Revenue growth has accelerated to 26.1% as of 2026Q1, yet operating margins have simultaneously declined to 12.4% from 17.0% in 2023Q4, indicating potential challenges in scaling profitability.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Sales/Revenue | 3.38B | 3.2B | 2.7B | 2.5B | 2.23B | 2.12B | 2.12B | 1.89B | 1.8B | 1.69B | 1.55B | 1.42B | 1.45B | 1.55B | 3.29B | 2.95B | 2.69B | 2.85B | 3.4B |
| Revenue Growth % | 21.37% | 18.3% | 8.31% | 11.8% | 5.12% | 0.03% | 12.06% | 5.28% | 6.64% | 8.85% | 9.54% | -2.42% | -6.21% | -53.01% | 11.49% | 9.79% | -5.81% | -16% | - |
| Cost of Goods Sold | 1.95B | 2.47B | 2.05B | 1.88B | 1.68B | 1.57B | 1.55B | 1.36B | 1.3B | 1.17B | 1.07B | 1.03B | 2.41B | 2.3B | 2.46B | 2.28B | 2.02B | 2.24B | 2.68B |
| COGS % of Revenue | - | 77.13% | 75.77% | 75.14% | 75.28% | 74.09% | 72.9% | 71.83% | 72% | 69.37% | 69.3% | 72.58% | 166.09% | 148.81% | 74.78% | 77.17% | 75.28% | 78.31% | 78.8% |
| Gross Profit | 566.27M | 731.52M | 655.21M | 620.59M | 551.93M | 550.28M | 575.4M | 533.86M | 504.01M | 516.88M | 476.04M | 388.09M | 513.64M | 967.56M | 830.15M | 673.83M | 664.78M | 619.25M | 720.64M |
| Gross Margin % | 16.77% | 22.87% | 24.23% | 24.86% | 24.72% | 25.91% | 27.1% | 28.17% | 28% | 30.63% | 30.7% | 27.42% | 35.41% | 62.56% | 25.22% | 22.83% | 24.72% | 21.69% | 21.2% |
| Gross Profit Growth % | - | 11.65% | 5.58% | 12.44% | 0.3% | -4.37% | 7.78% | 5.92% | -2.49% | 8.58% | 22.66% | -24.44% | -46.91% | 16.55% | 23.2% | 1.36% | 7.35% | -14.07% | - |
| Operating Expenses | 412.29M | 408.28M | 274.6M | 237.53M | 203.36M | 204.43M | 216.84M | 208.34M | 199.04M | 203.53M | 229.81M | 182.15M | 272.45M | 227.36M | 483.56M | 472.21M | 407.61M | 402.94M | 276.16M |
| OpEx % of Revenue | - | 12.77% | 10.16% | 9.52% | 9.11% | 9.62% | 10.21% | 10.99% | 11.06% | 12.06% | 14.82% | 12.87% | 18.78% | 14.7% | 14.69% | 16% | 15.16% | 14.12% | 8.13% |
| Selling, General & Admin | 414.86M | 394.42M | 318.66M | 279.69M | 234.28M | 230.4M | 231.17M | 216.77M | 214.09M | 214.61M | 216.49M | 207.76M | 442.62M | 379.38M | 428.29M | 413.21M | 405.68M | 403.56M | 337.55M |
| SG&A % of Revenue | - | 12.33% | 11.79% | 11.2% | 10.49% | 10.85% | 10.89% | 11.44% | 11.89% | 12.72% | 13.96% | 14.68% | 30.51% | 24.53% | 13.01% | 14% | 15.09% | 14.14% | 9.93% |
| Research & Development | 15.95M | 13.87M | 7.48M | 7.61M | 9.54M | 11.06M | 14.19M | 17.67M | 15.22M | 7.19M | 6.41M | 10.54M | 73.23M | 79.23M | 120.56M | 106.4M | 69.17M | 0 | 0 |
| R&D % of Revenue | - | 0.43% | 0.28% | 0.3% | 0.43% | 0.52% | 0.67% | 0.93% | 0.85% | 0.43% | 0.41% | 0.74% | 5.05% | 5.12% | 3.66% | 3.6% | 2.57% | - | - |
| Other Operating Expenses | -999K | 0 | -51.54M | -49.77M | -40.45M | -37.03M | -28.51M | -26.1M | -30.28M | -13.81M | 13.89M | -36.15M | -12.68M | -28.55M | -65.29M | -81.74M | -74.04M | -53.87M | -61.4M |
