bwxt-20240227
false000148695700014869572024-02-272024-02-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________________________________________________________
FORM 8-K
 ______________________________________________________________________________
CURRENT REPORT
 Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 27, 2024
BWX TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
 _____________________________________________________________________________
Delaware 001-34658 80-0558025
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 Main Street, 4th Floor
Lynchburg,Virginia24504
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (980365-4300
 ____________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueBWXTNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    



Item 2.02 Results of Operations and Financial Condition.
On February 27, 2024, we issued a press release announcing our financial results for the fourth quarter ended December 31, 2023.  A copy of the press release is attached as Exhibit 99.1, and the information contained in Exhibit 99.1 is incorporated by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)       Exhibits
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
BWX TECHNOLOGIES, INC.
By: /s/ Mike T. Fitzgerald
 Mike T. Fitzgerald
 Vice President, Finance and Chief Accounting Officer

February 27, 2024

Document
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BWX Technologies Reports Fourth Quarter and Full Year 2023 Results, Initiates 2024 Guidance
4Q23 diluted GAAP EPS of $0.72, diluted non-GAAP(1) EPS of $1.01, on revenue of $725.5 million
4Q23 net income of $66.3 million, adjusted EBITDA(1) of $147.6 million
2023 diluted GAAP EPS of $2.68, diluted non-GAAP(1) EPS of $3.02, on revenue of $2.5 billion
2023 net income of $246.3 million, adjusted EBITDA(1) of $471.9 million
2023 operating cash flow of $363.7 million, free cash flow(1) of $212.4 million
Initiates 2024 guidance for Non-GAAP EPS of $3.05-$3.20, adjusted EBITDA(1) of ~$500 million
To host Investor Day on Wednesday, February 28, 2024
Lynchburg, VA - Feb. 27, 2024 - BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported fourth quarter and full year 2023 results. A reconciliation of non-GAAP results are detailed in Exhibit 1.

“We had a strong finish to 2023, with double-digit revenue and adjusted EBITDA growth and robust free cash flow in the fourth quarter, as expected,” said Rex D. Geveden, president and chief executive officer. “In 2023, we had record revenue and adjusted EBITDA and achieved many important objectives, including a 10% increase in our labor force, the award of Project DRACO, multiple new program wins in our special materials portfolio, backlog growth in commercial nuclear power, and a turn to positive EBITDA at BWXT Medical, as well as strong performance on our missile tubes program including a final recovery settlement for the cost growth that was driven by out-of-scope changes and absorbed by BWXT over the past couple years.”

“Looking ahead, we expect the momentum from 2023 to carry into 2024 and more than offset the anticipated lull in aircraft carrier propulsion systems production, as other elements of our nuclear portfolio gather strength,” said Geveden. “As such, we are initiating 2024 guidance that calls for Non-GAAP EPS of $3.05-$3.20 and adjusted EBITDA of approximately $500 million, up mid-single digits compared to 2023, in-line with the preliminary 2024 outlook we provided last quarter.”

“We are as excited as ever about the future of BWXT,” continued Geveden. “The favorable market trends we are experiencing across our business, combined with our unparalleled assets, unique operating licenses and highly skilled workforce position BWXT for continued success in 2024 and beyond. We look forward to providing additional detail on our markets, strategy and financial outlook at our 2024 Investor Day tomorrow.”

(1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.


