Sign in
BT

BWX Technologies, Inc. (BWXT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered revenue of $746.3M, GAAP EPS of $0.77, non-GAAP EPS of $0.92, and adjusted EBITDA of $130.3M; FCF surged to $224.4M on strong working capital execution .
  • Full-year 2024 records: revenue $2.704B, non-GAAP EPS $3.33, adjusted EBITDA $498.7M, operating cash flow $408.4M; dividend increased to $0.25 per share for March 2025 .
  • 2025 guidance initiated: revenue ~$3.0B, adjusted EBITDA $550–$570M, non-GAAP EPS $3.40–$3.55, FCF $265–$285M; tax rate guided ~22% (down ~100 bps vs historic) supported by favorable tax planning .
  • Catalysts: $2.1B Navy reactor component awards (Feb-19), >C$1B Pickering steam generators and BWRX-300 RPV, and pending Kinectrics acquisition to expand commercial power and nuclear medicine services .

What Went Well and What Went Wrong

What Went Well

  • Commercial Operations accelerated: Q4 revenue up 23% YoY to $152.3M; segment adjusted EBITDA rose to $23.7M; medical revenue grew 23% in 2024 with improving profitability .
  • Record bookings and backlog: Q4 bookings $2.209B; YE backlog $4.842B (+21% YoY), driven by naval propulsion, special materials, long-term technical services, and Canadian power projects .
  • Tax planning reduced ETR: adjusted ETR 18.9% in Q4 and 21.7% FY; CFO: “permanently reduce our tax rate by over 100 bps per year” with expected ~$6M annual PBT benefit and refunds for 2020–2023 .

What Went Wrong

  • Government Operations margin pressure: Q4 GEO adjusted EBITDA fell to $116.7M (from $131.3M) on mix shift to earlier-stage programs and absence of prior-year favorable contract adjustments; Q4 GEO revenue declined slightly YoY to $595.0M .
  • Corporate costs timing and stock comp increased Q4 corporate expense, weighing on consolidated operating income (down to $92.3M vs $123.2M in Q4’23) .
  • Tariff risk overhang: management highlighted potential headwinds for Canada-manufactured medical products exported to the U.S., with a plan to work with customers to mitigate pricing pressure .

Financial Results

Consolidated Quarterly Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$681.5 $672.0 $746.3
GAAP Diluted EPS ($)$0.79 $0.76 $0.77
Non-GAAP Diluted EPS ($)$0.82 $0.83 $0.92
Net Income ($USD Millions)$73.0 $69.6 $71.1
Operating Income ($USD Millions)$98.8 $96.6 $92.3
Adjusted EBITDA ($USD Millions)$126.2 $127.0 $130.3
Operating Cash Flow ($USD Millions)$65.9 $32.6 $276.9
Free Cash Flow ($USD Millions)$35.5 $(7.7) $224.4
Capital Expenditures ($USD Millions)$30.4 $40.3 $52.5

Notes: Q4 EPS dynamics included lower interest expense, slightly higher pension income, lower ETR, and reduced pension mark-to-market losses vs Q4’23; non-GAAP adjusted for pension/OPEB MTM, restructuring, acquisition-related costs, and asset disposal losses .

Segment Revenue and EBITDA

MetricQ2 2024Q3 2024Q4 2024
Government Operations Revenue ($USD Millions)$540.846 $560.073 $595.000
Commercial Operations Revenue ($USD Millions)$141.491 $113.112 $152.331
Total Consolidated Revenue ($USD Millions)$681.465 $671.956 $746.266
Government Operations Adjusted EBITDA ($USD Millions)$108.2 $117.0 $116.7
Commercial Operations Adjusted EBITDA ($USD Millions)$22.5 $13.5 $23.7
Corporate Adjusted EBITDA ($USD Millions)$(4.5) $(3.6) $(10.1)
Consolidated Adjusted EBITDA ($USD Millions)$126.2 $127.0 $130.3