| Operating Income | 372.79M | 323.24M | 380.61M | 383.06M | 348.57M | 345.85M | 358.55M | 325.52M | 304.98M | 292.22M | 234.43M | 205.94M | 25.13M | 306.91M | 346.59M | 95.67M | 248.85M | 269.56M | 444.48M |
| Operating Margin % | 11.04% | 10.11% | 14.08% | 15.35% | 15.61% | 16.28% | 16.88% | 17.18% | 16.94% | 17.31% | 15.12% | 14.55% | 1.73% | 19.84% | 10.53% | 3.24% | 9.26% | 9.44% | 13.08% |
| Operating Income Growth % | - | -15.07% | -0.64% | 9.89% | 0.79% | -3.54% | 10.15% | 6.74% | 4.36% | 24.65% | 13.83% | 719.67% | -91.81% | -11.45% | 262.27% | -61.56% | -7.68% | -39.35% | - |
| EBITDA | 458.06M | 432.43M | 466.47M | 461.63M | 422.41M | 414.93M | 419.23M | 387.24M | 365.07M | 348.78M | 284.98M | 284.56M | 130.92M | 377.44M | 416.29M | 168.67M | 320.49M | 342.28M | 524.2M |
| EBITDA Margin % | 13.57% | 13.52% | 17.25% | 18.49% | 18.92% | 19.53% | 19.74% | 20.44% | 20.28% | 20.67% | 18.38% | 20.1% | 9.03% | 24.4% | 12.65% | 5.71% | 11.92% | 11.99% | 15.42% |
| EBITDA Growth % | -3.26% | -7.3% | 1.05% | 9.28% | 1.8% | -1.03% | 8.26% | 6.07% | 4.67% | 22.39% | 0.15% | 117.35% | -65.31% | -9.33% | 146.8% | -47.37% | -6.37% | -34.71% | - |
| D&A (Non-Cash Add-back) | 85.27M | 109.19M | 85.86M | 78.57M | 73.84M | 69.08M | 60.67M | 61.72M | 60.1M | 56.56M | 50.55M | 78.62M | 105.8M | 70.53M | 69.7M | 73M | 71.63M | 72.71M | 79.72M |
| EBIT | 342.52M | 442.33M | 388.19M | 368.44M | 350.79M | 431.47M | 393.19M | 349.06M | 307.97M | 310.66M | 265.66M | 231.25M | 39.22M | 288.17M | 323.15M | 99.04M | 233.15M | 256.89M | 455.48M |
| Net Interest Income | -33.04M | -40.31M | -36.92M | -44.68M | -35.65M | -35.34M | -30.5M | -34.38M | -25.34M | -13.47M | -7.74M | 20.15M | -6.85M | -2.44M | -2.24M | -3.2M | -11.75M | -21.15M | -7.45M |
| Interest Income | 8.09M | 3.89M | 2.55M | 2.36M | 758K | 416K | 518K | 942K | 2.48M | 1.41M | 651K | 30.33M | 233K | 215K | 1.49M | 1.34M | 1.19M | 3.44M | 15.29M |
| Interest Expense | 31.48M | 44.21M | 39.48M | 47.04M | 36.41M | 35.76M | 31.01M | 35.32M | 27.82M | 14.88M | 8.39M | 10.18M | 7.09M | 2.65M | 3.73M | 4.54M | 12.94M | 24.59M | 22.74M |
| Other Income/Expense | 40.83M | 74.88M | -31.89M | -61.66M | -34.19M | 49.87M | 3.62M | -11.78M | -24.83M | -13.11M | 22.84M | 15.12M | -19.66M | 210.26M | -27.17M | 139.26M | -28.15M | 15.18M | -11.74M |
| Pretax Income | 413.62M | 398.12M | 348.72M | 321.4M | 314.38M | 395.71M | 362.17M | 313.74M | 280.14M | 295.78M | 257.27M | 221.06M | 5.47M | 517.17M | 319.42M | 234.94M | 235.82M | 232.3M | 432.74M |
| Pretax Margin % | 12.25% | 12.45% | 12.9% | 12.88% | 14.08% | 18.63% | 17.06% | 16.56% | 15.56% | 17.53% | 16.59% | 15.62% | 0.38% | 33.44% | 9.7% | 7.96% | 8.77% | 8.14% | 12.73% |
| Income Tax | 68.09M | 68.26M | 66.42M | 75.08M | 75.76M | 89.42M | 82.98M | 69.06M | 52.84M | 147.41M | 73.66M | 80.42M | -15.99M | 184.58M | 101.86M | 72.98M | 82.29M | 84.38M | 108.89M |
