A maker of nuclear components and fuel, BWX Technologies builds reactors and parts for the U.S. Navy's submarines and aircraft carriers, manages high-consequence government sites, and supplies medical radioisotopes. It grew out of the Babcock & Wilcox boiler company founded in 1867, and spun off on its own in 2015. Its roots go back to the Manhattan Project, and it helped build the world's first nuclear-powered submarine, the USS Nautilus.
BWXT's backlog reached $8.4B and it announced a medical business sale for up to $800M, even as operating margin fell to 12.4%.
BWXT's climbed to $8.4 billion and it announced a deal to sell its medical business for up to $800 million. rose 26.1% to $860.2 million, driven by the Kinectrics acquisition, but fell 1.8 points to 12.4% as acquisition and restructuring costs weighed on the result. The company is reshaping its portfolio around nuclear operations and services, while carrying $2.0 billion in .
Key takeaways
Total reached $8.4 billion as of June 30, 2026, up from $7.3 billion at year-end 2025, with approximately 55% expected to convert to by the end of 2027.
Consolidated rose 26.1% to $860.2 million, as Commercial Operations revenue more than doubled to $283.6 million, primarily from a $105.3 million contribution from the Kinectrics acquisition.
rose 10.4% to $106.7 million, but fell 1.8 points to 12.4% as an $8.9 million increase in unallocated corporate expenses from M&A legal and consulting costs and restructuring activities offset gains.
Section summaries
Management's Discussion and Analysis
Consolidated Q2 2026 revenue rose 18% YoY to $901.6M, driven by the Kinectrics acquisition and higher commercial services.
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Consolidated Q2 2026 grew 18.0% to $901.6M, with Commercial Operations surging 71.7% to $302.5M primarily from the Kinectrics acquisition and higher on-site refurbishment work.
Government Operations Q2 edged up 2.1% to $601.3M on enrichment contributions, but fell 3.4% to $105.7M due to favorable prior-year contract adjustments not repeating.
fell 1.3 points to 22.9%, though it improved 1.8 points sequentially from Q4 2025's 21.1%.
The company announced a definitive agreement to sell its medical business for up to $800 million and completed the acquisition of Precision Components Group on July 1, 2026.
rose 82.8% to $92.6 million, and rose to $50.1 million from $17.3 million a year ago, while cash and equivalents stood at $512.4 million.
What changed
The Q1 2026 watch item on trajectory showed a sequential improvement to 22.9% from Q4 2025's 21.1%, though the margin remained 1.3 points below the prior-year quarter.
The Q1 2026 watch item on unallocated corporate expenses persisted: the $8.9 million increase in M&A and restructuring costs continued to pressure , which fell to 12.4%.
The Q1 2026 watch item on generation showed a sustained improvement to $50.1 million from $17.3 million a year ago, though the figure remains modest relative to the $2.0 billion balance.
The Q1 2026 watch item on conversion shifted: the expected conversion rate to by end of 2027 is now approximately 55%, down from the 60% noted in Q1, as the acquired backlog is absorbed.
What to watch
Q3 2026 and as the Kinectrics and Precision Components Group acquisitions are further integrated and the $8.9 million in unallocated corporate M&A and restructuring costs potentially decline.
Total conversion from the $8.4 billion level and whether the 55% expected conversion to by end of 2027 holds as the acquired backlog is absorbed.
generation against the $2.0 billion balance, and whether the Q2 improvement to $50.1 million is sustained or reflects project cash flow timing.
Closing and terms of the announced medical business sale for up to $800 million, and the effect on Commercial Operations and profitability.
Commercial Operations Q2 more than tripled to $24.3M, benefiting from higher volumes and a favorable product mix shift.
Total reached $8.4B as of June 30, 2026, up from $7.3B at year-end 2025, with approximately 55% expected to be recognized as by end of 2027.
Liquidity remained strong with $625.1M in cash and equivalents and $1.25B available under the undrawn ; rose to $249.0M for the first half of 2026.
The company announced a definitive agreement to sell its medical business for up to $800M and completed the acquisition of Precision Components Group on July 1, 2026.
For information regarding ongoing investigations and litigation, see Note 5 to our unaudited condensed consolidated financial statements in Part I of this Report, which we incorporate by reference into this Item.
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For information regarding ongoing investigations and litigation, see Note 5 to our unaudited condensed consolidated financial statements in Part I of this Report, which we incorporate by reference into this Item.
In addition to the other information in this Report, the other factors presented in Item 1A of our 2025 10-K are some of the factors that could materially affect our business, financial condition or future results. There have been no material changes to our risk factors from tho…
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In addition to the other information in this Report, the other factors presented in Item 1A of our 2025 10-K are some of the factors that could materially affect our business, financial condition or future results. There have been no material changes to our risk factors from those disclosed in our 2025 10-K.