Strong sales growth and …

• Revenue: 682 million US dollars, by 13% compared to the previous year.

• Adapted EBITDA: $ 130 million by 13% compared to the previous year.

• Adjusted result per share (EPS): 0.91 USD, 20% compared to $ 0.76 in the previous year.

• Government of the government's profit growth: 14% increase.

• Government operations adjusted EBITDA Margin: 21.1%.

• Commercial income: income: $ 128 million by 10% compared to the previous year.

• Commercial operations adjusted EBITDA margin: 10.9%, 100 basis points.

• Free Cashflow: 17 million US dollars for the quarter.

• Investment expenses: 33 million US dollars or 4.9% of sales.

• Residue: $ 1.3 billion in commercial business, an increase of 78% compared to the previous year.

• Fitted effective tax rate: 18.3% for the quarter.

Appearance date: May 05, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• BWX Technologies Inc (NYSE: BWXT) recorded double -digit growth of sales in the first quarter of 2025, an adjusted EBITDA and adjusted result per share.

• The company achieved a robust booking with a commercial operation of $ 1.3 billion, an increase of 78% compared to the previous year.

• BWXT has ensured considerable contracts, including the administrative and company contract for the strategic oil reserve of the Department of Energy and a single source contract for domestic uranium enrichment.

• The company extends its nuclear service portfolio with the pending acquisition of Ackecrectrix and the increase in capacity in its manufacturing work in Cambridge.

• The BWXT medical segment recorded a double-digit sales and adjusted EBITDA growth, which is due to the PET diagnostic product lines and for over 20% sales growth of over 20% remains up to date.

• BWXT was confronted with negative EACs (estimate after completion) of around 11 million US dollars and had both state and commercial operations.

• The company experienced an increased inflation for specialized raw materials in its Candu Fuel Business line and affected the margins in the first half of the year.

• The ANPI program is uncertainty with unclear funds and potential results, although BWXT was selected as a legitimate supplier.

• The effects of zirconium costs due to geopolitical factors and tariffs represent a challenge, although BWXT has mechanisms to treat this risk.

• The schedule for the FDA approval of BWXT Moly Product remains uncertain, with potential delays in the early 2026, which influences the company's entry into contract sales.

Q: Robb, it looks like there were some negative EACs of around $ 11 million in this quarter, based on what is in the 10-Q. Were these EACs all at government events? Can you share more detailed how the offset made it possible for the segment to deliver strong margins despite this headwind? A: Robb Lemasters, CFO: No, it wasn't everything in government operations. It is about half and half between the commercial and the government business. The commercial operations were affected by the zirconium costs in the fuel business, which we will recover in the second half and in 2026. The government companies had various lower effects without significant positive offsets.

Q: Rex, in terms of the latest means that are suitable for supporting the shipbuilding industry, do you see BWXT as in line to get something from this financing? A: Rex Geveden, CEO: Not much for us in the continuous solution. However, the Reconciliation Act is interesting with potential funds for enriching domestic defense and the DOD core reactors, which could be an advantage for us.

Q: Rex, can you explain the reconciliation package and its possible effects on BWXT in more detail, especially with regard to NASA and shipbuilding? A: Rex Geveden, CEO: The reconciliation law includes the financing of the acceleration of defense enrichment and the DOD reactors, which is promising for us. The Shipbuilding Office Setup is positive and emphasizes nuclear shipbuilding. With regard to NASA, there is an interest in nuclear thermal drive drive that matches our skills.

Q: RobB will be your highest margin quarter in terms of the raw material problem with commercial operation despite the effects? A: Robb Lemasters, CFO: The second quarter does not have the typical high edges due to the zirconium problem and other mix items. However, we expect the margins to record with a better project plan in the second half.

Q: Rex, you mentioned that you have perfected the process on Moly. Can you submit an update for the schedule for approval and the contract for 2026? A: Rex Geveden, CEO: We hope for approval in 2025, but it could extend to the early 2026. We have not predicted sales for 2025, but we could enter the Spot market. We address technical elements from the FDA application and approach the finish line.

Q: Can you discuss the enrichment contract and the Leu market for US reactor owners? A: Rex Geveden, CEO: We are in the conceptual stage for a pilot plant with NNSA. The Leu market does not need overgrown materials, and the program could develop with commercial sources or NNSA that build up the ability. It is too early to determine the exact path.

Q: Robb, is there a reason for the view that the seasonality of the Free Cash Flow clearly distinguishes this year from previous years? A: Robb Lemasters, CFO: No, we expect a typical pattern with Capex building to be most important for the free cash flow in the course of the year and in the fourth quarter.

Q: Rex, in relation to the ANPI program, what are the expected income and cadence? A: Rex Geveden, CEO: The ANPI program is uncertain with eight participants, including the USA. We negotiate OTAS, but funds and potential are unclear. We are justified and hope to secure business.

You can find the complete copy of the earnings call in the complete earnings call.

This article first appeared on Gurufocus.