| Effective Tax Rate % | 16.46% | 17.15% | 19.05% | 23.36% | 24.1% | 22.6% | 22.91% | 22.01% | 18.86% | 49.84% | 28.63% | 36.38% | -292.55% | 35.69% | 31.89% | 31.06% | 34.9% | 36.32% | 25.16% |
| Net Income | 344.67M | 329.86M | 281.94M | 245.85M | 238.19M | 305.87M | 278.67M | 244.12M | 226.96M | 147.84M | 183.06M | 131.47M | 29.39M | 346.08M | 227.69M | 169.65M | 153.26M | 147.76M | 323.77M |
| Net Margin % | 10.21% | 10.31% | 10.43% | 9.85% | 10.67% | 14.4% | 13.12% | 12.88% | 12.61% | 8.76% | 11.81% | 9.29% | 2.03% | 22.38% | 6.92% | 5.75% | 5.7% | 5.18% | 9.53% |
| Net Income Growth % | 19.26% | 17% | 14.68% | 3.22% | -22.13% | 9.76% | 14.16% | 7.56% | 53.51% | -19.24% | 39.24% | 347.34% | -91.51% | 51.99% | 34.21% | 10.7% | 3.72% | -54.36% | - |
| Net Income (Continuing) | 345.52M | 329.86M | 282.3M | 246.32M | 238.62M | 306.29M | 279.2M | 244.68M | 227.31M | 148.37M | 183.61M | 140.65M | 30.44M | 184.71M | 217.56M | 161.95M | 153.53M | 147.92M | 323.85M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 147.88M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -191K | 525K | -276K | -50K | 45K | 60K | 2K | 6K | 39K | 363K | 392K | 13.92M | 15.5M | 18.25M | 16.48M | 9.18M | 666K | 0 | 0 |
| EPS (Diluted) | 3.75 | 3.59 | 3.07 | 2.68 | 2.60 | 3.24 | 2.91 | 2.55 | 2.27 | 1.47 | 1.76 | 1.22 | 0.27 | 3.07 | 1.91 | 0.66 | 1.19 | 1.26 | 2.76 |
| EPS Growth % | 19.75% | 16.94% | 14.55% | 3.08% | -19.75% | 11.34% | 14.12% | 12.33% | 54.42% | -16.48% | 44.26% | 351.85% | -91.21% | 60.73% | 189.39% | -44.54% | -5.56% | -54.35% | - |
| EPS (Basic) | - | 3.60 | 3.08 | 2.68 | 2.60 | 3.24 | 2.92 | 2.56 | 2.29 | 1.49 | 1.79 | 1.23 | 0.27 | 3.09 | 1.92 | 0.67 | 1.20 | 1.27 | 2.79 |
| Diluted Shares Outstanding | 91.91M | 91.86M | 91.86M | 91.87M | 91.7M | 94.52M | 95.73M | 95.81M | 100.02M | 100.37M | 103.84M | 107.58M | 108.76M | 112.69M | 119.02M | 118.4M | 117.63M | 117.42M | 117.42M |
| Basic Shares Outstanding | 91.66M | 91.57M | 91.57M | 91.62M | 91.45M | 94.28M | 95.46M | 95.38M | 99.06M | 99.33M | 102.47M | 106.7M | 108.48M | 111.9M | 118.42M | 117.56M | 116.26M | 116.07M | 116.07M |
| Dividend Payout Ratio | - | 28.03% | 31.34% | 34.56% | 34.04% | 26.05% | 26.17% | 26.78% | 28.12% | 28.44% | 20.41% | 26.23% | 147.91% | 10.98% | 4.17% | 12.29% | 13.34% | - | - |
Contractual Margin Compression
According to recent quarterly filings, BWXT has demonstrated a notable acceleration in top-line performance, with revenue growth reaching 26.1% in 2026Q1 compared to more modest mid-single-digit figures observed in early 2024, suggesting a successful ramp-up in naval nuclear component production and broader program execution.
The recent surge in revenue appears to reflect the long-cycle nature of defense procurement finally hitting a higher throughput phase. Investors should monitor whether this acceleration is sustainable or if it represents a temporary catch-up in project milestones that could normalize in subsequent periods.
