BWX Technologies (NYSE:BWXT) reported second-quarter 2026 revenue growth of 18% and raised its full-year financial outlook, citing continued demand across nuclear national security and commercial power markets.
Second-quarter revenue reached $902 million, including 9% organic growth, while adjusted EBITDA rose 7% to $156 million. Adjusted earnings per share increased 5% to $1.70, and free cash flow totaled $115 million. The company ended the quarter with $8.4 billion in backlog, up 40% from a year earlier, and reported a trailing 12-month book-to-bill ratio of 1.7 times.
Medical Business Sale and PCG Acquisition
BWXT announced the sale of just over 80% of its medical business and Kinectrics stable-isotope enrichment operations to Nordic Capital in a transaction valued at up to $800 million. The deal includes $750 million of consideration, with shared economics that could lift the value to $800 million, according to Senior Vice President and CFO Mike Fitzgerald.
BWXT will retain a 20% equity interest in the businesses and will continue providing certain specialty manufacturing services after the transaction closes. The sale excludes the company’s Isogen joint venture with Framatome, which provides irradiation services through Bruce Power.
Geveden said the medical operations represented about 3% of BWXT’s total sales but required a disproportionate amount of management attention. He said the transaction would allow the company to concentrate resources on nuclear national security and commercial power opportunities while placing the medical assets with an owner focused on the healthcare market.
Fitzgerald said the businesses being sold are expected to account for approximately $130 million of 2026 revenue at a margin modestly above the Commercial Operations segment average. After the sale, BWXT will account for its retained interest through equity income rather than revenue.
The company also completed its acquisition of Precision Components Group, or PCG, in early July. While much of PCG’s current work is tied to the U.S. Naval Nuclear Propulsion Program, Geveden said the business adds commercial nuclear manufacturing capabilities, including experience supporting AP1000 components.
BWXT is assessing how to deploy capital at PCG and evaluating additional U.S. commercial manufacturing expansion. Potential sites include Mount Vernon, Indiana, as well as East Coast locations that could leverage PCG’s real estate and workforce. The company said it needs deep-water port access to serve global markets for large equipment, such as steam generators and reactor pressure vessels. BWXT received a $21 million Department of Energy award in May to support domestic manufacturing capacity expansion and expects a final investment decision in coming months.
Commercial Nuclear Pipeline Expands
Commercial Operations revenue increased 72% in the quarter, including 33% organic growth. Adjusted EBITDA in the segment more than doubled to $36 million, while adjusted EBITDA margin was 11.9%. Results reflected higher Canadian field services and aftermarket work, nuclear medicine growth, and increased Kinectrics revenue.
Geveden said BWXT is pursuing work with multiple reactor vendors globally and sees a credible opportunity to secure at least one new-build nuclear equipment order before the end of 2026. He pointed to opportunities involving small modular reactors, AP1000 projects and GE Vernova’s BWRX-300 technology.
Canada’s recently released nuclear strategy was also cited as a potential source of future demand. The plan contemplates up to 10 new large reactors over coming decades, in addition to SMR deployments and CANDU life-extension programs. Geveden said long-lead equipment orders for large Canadian projects could begin to affect BWXT’s business positively in the early 2030s.
The company is also pursuing arrangements to monetize its mPower small modular reactor intellectual property. BWXT signed an exclusive land-based licensing agreement with Applied Atomics, which will lead and fund completion of the design and licensing process. BWXT will support that work, retain the intellectual property and hold exclusive manufacturing and royalty rights. Separately, BWXT is conducting a feasibility study with Core Power on using mPower technology for floating nuclear platforms serving offshore energy markets.
Government Operations and Advanced Nuclear Programs
Government Operations revenue grew 2% during the quarter as growth in Special Materials and naval propulsion offset lower microreactor volumes. Segment adjusted EBITDA was $126 million, representing a 20.9% margin.
BWXT said its Defense Fuels Enrichment and High Purity Depleted Uranium programs are progressing. The company expects to deliver an operational prototype centrifuge this year at its centrifuge manufacturing development facility, while engineering and site preparation continue for new HPDU plants in Jonesborough, Tennessee.
Geveden also highlighted the Navy’s updated 30-year shipbuilding plan, which calls for sustained annual production of two Virginia-class submarines and one Columbia-class submarine, while accelerating Ford-class aircraft carrier procurement to a four-year cadence. He said the faster Ford cadence should improve manufacturing stability by reducing periods in which only one ship set is moving through BWXT’s plants.
The plan additionally introduces a nuclear-powered battleship concept using one Ford-class reactor. Geveden said the initiative remains in its early stages and is dependent on further authorization and appropriations, but long-lead procurement could begin in 2028 if the program moves forward.
Raised 2026 Outlook
BWXT raised full-year free cash flow guidance by $30 million to a range of $345 million to $360 million. It now expects approximately $3.8 billion of revenue for 2026, representing high-teens growth from 2025, and increased adjusted EBITDA guidance to $662 million to $672 million.
- Government Operations revenue growth is now expected in the high single digits, down from a prior low-teens expectation, reflecting better cost performance that reduces reported revenue under the company’s accounting rules.
- Government Operations adjusted EBITDA margin guidance rose to approximately 20.5%, from greater than 19% previously.
- Commercial Operations revenue growth guidance increased to approximately 45%, from approximately 30%, with slightly more than half of the increase attributed to PCG and the remainder driven by commercial power growth and improved Kinectrics performance.
- Commercial Operations adjusted EBITDA margin guidance was lowered to approximately 13% from approximately 14%, reflecting investments in U.S. and Canadian capacity.
- Non-GAAP earnings-per-share guidance was raised to $4.70 to $4.80, with the increase driven entirely by stronger operating earnings.
Fitzgerald said BWXT expects about 55% of second-half earnings to be generated in the fourth quarter because of normal Commercial Operations seasonality and the timing of Government Operations program ramps.
About BWX Technologies (NYSE:BWXT)
BWX Technologies, Inc (NYSE: BWXT) is a specialized supplier of nuclear components and services, primarily serving the U.S. government and commercial markets. The company’s core expertise lies in the design, fabrication and servicing of nuclear propulsion systems for the U.S. Navy, where it supports the maintenance and overhaul of naval nuclear reactors. In addition to defense applications, BWXT develops small modular reactors (SMRs), nuclear fuel and related technologies for non?defense power generation, offering scalable solutions to meet evolving energy and industrial demands.
Beyond propulsion and power systems, BWXT is a leading producer of medical radioisotopes used in diagnostic imaging and cancer treatment.
