BWX Technologies (BWXT) Q3: EPS up 26%, Commercial up 25%, 2027 outlook out

$BWXT reported non-GAAP EPS of $1.26 for the third quarter, up 26% from $1.00 a year ago, on revenue of $953.0M, up 10%. Commercial Operations grew 25% and Government Operations operating income rose 26%, so the quarter answered part of the "the core barely grows" objection on our /stocks/bwxt page. This recap walks the segment numbers, the tightened 2026 guide, the first 2027 outlook, the read across the Nuclear / SMR bubble, and the lines to watch next.

The print

$BWXT reported the quarter ended September 30, 2026 after the US close on November 2. The consensus in the data feed QA tracks was about $1.23 of EPS and $0.99B of revenue: EPS came in about $0.03 above it, revenue about $37M below.

By segment:

• Government Operations: revenue $639.1M (+4%), operating income $122.6M (+26%), adjusted EBITDA $144.2M (+22%). Growth came from special materials and advanced nuclear, partly offset by lower naval propulsion volume.
• Commercial Operations: revenue $314.2M (+25%), operating income $26.3M (+10%), adjusted EBITDA $41.4M (+17%). Commercial nuclear components, services and medical grew; fuel handling was slightly lower. Margins grew slower than revenue on mix and on SG&A spent to support growth.
• Corporate: unallocated expense doubled to $16.8M.

Remaining performance obligations stood at $8.56B at September 30 (from $8.4B at June 30), with about 46% expected to turn into revenue by the end of 2027, according to the 10-Q. The quarterly dividend stays at $0.27 a share, payable December 10.

The guide

The 2026 ranges were tightened around their midpoints, with the low end of free cash flow raised by $5M. The company also gave a preliminary 2027 outlook: high-single-digit revenue growth, and high-single-digit to low-double-digit growth in adjusted EBITDA and non-GAAP EPS, with EBITDA growth ahead of the framework given at its 2026 Investor Day. These are company guides, not results.

Nuclear / SMR read-through

The standing QA thesis on /stocks/bwxt is a naval reactor monopoly with a faster commercial arm, and a bear case that the Navy core barely grows. This print moves both halves.

• Government: revenue grew only 4%, and naval propulsion volume was lower, but operating income rose 26%. Special materials and advanced nuclear carried the growth.
• Commercial: 25% revenue growth, now without the help of a fresh acquisition in the base (the Precision Components Group deal closed July 1, so it is inside this quarter).
• Advanced reactors: the BWXT Advanced Nuclear Reactor (BANR) was selected for the U.S. Army's Janus Program at Fort Campbell and for Prodigy Clean Energy's transportable nuclear plant project in Canada. Selections, not yet revenue.
• Medical: the sale of the medical business to Nordic Capital (up to $800M) is still expected to close in 2026 or the first quarter of 2027; its assets are now shown as held for sale.

Net read: the quarter was earnings and cash led, with revenue slightly short of the feed's consensus. The new 2027 outlook is the forward line the cohort will be read against.

Peer reaction

$BWXT's closest correlated names in the QA universe over 252 days are $FTC (0.64), $FIX (0.60), $PWR (0.59), $CCJ (0.58), $LEU (0.57) and $FTAI (0.56).

• FIX and PWR trade as power and infrastructure builders, the industrial side of the same capex cycle.
• CCJ and LEU are the fuel side: uranium and enrichment. $CCJ reported on October 30 (recap).
• The reaction to this print in the cohort shows up in the session of November 3, after this recap was written.

What worked

• Non-GAAP EPS of $1.26, up 26%, above the feed's consensus.
• Free cash flow of $150.5M, up 59%, on higher advance billings.
• Government Operations operating income up 26% on 4% revenue growth.
• Commercial Operations revenue up 25%.
• Backlog of $8.56B, up from $8.4B a quarter earlier.
• A first 2027 outlook pointing to growth in revenue, EBITDA and EPS.

What broke

• Revenue. $953.0M, about $37M under the feed's consensus.
• Naval propulsion. Lower volume in the largest Government business.
• Commercial margins. Operating income grew 10%, well behind revenue at 25%.
• Corporate cost. Unallocated expense up 111% to $16.8M.
• Leverage. Long-term debt of $2.02B at September 30.
• The tape. A $130.47 close on November 2, down 39% over a year and about 46% under its 52-week high.

What to watch

• Next earnings. Q4 and full year 2026, expected in late February on BWXT's usual cadence (not yet confirmed).
• 2027. The full guide behind the preliminary high-single-digit outlook.
• Awards. Conversion of the bid pipeline into firm contracts, which management highlighted.
• Advanced reactors. Contracts and timelines behind the Janus and Prodigy selections.
• Medical sale. Closing of the Nordic Capital deal and the use of the proceeds.

The teardown video, the level map and the peer table live on /stocks/bwxt. For the business explained from scratch, read BWX Technologies explained. The desk's full read in one document is the BWXT Teardown Dossier, included in Pro.

To follow the reactor and fuel names as a group, see the Nuclear / SMR bubble. Rule-based alerts on the cohort are part of /pro.

Educational research on structural market dynamics. Not investment advice. QuantAbundance positions may change without notice.