U.S. Energy Department contractor BWX Technologies on Monday reported a company record for quarterly revenue – $506 million for the three-month period that ended Sept.30, an 18.9% jump from $426 million a year ago.
The Lynchburg, Va.-based company reported $74.8 million in net income, or $0.78 per diluted share, compared with $77.9 million, or $0.78 per diluted share, in the prior-year period, according to a Monday earnings press release.
“All three segments delivered solid operating performance in the quarter resulting in record consolidated revenues,” said President and CEO Rex Geveden in the release.
BWXT’s Nuclear Operations Group (NOG), which manufactures naval nuclear reactors and other equipment, also set a quarterly record with revenue of $394.5 million, up 23.5% from the same period of 2018. The company attributed the spike to a favorable contract adjustment originally expected in the fourth quarter, along with resolution of past problems with welding on submarine missile tubes.
The Nuclear Power Group (NPG) segment, which provides engineering, construction, parts, and repairs for nuclear power plants, recorded $84.4 million in revenue, a 6.6% increase from the third quarter of 2018. That was largely due to increases in component refurbishment projects in Canada. Operating income under generally accepted accounting principles was $9 million in the third quarter, down 1% from a year earlier.
The Nuclear Services Group (NSG) segment, which serves the Energy Department weapons complex, reported operating income of $5.5 million for the third quarter, down from $6.5 million in the prior-year period. Improved operating performance was more than offset by contract completions and the rising cost of government bid proposals.
The company increased its 2019 earnings guidance from $2.50 to $2.55 per share.
BWX Technologies works at a number DOE facilities, including as a partner in the management and operations contractor for the Waste Isolation Pilot Plant in New Mexico and on the cleanup team for the Portsmouth Site in Ohio.
During the company’s quarterly earnings call Tuesday, Geveden said he expects DOE to award the multibillion-dollar Central Plateau Cleanup follow-on contract at the Hanford Site in Washington state within the next few weeks. The contract is currently held by Jacobs subsidiary CH2M.
Editor’s Note: The $506 million in quarterly revenue reported Monday by BWX Technologies is its highest ever, not just for the third quarter as indicated in an earlier version of this article.
