Profit growth outpaces revenue
Revenue increased about 10% from a year earlier, reaching $952.97 million compared with $866.29 million. Net income excluding extraordinary items climbed about 24%, from $82.11 million to $101.71 million, while basic earnings per share rose from $0.90 to $1.11. The trailing 12-month net profit margin reached 10.4%, versus 10.0% a year earlier.
Non-GAAP earnings told a similar story: EPS rose 26% to $1.26, exceeding the roughly $1.19 analyst consensus. It was BWX Technologies' sixth straight quarterly earnings beat, according to November 2 summaries from 24/7 Wall St. and MarketBeat. Revenue, however, fell below the roughly $972 million consensus.
Simply Wall St. reported organic revenue growth of 7%, adjusted EBITDA growth of 19% and quarterly free cash flow of $151 million.
Contract coverage and government margins
The investment case described by Simply Wall St. rests on converting awarded contracts into revenue, earnings and cash while preserving profitability. Its bullish narrative cited a record backlog of about $8.4 billion, a trailing 12-month book-to-bill ratio of 1.7 and enough work to cover roughly nine quarters of revenue.
Separately, 24/7 Wall St.'s summary placed total backlog at $8.56 billion on September 30, 2026, compared with $7.39 billion a year earlier. The Precision Components Group acquisition contributed nearly $500 million of backlog, CFO Mike Fitzgerald said on the earnings call. About 75% to 80% of that acquired business remained tied to naval work, according to MarketBeat.
Government Operations delivered stronger profitability on relatively modest sales growth. MarketBeat reported that segment revenue increased 4%, while adjusted EBITDA rose 22% to $144 million, producing a 22.6% margin.
Commercial investment and capacity expansion
Commercial Operations revenue grew 25%, with adjusted EBITDA of $41 million and a 13.2% margin. That margin was broadly in line with the company's decision to keep 2026 Commercial margins around 13%, rather than closer to 14%, while directing additional investment toward U.S. and Canadian capacity.
Simply Wall St.'s risk assessment focused on whether sustained reinvestment in Commercial Operations and fuel capacity, or potential cost overruns, could constrain future margin expansion and earnings growth despite rising sales. The latest quarter did not show a collapse in Commercial profitability: companywide adjusted EBITDA grew faster than revenue, and full-year margin guidance was unchanged.
Among the completed investments was an expansion in Cambridge, Ontario. MarketBeat reported that the project increased heavy-component manufacturing capacity by about 50% to support CANDU life-extension work and small modular reactor projects.
Construction also began on a large-scale high-purity depleted uranium facility in Jonesborough, Tennessee. According to MarketBeat, the facility supports a $1.6 billion contract to produce 300 metric tons of HPDU each year.
In its November 2 release, BWX Technologies also announced that its BWXT Advanced Nuclear Reactor, or BANR, technology had been selected for two projects: the U.S. Army's Janus Program at Fort Campbell and Prodigy Clean Energy's Transportable Nuclear Power Plant project in Canada.
2026 guidance and the preliminary 2027 outlook
BWX Technologies narrowed its full-year 2026 non-GAAP EPS guidance to $4.72-$4.77 and its free cash flow range to $350 million-$360 million in the November 2 release. Simply Wall St. characterized the cash flow revision as an increase. The company put adjusted EBITDA guidance at the midpoint of its previous range.
For 2027, management's preliminary outlook calls for high-single-digit revenue growth, alongside high-single-digit to low-double-digit growth in both adjusted EBITDA and non-GAAP EPS. The projected adjusted EBITDA growth exceeds the framework presented at the 2026 Investor Day.
Cash flow is expected to grow more slowly. Simply Wall St. reported that 2027 free cash flow is expected to be flat to slightly higher, with capital expenditures remaining near 6% of revenue.
CEO Rex Geveden also reaffirmed the company's 2030 targets: revenue of $5.5 billion-$6 billion and adjusted EBITDA of $1.1 billion-$1.2 billion, according to MarketBeat's earnings-call summary.
