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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%.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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