BWXT earnings analysis
What we found in BWXT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
BWXT posted a strong Q2, with revenue rising 18.0% year over year to $901.625 million and operating margin improving to 12.7% from 11.0% a year earlier and 9.9% in Q1 2026. Commercial Operations was the clear driver, delivering 71.7% revenue growth and a 410-basis-point margin increase, while Government Operations remained highly profitable but experienced a 100-basis-point margin decline. Liquidity improved, with $625.101 million of cash and investments and $249.0 million of six-month operating cash flow, although $2.2564 billion of backlog is unfunded and the company anticipates significant 2026 cash deployment for PCG.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated to 18% YoY
- Q2 revenue rose $137.586 million, or 18.0% year over year, to $901.625 million. Revenue also increased 4.8% from $860 million in Q1 2026.
- Margins and EPS improved materially
- Operating income increased $11.712 million to $114.136 million, producing a 12.7% operating margin versus 11.0% in Q2 2025 and 9.9% in Q1 2026. Diluted EPS was $1.07, above the $1.04 consensus estimate.
- Commercial Operations drove profit growth
- Commercial Operations revenue grew $126.373 million, or 71.7%, to $302.512 million, while operating income rose $17.455 million to $24.332 million. Its operating margin expanded 410 basis points to 8.0%.
- Liquidity and working capital strengthened
- Cash, cash equivalents, restricted cash and investments increased $109.654 million to $625.101 million at June 30, 2026. Working capital increased $108.5 million to $996.8 million.
- Operating cash flow increased
- Six-month operating cash flow increased $39.3 million to $249.0 million, driven by timing of vendor payments, customer billings and project cash flows, plus higher net income.
- Backlog expanded to $8.4 billion
- Total backlog increased $1.137 billion from $7.261 billion at December 31, 2025 to $8.398 billion at June 30, 2026, including Government Operations backlog of $6.798 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Government segment margin contracted
- Government Operations revenue increased only $12.332 million, or 2.1%, to $601.291 million, while operating income declined $3.739 million to $105.678 million. Segment margin fell 100 basis points to 17.6%, reflecting favorable prior-year contract adjustments.
- Government backlog has funding uncertainty
- Of the $8.3981 billion backlog at June 30, 2026, $2.2564 billion was unfunded U.S. Government backlog. The filing notes that government programs remain subject to annual appropriations and can be cancelled, modified or delayed.
- Convertible dilution and debt maturities
- BWXT has $1.25 billion of 0% convertible notes due 2030, plus $400 million of 4.125% notes due 2028 and $400 million of 4.125% notes due 2029. The convertibles initially convert at $262.51 per share, creating potential dilution above that threshold.
- Pension funding remains a cash call
- The filing reports no material changes to risk factors from the 2025 10-K, but the company expects pension and postretirement contributions of approximately $15.8 million for the remainder of 2026 and has $152.0 million of underfunded plan obligations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.07
- Gross margin
- 25.1%
- Operating margin
- 12.7%
- Segment
- Government Operations revenue: $601.291 million (+2.1% year over year); operating income: $105.678 million; operating margin: 17.6% versus 18.6%.
- Segment
- Commercial Operations revenue: $302.512 million (+71.7% year over year); operating income: $24.332 million; operating margin: 8.0% versus 3.9%.
What they said about what is next.
The 10-Q provides no explicit revenue or EPS outlook. Management expects to recognize approximately 55% of its $8.3981 billion June 30, 2026 backlog by the end of 2027 and states it expects a significant cash investment during 2026 for the PCG acquisition completed July 1, 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · August 3, 2026
- BWXT delivered $901.625 million of Q2 revenue, up 18.0% year over year, and operating income of $114.136 million, up $11.712 million; the resulting 12.7% operating margin improved from 11.0% a year ago and 9.9% in Q1…
- 10-Q · May 4, 2026
- BWX Technologies reported robust Q1 2026 results with revenues of $860.2 million, a 26.1% increase year-over-year, and EPS of $1.12, exceeding expectations markedly. The Commercial Operations segment saw a significant…
- 10-K · February 23, 2026
- BWXT reported a strong FY2025 top-line with pro forma revenue of ~$3.20B (sum of four quarters) and materially expanded backlog to $7,260.7 million at December 31, 2025 (up from $4,843 million at year-end 2024).…
- 10-Q · November 3, 2025
- BWXT reported a strong top-line quarter with revenues of $866,286,000 (Q3 2025) versus $671,956,000 a year ago (+$194,330,000, +28.9%), and diluted EPS rose to $0.89 from $0.76 a year ago. Operating income improved to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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