BWX Technologies Reports Fourth-Quarter and Full-Year 2022 Results, Initiates 2023 Guidance and Increases Quarterly Cash Dividend

Rhea-AI Summary

BWX Technologies, Inc. (BWXT) reported Q4 2022 diluted GAAP EPS of $0.47, down 63% from $1.26 a year ago, with revenue of $624.2 million, a 5% increase year-over-year. For the full year, GAAP EPS decreased by 20% to $2.60, while adjusted EBITDA rose to $439.4 million. Operating cash flow for 2022 was $244.7 million. The company declared a quarterly cash dividend increase to $0.23 per share, payable on March 28, 2023. Despite solid results, labor market challenges are expected to hinder growth in 2023. BWXT's 2023 guidance estimates revenue of ~$2.4 billion and adjusted EBITDA of ~$475 million.

Positive

• Increased quarterly cash dividend to $0.23 per share.
• Solid 2022 revenue growth of 5% to $2.23 billion.
• Adjusted EBITDA improved by 5% compared to 2021.

Negative

• Q4 GAAP EPS dropped 63% year-over-year.
• Operating cash flow decreased by 33% to $107.7 million.

• 4Q22 diluted GAAP EPS of $0.47, diluted non-GAAP⁽¹⁾ EPS of $0.93, on revenue of $624.2 million

• 4Q22 net income of $43.0 million, adjusted EBITDA⁽¹⁾ of $130.1 million

• 2022 diluted GAAP EPS of $2.60, diluted non-GAAP⁽¹⁾ EPS of $3.13, on revenue of $2.23 billion

• 2022 net income of $238.6 million, adjusted EBITDA⁽¹⁾ of $439.4 million

• 2022 operating cash flow of $244.7 million, free cash flow⁽¹⁾ of $46.4 million

• Initiates 2023 guidance in-line with prior outlook commentary

• Increases quarterly cash dividend to $0.23 per share

LYNCHBURG, Va.--(BUSINESS WIRE)-- BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported fourth-quarter and full-year 2022 results. A reconciliation of non-GAAP results are detailed in Exhibit 1.

“As we expected, BWXT closed out 2022 with solid fourth quarter financial results," said Rex D. Geveden, president and chief executive officer. “We benefited from our balanced and growing portfolio this year as strong performance in Commercial Operations largely offset headwinds in the Government Operations segment owing to a tough labor market. Operating performance outpaced macroeconomic and accounting headwinds, including lower pension income and increasing interest rates, resulting in high-single digit underlying EBITDA and positive earnings per share growth for the year.”

“We continue to face labor pressures and expect that to detract from our full potential in 2023 because our growth will likely be muted by attrition and the availability of qualified workers. Despite these macroeconomic headwinds, I am energized about the expected future trajectory of BWXT because we see increasing demand in every market in which we participate. We see near-term opportunity in space-based microreactors, DOE services, commercial small modular reactors, nuclear medicine, and potential new demand related to the AUKUS trilateral security agreement. Accordingly, we expect 2023 to shape up as another strategic milestone year as we continue to drive top-line gains, accelerate EBITDA growth, and inflect free cash flow,” said Geveden.

