Executive Summary

BWXT delivered a stronger-than-expected quarter: revenue $682.3M, GAAP EPS $0.82, non-GAAP EPS $0.91, and adjusted EBITDA $129.8M, with double-digit YoY growth across revenue, EPS, and adjusted EBITDA .
Revenue and EPS beat S&P Global consensus; revenue by ~$36.3M and EPS by ~$0.15, driven by accelerated government materials procurement and solid execution; management reaffirmed full-year guidance *.
Commercial backlog hit a record $1.3B (up 78% YoY) on Pickering steam generators and SMR activity; government bookings remained robust, and strategic wins (SPR operations JV) and enrichment land purchase support medium-term growth .
Management flagged quarterly cadence: Q2 likely the lowest EPS quarter as procurement timing normalizes; H2 to deliver slightly over half of FY EPS, aligning with prior view .

What Went Well and What Went Wrong

What Went Well
- Government Operations: 14% revenue growth and 17% adjusted EBITDA growth; segment adjusted EBITDA margin reached ~21.1% on higher naval components and special materials including A.O.T. contribution .
- Commercial momentum: strong bookings resulting in record $1.3B backlog; Pickering steam generator order completion and SMR reactor pressure vessel activity underpin multi-year visibility .
- Strategic positioning: land acquired in Oak Ridge to advance domestic uranium enrichment (DUECE) pilot; sole-source intent by NNSA underscores differentiation, and SPR award expands DOE services footprint .
- Quote: “We had a solid start to 2025… driven by an increased pace of work and good operational performance” – Rex Geveden, CEO .
What Went Wrong
- Commercial margins compressed: adjusted EBITDA margin ~10.9% on unfavorable mix (lower field services) and specialized raw material inflation (zirconium), with recovery expected via contractual mechanisms in H2 .
- EACs headwind: ~$11M negative EACs split between segments; commercial impacted by zirconium costs; government had smaller mixed items .
- Cadence risk: Q1 EPS outperformance partly timing-related (materials procurement pulled forward); management expects Q2 to be the lowest EPS quarter, creating near-term setup risk if expectations are not recalibrated .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$604.0	$672.0	$746.3	$682.3
GAAP EPS ($)	$0.75	$0.76	$0.77	$0.82
Non-GAAP EPS ($)	$0.76	$0.83	$0.92	$0.91
Operating Income ($USD Millions)	$93.0	$96.6	$92.3	$96.6
Adjusted EBITDA ($USD Millions)	$115.2	$127.0	$130.3	$129.8
Net Income (GAAP) ($USD Millions)	$68.5	$69.6	$71.1	$75.5

Segment Revenue and EBITDA

Segment	Q3 2024 Revenue ($M)	Q4 2024 Revenue ($M)	Q1 2025 Revenue ($M)	Q3 2024 Adj. EBITDA ($M)	Q4 2024 Adj. EBITDA ($M)	Q1 2025 Adj. EBITDA ($M)
Government Operations	$560.1	$595.0	$555.3	$117.0	$116.7	$116.9
Commercial Operations	$113.1	$152.3	$128.3	$13.5	$23.7	$14.0
Corporate	—	—	—	$(3.6)	$(10.1)	$(1.1)

Selected KPIs and Backlog

KPI	Q4 2024	Q1 2025
Government Backlog ($USD Millions)	$3,912.6	$3,583.7
Commercial Backlog ($USD Millions)	$929.9	$1,295.0
Government Bookings ($USD Millions)	$1,762.2	$226.4
Commercial Bookings ($USD Millions)	$446.4	$493.4
Dividend per Share (Declared)	$0.25 (Feb)	$0.25 (May 1, payable Jun 5)

Non-GAAP Adjustments (Q1 2025)

