BWX Technologies (NYSE:BWXT) executives said the company finished “a record 2025” with fourth-quarter results that exceeded internal expectations, citing strong demand across nuclear end markets, expanding backlog, and momentum in commercial nuclear power and medical isotopes.
2025 performance and backlog growth
CEO Rex Geveden said full-year 2025 revenue grew 18% while adjusted EBITDA increased 15%. He added that earnings per share rose 20% and free cash flow increased 16%, with results surpassing the company’s initial guidance provided at the start of the year.
Strategic moves and facility investments
Management pointed to acquisitions completed during the year, including AOT and Kinectrics, as strategic enablers for recent wins. Geveden cited the $1.6 billion high-purity depleted uranium contract and BWXT’s selection for an owner’s engineer role for Bulgaria’s Kozloduy AP1000 project as examples of capabilities strengthened by those acquisitions.
The company also highlighted investments intended to expand capacity and modernize operations. Geveden noted the grand opening of the BWXT Innovation Campus for advanced nuclear and microreactor businesses and continued expansion at its large nuclear component plant in Cambridge. He said BWXT completed construction of the Centrifuge Manufacturing Development Facility and is designing a new high-purity depleted uranium manufacturing facility to support the National Nuclear Security Administration (NNSA). He also said BWXT opened a Digital Center in Melbourne, Florida, to serve as a hub for digital transformation and AI initiatives.
Segment results: government steadier, commercial surging
In the fourth quarter, CFO Mike Fitzgerald said total revenue was $886 million, up 19% year over year, as “strong growth in commercial operations was partially offset” by an expected, modest decline in government operations. Organic revenue rose 4%.
Adjusted EBITDA totaled $148 million, up 13%, driven by double-digit growth in commercial operations and lower corporate expense, partly offset by lower government results. Adjusted EPS was $1.08, up 17%, including approximately $0.05 from higher contributions from non-operating items. Fourth-quarter free cash flow was $57 million, while full-year free cash flow was $295 million, up 16% year over year.
In Government Operations, fourth-quarter revenue declined 1% and adjusted EBITDA fell 5%, which Geveden said was slightly ahead of expectations. Fitzgerald said special materials and AOT contributions were offset by lower microreactor volumes and a shift in long-lead material procurement for naval propulsion equipment that benefited the first three quarters of the year. Segment adjusted EBITDA was $111 million, with an 18.8% margin, below the full-year margin of 20.4% due to mix as newer projects ramped.
In Commercial Operations, BWXT reported 31% organic revenue growth and 95% total revenue growth in the quarter, reflecting strength in commercial nuclear power and medical along with Kinectrics. Segment adjusted EBITDA rose 87% to $44 million, and the adjusted EBITDA margin improved to 14.9%.
Geveden said commercial segment backlog entering 2026 was $1.7 billion, up 85% from the prior year and up 16% sequentially, driven by CANDU refurbishment equipment and SMR component design awards.
Operational updates: naval, fuels, microreactors, and medical
In naval propulsion, Geveden said BWXT shipped two large steam generators for CVN-81, a Ford-class aircraft carrier, from its Mount Vernon, Indiana facility. He said BWXT is considering an expansion at Mount Vernon to supply the U.S. commercial nuclear market, and later added in Q&A that co-locating defense and commercial activity could create synergies such as shared radiography assets and shared heavy-lift capabilities, while still segregating the businesses “for certain reasons, financially.”
In technical services, Geveden said a team led by BWXT, including Kinectrics, assumed a management and operations contract for Canadian Nuclear Laboratories, calling it the company’s first international project in the area. He also said BWXT was an awardee on the Missile Defense Agency’s “Golden Dome” shield contract, positioning the company to compete for infrastructure support and engineering and manufacturing technology development.