Financial Results Summary
Three Months Ended December 31,Year Ended December 31,
20232022$ Change% Change20232022$ Change% Change
(Unaudited)
(In millions, except per share amounts)
Revenue
Government Operations$601.6 $517.6 $84.0 16%$2,031.3 $1,808.5 $222.9 12%
Commercial Operations$124.1 $107.1 $17.0 16%$466.3 $427.4 $39.0 9%
Consolidated$725.5 $624.2 $101.3 16%$2,496.3 $2,232.8 $263.5 12%
Operating Income
Government Operations$116.3 $102.8 $13.5 13%$374.7 $336.5 $38.2 11%
Commercial Operations$15.9 $3.7 $12.2 325%$37.5 $27.4 $10.1 37%
Unallocated Corporate (Expense)$(9.0)$(4.6)$(4.4)NM$(29.2)$(15.3)$(13.8)NM
Consolidated$123.2 $101.9 $21.3 21%$383.1 $348.6 $34.5 10%
Consolidated non-GAAP(1)
$127.3 $111.1 $16.2 15%$393.3 $365.6 $27.8 8%
EPS (Diluted)
GAAP$0.72 $0.47 $0.25 53%$2.68 $2.60 $0.08 3%
Non-GAAP(1)
$1.01 $0.93 $0.08 8%$3.02 $3.13 $(0.11)(3)%
Net Income
GAAP$66.3 $43.0 $23.3 54%$246.3 $238.6 $7.7 3%
Non-GAAP(1)
$93.3 $85.7 $7.6 8%$278.4 $287.5 $(9.1)(3)%
Adjusted EBITDA(1)
Government Operations$131.3 $115.8 $15.5 13%$429.4 $386.5 $42.9 11%
Commercial Operations$21.3 $13.6 $7.7 56%$60.0 $53.9 $6.0 11%
Corporate$(5.0)$0.7 $(5.7)NM$(17.5)$(1.1)$(16.5)NM
Consolidated$147.6 $130.1 $17.5 13%$471.9 $439.4 $32.5 7%
Cash Flows
Operating Cash Flow(2)
$221.8 $107.7 $114.1 106%$363.7 $244.7 $119.0 49%
Capital Expenditures(2)
$50.8 $63.7 $(12.9)(20)%$151.3 $198.3 $(47.0)(24)%
Free Cash Flow(1)
$171.0 $43.9 $127.0 289%$212.4 $46.4 $166.0 358%
Share Repurchases(2)
$— $— $— NM$— $20.0 $(20.0)NM
Dividends Paid(2)
$21.1 $20.2 $0.9 4%$85.0 $81.1 $3.9 5%
NM = Not Meaningful
(2) Items named in the Financial Results Summary differ from names in BWXT Financial Statement. Operating Cash Flow = Net Cash Provided by Operating Activities; Capital Expenditures = Purchases of Property, Plant and Equipment; Share Repurchases = Repurchases of Common Stock; Dividends Paid = Dividends Paid to Common Shareholders

Revenues
Fourth quarter revenue increased in both operating segments. The Government Operations increase was driven by higher naval nuclear component production, long-lead materials procurement, microreactors and special materials processing. The Commercial Operations increase was driven by higher revenue associated with commercial nuclear field services and fuel handling, as well as higher medical sales, which was partially offset by slightly lower fuel and components volume.

The full year consolidated revenue increase was driven by growth in both operating segments. The Government Operations increase was driven by higher naval nuclear component production, microreactors volume and higher special materials revenue. The Commercial Operations increase was driven by an increase in field services as well as higher sales associated with medical and higher fuel handling and components volume.

Operating Income and Adjusted EBITDA(1)
Fourth quarter operating income increased in both operating segments. The Government Operations increase was due to higher revenue and favorable contract adjustments, but partially offset by costs associated with
(1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.


the increase in staffing levels and associated training and related inefficiencies, as well as mix due to higher advanced technologies revenue. The Commercial Operations increase was due to improved profitability in medical, but partially offset by less favorable commercial nuclear business mix that was weighted toward refurbishment and life extension field services, compared to a greater mix of outage work in the fourth quarter of 2022. Higher segment operating income was partially offset by higher corporate expense.

Full year operating income increased in both segments. The Government Operations increase was due to higher revenue and favorable contract adjustments. The Commercial Operations increase was driven by improved profitability in medical, but partially offset by lower commercial nuclear income as business mix was weighted toward refurbishment and life extension field services, compared to a greater mix of outage work in 2022. Higher segment operating income was partially offset by higher corporate expense.

Fourth quarter and full year total adjusted EBITDA(1) increased for the reasons noted above.
EPS
Fourth quarter and full year 2023 GAAP EPS increased as higher operating income and a lower effective tax rate were partially offset by higher interest expense, lower pension income, and a lower mark-to-market loss on the pension compared to fourth quarter 2022. Non-GAAP EPS(1) increased driven by the items noted above, excluding mark-to-market pension losses, restructuring costs and other one-time items.
Cash Flows
Fourth quarter and full year 2023 operating cash flow increased due to higher net income and improved working capital management. Lower capital expenditures were driven by lower spending on two major growth capital campaigns for U.S. naval nuclear reactors and medical radioisotopes, both of which are largely complete, partially offset by an increase in capital expenditures for microreactors and other select growth investments.
Dividend
BWXT paid $21.1 million, or $0.23 per common share, to shareholders in the fourth quarter 2023 and paid $85.0 million to shareholders for the full year 2023. On February 23, 2024, the BWXT Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on March 28, 2024, to shareholders of record on March 11, 2024.

