Revenue at the BWX Technologies business focused on the Energy Department’s Cold War cleanup program rose more than 15 percent last year as part of a generally strong 2016, the company reported late Monday.
BWXT is scheduled to host its investor earnings call for the quarter and year ended Dec. 31 at 8:30 a.m. Eastern time this morning.
The Lynchburg, Va., company derives the preponderance of its revenue from its sole-source nuclear propulsion work for the U.S. Navy and reports revenue from its legacy cleanup contracts with DOE within the Technical Services segment. In that BWXT branch, revenue rose to more than $97 million for the year. Segment operating income, however, slipped roughly 9 percent to about $16.5 million.
In the third quarter of 2016, BWXT’s contract to process depleted uranium hexafluoride from Cold War uranium enrichment in Ohio and Kentucky expired, and the company turned the project over to the Atkins-led Mid-America Conversion Services joint venture,
Nuclear Environmental Services such as the company’s DOE cleanup work accounted for nearly 90 percent of the Technical Services group’s revenue in 2016. Nuclear Environmental Services revenue rose more than 10 percent year over year to over $85 million in 2016, according to BWXT’s latest 10-K filing with the U.S. Securities and Exchange Commission. Since 2014, Nuclear Environmental Services revenue is up more than 20 percent, the filing says.
Overall, BWXT reported 2016 net income of nearly $40 million, or $1.76 a share, up about 15 percent from 2015. Revenue rose roughly 9.5 percent year over year to just over $1.5 billion.
Soon after BWXT wrapped up its 2016 fiscal year, Rex Geveden became its president and chief executive. He replaced Peyton “Sandy” Baker, who remains with the company in an advisory position until May and has signed a two-year non-compete clause.