KPIs

KPIQ2 2024Q3 2024Q4 2024
Backlog ($USD Millions)$3,534.247 $3,380.689 $4,842.460
Bookings ($USD Millions)$580.204 $518.398 $2,208.666
Dividends Paid ($USD Millions)$22.0 $22.0 $22.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY 2025Mid-to-high single-digit growth prelim. (Q3) ~$3.0 Introduced explicit target
Adjusted EBITDA ($USD Millions)FY 2025Mid-to-high single-digit growth prelim. (Q3) $550–$570 Introduced range
Non-GAAP EPS ($)FY 2025Mid-to-high single-digit growth prelim. (Q3) $3.40–$3.55 Introduced range
Free Cash Flow ($USD Millions)FY 2025≥10% YoY growth prelim. (Q3) $265–$285 Reiterated with range
Non-GAAP EPS ($)FY 2024$3.10–$3.20 (Q2) ~$3.20 (Q3 update) Raised lower end; reiterated high end
Tax Rate (%)FY 2025Historic 23–24% context ~22% Lowered ~100 bps from historic
GEO EBITDA Margin (%)FY 2025~just over 20% in 2024 Flat vs 2024 (~20%) Maintained
Commercial Ops EBITDA Margin (%)FY 202514.1% in 2024 14–15% Raised midpoint
Dividend per share ($)Q1 2025$0.24 in Q4’24 $0.25 declared Feb-20, 2025 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Digital transformationInitiatives underway (cloud/ERP consolidation noted later) –Full transformation in progress: cloud migration, ERP consolidation, better financial integration tools Strengthening
Supply chain–“Worked through” shipyard-related pressures; no acute supply chain impact Continued operational excellence; focus on lean manufacturing and utilization Stable
Tariffs/macro––Concern on medical exports; monitoring potential Canada/U.S. tariff responses, limited impact on Canada commercial power Emerging headwind
Product performance (Commercial power)Commercial field services/components growth Strong demand; BWRX-300 RPV; Pickering steam generators; refurbs drive growth Double-digit growth expected in 2025; record CO backlog $930M Improving
Medical (nuclear medicine)Base diagnostics growth; tech-99 development; agreements progressing 25% YTD growth; contracts; tech-99 tagged with all cold kits 23% FY growth; profitability accretive; second Tc-99 agreement; aiming 2026 contracted volumes Improving
Regulatory/legal (DOE/NNSA)–Sole awardee to study national security enrichment capability; HALEU deconversion selected Monitoring NNSA staffing changes; 80% of gov’t contracts fixed/FFP; built for scrutiny Manageable
R&D execution (Microreactors)–Pele/DRACO progressing; INL facility construction commenced BANR advancing (15–20 MWe); learning transfer from Pele; expanded ground testing adds scope/revenue Advancing
Government programs cadence–Carrier lull potentially 3 years; Columbia ramp, pricing agreement signed term sheet Next pricing agreement signed; margin impact gradual; CR risk mitigated due to programs of record Mixed (volume lull offset by execution)

Management Commentary

  • CEO: “We generated record revenue, adjusted EBITDA, adjusted earnings per share and free cash flow…ended 2024 with a backlog of $4.8 billion, up 21% year-over-year” .
  • Strategy “Battle Plan”: sustain/grow core; invest strategically; expand adjacencies; drive performance; deliver mission .
  • Investments: Innovation Campus expansion for advanced nuclear; Cambridge plant expansion to support BWRX-300 and Pickering .
  • CFO: “This will permanently reduce our tax rate by over 100 basis points per year…recognized a $6M benefit to our tax provision in Q4…adjusted effective tax rate of 18.9% in the quarter and 21.7% for the full year” .

Q&A Highlights

  • Medical profitability: margins “at or slightly above” segment; 2024 growth 23%, expecting similar in 2025 .
  • Tariffs: concern mainly in medical; commercial power largely self-contained in Canada; potential to pass pricing with limited impact on customers’ margins .
  • Microreactors: BANR as commercial derivative of Pele with 15–20 MWe; expanded ground testing adds scope, extending program and revenue tail .
  • Navy pricing agreement: no immediate “kink up”; layers of contracts; better reflection of inflation/labor realities over time .
  • Tax benefit magnitude: ~100–150 bps ETR reduction over time, ~$6M per year PBT impact; pursuing refunds for 2020–2023 .
  • Pickering/Bruce/Darlington: Pickering steam generators (48 units) are “juicy”; Darlington rolling off but overall Canadian refurb and SMR pipeline underpin acceleration .

Estimates Context

  • Wall Street consensus via S&P Global (EPS and revenue) for Q4 2024 was unavailable due to access limits at the time of this analysis; therefore, we cannot state beat/miss vs consensus for the quarter. Values retrieved from S&P Global would normally be presented here.*

Key Takeaways for Investors

  • 2025 setup is constructive: explicit revenue, EBITDA, EPS, and FCF ranges with segment margin guardrails (GEO ~20%, CO 14–15%); quarterly EPS cadence expected flat to modestly up in Q1 and evenly distributed thereafter .
  • Commercial power momentum and medical profitability are the primary near-term growth engines; record CO backlog ($930M) and Canadian program awards de-risk 2025 top line .
  • Government Ops margins resilient amid mix shifts; pricing agreement in place, Columbia ramp continues; carrier lull remains a known volume headwind but manageable .
  • Tax-rate structurally lower (~22% guided) enhances EPS quality and cash generation; FCF targeted $265–$285M with continued working capital discipline .
  • Tariff risk is an overhang for medical export pricing; management is proactively engaging customers; commercial power exposure limited due to domestic Canadian sourcing .
  • Strategic M&A (A.O.T. closed; Kinectrics pending) broadens portfolio across special materials, lifecycle services, and isotopes, with Kinectrics modestly accretive post-close .
  • Trading implication: Near-term positive bias on operational execution and guidance clarity; monitor tariff developments, acquisition close timing, and Canadian FX headwinds embedded in CO guidance (~5% translation headwind) .