BWX Technologies shares slip as Q3 revenue falls short of expectations

BWX Technologies (BWXT) reported Q3 earnings that beat expectations but fell short on revenue, sending shares down 1.9%. The company posted adjusted EPS of $1.26, exceeding analyst consensus of $1.18 by $0.08. However, revenue of $953.0 million missed the $970.42 million estimate, though it marked a 10% increase from $866.3 million a year earlier.

The revenue growth came from a 25% rise in Commercial Operations to $314.2 million and a 4% increase in Government Operations to $639.1 million. Despite the earnings beat, the stock declined modestly as investors focused on the shortfall in revenue. For fiscal 2026, BWXT narrowed its adjusted EPS guidance to $4.72-$4.77, aligning with the $4.74 consensus.

The company maintained revenue guidance at about $3.8 billion, slightly below the $3.816 billion consensus. BWXT CEO Rex D. Geveden highlighted strong Q3 performance, emphasizing operational excellence and cash generation. The company also unveiled 2027 guidance, projecting high-single-digit revenue growth and high-single-digit to low-double-digit growth in adjusted EBITDA and EPS.

BWXT tightened its 2026 free cash flow guidance to $350 million-$360 million, up from the $345 million-$360 million range. The company's BANR technology secured contracts for the U.S. Army's Janus Program and Prodigy Clean Energy's Transportable Nuclear Power Plant project in Canada, reinforcing its position in the nuclear solutions market.