Item	Amount ($USD Millions)
Restructuring & Transformation Costs	$4.8
Acquisition-related Costs	$4.4
Acquisition-related Amortization	$1.8
Delta to Non-GAAP Operating Income	+$11.0 (96.6 → 107.6)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	~$3,000M	~$3,000M	Maintained
Adjusted EBITDA	FY 2025	~$550–$570M	~$550–$570M	Maintained
Non-GAAP EPS	FY 2025	~$3.40–$3.55	~$3.40–$3.55	Maintained
Free Cash Flow	FY 2025	$265–$285M	$265–$285M	Maintained
Corporate EBITDA Expense	FY 2025	Reference $16.8M in FY24	Slightly lower than 2024	Refined lower
Adjusted Effective Tax Rate	FY 2025	+20–40 bps vs 2024 (initial view)	Only slightly higher vs 2024 (improved)	Improved
Gov’t Ops Revenue Growth	FY 2025	—	Mid-single-digit; ~1% from A.O.T.	New detail
Gov’t Ops Adj. EBITDA Margin	FY 2025	—	~20%	New detail
Commercial Revenue Growth	FY 2025	—	~50% (double-digit power, >20% medical, Kinectrics add-on)	New detail
Commercial EBITDA Margin	FY 2025	—	14–15%, lower end more likely (H1 materials inflation)	Refined lower
Dividend	Quarterly	$0.25 (declared Feb)	$0.25 (declared May 1)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Government materials procurement timing	Q3: Higher naval components; Q4: lower long-lead procurement vs 2023	Pulled forward into Q1; Q2 expected lowest EPS as timing normalizes	Timing boost in Q1; normalization in Q2
Commercial backlog and Pickering	Q3: stable; Q4: strong bookings; backlog $929.9M	Record $1.3B backlog; Pickering order completion; book-to-bill >1 ex-Pickering	Accelerating
SMR (BWRX-300)	Q3: early awards; Q4: ongoing SMR components	CNSC construction authorization at Darlington; RPV work ongoing; multiple follow-ons expected	Positive regulatory progress
Enrichment (DUECE)	Q4: strategic initiatives	Oak Ridge land acquired; sole-source intent for pilot; HALEU path; DOE/NNSA engagement	Advancing toward pilot
DOE services (SPR)	Not highlighted earlier	JV awarded ~10-year SPR operations contract (DOE)	Portfolio expansion
Microreactors / ANPI	Q4: microreactor volume	Selected among 8 for DIU ANPI OTA negotiations; uncertain funding/pace	Opportunity with uncertainty
Commercial materials inflation	Not noted	Zirconium cost spike; contractual recovery starts H2	Temporary headwind
Medical (Tech-99/Mo-99, Actinium-225)	Q3/Q4: growth; development ongoing	Tech-99 approval window still 2025 but could slip into early 2026; actinium progress continues	Gradual progress; timing risk
Tariffs/cross-border	Not emphasized	Products under USMCA; radiopharmaceuticals exempt; monitoring zirconium/tariff noise	Managed risk

Management Commentary

Prepared remarks: “Our vertically integrated nuclear capabilities… enable our customers to put their trust in BWXT to support their most important programs through all economic cycles in the global security, clean energy, and nuclear medicine markets” – Rex Geveden .
Segment guidance tone: Gov’t Ops mid-single-digit revenue growth with ~20% margin; Commercial ~50% revenue growth but margin at lower end due to H1 raw material costs .
Strategic scope: “NNSA published its intent to award the domestic uranium enrichment… sole-source contract… For that purpose, we acquired 97 acres of land in Oak Ridge, Tennessee” – Rex Geveden .
DOE services: “APTIM and BWXT… awarded [SPR] contract… manage and operate… vital part of the nation’s energy infrastructure” – BWXT Technical Services Group .

