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Mar 31, 2021

BWX Technologies Q1 2021 Earnings Report

BWX Technologies' first quarter performance reflected solid earnings and strategic milestones.

Key Takeaways

BWX Technologies reported a decrease in revenue to $528 million compared to $542 million in the first quarter of 2020. Earnings per share were $0.73. The company highlighted new wins in microreactor programs, agreements and progress in medical isotopes, and the completion of a multi-year pricing agreement with Naval Reactors, contributing to a robust backlog of nearly $5.2 billion.

Generated earnings of $0.73 per share on revenue of $528 million.

Maintained a strong backlog of nearly $5.2 billion, driven by Naval Reactors bookings and other wins.

Reiterated 2021 non-GAAP earnings guidance of $3.05 to $3.20 per share.

Commenced a new multi-year guidance framework for growth, free cash flow, and capital allocation.

Total Revenue
$528M
Previous year: $542M
-2.6%
EPS
$0.73
Previous year: $0.79
-7.6%
Dividends Paid
$20.3M
Previous year: $18.6M
+9.1%
Net Cash from Operations
$98.4M
Previous year: -$6.45M
-1626.3%
Capital Expenditures
$102M
Previous year: $64.8M
+57.4%
Gross Profit
$135M
Previous year: $150M
-9.5%
Cash and Equivalents
$57.7M
Previous year: $77.6M
-25.7%
Free Cash Flow
-$3.52M
Previous year: -$71.2M
-95.1%
Total Assets
$2.35B
Previous year: $1.97B
+19.6%

BWX Technologies

BWX Technologies

Forward Guidance

BWXT reiterated all components of 2021 guidance:

Positive Outlook

  • Non-GAAP EPS range of $3.05 – $3.20 (excludes pension and post-retirement benefits mark-to-market)
  • Consolidated revenue growth of low-single digits vs. 2020 results
  • NOG revenue up slightly
  • NPG revenue growth of ~6%
  • NOG operating margin of “high teens” with upside from CAS pension reimbursement

Challenges Ahead

  • The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results.
  • These items could cause GAAP results to differ materially from non-GAAP results.
  • NPG operating margin of ~13%
  • NSG operating income range of $25-30 million
  • Capital expenditures of ~$250 million