2024 Guidance
BWXT announced its expectations for fiscal year 2024 financial results, providing the following guidance:
(In millions, except per share amounts)Year EndedYear Ending
December 31, 2023December 31, 2024
Results
Guidance(2)
Revenue$2,496>$2,600
Adjusted EBITDA(1)
$472~$500
Non-GAAP(1) Earnings Per Share
$3.02$3.05 - $3.20
Free Cash Flow(1)
$212$225 - $250
(2) BWXT has not included a reconciliation of provided non-GAAP guidance to comparable GAAP measures due to the difficult of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year.

Additional information can be found in the 2023 fourth quarter earnings call presentation on the BWXT investor relations website at investors.bwxt.com. The Company does not provide GAAP guidance because it
(1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.


is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results.

2024 Investor Day
The Company is hosting its 2024 Investor Day on Wednesday, February 28, 2024 at 8:30 a.m. EST. Interested parties can register for the live webcast through the events page of the BWXT investor relations website at investors.bwxt.com.

Conference Call to Discuss Fourth Quarter 2023 Results
Date: Tuesday, February 27, 2024, at 5:00 p.m. EST
Live Webcast: BWXT Investor Relations website at investors.bwxt.com
Full Earnings Release Available on BWXT Website
A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/4Q2023-release.
BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com.

Non-GAAP Measures
BWXT uses and makes reference to adjusted EBITDA, Non-GAAP EPS, free cash flow and free cash flow conversion, which are not recognized measures under GAAP. BWXT is providing these non-GAAP measures to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations. Definitions for the non-GAAP measures are provided below and reconciliations are detailed in Exhibit 1, except that reconciliations of forward-looking GAAP measures are not provided because the company is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. Other companies may define these measures differently or may utilize different non-GAAP measures, thus impacting comparability.

Non-GAAP Earnings Per Share (EPS) is calculated using GAAP EPS less the non-operational tax effected per share impact of pension & OPEB mark-to-market gains or losses and other one-time items, such as restructuring, transformation, and acquisition-related costs.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is calculated using non-GAAP net income, plus provision for income taxes, less other – net, less interest income, plus interest expense, plus depreciation and amortization.

Adjusted pre-tax income is non-GAAP income before provision for income taxes.

Free Cash Flow (FCF) is calculated using net income to derive net cash provided by (used in) operating activities less purchases of property, plant and equipment.

Free Cash Flow conversion is free cash flow divided by net income.

(1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.


Non-GAAP Adjustments
Our GAAP financial results detailed in Exhibit 1 have been adjusted for the following items:

Restructuring and Transformation Costs: Restructuring and transformation related costs include restructuring charges as well as costs associated with our efforts to optimize underlying business processes through investments in information technology, process improvements and the implementation of strategic actions and initiatives which we deem to be incremental and non-recurring in nature.

Acquisition-related Costs: Acquisition-related costs relate to third-party professional service costs and one-time incremental costs associated with efforts to integrate the acquired business with our legacy operations.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent they may be viewed as an indicator of future revenues; our plans and expectations for each of our reportable segments, including growth opportunities and the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes, SMR components and recent acquisitions; disruptions to our supply chain and/or operations, changes in government regulations and other factors; and our expectations and guidance for 2024 and beyond. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to execute contracts in backlog; federal budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling, the potential for government shutdowns and changing funding and acquisition priorities; the demand for and competitiveness of nuclear products and services; capital priorities of power generating utilities and other customers; the timing of technology development, regulatory approvals and automation of production; the receipt and/or timing of government approvals; the potential recurrence of subsequent waves or strains of COVID-19 or similar diseases; labor market challenges, including employee retention and recruitment; adverse changes in the industries in which we operate; and delays, changes or termination of contracts in backlog. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see BWXT’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2023. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Virginia, BWXT is a Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine and space exploration. With more than 7,800 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. For more information, visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and Instagram.

Investor Contact:Media Contact:
Chase JacobsonJud Simmons
Vice President, Investor RelationsSenior Director, Media and Public Relations
980-365-4300Investors@bwxt.com434-522-6462hjsimmons@bwxt.com

(1) A reconciliation of non-GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.


