBITDA near $667 million, the old range's midpoint. Adjusted earnings per share are now expected at $4.72 to $4.77, and free cash flow at $350 million to $360 million. Revenue guidance remains around $3.8 billion.

The September 29 framework called for high-single-digit revenue and adjusted EBITDA growth in 2027. November's preliminary outlook retains high-single-digit revenue growth but lifts expected adjusted EBITDA growth to high single digits to low double digits. Adjusted earnings per share are also expected to grow by high single digits to low double digits.

Free cash flow is expected to be flat to slightly higher in 2027. Working-capital investment limits expected operating-cash-flow growth, while capital spending is expected to remain around 6% of sales.

Acquisitions and the medical-business sale

BWXT completed the Precision Components Group acquisition on July 1, 2026. The current quarterly filing records an approximate $216.8 million purchase price. PCG includes Precision Custom Components and DC Fabricators and adds U.S. capacity for heavy-walled and heat-transfer components.

Earlier acquisitions include Aerojet Ordnance Tennessee on January 3, 2025, and Kinectrics on May 20, 2025.

The proposed medical-business sale to Nordic Capital covers BWXT Medical and Kinectrics' stable medical isotope business, with a transaction value of up to $800 million. BWXT would retain a minority stake. The sale remains subject to regulatory approvals, with completion expected in 2026 or the first quarter of 2027. The 2027 outlook assumes a year-end 2026 closing.

Cash and debt

For the first nine months of 2026, operating cash flow was $451.7 million, compared with $352.9 million a year earlier. After capital spending, our calculation leaves $315.5 million, versus $238.5 million. Acquisition cash payments are separate from that measure.

At September 30, cash and equivalents were $568.5 million and long-term debt had a carrying value of $2.022 billion.

The next results can test whether the stronger 2027 earnings outlook survives the medical-sale timing and how much cash contract delivery and capital spending require.