Key Highlights

  • Revenues rose 10% to USD 953.0 million, and Operating Income rose 16.5% to USD 132.1 million.
  • Net income attributable to the company rose to USD 101.7 million, or USD 1.11 per diluted share.
  • Nine-month revenues grew about 17% to USD 2,714.8 million, with operating income of USD 352.9 million.
  • Equity income from investees rose to USD 26.0 million, and the effective tax rate fell to 22.7%.

Quarter in Numbers

BWX Technologies, Inc. (NYSE:BWXT), which manufactures naval nuclear reactors and related components and serves commercial nuclear customers, reported third-quarter 2026 revenues of USD 953.0 million, up from USD 866.3 million. Cost of operations rose to USD 725.8 million from USD 677.3 million, so by our calculation cost of operations fell to 76.2% of Revenue from 78.2%. Selling, general and administrative expenses rose 25.5% to USD 117.2 million from USD 93.4 million, and Research and Development costs were USD 3.8 million.

Equity in income of investees was USD 26.0 million versus USD 21.2 million. Operating income was USD 132.1 million versus USD 113.3 million, which by our calculation is a Margin of 13.9% versus 13.1%. Net Income attributable to the company was USD 101.7 million versus USD 82.1 million, and Diluted Earnings per Share were USD 1.11 versus USD 0.89, an increase of about 24.7%.

For the nine months, revenues were USD 2,714.8 million versus USD 2,312.6 million, operating income was USD 352.9 million versus USD 312.4 million, and net income attributable to the company was USD 281.8 million versus USD 236.0 million. Diluted earnings per share were USD 3.06 versus USD 2.57. Selling, general and administrative expenses for the nine months were USD 333.7 million versus USD 283.9 million. Revenue growth outpaced operating income growth over nine months, 17.4% against 13.0% by our calculation, so margin compressed year to date even as the third quarter showed expansion.

Segments and Contract Estimates

The company reports two segments. Government Operations manufactures naval nuclear reactors, including nuclear fuel, for the U.S. Naval Nuclear Propulsion Program, and also fabricates precision components and downblends government stockpiles of highly enriched uranium. Commercial Operations serves commercial nuclear power and related markets, including through acquisitions such as Kinectrics in 2025.

Changes in contract estimates increased revenues by USD 6.8 million and operating income by USD 3.6 million in the quarter, compared with USD 4.3 million and USD 3.1 million a year earlier. No adjustment to any single contract had a material effect on the financial statements in either period.

Working Capital and Tax

Unbilled receivables within contracts in progress were USD 714.3 million at September 30, 2026 versus USD 594.7 million at year end, retainages were USD 98.2 million versus USD 46.3 million, and advance billings on contracts were USD 428.3 million versus USD 305.3 million. The effective tax rate was 22.7% versus 23.6%, above the 21% federal rate because of state taxes, partly offset by research credits and the effect of non-deductible executive compensation. Losses on foreign exchange Forward Contracts not designated as hedges were USD 0.2 million for the quarter, against gains of USD 0.6 million a year earlier, and USD 6.8 million of losses for the nine months against USD 22.7 million of gains.

Indicators for Contract Conversion

The Balance Sheet movements show contract Assets and customer advances both growing, which is typical of a Business with large multi-year programs. Items to track include selling and administrative cost growth relative to revenue, the pace of unbilled receivable conversion, Equity income from joint ventures, and the contribution from commercial acquisitions.