Financial Results Summary

		Three Months Ended December 31,														Year Ended December 31,
		2022				2021				$ Change				% Change		2022				2021				$ Change				% Change
		(Unaudited) (In millions, except per share amounts)
Revenue
Government Operations		$	517.6			$	479.2			$	38.5			8%		$	1,808.5			$	1,725.1			$	83.4			5%
Commercial Operations		$	107.1			$	114.5			$	(7.4	)		(6)%		$	427.4			$	407.1			$	20.3			5%
Consolidated		$	624.2			$	592.0			$	32.2			5%		$	2,232.8			$	2,124.1			$	108.8			5%
Operating Income
Government Operations		$	102.8			$	90.9			$	11.9			13%		$	336.5			$	329.5			$	7.0			2%
Commercial Operations		$	3.7			$	18.4			$	(14.6	)		(80)%		$	27.4			$	35.2			$	(7.8	)		(22)%
Unallocated Corporate (Expense)		$	(4.6	)		$	(7.1	)		$	2.4			NM		$	(15.3	)		$	(18.9	)		$	3.6			NM
Consolidated		$	101.9			$	102.2			$	(0.3	)		—%		$	348.6			$	345.8			$	2.7			1%
Consolidated non-GAAP(1)		$	111.1			$	104.6			$	6.5			6%		$	365.6			$	349.0			$	16.6			5%
EPS (Diluted)
GAAP		$	0.47			$	1.26			$	(0.79	)		(63)%		$	2.60			$	3.24			$	(0.64	)		(20)%
Non-GAAP(1)		$	0.93			$	0.95			$	(0.02	)		(2)%		$	3.13			$	3.06			$	0.07			2%
Net Income
GAAP		$	43.0			$	116.9			$	(73.9	)		(63)%		$	238.6			$	306.3			$	(67.7	)		(22)%
Non-GAAP(1)		$	85.7			$	88.2			$	(2.5	)		(3)%		$	287.5			$	289.6			$	(2.2	)		(1)%
Adjusted EBITDA(1)
Government Operations		$	115.8			$	102.9			$	12.8			12%		$	386.5			$	372.2			$	14.3			4%
Commercial Operations		$	13.6			$	23.9			$	(10.3	)		(43)%		$	53.9			$	56.0			$	(2.1	)		(4)%
Corporate		$	0.7			$	(3.7	)		$	4.3			NM		$	(1.1	)		$	(10.2	)		$	9.1			NM
Consolidated		$	130.1			$	123.2			$	6.9			6%		$	439.4			$	418.1			$	21.3			5%
Cash Flows
Operating Cash Flow(2)		$	107.7			$	160.4			$	(52.8	)		(33)%		$	244.7			$	386.0			$	(141.3	)		(37)%
Capital Expenditures(2)		$	63.7			$	74.4			$	(10.7	)		(14)%		$	198.3			$	311.1			$	(112.7	)		(36)%
Free Cash Flow(1)		$	43.9			$	86.1			$	(42.1	)		(49)%		$	46.4			$	75.0			$	(28.6	)		(38)%
Share Repurchases(2)		$	—			$	40.0			$	(40.0	)		NM		$	20.0			$	225.8			$	(205.8	)		(91)%
Dividends Paid(2)		$	20.2			$	19.4			$	0.8			4%		$	81.1			$	79.7			$	1.4			2%

NM = Not Meaningful

(2) Items named in the Financial Results Summary differ from names in BWXT Financial Statement. Operating Cash Flow = Net Cash Provided by Operating Activities; Capital Expenditures = Purchases of Property, Plant and Equipment; Share Repurchases = Repurchases of Common Stock; Dividends Paid = Dividends Paid to Common Shareholders

Revenue

The fourth quarter consolidated revenue increase resulted from higher revenue in Government Operations partially offset by lower revenue in Commercial Operations. The Government Operations increase was driven by higher microreactor volume, uranium processing and the DCL/Cunico acquisition, partially offset by lower long-lead material production. The Commercial Operations decrease resulted from lower commercial nuclear power, primarily fuel volume, partially offset by increased medical sales.

The full year consolidated revenue increase was driven by growth in both operating segments. The Government Operations increase was driven by higher microreactor volume, naval reactors, uranium processing, long-lead material production and the DCL/Cunico acquisition, partially offset by lower missile tube production. The Commercial Operations increase resulted from higher commercial nuclear power, primarily field services, as well as higher medical sales.

Operating Income and Adjusted EBITDA⁽¹⁾

Fourth quarter consolidated operating income was about flat compared with the prior-year period, as higher operating income in Government Operations and lower unallocated corporate expense was offset by lower operating income in Commercial Operations. The Government Operations increase resulted from higher income in joint venture projects, microreactors and more favorable contract adjustments on missile tubes, partially offset by decreased labor and cost efficiencies that resulted in fewer favorable contract adjustments, lower recoverable CAS pension income, and higher depreciation and acquisition amortization. The Commercial Operations decrease was driven by lower commercial nuclear power, primarily fuel volume. Lower unallocated corporate expense was driven by decreases in healthcare costs and stock-based compensation.

The fourth quarter total adjusted EBITDA⁽¹⁾ increase was driven primarily by the reasons noted above as higher Government Operations adjusted EBITDA⁽¹⁾ and lower unallocated corporate expense was partially offset by lower Commercial Operations adjusted EBITDA⁽¹⁾.

