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Sep 30, 2022
BWX Technologies Q3 2022 Earnings Report
BWX Technologies' Q3 2022 performance was in line with expectations, driven by strong Commercial Operations and cost control initiatives offsetting Government Operations headwinds.
Key Takeaways
BWX Technologies reported Q3 2022 revenue of $523.7 million with a net income of $61.8 million and diluted EPS of $0.67. Strong performance in Commercial Operations and cost control offset challenges in Government Operations. The company is narrowing its 2022 guidance but expects strong revenue and EBITDA growth in 2023.
Revenue for Q3 2022 reached $523.7 million.
Net income for Q3 2022 was $61.8 million, with adjusted EBITDA at $100.1 million.
Diluted GAAP EPS for Q3 2022 was $0.67, and non-GAAP EPS was $0.69.
Net cash from operating activities in Q3 2022 was $65.0 million, with free cash flow at $25.4 million.
BWX Technologies
BWX Technologies
BWX Technologies Revenue by Segment
Revenue by Segment
Government Operations Revenue
CapyFin.comCommercial Operations Revenue
CapyFin.com Forward Guidance
BWXT is narrowing its 2022 earnings guidance but anticipates strong operational growth in 2023 and accelerating growth over the medium-term, driven by new wins, growth initiatives, and positive secular tailwinds in nuclear end-markets.
Positive Outlook
- Strong revenue and EBITDA growth is expected in 2023.
- The company is benefiting from new wins and recent growth initiative progress.
- Positive secular tailwinds are present in BWXT’s nuclear end-markets.
- Technetium 99-m generator application accepted by FDA with priority review classification
- BWXT clean-energy business was awarded a contract from GE-Hitachi to begin engineering for its BWRX-300 small modular reactor (SMR) pressure vessel
Challenges Ahead
- 2022 earnings guidance is being narrowed by bringing down the top-end of the range.
- Government Operations segment faced headwinds due to lower than projected production volumes.
- Hiring challenges in a tough macro labor market impacted production volumes.
- Attrition and transitory labor shortages are affecting the company.
- Decreased operating cash flow was driven by higher cash taxes
Revenue & Expenses
Visualization of income flow from segment revenue to net income