EXHIBIT 1

BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
(In millions, except per share amounts)
Three Months Ended December 31, 2023
 GAAPPension & OPEB MTM (Gain) / LossRestructuring & Transformation CostsAcquisition-related CostsNon-GAAP
 
Operating Income
$123.2 $— $4.0 $0.0  $127.3 
Other Income (Expense)
(37.6)30.8 — —  (6.8)
Income before Provision for Income Taxes85.6 30.8 4.0 $0.0  120.5 
Provision for Income Taxes(19.3)(7.1)(0.7)(0.0) (27.2)
Net Income
66.3 23.7 3.3 $0.0  93.3 
Net Income Attributable to Noncontrolling Interest
(0.4)— — —  (0.4)
Net Income Attributable to BWXT
$65.9 $23.7 $3.3 $0.0  $92.9 
Diluted Shares Outstanding
92.0 92.0 
Diluted Earnings per Common Share
$0.72 $0.26 $0.04 $0.00  $1.01 
Effective Tax Rate
22.6%22.5%
Government Operations Operating Income$116.3 $— $1.0 $0.0  $117.2 
Commercial Operations Operating Income$15.9 $— $0.9 $0.0  $16.9 
Unallocated Corporate Operating Income$(9.0)$— $2.2 $0.0  $(6.8)
Three Months Ended December 31, 2022
GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
Operating Income
$101.9 $— $2.6 $0.3 $6.2 $111.1 
Other Income (Expense)
(45.1)46.6 0.0 — — 1.6 
Income before Provision for Income Taxes56.8 46.6 2.7 0.3 6.2 112.6 
Provision for Income Taxes(13.8)(10.9)(0.6)(0.0)(1.6)(26.9)
Net Income
43.0 35.7 2.1 0.3 4.7 85.7 
Net Income Attributable to Noncontrolling Interest
(0.1)— — — — 0.1 
Net Income Attributable to BWXT
$43.0 $35.7 $2.1 $0.3 $4.7 $85.6 
Diluted Shares Outstanding
91.8 91.8 
Diluted Earnings per Common Share
$0.47 $0.39 $0.02 $0.00 $0.05 $0.93 
Effective Tax Rate
24.3%23.9%
Government Operations Operating Income$102.8 $— $— $0.3 $— $103.1 
Commercial Operations Operating Income$3.7 $— $(0.7)$— $6.2 $9.3 
Unallocated Corporate Operating Income$(4.6)$— $3.3 $0.0 $— $(1.3)



EXHIBIT 1 (continued)

BWX TECHNOLOGIES, INC.
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3)
(In millions, except per share amounts)
Year Ended December 31, 2023
 GAAPPension & OPEB MTM (Gain) / LossRestructuring & Transformation CostsAcquisition-related CostsNon-GAAP
 
Operating Income
$383.1 $— $9.6 $0.7  $393.3 
Other Income (Expense)
(61.7)30.8 — —  (30.9)
Income before Provision for Income Taxes321.4 30.8 9.6 0.7  362.4 
Provision for Income Taxes(75.1)(7.1)(1.7)(0.2) (84.1)
Net Income
246.3 23.7 7.8 0.5  278.4 
Net Income Attributable to Noncontrolling Interest
(0.5)— — —  (0.5)
Net Income Attributable to BWXT
$245.8 $23.7 $7.8 $0.5  $277.9 
Diluted Shares Outstanding
91.9 91.9 
Diluted Earnings per Common Share
$2.68 $0.26 $0.09 $0.01  $3.02 
Effective Tax Rate
23.4%23.2%
Government Operations Operating Income$374.7 $— $1.1 $0.3  $376.1 
Commercial Operations Operating Income$37.5 $— $4.6 $0.1  $42.2 
Unallocated Corporate Operating Income$(29.2)$— $3.9 $0.3  $(25.0)
Year Ended December 31, 2022
GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
Operating Income
$348.6 $— $8.2 $2.6 $6.2 $365.6 
Other Income (Expense)
(34.2)46.6 0.0 — — 12.4 
Income before Provision for Income Taxes314.4 46.6 8.2 2.6 6.2 378.0 
Provision for Income Taxes(75.8)(10.9)(1.9)(0.4)(1.6)(90.5)
Net Income
238.6 35.7 6.3 2.2 4.7 287.5 
Net Income Attributable to Noncontrolling Interest
(0.4)— — — — (0.4)
Net Income Attributable to BWXT
$238.2 $35.7 $6.3 $2.2 $4.7 $287.1 
Diluted Shares Outstanding
91.7 91.7 
Diluted Earnings per Common Share
$2.60 $0.39 $0.07 $0.02 $0.05 $3.13 
Effective Tax Rate
24.1%23.9%
Government Operations Operating Income$336.5 $— $1.2 $0.8 $— $338.6 
Commercial Operations Operating Income$27.4 $— $1.5 $— $6.2 $35.1 
Unallocated Corporate Operating Income$(15.3)$— $5.4 $1.8 $— $(8.1)




