BWXT Reports Record 2024 Earnings and Positive Outlook

Bwx Technologies Inc ((BWXT)) has held its Q4 earnings call. Read on for the main highlights of the call.

BWX Technologies Inc. recently held its earnings call, revealing a strong financial performance for 2024. The general sentiment was positive, with significant growth in revenue and backlog, driven by strategic investments and acquisitions. Despite challenges such as government operations margins and foreign currency headwinds, the overall outlook remains optimistic.

Record Financial Performance

BWXT reported record-breaking financial metrics for 2024, including revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow. These achievements met or exceeded the company’s full-year guidance, underscoring a successful year.

Backlog Growth

The company concluded 2024 with a backlog of $4.8 billion, a 21% increase from the previous year. This growth was fueled by substantial contract awards across both of BWXT’s operating segments.

Strategic Investments and Acquisitions

BWXT completed the acquisition of A.O.T., enhancing its special materials business line, and announced plans to acquire Kinectrics Inc., with the deal expected to finalize in mid-2025. These strategic moves are set to drive future growth.

Commercial Operations Growth

The commercial power segment saw revenue growth exceeding 10% in 2024, with a record backlog of $930 million, a 19% increase. This supports expectations for continued double-digit growth in the coming year.

Medical Revenue Surge

BWXT Medical experienced a 23% revenue increase in 2024, with EBITDA turning more positive. This surge was driven by the CDMO and PET diagnostics business lines, highlighting the segment’s strong performance.

Government Operations Margin Pressure

The government operations segment faced a decline in adjusted EBITDA margin due to a shift towards less mature programs and increased labor costs, presenting a challenge for the company.

Corporate Expense Timing

Higher corporate EBITDA expenses were noted in Q4, attributed to the timing of healthcare and other expenses, which impacted the quarterly results.

Foreign Currency Headwinds

BWXT’s commercial operations guidance accounted for a foreign currency translation headwind of approximately 5%, influenced by the stronger U.S. dollar against the Canadian dollar.

Forward-Looking Guidance

Looking ahead to 2025, BWXT anticipates revenue of around $3 billion, with mid-single digit growth in government operations and significant growth in commercial operations. The company expects adjusted EBITDA between $550 million and $570 million and non-GAAP EPS of $3.40 to $3.55. Strategic investments, including the expansion of the BWXT Innovation Campus and the acquisition of A.O.T., are expected to bolster capabilities and sustain growth.

In conclusion, BWX Technologies Inc.’s earnings call highlighted a successful 2024 with record financial performance and strategic growth initiatives. Despite some challenges, the company’s outlook remains positive, with expectations for continued growth in 2025.