Q&A Highlights

EACs: ~$11M negative EACs split ~50/50 between segments; commercial impact from zirconium input cost spike, with recovery in H2 and into 2026 .
Quarterly cadence: Q1 EPS beat partly timing; Q2 expected lowest; H2 >50% of FY EPS, matching prior cadence .
Enrichment program: conceptual design → sole-source pilot plant; HALEU pathway to reduce investment vs broad LEU; unobligated U.S. materials required .
ANPI microreactor program: down-select to 8; OTAs outside FAR; funding/probabilities uncertain; BWXT eligible to negotiate .
Tariff/macro: USMCA covers radiopharmaceuticals; zirconium price surge managed via customer pass-through and hedging; main exposure is materials imported into Canada .
AUKUS/SSN-AUKUS: early scope derisks outlook; cost-reimbursable capital projects, ramping toward AUKUS .

Estimates Context

EPS and Revenue vs S&P Global Consensus

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue Actual ($USD Millions)	$672.0	$746.3	$682.3
Revenue Consensus ($USD Millions)*	$658.5*	$720.0*	$646.0*
Revenue Beat/(Miss) ($USD Millions)*	$13.5*	$26.3*	$36.3*
EPS Actual (Non-GAAP, $)	$0.83	$0.92	$0.91
EPS Consensus ($)*	$0.775*	$0.817*	$0.764*
EPS Beat/(Miss) ($)*	$0.055*	$0.103*	$0.146*
# EPS Estimates*	8*	7*	8*
# Revenue Estimates*	8*	8*	9*

Values retrieved from S&P Global.*
Note: Company reports “Adjusted EBITDA”; S&P Global “EBITDA Consensus Mean” may differ in definition. For reference, Q1 2025 adjusted EBITDA was $129.8M ; S&P EBITDA consensus was ~$118.6M*, and S&P actual EBITDA recorded ~$101.2M*, reflecting definitional differences.*

Implications for estimates:

Near-term recalibration likely: Q2 EPS expected to be the lowest due to procurement timing; full-year reaffirmed implies back-half weighting; consensus may need to shift intra-quarter and normalize Q2 .
Commercial margins: lower-end EBITDA margin (14–15%) now more likely for FY due to H1 material costs; models should reflect H1 compression with H2 recovery .
Segment trajectories: Gov’t Ops ~20% adjusted EBITDA margin and mid-single-digit revenue growth; Commercial ~50% revenue growth with Kinectrics contribution; backlog provides visibility .

Key Takeaways for Investors

Beat-and-reaffirm quarter: Strong revenue/EPS beats and unchanged FY guide reduce downside risk; expect Q2 digestion on procurement timing before H2 acceleration .
Government resilience: ~21.1% segment margin in Q1 and continued prioritization of naval nuclear propulsion underpin stable growth and margin quality .
Commercial growth inflection: Record backlog on Pickering/SMR; near-term margin headwinds from materials should abate by H2 with contractual cost recovery .
Strategic catalysts: SPR operations award and enrichment pilot plant positioning expand addressable market and diversify earnings streams .
Cadence matters: Trade the setup—Q2 softness expected; H2 strength anticipated. Adjust positions around procurement normalization and segment margin recovery .
Medical optionality: Tech-99 approval window remains 2025 but could slip; actinium-225 progress continues; upside as radiotherapeutics volumes expand .
Governance update: CFO transition to interim CFO (Mike Fitzgerald) post-quarter; continuity expected given internal appointment and special advisor role .

Additional Data and Context

Dividend: $0.25 per share declared May 1; payable June 5 to holders of record May 19 .
Segment margins (Q1 2025): Gov’t Ops adjusted EBITDA margin ~21.1%; Commercial ~10.9% .
Non-GAAP bridge: Q1 adjustments lifted operating income by ~$11M and EPS by ~$0.09; key items include restructuring, acquisition costs, and acquisition-related amortization .
Strategic commercial awards: Pickering 48 steam generators (C$1B+ contracts with CanAtom); BWRX-300 reactor pressure vessel work ongoing .
Kinectrics closed May 20; enhances lifecycle services and medical isotope capabilities within Commercial Operations .

BWX Technologies, Inc. (BWXT)·Q1 2025 Earnings Summary