EXHIBIT 1 (continued)
RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA(1)(2)(3)
(In millions)
Three Months Ended December 31, 2023
 GAAPPension & OPEB MTM (Gain) / LossRestructuring & Transformation CostsAcquisition-related CostsNon-GAAP
 
Net Income$66.3 $23.7 $3.3 $0.0  $93.3 
Provision for Income Taxes19.3 7.1 0.7 0.0  27.2 
Other – net26.5 (30.8)— —  (4.3)
Interest Expense11.8 — — —  11.8 
Interest Income(0.7)— — —  (0.7)
Depreciation & Amortization20.4 — — —  20.4 
Adjusted EBITDA$143.6 $— $4.0 $0.0  $147.6 
Three Months Ended December 31, 2022
 GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
 
Net Income$43.0 $35.7 $2.1 $0.3 $4.7 $85.7 
Provision for Income Taxes13.8 10.9 0.6 0.0 1.6 26.9 
Other – net33.9 (46.6)— — — (12.6)
Interest Expense11.4 — 0.0 — — 11.4 
Interest Income(0.3)— — — — (0.3)
Depreciation & Amortization19.0 — — — — 19.0 
Adjusted EBITDA$120.9 $— $2.6 $0.3 $6.2 $130.1 
Year Ended December 31, 2023
 GAAPPension & OPEB MTM (Gain) / LossRestructuring & Transformation CostsAcquisition-related CostsNon-GAAP
 
Net Income$246.3 $23.7 $7.8 $0.5  $278.4 
Provision for Income Taxes75.1 7.1 1.7 0.2  84.1 
Other – net17.0 (30.8)— —  (13.8)
Interest Expense47.0 — — —  47.0 
Interest Income(2.4)— — —  (2.4)
Depreciation & Amortization78.6 — — —  78.6 
Adjusted EBITDA$461.6 $— $9.6 $0.7  $471.9 



Year Ended December 31, 2022
 GAAPPension & OPEB MTM (Gain) / LossRestructuring CostsAcquisition-related CostsLoss on Asset DisposalNon-GAAP
 
Net Income$238.6 $35.7 $6.3 $2.2 $4.7 $287.5 
Provision for Income Taxes75.8 10.9 1.9 0.4 1.6 90.5 
Other – net(1.5)(46.6)— — — (48.0)
Interest Expense36.4 — 0.0 — — 36.4 
Interest Income(0.8)— — — — (0.8)
Depreciation & Amortization73.8 — — — — 73.8 
Adjusted EBITDA$422.4 $— $8.2 $2.6 $6.2 $439.4 



EXHIBIT 1 (continued)
RECONCILIATION OF REPORTING SEGMENT ADJUSTED EBITDA(1)(2)(3)
(In millions)
Three Months Ended December 31, 2023
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$116.3 $1.0 $14.0 $131.3 
Commercial Operations$15.9 $0.9 $4.5 $21.3 
Three Months Ended December 31, 2022
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$102.8 $0.3 $12.7 $115.8 
Commercial Operations$3.7 $5.6 $4.3 $13.6 
Year Ended December 31, 2023
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$374.7 $1.4 $53.4 $429.4 
Commercial Operations$37.5 $4.7 $17.7 $60.0 
Year Ended December 31, 2022
 Operating Income (GAAP)
Non-GAAP Adjustments(4)
Depreciation & AmortizationAdjusted EBITDA
 
Government Operations$336.5 $2.1 $48.0 $386.5 
Commercial Operations$27.4 $7.7 $18.8 $53.9 
RECONCILIATION OF CONSOLIDATED FREE CASH FLOW(1)(2)(3)
(In millions)
Three Months Ended December 31,
 20232022
Net Cash Provided By Operating Activities$221.8 $107.7 
Purchases of Property, Plant and Equipment(50.8)(63.7)
Free Cash Flow$171.0 $43.9 
Year Ended December 31,
 20232022
Net Cash Provided By Operating Activities$363.7 $244.7 
Purchases of Property, Plant and Equipment(151.3)(198.3)
Free Cash Flow$212.4 $46.4 
(1)
Tables may not foot due to rounding.
(2)BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations.
(3)For Non-GAAP adjustment details, see reconciliation of non-GAAP operating income and earnings per share.



BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended December 31,Year Ended December 31,
2023202220232022
(Unaudited)
(In thousands, except share and per share amounts)
Revenues
$725,515 $624,177 $2,496,309 $2,232,834 
Costs and Expenses:
Cost of operations
536,966 463,791 1,875,716 1,680,899 
Research and development costs
1,658 2,545 7,613 9,535 
Losses (gains) on asset disposals and impairments, net
1,049 5,742 1,034 5,520 
Selling, general and administrative expenses
74,594 61,308 279,694 234,282 
Total Costs and Expenses
614,267 533,386 2,164,057 1,930,236 
Equity in Income of Investees
11,945 11,092 50,807 45,973 
Operating Income
123,193 101,883 383,059 348,571 
Other Income (Expense):
Interest income
736 295 2,359 758 
Interest expense
(11,836)(11,427)(47,036)(36,410)
Other – net
(26,472)(33,943)(16,982)1,458 
Total Other Income (Expense)
(37,572)(45,075)(61,659)(34,194)
Income before Provision for Income Taxes
85,621 56,808 321,400 314,377 
Provision for Income Taxes
19,310 13,780 75,079 75,757 
Net Income
$66,311 $43,028 $246,321 $238,620 
Net Income Attributable to Noncontrolling Interest
(424)(63)(472)(429)
Net Income Attributable to BWX Technologies, Inc.
$65,887 $42,965 $245,849 $238,191 
Earnings per Common Share:
Basic:
Net Income Attributable to BWX Technologies, Inc.$0.72 $0.47 $2.68 $2.60 
Diluted:
Net Income Attributable to BWX Technologies, Inc.$0.72 $0.47 $2.68 $2.60 
Shares used in the computation of earnings per share:
Basic
91,686,671 91,422,303 91,619,156 91,447,088 
Diluted
91,997,796 91,812,291 91,874,537 91,702,111 




BWX TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
20232022
CASH FLOWS FROM OPERATING ACTIVITIES:(In thousands)
Net Income$246,321 $238,620 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization78,566 73,842 
Income of investees, net of dividends11,130 (3,461)
Provision for deferred taxes(5,128)5,515 
Recognition of (gains) losses for pension and postretirement plans34,087 49,868 
Stock-based compensation expense15,896 14,127 
Premium for early redemption of senior notes— — 
Recognition of debt issuance costs from former debt instruments— 46 
Other, net(496)7,649 
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable462 15,167 
Accounts payable(9,025)(40,495)
Retainages(6,615)4,189 
Contracts in progress and advance billings on contracts28,868 (38,615)
Income taxes(4,786)(764)
Accrued and other current liabilities(9,754)(18,948)
Pension liabilities, accrued postretirement benefit obligations and employee benefits(6,964)(68,535)
Other, net(8,861)6,499 
NET CASH PROVIDED BY OPERATING ACTIVITIES363,701 244,704 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(151,286)(198,312)
Acquisition of businesses— (47,328)
Purchases of securities(2,343)(3,803)
Sales and maturities of securities5,996 3,813 
Investments, net of return of capital, in equity method investees— (11,450)
Other, net(8,009)844 
NET CASH USED IN INVESTING ACTIVITIES(155,642)(256,236)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt353,100 978,200 
Repayments of long-term debt(434,350)(878,200)
Premium for early redemption of senior notes— — 
Payment of debt issuance costs— (2,405)
Borrowings and repayments of bank overdraft— — 
Repurchases of common stock— (20,000)
Dividends paid to common shareholders(84,974)(81,074)
Cash paid for shares withheld to satisfy employee taxes(7,592)(6,588)
Settlements of forward contracts, net3,689 24,013 
Other, net756 
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES(169,371)13,952 
EFFECTS OF EXCHANGE RATE CHANGES ON CASH1,937 (1,205)
TOTAL INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS40,625 1,215 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD40,990 39,775 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD$81,615 $40,990 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest$63,216 $51,343 
Income taxes (net of refunds)$84,478 $71,755 
SCHEDULE OF NON-CASH INVESTING ACTIVITY:
Accrued capital expenditures included in accounts payable$7,105 $9,588 



BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31,
20232022
(In thousands)
Current Assets:
Cash and cash equivalents$75,766 $35,244 
Restricted cash and cash equivalents2,858 2,928 
Investments— 3,804 
Accounts receivable – trade, net70,180 60,782 
Accounts receivable – other16,339 26,894 
Retainages55,181 48,566 
Contracts in progress533,155 538,365 
Other current assets64,322 55,036 
Total Current Assets817,801 771,619 
Property, Plant and Equipment, Net1,228,520 1,134,897 
Investments9,496 8,097 
Goodwill297,020 293,165 
Deferred Income Taxes16,332 20,585 
Investments in Unconsolidated Affiliates88,608 100,198 
Intangible Assets185,510 193,612 
Other Assets103,778 96,766 
TOTAL$2,747,065 $2,618,939 




BWX TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
December 31,
20232022
(In thousands, except share
and per share amounts)
Current Liabilities:
Current maturities of long-term debt$6,250 $6,250 
Accounts payable126,651 127,112 
Accrued employee benefits64,544 61,079 
Accrued liabilities – other70,210 84,693 
Advance billings on contracts107,391 88,726 
Total Current Liabilities375,046 367,860 
Long-Term Debt
1,203,422 1,282,624 
Accumulated Postretirement Benefit Obligation
18,466 18,157 
Environmental Liabilities
90,575 90,989 
Pension Liability
82,786 57,832 
Other Liabilities
43,469 53,122 
Commitments and Contingencies
Stockholders' Equity:
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 128,065,521 and 127,671,756 shares at December 31, 2023 and 2022, respectively1,281 1,277 
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; no shares issued— — 
Capital in excess of par value206,478 189,263 
Retained earnings2,093,917 1,932,970 
Treasury stock at cost, 36,537,695 and 36,417,480 shares at December 31, 2023 and 2022, respectively(1,360,862)(1,353,270)
Accumulated other comprehensive income (loss)(7,463)(21,930)
Stockholders' Equity – BWX Technologies, Inc.933,351 748,310 
Noncontrolling interest(50)45 
Total Stockholders' Equity933,301 748,355 
TOTAL
$2,747,065 $2,618,939 




BWX TECHNOLOGIES, INC.
BUSINESS SEGMENT INFORMATION
Three Months Ended December 31,Year Ended December 31,
2023202220232022
(Unaudited)
(In thousands)
REVENUES:
Government Operations$601,629 $517,648 $2,031,337 $1,808,483 
Commercial Operations124,141 107,092 466,344 427,358 
Eliminations(255)(563)(1,372)(3,007)
TOTAL$725,515 $624,177 $2,496,309 $2,232,834 
 
SEGMENT INCOME:
Government Operations$116,282 $102,752 $374,682 $336,501 
Commercial Operations15,919 3,745 37,532 27,418 
SUBTOTAL$132,201 $106,497 $412,214 $363,919 
Unallocated Corporate(9,008)(4,614)(29,155)(15,348)
TOTAL$123,193 $101,883 $383,059 $348,571 
 
DEPRECIATION AND AMORTIZATION:
Government Operations$14,035 $12,724 $53,388 $47,982 
Commercial Operations4,467 4,340 17,745 18,805 
Corporate1,859 1,970 7,433 7,055 
TOTAL$20,361 $19,034 $78,566 $73,842 
 
CAPITAL EXPENDITURES:
Government Operations$33,584 $36,898 $91,699 $103,093 
Commercial Operations12,769 25,294 53,358 88,853 
Corporate4,435 1,529 6,229 6,366 
TOTAL$50,788 $63,721 $151,286 $198,312 
BACKLOG:
Government Operations$3,216,673 $3,515,377 $3,216,673 $3,515,377 
Commercial Operations780,974 628,933 780,974 628,933 
TOTAL$3,997,647 $4,144,310 $3,997,647 $4,144,310 
BOOKINGS:
Government Operations$559,412 $345,220 $1,731,618 $743,452 
Commercial Operations182,907 103,609 618,029 412,359 
TOTAL$742,319 $448,829 $2,349,647 $1,155,811