Earnings rose at BWX Technologies (BWXT), Lynchburg, Va., in the 2nd quarter, which the government contractor attributed to growing interest in the nuclear industry.
Net earnings for the second quarter ended June 30 were $89.1 million, or $0.97 a share, up from $78.5 million, or $0.85 a share, in the year-ago quarter, according to the Monday earnings press release. Quarterly revenue was $901.6 million, up year-over-year from $764 million.
Quarterly segment operating income for Government Operations dipped slightly to $105.7 million from $109.4 million. However, Commercial Operations more than made up for it, bringing in $24.3 million, up from $6.9 million in the year-ago quarter.
Government segment revenue was $601.3 million up from $589 million last year. Commercial segment revenue also rose to $302.5 million from $176.1 million a year earlier.
“Demand for new nuclear solutions is remarkably deep and broad, complementing our strong and growing base of highly predictable revenue streams in our Government and Commercial segments,” said President and CEO Rex Geveden in the release. “In line with our strategy to bolster BWXT’s competitive positioning in the nuclear national security and commercial nuclear power markets, the announced sale of our medical business enables us to increase focus and resources in these core business lines.”
In its earnings presentation, the company said its BWXT TRISO fuel supported Antares Nuclear becoming the first advanced nuclear reactor to reach a successful criticality milestone under ta DOE pilot program.
Prior to the call, BWXT announced it has agreed to sell its medical business to Nordic Capital, an experienced healthcare investor, for $800-million. The deal, which should close by the end of the year pending the usual regulatory vetting, includes BWXT Medical and Kinectrics’ stable medical isotopes business.
BWXT also completed its purchase of Precision Components Group July 1, giving the company “a U.S. footprint for commercial nuclear component manufacturing,” according to the BWXT press release.
In addition to its near-monopoly on naval reactors, BWXT is lead partner on major nuclear waste management joint ventures at the Savannah River Site in South Carolina and the Hanford Site in Washington state.
On the commercial side, BWXT is also an active player in development of advanced nuclear plants, including making components for small modular reactors.