The 2022 consolidated operating income increase was driven by higher operating income in Government Operations and lower unallocated corporate expense, which was offset by lower operating income in Commercial Operations. The Government Operations increase was driven by higher income from joint venture projects, uranium processing, microreactors and long-lead material production, partially offset by decreased labor and cost efficiencies that resulted in fewer favorable contract adjustments, lower recoverable CAS pension income, and higher depreciation and acquisition amortization. The Commercial Operations decrease was driven by a less favorable business mix and the absence of CEWS COVID-19 wage subsidy. Lower unallocated corporate expense was driven by a decrease in healthcare costs and lower compensation related expense inclusive of stock-based compensation.

The 2022 total adjusted EBITDA⁽¹⁾ increase was driven primarily by the reasons noted above as higher Government Operations adjusted EBITDA⁽¹⁾ and lower unallocated corporate expense was partially offset by lower Commercial Operations adjusted EBITDA⁽¹⁾.

EPS

The fourth quarter GAAP EPS decrease was driven primarily by the absence of gains associated with the mark-to-market of the pension that occurred in the fourth quarter 2021, higher interest expense, a higher effective tax rate and lower FAS/CAS pension income, partially offset by better operational performance and a lower share count. The fourth quarter non-GAAP EPS decrease was driven by the items above excluding mark-to-market pension gains and losses and restructuring and other costs and other one-time items.

The 2022 GAAP EPS decrease was driven primarily by the absence of gains associated with the mark-to-market of the pension that occurred in the fourth quarter 2021, higher interest expense, a higher effective tax rate and lower FAS/CAS pension income, partially offset by better operational performance and a lower share count. The 2022 non-GAAP EPS⁽¹⁾ increase was driven by the items above excluding mark-to-market pension gains and losses and restructuring costs and other one-time items.

Cash Flows

The fourth quarter operating cash flow decrease was driven by increases in working capital, primarily accounts payable. Lower fourth quarter capital expenditures resulted from lower spending on the two major growth capital campaigns for U.S. naval nuclear reactors and medical radioisotopes that are nearing completion, partially offset by an increase in capital expenditures for microreactors.

The 2022 operating cash flow decrease was driven by the absence of large payment that occurred in 2021, higher cash taxes for R&D amortization and an increase in working capital. Lower 2022 capital expenditures were driven by less spending on two major growth capital campaigns for U.S. naval nuclear reactors and medical radioisotopes that are nearing completion.

Dividend

BWXT paid $20.2 million, or $0.22 per common share, to shareholders in the fourth-quarter 2022 and paid $81.1 million to shareholders for the full-year 2022. On February 22, 2023, the BWXT Board of Directors declared an increase of $0.01 to the quarterly cash dividend. A $0.23 cash dividend per common share will be payable on March 28, 2023, to shareholders of record on March 10, 2023.

2023 Guidance

BWXT announced its expectations for fiscal year 2023 financial results, providing the following guidance:

(In millions, except per share amounts)		Year Ended		Year Ending
		December 31, 2022		December 31, 2023
		Results		Guidance
Revenue		$2,233		~$2,400
Adjusted EBITDA(1)		$439		~$475
Adjusted Pre-tax Income(1)		$378		~$350
Non-GAAP(1) Earnings Per Share		$3.13		$2.80 - $3.00
Free Cash Flow(1)		$46		~$200

Additional information can be found in the 2022 fourth quarter earnings call presentation on the BWXT investor relations website at www.bwxt.com/investors. The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results.

Conference Call to Discuss Fourth-Quarter and Full-Year 2022 Results

Date:	Thursday, February 23, 2023, at 5:00 p.m. EST
Live Webcast:	Investor Relations section of website at www.bwxt.com

Full Earnings Release Available on BWXT Website

A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/4Q2022-release

BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com.

Non-GAAP Measures

BWXT uses and makes reference to adjusted EBITDA, free cash flow and free cash flow conversion, which are not recognized measures under GAAP. BWXT is providing these non-GAAP measures to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations. Definitions for the non-GAAP measures are provided below and reconciliations are detailed in Exhibit 1, except that reconciliations of forward-looking GAAP measures are not provided because the company is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. Other companies may define these measures differently or may utilize different non-GAAP measures, thus impacting comparability.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is calculated using non-GAAP net income, plus provision for income taxes, less other – net, less interest income, plus interest expense, plus depreciation and amortization.

