BWXT 10-Q filed 2026-11-02 | Key takeaways
BWXT filed its 10-Q; the most relevant disclosure change is added Assets and liabilities classified as held for sale: BWXT classified its medical business (part of Commercial Operations segment) as held for sale as of September 30, 2026, with assets of $40.8 million in current assets and $659.5 million in non-current assets, offset by liabilities of $29.0 million in current l. Customer concentration: U.S. Government represented 87% of revenue; U.S. Government represented 88% of revenue.
Key takeaways
Medical business divestiture: BWXT signed a definitive agreement to sell its medical business to Nordic Capital for up to $800 million; expects to maintain a minority interest in the divested business.
Customer concentration change: U.S. Government revenue as a percentage of Government Operations segment declined to 87% in Q3 2026 from 91% in Q3 2025, a 4 percentage-point decrease.
PCG acquisition completed: Precision Components Group acquisition closed on July 1, 2026 for $216.8 million, expanding BWXT's heavy-manufacturing footprint for commercial nuclear production.
Backlog increased to $8.56 billion at September 30, 2026 from $7.26 billion at December 31, 2025, with 46% expected to be recognized by end of 2027.
Effective tax rate declined to 22.7% in Q3 2026 from 23.6% in Q3 2025, driven by U.S. federal R&D tax credits offsetting non-deductible executive compensation.
Key metrics
Customer concentration
Disclosure changes
- Assets and liabilities classified as held for sale
BWXT classified its medical business (part of Commercial Operations segment) as held for sale as of September 30, 2026, with assets of $40.8 million in current assets and $659.5 million in non-current assets, offset by liabilities of $29.0 million in current liabilities and $16.7 million in non-current liabilities.
The pending divestiture of the medical business for up to $800 million represents a significant corporate transaction affecting BWXT's Commercial Operations segment composition and future revenue profile. - Acquisition of Precision Components Group
BWXT acquired Precision Components Group, LLC (PCG) on July 1, 2026 for approximately $216.8 million, expanding its heavy-manufacturing footprint for commercial nuclear production. Preliminary purchase price allocation resulted in $65.3 million of goodwill, $51.0 million of intangible assets, and $112.3 million of PP&E.
PCG acquisition contributed $26.2 million in Q3 2026 revenues and expands BWXT's U.S. commercial nuclear component manufacturing capacity. - 2030 Convertible Senior Notes
BWXT issued $1.25 billion aggregate principal amount of 0% Convertible Senior Notes due 2030 in November 2025, with initial conversion rate of 3.8094 shares per $1,000 principal amount (equivalent to conversion price of $262.51 per share). Company paid $131.9 million for capped call transactions to hedge dilution.
The $1.25 billion convertible notes represent a significant change in BWXT's capital structure with potential dilution to existing shareholders upon conversion. - Customer concentration
U.S. Government accounted for approximately 87% of Government Operations segment revenues in Q3 2026 versus 91% in Q3 2025; large utility customers accounted for approximately 58% of Commercial Operations segment revenues in Q3 2026 versus 45% in Q3 2025.
Customer concentration shift indicates reduced reliance on U.S. Government in Government Operations and increased reliance on large utility customers in Commercial Operations, reflecting the impact of recent acquisitions. - New Credit Facility
BWXT entered into a new $1.25 billion senior secured revolving credit facility on November 10, 2025, maturing November 10, 2030, replacing the prior $750 million revolving facility and $250 million term loan.
The new credit facility provides enhanced liquidity capacity and extended maturity, supporting BWXT's acquisition strategy and operational needs. - Net property, plant and equipment by geography
Net PP&E at September 30, 2026: U.S. $1,011.1 million, Canada $721.1 million, All Other Countries $15.4 million, totaling $1,747.5 million (inclusive of assets held for sale).
Net PP&E increased by $162.4 million (10.2%) driven by the PCG acquisition and capital investments, with note that values include assets classified as held for sale.
Primary source
TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.
Open SEC filingFollow BWXT in real time
Get material earnings, filing, IR, and earnings-call alerts by email.