BWX Technologies, Inc. (NYSE:BWXT) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET

Company Participants

Chase Jacobson - Vice President, Investor Relations

Rex Geveden - President & Chief Executive Officer

Robb LeMasters - Senior Vice President & Chief Financial Officer

Conference Call Participants

Peter Arment - Baird

Michael Ciarmoli - Truist Securities

Scott Deuschle - Deutsche Bank

Ron Epstein - Bank of America

Pete Skibitski - Alembic Global

Bob Labick - CJS Securities

David Strauss - Barclays

Tate Sullivan - Maxim Group

Operator

Ladies and gentlemen, welcome to BWX Technologies Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After 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, Chase Jacobson with BWXT's, Vice President of Investor Relations. Please go ahead.

Chase Jacobson

Thank you Sheryl. Good evening and welcome to today's call. Joining me are Rex Geveden, President and CEO; and Robb LeMasters, Senior Vice President and CFO. On today’s call, we will reference the third quarter 2023 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 the appendix of the earnings presentation that can 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 Chase, and good evening to everyone. This afternoon we reported solid third quarter results that were slightly ahead of our expectations. The quarter was highlighted by a robust 13% organic revenue growth with double-digit revenue growth in both segments.

Adjusted EBITDA grew 6% compared to the same quarter last year as higher revenue and government operations, and solid revenue and margin performance in commercial operations were offset by lower margin in our government operations segment and some growth in corporate expense.

As we forecasted last quarter, although higher sequentially government operations margins were somewhat compressed by the onboarding of new team members and less favorable product mix, while commercial operations margins benefited from operational improvements and medical profitability.