BWX’s second quarter saw a significant positive market reaction, driven by operational strength in its Government Operations segment and successful integration of recent acquisitions. Management attributed this outperformance to robust execution in special materials and the timing of material procurement, as well as higher backlog growth across both government and commercial markets. CEO Rex Geveden highlighted that “demand across the global security, clean energy and medical end markets is accelerating,” and pointed to a surge in new contract wins, particularly large-scale naval nuclear reactor agreements, as key contributors to the quarter’s strong results.
Is now the time to buy BWXT? Find out in our full research report (it’s free).
BWX (BWXT) Q2 CY2025 Highlights:
- Revenue: $764 million vs analyst estimates of $712.4 million (12.1% year-on-year growth, 7.2% beat)
- Adjusted EPS: $1.02 vs analyst estimates of $0.79 (28.7% beat)
- Adjusted EBITDA: $145.9 million vs analyst estimates of $124.8 million (19.1% margin, 16.9% beat)
- The company lifted its revenue guidance for the full year to $3.1 billion at the midpoint from $3 billion, a 3.3% increase
- Management raised its full-year Adjusted EPS guidance to $3.70 at the midpoint, a 6.5% increase
- EBITDA guidance for the full year is $570 million at the midpoint, above analyst estimates of $556.3 million
- Operating Margin: 13.4%, down from 14.5% in the same quarter last year
- Backlog: $6.02 billion at quarter end
- Market Capitalization: $16.41 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From BWX’s Q2 Earnings Call
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Scott Deuschle (Deutsche Bank) asked for clarification on a $29 million favorable contract adjustment in special materials; CFO Michael Fitzgerald responded that while some of it was planned, the outcome was more favorable than anticipated.
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Jeffrey Leon Campbell (Seaport) questioned the role of new Chief Nuclear Officer Kevin McCoy; CEO Rex Geveden explained McCoy is seconded to the Department of Defense, with Joe Miller promoted to President of Government Operations.
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Robert James Labick (CJS Securities) inquired about the opportunity following regulatory approval to irradiate new isotopes; Geveden confirmed revenue will be royalty-based, with product qualification led by partners.
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Joshua Tyler Korn (Barclays) asked how much the Kinectrics acquisition contributed to guidance increases; Fitzgerald said its impact was modest, with most improvement tied to operational performance and contract timing.
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Peter John Skibitski (Alembic) asked about the pace and motivation behind recent Navy contract awards; Geveden emphasized that supply chain scheduling and shipyard capacity remain central, with recent agreements supporting the long-term production plan.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will focus on (1) further backlog growth from new government and commercial nuclear contracts, (2) the pace of medical isotope revenue expansion and regulatory milestones for new products, and (3) execution of capital projects, particularly the ramp-up of field services and integration of Kinectrics. Progress in microreactor programs and international market penetration will also be closely tracked.
BWX currently trades at $179.54, up from $154.45 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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