NYSE$BWXT

BWX Technologies Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

BWX Technologies reported strong Q4 2023 results with double-digit revenue and adjusted EBITDA growth.

BWX Technologies reported a strong finish to 2023, marked by double-digit revenue and adjusted EBITDA growth, alongside robust free cash flow. The company also initiates 2024 guidance for Non-GAAP EPS of $3.05-$3.20 and adjusted EBITDA of ~$500 million.

  • 4Q23 diluted GAAP EPS was $0.72; diluted non-GAAP EPS was $1.01, on revenue of $725.5 million.
  • 4Q23 net income was $66.3 million, with adjusted EBITDA of $147.6 million.
  • 2023 operating cash flow was $363.7 million, and free cash flow was $212.4 million.
  • The company initiated 2024 guidance for Non-GAAP EPS of $3.05-$3.20 and adjusted EBITDA of ~$500 million.

Headline financials

Total Revenue

$726M

Previous: $624M+16.2%
EPS (adj)

$1.01

Previous: $0.93+8.6%
Capital Expenditures

-$50.8M

Previous: $63.7M-179.7%
Free Cash Flow

$171M

Previous: $43.9M+289.0%
Net Income

$66.3M

Previous: $43M+54.2%
Operating Income

$123M

Previous: $102M+20.9%
Gross Profit

$189M

Previous: $160M+17.6%
R&D Expense

$1.66M

No prior period
Stock-Based Comp

$3.59M

Previous: $2.08M+72.6%

Revenue & EPS history

BWX Technologies · Revenue · Quarterly

$726M

Q4 2023+16.2%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

BWX Technologies · $887M total across 2 segments · Q4 2025

  • Government Operations
    $589M
  • Commercial Operations
    $298M

Forward guidance

BWXT expects the momentum from 2023 to carry into 2024 and more than offset the anticipated lull in aircraft carrier propulsion systems production. The company is initiating 2024 guidance that calls for Non-GAAP EPS of $3.05-$3.20 and adjusted EBITDA of approximately $500 million.

Tailwinds

  • Momentum from 2023 is expected to continue into 2024.
  • Anticipated lull in aircraft carrier propulsion systems production will be offset by other elements of the nuclear portfolio.
  • Initiating 2024 guidance that calls for Non-GAAP EPS of $3.05-$3.20.
  • Adjusted EBITDA is expected to be approximately $500 million.
  • Favorable market trends are expected to continue across the business.

Headwinds

  • Anticipated lull in aircraft carrier propulsion systems production.
  • Difficult of estimating any mark-to-market adjustments for pension and post-retirement benefits.
  • Company is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results.
  • Federal budget uncertainty and the risk of future budget cuts.
  • Potential for government shutdowns and changing funding and acquisition priorities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.2%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+12.1%

Q4 2023

Best reaction

-23.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-5.1%-14.6%
Q4 2025+2.4%+3.8%+3.4%
Q3 2025-7.2%-10.3%-17.4%
Q1 2025-3.7%-3.2%+15.1%
Q4 2024+4.2%+4.1%+1.5%
Q3 2024-4.6%+1.6%+6.5%
Q2 2024-1.2%+3.7%+4.6%
Q1 2024-10.6%-7.6%-6.8%
Q4 2023+12.1%+13.9%+14.2%
Q3 2023+3.5%+2.6%+6.1%
Q2 2023+7.2%+6.4%+7.4%
Q1 2023+2.2%+2.1%-1.5%
Q4 2022+2.5%+2.8%+3.1%
Q3 2022+0.7%+6.7%+4.9%
Q2 2022-1.0%-2.5%-3.8%
Q1 2022-4.4%-3.1%+2.6%
Q4 2021+3.0%+13.1%+25.0%
Q3 2021-6.2%-2.9%-17.5%
Q2 2021-3.9%-6.1%-0.7%
Q1 2021+0.4%-1.4%-5.5%
Q4 2020-1.9%-1.0%+9.2%
Q3 2020+0.8%+0.1%+3.1%
Q2 2020+7.9%+5.2%+4.7%
Q1 2020+4.7%+13.3%+20.0%
Q4 2019-13.4%-21.8%-36.2%
Q3 2019+3.3%+4.5%+2.1%
Q2 2019+10.8%+12.7%+17.3%
Q1 2019-2.7%-1.1%-8.9%
Q4 2018+0.1%-2.4%-9.1%
Q3 2018-23.1%-21.4%-28.8%
Q2 2018-3.9%-6.5%-8.8%
Q1 2018+2.1%+0.4%+1.7%
Q4 2017-2.9%-1.6%-2.0%
Q3 2017-1.6%-0.9%+0.4%
Q2 2017+1.5%+1.3%+1.4%
Q1 2017+0.7%+3.1%-1.2%
Q4 2016+9.5%+12.7%+12.1%
Q3 2016-2.9%-6.5%+0.7%
Q2 2016-0.2%+1.0%+2.8%
Q1 2016+0.9%
Q4 2015+3.6%
Q3 2015+2.0%
Q2 2015+3.9%
Q1 2015-0.4%
Q4 2014+3.7%
Q3 2014+6.1%
Q2 2014-8.1%
Q1 2014+1.6%
Q4 2013-7.1%
Q3 2013+1.0%
Q2 2013+0.5%
Q1 2013-0.5%
Q4 2012+2.6%
Q3 2012-11.1%
Q2 2012+2.3%
Q1 2011+1.7%
Q1 2012+0.7%
Q4 2009-1.7%
Q4 2011-1.7%
Q1 2010-1.7%
Q3 2010+6.6%
Q3 2011+6.6%
Q4 2010-4.1%
Q2 2010-4.1%
Q2 2011-4.1%

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