The documents indicate that the **current portion of long-term debt** for BWX Technologies increased sharply from **$6,250 thousand as of December 31, 2023**, to **$10,938 thousand as of September 30, 2024**.  **[0001486957-24-000046_bwxt-20240930.htm:3]**  However, they do not provide specific factors underlying this change. Generally, such increases occur when scheduled repayments of long-term debt become due within the next 12 months or when there are adjustments in debt agreements.  **[0001486957-24-000046_bwxt-20240930.htm:3]** 

What factors drove the drastic rise in the current portion of long-term debt in Q3 2024?

The pension liability reached its peak in Q4 2023 primarily because the company experienced significant actuarial losses and higher associated costs during that period. Specifically, in Q4 2023 the liability increased due to the recognition of actuarial losses as a component of net periodic benefit cost, along with a notable increase in the interest cost on pension benefits—rising to **$47,638 thousand**—and a service cost of **$7,515 thousand**. These factors compounded to push the liability higher (**$82,786 thousand**) compared to Q1 2024, when the liability was **$79,557 thousand**, suggesting that either these costs moderated or did not further impact the figures in Q1 2024.  **[0001486957-24-000009_bwxt_123123xerexhibit991.htm:10]** **[0001486957-24-000029_bwxt-20240331.htm:3]** **[0001486957-24-000011_bwxt-20231231.htm:79]** 

Why did Pension Liability peak in Q4 2023 compared to Q1 2024?

The significant jump in Accounts Payable in Q3 2024 was primarily due to the **timing of vendor payments**, which aligned with project cash flows and operational activities, leading to an increase of **$45,555 thousand** from Q4 2023 to Q3 2024.  **[0001486957-24-000046_bwxt-20240930.htm:3]** **[0001486957-24-000046_bwxt-20240930.htm:31]** 

What led to the significant jump in Accounts Payable in Q3 2024?

BWXT's Long-Term Debt increased from **$1,203,422 thousand** in Q4 2023 to **$1,220,809 thousand** in Q1 2024, showing an uptick of **$17,387 thousand**. However, the documents do not provide a specific explanation for this increase.  **[0001486957-24-000011_bwxt-20231231.htm:79]** **[0001486957-24-000029_bwxt-20240331.htm:3]** 

What explains the uptick in Long-Term Debt in Q1 2024 relative to Q4 2023?

95489e7426c9119c10bf4c307fde155775297eabd14fa9900996db9371caf08c

BWXT’s Q4 2023 revenue spike was driven by **two key factors**. First, **government operations** saw a significant increase, with revenue rising to **$601,629,000** due to higher volumes in manufacturing nuclear components for U.S. Government programs and robust growth in design and engineering services within its advanced technologies business in the defense sector.  **[0001486957-24-000009_bwxt_123123xerexhibit991.htm:11]** **[0001486957-24-000011_bwxt-20231231.htm:62]**  Second, **commercial operations** contributed as revenue increased to **$124,141,000**, bolstered by strong performance in commercial nuclear field services and nearly **40% growth in the medical segment**, despite some offset from lower commercial nuclear component volumes due to timing.  **[0001486957-24-000009_bwxt_123123xerexhibit991.htm:11]** **[BWXT_3375247_5]** 

Why did revenues spike in Q4 2023?

The jump in **Operating Income** in Q4 2023 was driven mainly by two factors. First, there was a significant increase in revenue from the **Government Operations** segment – particularly in naval nuclear component production, long-lead materials procurement, microreactors, and special materials processing – which increased the segment income from **$102.8 million** to **$116.3 million** (a **13% increase**).  **[0001486957-24-000009_bwxt_123123xerexhibit991.htm:1]**  Second, the **Commercial Operations** segment experienced a substantial rise in operating income due to higher revenue from nuclear field services, fuel handling, and medical sales, with a jump from **$3.7 million** to **$15.9 million** (a **325% increase**).  **[0001486957-24-000009_bwxt_123123xerexhibit991.htm:1]**  Additionally, although there was an increase in unallocated corporate expenses (from **$4.6 million** to **$9.0 million**), the overall effect resulted in a consolidated operating income increase from **$101.9 million** to **$123.2 million** (a **21% increase**).  **[0001486957-24-000009_bwxt_123123xerexhibit991.htm:1]** 

What drove the operating income jump in Q4 2023?

In Q4 2023, **BWX Technologies** reported a large gain on asset disposals primarily due to **favorable contract adjustments totaling $27.9 million**. These adjustments resulted from successfully negotiating change orders addressing cost growth from out-of-scope changes tied to the manufacture of non-nuclear components.  **[0001486957-24-000011_bwxt-20231231.htm:125]** 

What caused the large gain on asset disposals in Q4 2023?

The higher net income in Q2 2024 was primarily driven by several factors. First, **revenue growth** increased consolidated revenues by **11%**, boosting overall sales figures. Second, **operating income** improved by **14%** due to both increased revenues and a favorable shift in product mix, particularly in the Commercial Operations segment. Additionally, **adjusted EBITDA** rose by **18%**, reflecting improved operational efficiency and better cost management. Finally, a **lower effective tax rate** (dropping from **24.7%** to **20.3%**) further enhanced net income performance.  **[0001486957-24-000040_bwxt_63024xerexhibit991.htm:0]** **[0001486957-24-000042_bwxt-20240630.htm:2]** 

What contributed to the higher net income in Q2 2024?

