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Dec 31, 2020

BWX Technologies Q4 2020 Earnings Report

Reported solid results in Q4 2020, marking new annual records for revenue and earnings and achieved long-term guidance.

Key Takeaways

BWX Technologies reported record revenue of $557 million in Q4 2020, an 11% increase compared to Q4 2019. GAAP net income for the quarter was $65.7 million, or $0.69 per diluted share, while non-GAAP net income was $70.9 million, or $0.74 per diluted share. The company achieved its long-term EPS guidance and issued 2021 guidance with non-GAAP EPS range of $3.05 to $3.20 on low-single digit consolidated revenue growth.

Generated Q4 2020 EPS of $0.69 (GAAP), $0.74 (non-GAAP), up 8% and 4% respectively vs. Q4 2019.

Reported record quarterly revenue of $557 million in Q4 2020.

Increased quarterly dividend 11% to $0.21 per share.

Achieved low-double-digit compounded non-GAAP EPS growth compared with 2017 results.

Total Revenue
$557M
Previous year: $501M
+11.1%
EPS
$0.74
Previous year: $0.71
+4.2%
Net Cash from Operations
$48.3M
Previous year: $188M
-74.3%
Gross Profit
$143M
Previous year: $140M
+2.1%
Cash and Equivalents
$42.6M
Previous year: $86.5M
-50.8%
Free Cash Flow
-$26.7M
Previous year: $129M
-120.7%
Total Assets
$2.29B
Previous year: $1.91B
+20.1%

BWX Technologies

BWX Technologies

Forward Guidance

BWXT issued 2021 guidance with non-GAAP EPS range of $3.05 to $3.20 on low-single digit consolidated revenue growth.

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

  • NPG operating margin of ~13%
  • NSG operating income range of $25-30 million
  • Capital expenditures of ~$250 million
  • 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.