Naval propulsion revenue fell slightly from a strong quarter a year earlier because the company bought fewer materials, Chief Financial Officer Mike Fitzgerald said. Even with lower revenue from the business, he said BWX was carrying out its naval nuclear work more efficiently, which helped lift margins in the government operations segment.
Growth in special materials and advanced nuclear work more than offset the decline in naval propulsion, lifting government operations revenue by 4%. The segment’s adjusted EBITDA rose 22% to $144 million, with a margin of 22.6%.
Fitzgerald expects more naval propulsion work in 2027, alongside growth in special materials and advanced nuclear. BWX forecasts high-single-digit to low-double-digit growth in both revenue and adjusted EBITDA for the government segment next year.