EPS peaked in Q2 2024 due to **strong revenue growth** and **operational improvements**. Total revenues increased by **11%**, rising from **$612.4 million in Q2 2023 to $681.5 million in Q2 2024**, while improved operating income and a **14% growth** in consolidated operating income significantly boosted earnings. Additionally, the **Commercial Operations** segment saw its operating margin improve from **9.1% to 11.8%**, and a lower effective tax rate—from **24.7% to 20.3%**—further supported net income per share, driving the EPS peak.  **[0001486957-24-000040_bwxt_63024xerexhibit991.htm:0]** **[0001486957-24-000042_bwxt-20240630.htm:23]** **[BWXT_3396442_6]** 

Why did EPS peak in Q2 2024?

e08cfc76ed2b2bbb083c0da7f15fe212ab248cdb21ae6f99979c27b46fc2da3b

The documents indicate that the **Q1 2024 operating cash flow** benefited from the **timing of project cash flows** and specific changes in working capital. In particular, there was a substantial increase in **accounts payable** and a higher positive contribution from **income taxes**, while a larger outflow from **accounts receivable** partially offset these gains.  **[0001486957-24-000029_bwxt-20240331.htm:26]** **[0001486957-24-000029_bwxt-20240331.htm:5]**  Although these factors improved the operating cash flow compared to Q1 2023, they do not fully explain why the figure stands much lower than the **Q4 2023 operating cash flow of 221,764 thousand USD**. The documents do not provide detailed commentary on seasonal or project timing differences that might explain the lower Q1 2024 figure relative to Q4 2023.

Why is Operating Cash Flow so low in Q1 2024?

8a561b4782e8a89820336bd81a8ecf1f693c4c9390673bf2470edfc2de0817c9

Current portion of long-term debt (USD, thousands)

Accounts payable (USD, thousands)

Accrued employee benefits (USD, thousands)

Accrued liabilities – other (USD, thousands)

Advance billings on contracts (USD, thousands)

Total Current Liabilities (USD, thousands)

Long-Term Debt (USD, thousands)

Accumulated Postretirement Benefit Obligation (USD, thousands)

Environmental Liabilities (USD, thousands)

Pension Liability (USD, thousands)

Other Liabilities (USD, thousands)

Common stock (USD, thousands)

Preferred stock (USD, thousands)

Capital in excess of par value (USD, thousands)

Retained earnings (USD, thousands)

Treasury stock at cost (USD, thousands)

Accumulated other comprehensive income (loss) (USD, thousands)

Stockholders' Equity – BWX Technologies, Inc. (USD, thousands)

Noncontrolling interest (USD, thousands)

Total Stockholders' Equity (USD, thousands)

TOTAL (USD, thousands)

a6eac5a6b4ad5f8ebca764634b60dea1df1c46d118515ef6b4fdca56fba5ef67

e1f7349c9c9c91a8eed740dce06fc5b56691302995dceb1b1f91b69a23222ca4

Revenues (USD, thousands)

Cost of operations (USD, thousands)

Research and development costs (USD, thousands)

Gains on asset disposals and impairments, net (USD, thousands)

Selling, general and administrative expenses (USD, thousands)

Total Costs and Expenses (USD, thousands)

Equity in Income of Investees (USD, thousands)

Operating Income (USD, thousands)

Interest income (USD, thousands)

Interest expense (USD, thousands)

Other - net (USD, thousands)

Total Other Income (Expense) (USD, thousands)

Income before Provision for Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Net Income (USD, thousands)

Net Income Attributable to Noncontrolling Interest (USD, thousands)

Net Income Attributable to BWX Technologies, Inc. (USD, thousands)

Basic Net Income Attributable to BWX Technologies, Inc. per Common Share (USD)

Diluted Net Income Attributable to BWX Technologies, Inc. per Common Share (USD)

Basic shares used in computation of earnings per share (shares)

Diluted shares used in computation of earnings per share (shares)

3a4844c71bcf95b87a4891e49f784fe559ec981f71a9798900da34bdcef309f9

Ending backlog (USD millions)

Unfunded backlog (USD millions)

Percentage of backlog expected to be recognized (percent)

Value of unexercised options excluded from backlog (USD millions)

5a4a18242b7ccbdb8dbae20d32235873a58cfebb000dbc96caa41ed8babb6d9b

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

bff1ea6b743b6622929e7f8e0110fa82059200c7bf08eee4f7c4f7975e7647fa

Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

SG&A (USD, thousands)

R&D (USD, thousands)

D&A (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

EPS - Basic (USD)

EPS - Diluted (USD)

2676f0fc5482939cd4e2c3b8bb54cd3b232810c56214ef33590350b73850f32d

United States

- Government Operations

- Commercial Operations

- Non-Government

Canada

- Government

Other

Total Revenue

2356e95e29b6350b10115506b135681e651b1a547434947ac75c3b6817c875fb

Government Operations

- Nuclear Components and Fuel

- Uranium Processing and Services

- Advanced Reactor Design

Commercial Operations

- Nuclear Manufacturing

- Nuclear Services and Eng.

Eliminations

f9e9e13b827bd35839161617b3964134ba54cdb348d194aa7f53882e1a66d7b2

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

eb5acb8235b4a0afc76d600adfc107341e3844d52f81af3c2a8841a4a98ee1d2

BWX Technologies (BWXT)

Financials