Adjusted pre-tax income is non-GAAP income before provision for income taxes.

Free Cash Flow (FCF) is calculated using net income to derive net cash provided by (used in) operating activities less purchases of property, plant and equipment.

Free Cash Flow conversion is free cash flow divided by net income.

Forward-Looking Statements

BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent they may be viewed as an indicator of future revenues; our plans and expectations for each of our reportable segments, including the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes, small modular reactor components and recent acquisitions; disruptions to our supply chain and/or operations, changes in government regulations and other factors, including any such impacts of, or actions in response to the COVID-19 health crisis; and our expectations and guidance for 2023 and beyond. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to execute contracts in backlog; the lack of, or adverse changes in, federal appropriations to government programs in which we participate; the demand for and competitiveness of nuclear products and services; capital priorities of power generating utilities and other customers; the timing of technology development; the potential recurrence of subsequent waves or strains of COVID-19 or similar diseases; adverse changes in the industries in which we operate; and delays, changes or termination of contracts in backlog. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see BWXT’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2022. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Va. BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 7,000 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXT and learn more at www.bwxt.com

(1) A reconciliation of non GAAP results are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors.

EXHIBIT 1

BWX TECHNOLOGIES, INC. RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) (In millions, except per share amounts)   Three Months Ended December 31, 2022
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring Costs				Acquisition -related Costs				Loss on Asset Disposal				Non-GAAP
Operating Income	$	101.9			$	—			$	2.6			$	0.3			$	6.2				$	111.1
Other Income (Expense)		(45.1	)			46.6				0.0				—				—					1.6
Income before Provision for Income Taxes		56.8				46.6				2.7				0.3				6.2					112.6
Provision for Income Taxes		(13.8	)			(10.9	)			(0.6	)			(0.0	)			(1.6	)				(26.9	)
Net Income		43.0				35.7				2.1				0.3				4.7					85.7
Net Income Attributable to Noncontrolling Interest		(0.1	)			—				—				—				—					(0.1	)
Net Income Attributable to BWXT	$	43.0			$	35.7			$	2.1			$	0.3			$	4.7				$	85.6
Diluted Shares Outstanding		91.8																					91.8
Diluted Earnings per Common Share	$	0.47			$	0.39			$	0.02			$	0.00			$	0.05				$	0.93
Effective Tax Rate		24.3	%																				23.9	%
Government Operations Operating Income	$	102.8			$	—			$	—			$	0.3			$	—				$	103.1
Commercial Operations Operating Income	$	3.7			$	—			$	(0.7	)		$	—			$	6.2				$	9.3
Unallocated Corporate Operating Income	$	(4.6	)		$	—			$	3.3			$	0.0			$	—				$	(1.3	)
Three Months Ended December 31, 2021
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring and Other Costs												Non-GAAP
Operating Income	$	102.2			$	—			$	2.4												$	104.6
Other Income (Expense)		44.9				(39.6	)			—													5.3
Income before Provision for Income Taxes		147.1				(39.6	)			2.4													109.9
Provision for Income Taxes		(30.2	)			9.1				(0.6	)												(21.7	)
Net Income		116.9				(30.5	)			1.8													88.2
Net Income Attributable to Noncontrolling Interest		(0.0	)			—				—													(0.0	)
Net Income Attributable to BWXT	$	116.9			$	(30.5	)		$	1.8												$	88.2
Diluted Shares Outstanding		92.5																					92.5
Diluted Earnings per Common Share	$	1.26			$	(0.33	)		$	0.02												$	0.95
Effective Tax Rate		20.5	%																				19.8	%
Government Operations Operating Income	$	90.9			$	—			$	—												$	90.9
Commercial Operations Operating Income	$	18.4			$	—			$	0.6												$	19.0
Unallocated Corporate Operating Income	$	(7.1	)		$	—			$	1.8												$	(5.3	)

EXHIBIT 1 (continued)

