BWX Technologies reported this week its Lynchburg-based Nuclear Operations Group saw another quarter of record-high revenue as the company reported record-high earnings.
The group’s revenue in the third quarter rose 23.5% year-over-year to $394.5 million. BWXT, which has its corporate headquarters in Lynchburg, has more than 6,300 employees in the U.S. and Canada. Most of its approximately 2,700 employees locally are in the Nuclear Operations Group at the company’s Mt. Athos location.
The nuclear-services company announced a year-over-year 88% jump in non-GAAP profit to $75.3 million, or 79 cents per share, up from $40.1 million, or 40 cents per share. That earnings-per-share figure of 79 cents set a company record high for any quarter, BWXT President and CEO Rex Geveden said in an interview in which he also said BWXT’s workforce “continues to be exceptional.”
BWXT’s profit as reported under GAAP — short for “generally accepted accounting principles,” a standard for reporting financial results — was $74.8 million, or 78 cents per share, down slightly from $77.9 million, or 78 cents per share. The primary difference between BWXT’s non-GAAP and GAAP results is the GAAP numbers include the impact of a pension valuation gain unrelated to the firm’s core business; BWXT executives consider the non-GAAP results to be better indicators of the company’s performance.
“Third quarter results were highlighted by sustained growth in the Nuclear Operations Group as we focused on executing against our backlog and continuing to prepare for future expansion,” Geveden said in a news release. The company’s backlog of work totaled $4.2 billion at the end of the quarter.
The third-quarter results beat Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 65 cents per share. BWXT’s stock price has risen about 52% since the beginning of the year.
BWXT increased its earnings guidance for the full year to $2.55 per share.
On Nov. 1, the company’s board of directors declared a cash dividend of 17 cents per share, payable Dec. 13 to shareholders of record as of Nov. 20.
BWXT formed in July 2015 after a split with Charlotte, North Carolina-based Babcock & Wilcox Inc. It supplies nuclear reactor components, fuel and technical services to the U.S. government and has a medical isotopes division.
Last month, the company announced a seven-year, $806 million contract to procure materials to make nuclear reactor components for the U.S. Navy. It also announced it plans to restart and expand its production of a type of nuclear fuel called TRISO.
The Associated Press contributed to this report.