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Sep 30, 2021

BWX Technologies Q3 2021 Earnings Report

BWX Technologies reported its strongest quarter year-to-date, with solid execution across all business areas, but narrowed its 2021 guidance due to pandemic headwinds and unfavorable government contract award timing.

Key Takeaways

BWX Technologies reported Q3 2021 revenue of $499 million, a 4% decrease compared to Q3 2020. GAAP net income was $59.9 million, or $0.63 per diluted share, while non-GAAP net income was $72.0 million, or $0.76 per diluted share. The company returned $166 million to shareholders through share repurchases in Q3 2021 and narrowed its 2021 non-GAAP EPS guidance to the low end of the initial range.

Third quarter GAAP earnings per share was $0.63, while non-GAAP earnings per share was $0.76.

The company narrowed 2021 non-GAAP earnings per share guidance to the low end of the initial range.

BWXT returned $166 million of cash to shareholders in Q3 2021 through share repurchases.

Nuclear Operations Group revenue was consistent with the prior-year period, while Nuclear Power Group revenue decreased by 23%.

Total Revenue
$499M
Previous year: $520M
-4.1%
EPS
$0.76
Previous year: $0.79
-3.8%
Dividends Paid
$19M
Previous year: $18.1M
+5.0%
Net Cash from Operations
$67.3M
Gross Profit
$137M
Previous year: $146M
-6.1%
Cash and Equivalents
$69.4M
Previous year: $44.7M
+55.3%
Free Cash Flow
$769K
Previous year: -$72M
-101.1%
Total Assets
$2.49B
Previous year: $2.12B
+17.2%

BWX Technologies

BWX Technologies

Forward Guidance

BWXT narrowed its 2021 non-GAAP EPS guidance to $3.05, which is the low end of the initial range. The company expects consolidated revenue to be flat to up 1% vs. 2020 results.

Positive Outlook

  • Consolidated revenue flat to up 1% vs. 2020 results
  • NPG revenue up ~9%
  • NOG operating margin of “high teens” with upside from CAS pension reimbursement
  • NPG operating margin of ~12.5%
  • NSG operating income of ~$25 million

Challenges Ahead

  • Non-GAAP EPS of $3.05 which is the low end of initial range of $3.05 to $3.20 (excludes pension and post-retirement benefits mark-to-market)
  • NOG revenue down ~1%
  • Capital expenditures of ~$280 million
  • Pandemic headwinds
  • Unfavorable government contract award timing