BWX TECHNOLOGIES, INC. RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) (In millions, except per share amounts)   Year Ended December 31, 2022
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring Costs				Acquisition- related Costs				Loss on Asset Disposal				Non-GAAP
Operating Income	$	348.6			$	—			$	8.2			$	2.6			$	6.2				$	365.6
Other Income (Expense)		(34.2	)			46.6				0.0				—				—					12.4
Income before Provision for Income Taxes		314.4				46.6				8.2				2.6				6.2					378.0
Provision for Income Taxes		(75.8	)			(10.9	)			(1.9	)			(0.4	)			(1.6	)				(90.5	)
Net Income		238.6				35.7				6.3				2.2				4.7					287.5
Net Income Attributable to Noncontrolling Interest		(0.4	)			—				—				—				—					(0.4	)
Net Income Attributable to BWXT	$	238.2			$	35.7			$	6.3			$	2.2			$	4.7				$	287.1
Diluted Shares Outstanding		91.7																					91.7
Diluted Earnings per Common Share	$	2.60			$	0.39			$	0.07			$	0.02			$	0.05				$	3.13
Effective Tax Rate		24.1	%																				23.9	%
Government Operations Operating Income	$	336.5			$	—			$	1.2			$	0.8			$	—				$	338.6
Commercial Operations Operating Income	$	27.4			$	—			$	1.5			$	—			$	6.2				$	35.1
Unallocated Corporate Operating Income	$	(15.3	)		$	—			$	5.4			$	1.8			$	—				$	(8.1	)
Year Ended December 31, 2021
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring and Other Costs				Costs Associated With Early Bond Redemption								Non-GAAP
Operating Income	$	345.8			$	—			$	3.1			$	—								$	349.0
Other Income (Expense)		49.9				(39.6	)			—				15.0									25.3
Income before Provision for Income Taxes		395.7				(39.6	)			3.1				15.0									374.3
Provision for Income Taxes		(89.4	)			9.1				(0.8	)			(3.5	)								(84.6	)
Net Income		306.3				(30.5	)			2.4				11.5									289.6
Net Income Attributable to Noncontrolling Interest		(0.4	)			—				—				—									(0.4	)
Net Income Attributable to BWXT	$	305.9			$	(30.5	)		$	2.4			$	11.5								$	289.2
Diluted Shares Outstanding		94.5																					94.5
Diluted Earnings per Common Share	$	3.24			$	(0.32	)		$	0.03			$	0.12								$	3.06
Effective Tax Rate		22.6	%																				22.6	%
Government Operations Operating Income	$	329.5			$	—			$	0.2			$	—								$	329.7
Commercial Operations Operating Income	$	35.2			$	—			$	0.9			$	—								$	36.2
Unallocated Corporate Operating Income	$	(18.9	)		$	—			$	2.1			$	—								$	(16.9	)

EXHIBIT 1 (continued)

RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA(1)(2)(3) (In millions)   Three Months Ended December 31, 2022
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring Costs				Acquisition- related Costs			Loss on Asset Disposal			Non-GAAP
Net Income	$	43.0			$	35.7			$	2.1			$	0.3		$	4.7			$	85.7
Provision for Income Taxes		13.8				10.9				0.6				0.0			1.6				26.9
Other – net		33.9				(46.6	)			—				—			—				(12.6	)
Interest Expense		11.4				—				(0.0	)			—			—				11.4
Interest Income		(0.3	)			—				—				—			—				(0.3	)
Depreciation & Amortization		19.0				—				—				—			—				19.0
Adjusted EBITDA	$	120.9			$	—			$	2.6			$	0.3		$	6.2			$	130.1

Three Months Ended December 31, 2021
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring and Other Costs							Non-GAAP
Net Income	$	116.9			$	(30.5	)		$	1.8						$	88.2
Provision for Income Taxes		30.2				(9.1	)			0.6							21.7
Other – net		(51.9	)			39.6				—							(12.3	)
Interest Expense		7.0				—				—							7.0
Interest Income		(0.0	)			—				—							(0.0	)
Depreciation & Amortization		18.6				—				—							18.6
Adjusted EBITDA	$	120.8			$	—			$	2.4						$	123.2

