BWX Technologies, Inc. (NYSE:BWXT) Q3 2022 Earnings Conference Call November 7, 2022 5:00 PM ET
Company Participants
Mark Kratz - Vice President-Investor Relations
Rex Geveden - President & Chief Executive Officer
Robb LeMasters - Senior Vice President & Chief Financial Officer
Conference Call Participants
Bob Labick - CJS Securities
Scott Deuschle - Credit Suisse
Pete Osterland - Truist Securities
David Strauss - Barclays
Peter Arment - Baird
Tate Sullivan - Maxim Group
Operator
Ladies and gentlemen, welcome to BWX Technologies Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. Following the company’s prepared remarks, we will conduct a question-and-answer session and instructions will be given at that time.
I would now like to turn the call over to our host, Mark Kratz, BWXT’s Vice President of Investor Relations. Please go ahead.
Mark Kratz
Thank you, Tia. Good evening and welcome to BWXT’s third quarter 2022 earnings call. Joining me today are Rex Geveden, President and CEO; and Robb LeMasters, Senior Vice President and CFO. On today’s call, we will reference the third quarter earnings presentation that is available on the Investors section of the BWXT website.
We will also discuss certain matters that constitute forward-looking statements. These statements involve risks and uncertainties, including those described in the Safe Harbor provision found in the investor materials and the company’s SEC filings. We will frequently discuss non-GAAP financial measures, which are reconciled to GAAP measures in a separate presentation that can also be found on the Investors section of the BWXT website.
I would now like to turn the call over to Rex.
Rex Geveden
Thank you, Mark, and good evening to everyone. Earlier today, we reported third quarter earnings of $0.69 a share in line with our forecast and consistent with our framing in the last earnings call. Revenue was up 5%. Free cash flow was up $25 million. Adjusted EBITDA was down 5% and strong performance in Commercial Operations and company-wide cost controls, nearly offset labor challenges in Government operations.
Despite macro market volatility this year, the company has exhibited solid underlying financial performance from its core operations. The labor challenges that have emerged have been largely offset by cost controls and outperformance from our commercial-facing businesses, resulting in high single-digit EBITDA growth on an extension basis.
Given our performance to date and the impacts of macro headwinds, we have narrowed 2022 earnings per share guidance to just below the original midpoint issued about a year ago in a very different overall economic environment. Revenue and EBITDA have both moved favorably from our initial 2022 outlook in February.