As reported in financial statements, BWXT's gross margin has fluctuated between 21% and 26% over the last ten quarters, indicating that the company's cost-plus contract structure effectively caps profitability despite the high-barrier, sole-source nature of its core naval nuclear propulsion business.
The compression observed in recent quarters suggests that inflationary pressures on specialized labor and materials may be outpacing the escalation clauses embedded in long-term government contracts. This warrants further investigation into whether the company can successfully shift its mix toward higher-margin commercial medical isotopes to offset these structural limitations.
Based on the provided income statement data, operating margins have trended downward from 17.0% in 2023Q4 to 12.4% in 2026Q1, suggesting that SG&A and other overhead costs are scaling faster than the company's ability to extract operating income from its expanding revenue base.
The inability to maintain operating margin expansion during a period of accelerating revenue growth may indicate rising administrative or R&D burdens associated with new technology initiatives like SMRs. Analysts should scrutinize whether these costs are temporary investments or a permanent shift in the company's operating cost structure.
Analysis of the income statement reveals that stock-based compensation has trended upward, reaching $10.2M in 2026Q1, which may be diluting the quality of reported net income and warrants careful consideration when evaluating the sustainability of the company's current earnings per share growth trajectory.
While net income has shown resilience, the increasing reliance on equity-based incentives suggests a potential disconnect between cash-based operational performance and GAAP earnings. Investors should monitor the impact of these non-cash charges on long-term shareholder value creation and the potential for future share count expansion.
Quick answers to the most common questions about buying BWXT stock.
For fiscal year 2025, BWX Technologies, Inc. (BWXT) reported total revenue of $3.20B. This represents a 5.9% decline compared to $3.40B in 2008.
BWX Technologies, Inc. (BWXT) is profitable, generating $329.9M in net income for the fiscal year ending 2025 with a net profit margin of 10.3%.
BWX Technologies, Inc. (BWXT) reported an operating income of $323.2M, resulting in an operating profit margin of 10.1%. This margin reflects the operational efficiency of the business before interest and taxes.
BWX Technologies, Inc. (BWXT) generated $731.5M in gross profit for the year, representing a gross profit margin of 22.9%. This demonstrates the company's core pricing power and production efficiency.