In microreactors and advanced fuels, Geveden said BWXT delivered the first TRISO fuel core for Project Pele to Idaho National Laboratory in November and is also manufacturing TRISO fuel for Antares, which aims to reach reactor criticality by July 4 of this year. In Q&A, he said the Pele reactor is expected to undergo testing in the 2027–2028 timeframe and described Project Janus as a follow-on opportunity currently in procurement. He also said BWXT continues work with NASA on nuclear thermal propulsion outside the DRACO program and sees opportunity in fission surface power for a lunar base.
In medical, Geveden said BWXT Medical surpassed $100 million in annual revenue, up about 20%, with double-digit growth in diagnostic isotopes, increased actinium sales, and steady growth in TheraSphere. He said the company expects similar growth in 2026 and is making “measured investments” as it works to industrialize Tech 99 and explores additional isotope production modalities, including Actinium-225 and Lead-212. In response to an analyst question, Geveden said the company has not yet submitted Tech 99 to the FDA and did not include Tech 99 revenue in 2026 guidance, calling any contribution an upside.
Capital structure, 2026 outlook, and key themes from Q&A
Fitzgerald said BWXT completed a $1.25 billion convertible debt offering with a 0% coupon and entered into a cap call transaction that increased the conversion price to over $396. Proceeds were used to repay balances on its credit facility and term loan, which the company renegotiated for “more favorable terms and increased capacity.” He said liquidity stood at $1.7 billion at year-end.
For 2026, BWXT guided to revenue of approximately $3.75 billion, representing “high-teens” growth. Fitzgerald said the company expects:
- Government Operations revenue growth in the low-to-mid teens, with more than half from Defense Fuels and high-purity depleted uranium (HPDU) contracts
- Commercial Operations growth of about 25%, driven by low-double-digit commercial power growth, high-teens medical growth, and a full year of Kinectrics
Adjusted EBITDA guidance was $645 million to $660 million, up low-to-mid teens. Fitzgerald said Government Operations margins are expected to be “slightly lower” due to the early phases of new programs, where profit recognition expands as milestones are met and risk declines. He said earnings are expected to be more back-half weighted than usual, with roughly 55% of full-year EBITDA anticipated in the second half, and noted first-quarter seasonality and mix could make first-quarter EBITDA roughly flat year over year in Government Operations while Commercial Operations margins start lower and improve sequentially.
Non-GAAP EPS guidance was $4.55 to $4.70, and free cash flow guidance was $305 million to $320 million.
During Q&A, management addressed several additional topics, including:
- Government margin trajectory: Fitzgerald said he does not see “incremental pressure” in 2027 and expects a rebound as new programs mature.
- AI deployment: Geveden described three phases—machine-learning applications in manufacturing (including weld monitoring to reduce rework), broader use of large language models to improve efficiencies, and factory automation with digitized quality records, automated inspection, and digital twins.
- Supply chain/shipyards: Geveden said BWXT is continuing at its delivery pace and is encouraged by improving shipyard throughput.
- Tariffs/Canada: Geveden said BWXT has not seen an impact so far and noted that under the USMCA framework, there are no tariffs on medical products or nuclear components, while acknowledging the agreement is being renegotiated.
- Commercial capacity and M&A: Management said it is looking for U.S. capacity “first and soonest,” with interest in acquisition targets and potential investment at Mount Vernon, alongside investments to improve throughput with operational excellence and technology.
Geveden closed by calling 2025 “monumental” and said BWXT’s priorities include executing on backlog, process optimization, adopting new technologies across the organization, and pursuing disciplined organic and inorganic investments.
About BWX Technologies (NYSE:BWXT)
BWX Technologies, Inc (NYSE: BWXT) is a specialized supplier of nuclear components and services, primarily serving the U.S. government and commercial markets. The company’s core expertise lies in the design, fabrication and servicing of nuclear propulsion systems for the U.S. Navy, where it supports the maintenance and overhaul of naval nuclear reactors. In addition to defense applications, BWXT develops small modular reactors (SMRs), nuclear fuel and related technologies for non‐defense power generation, offering scalable solutions to meet evolving energy and industrial demands.
Beyond propulsion and power systems, BWXT is a leading producer of medical radioisotopes used in diagnostic imaging and cancer treatment.
