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BWXT: BWXT's Strong 2025 Results and Promising Outlook

BWXT reported a robust financial performance for 2025, with revenue growing 18% to a record level, adjusted EBITDA increasing 15%, earnings per share rising 20% to $1.08, beating estimates of $0.91, and free cash flow growing 16%. The company's backlog stood at $7.3 billion, up 50% year-over-year, driven by meaningful growth in both government and commercial segments.

BWXT

USD 204.23

2.95%

A-Score: 4.9/10

Publication date: February 23, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • 2025 Financial Performance: Revenue grew 18%, adjusted EBITDA +15%, earnings per share +20%, and free cash flow +16%, all exceeding initial guidance.
  • Backlog Expansion: Total backlog reached $7.3 billion (+50% YoY), with $1.7 billion in Commercial Operations (+85% YoY) driven by CANDU refurbishments and SMR design awards.
  • Government Segment Adjustments: Q4 revenue declined 1%, but adjusted EBITDA hit $111 million (18.8% margin), offset by growth in defense fuels and HPDU contracts.
  • Commercial Momentum: Revenue surged 95% YoY, with adjusted EBITDA rising 87% to $44 million, fueled by 31% organic growth and Kinectrics integration.
  • 2026 Guidance: Revenue targets $3.75 billion (+high teens), adjusted EBITDA of $645–660 million (+low to mid-teens), and free cash flow of $305–320 million.

Segmental Performance

In Government Operations, revenue was down 1% in the fourth quarter, as expected, due to lower microreactor volumes and long lead material procurement for naval propulsion equipment. However, adjusted EBITDA margin remained healthy at 18.8%. In contrast, Commercial Operations revenue surged 95%, driven by 31% organic growth and the contribution from Kinectrics, with adjusted EBITDA up 87%.

Guidance and Outlook

BWXT expects revenue to grow to approximately $3.75 billion in 2026, up high teens compared to 2025, with Government Operations expected to grow low to mid-teens and Commercial Operations anticipated to grow 25%. Adjusted EBITDA is guided to $645 million to $660 million, up low to mid-teens. As Rex Geveden mentioned, "We see 2026 as another year of meaningful operational growth for BWXT, with strengthened balance sheet, expanded commercial platform, and positioned for continued margin improvement and cash generation."

Valuation Metrics

With a P/E Ratio of 56.69 and EV/EBITDA of 51.15, BWXT's valuation multiples indicate high expectations for future growth. The ROE of 27.73% suggests that the company is generating strong returns on equity. However, the Net Debt / EBITDA ratio of 4.98 indicates a relatively high level of debt.

Growth Drivers and Opportunities

BWXT is well-positioned for long-term growth, driven by its strong backlog, expanding commercial capabilities, and potential opportunities in new markets, such as small modular reactors. The company's investment in technologies to drive throughput within the factory and its focus on operational excellence are expected to support its growth trajectory.

BWXT's A-Score