Year Ended December 31, 2022
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring Costs				Acquisition- related Costs			Loss on Asset Disposal			Non-GAAP
Net Income	$	238.6			$	35.7			$	6.3			$	2.2		$	4.7			$	287.5
Provision for Income Taxes		75.8				10.9				1.9				0.4			1.6				90.5
Other – net		(1.5	)			(46.6	)			—				—			—				(48.0	)
Interest Expense		36.4				—				(0.0	)			—			—				36.4
Interest Income		(0.8	)			—				—				—			—				(0.8	)
Depreciation & Amortization		73.8				—				—				—			—				73.8
Adjusted EBITDA	$	422.4			$	—			$	8.2			$	2.6		$	6.2			$	439.4

Year Ended December 31, 2021
	GAAP				Pension & OPEB MTM (Gain) / Loss				Restructuring and Other Costs			Costs Associated With Early Bond Redemption						Non-GAAP
Net Income	$	306.3			$	(30.5	)		$	2.4		$	11.5						$	289.6
Provision for Income Taxes		89.4				(9.1	)			0.8			3.5							84.6
Other – net		(85.2	)			39.6				—			(10.8	)						(56.4	)
Interest Expense		35.8				—				—			(4.2	)						31.5
Interest Income		(0.4	)			—				—			—							(0.4	)
Depreciation & Amortization		69.1				—				—			—							69.1
Adjusted EBITDA	$	414.9			$	—			$	3.1		$	—						$	418.1

EXHIBIT 1 (continued)

RECONCILIATION OF REPORTING SEGMENT ADJUSTED EBITDA(1)(2)(3) (In millions)   Three Months Ended December 31, 2022
	Operating Income (GAAP)			Non-GAAP Adjustments(4)			Depreciation & Amortization			Adjusted EBITDA
Government Operations	$	102.8		$	0.3		$	12.7		$	115.8
Commercial Operations	$	3.7		$	5.6		$	4.3		$	13.6
Three Months Ended December 31, 2021
	Operating Income (GAAP)			Non-GAAP Adjustments(4)			Depreciation & Amortization			Adjusted EBITDA
Government Operations	$	90.9		$	—		$	12.1		$	102.9
Commercial Operations	$	18.4		$	0.6		$	4.9		$	23.9
Year Ended December 31, 2022
	Operating Income (GAAP)			Non-GAAP Adjustments(4)			Depreciation & Amortization			Adjusted EBITDA
Government Operations	$	336.5		$	2.1		$	48.0		$	386.5
Commercial Operations	$	27.4		$	7.7		$	18.8		$	53.9
Year Ended December 31, 2021
	Operating Income (GAAP)			Non-GAAP Adjustments(4)			Depreciation & Amortization			Adjusted EBITDA
Government Operations	$	329.5		$	0.2		$	42.5		$	372.2
Commercial Operations	$	35.2		$	0.9		$	19.9		$	56.0

RECONCILIATION OF CONSOLIDATED FREE CASH FLOW(1)(2)(3) (In millions)
	Three Months Ended December 31,
		2022				2021
Net Cash Provided By Operating Activities	$	107.7			$	160.4
Purchases of Property, Plant and Equipment		(63.7	)			(74.4	)
Free Cash Flow	$	43.9			$	86.1
	Year Ended December 31,
		2022				2021
Net Cash Provided By Operating Activities	$	244.7			$	386.0
Purchases of Property, Plant and Equipment		(198.3	)			(311.1	)
Free Cash Flow	$	46.4			$	75.0

(1)	Tables may not foot due to rounding.
(2)	BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations.
(3)	BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year.
(4)	For Non-GAAP adjustment details, see reconciliation of non-GAAP operating income and earnings per share.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005849/en/

Investor Contact:

Mark Kratz

Vice President, Investor Relations

980-365-4300

Investors@bwxt.com



Media Contact:

Jud Simmons

Director, Media and Public Relations

434-522-6462

hjsimmons@bwxt.com

Source: BWX Technologies, Inc.

FAQ

What is the Q4 2022 diluted EPS for BWXT?

The diluted GAAP EPS for Q4 2022 is $0.47.

When is the BWXT dividend payment date?

The dividend of $0.23 per share will be payable on March 28, 2023.

What is BWXT's revenue guidance for 2023?

BWXT expects revenue of approximately $2.4 billion for 2023.

What were BWXT's full-year 2022 revenues?

The full-year revenue for 2022 was $2.23 billion.

How much did BWXT's adjusted EBITDA increase in 2022?

Adjusted EBITDA increased by 5% to $439.4 million in 2022.