Investor Briefing - Seeking Alpha

Investor Briefing

3Q18 Results

Reported November 6, 2018

BWX Technologies, Inc. (“BWXT”) cautions that statements in this presentation that are forward-looking and provide

other than historical information involve risks and uncertainties that may impact actual results and any future

performance suggested in the forward-looking statements. The forward-looking statements in this presentation include,

but are not limited to, statements relating to our strategy and key highlights; bookings and backlog, to the extent they

may be viewed as an indicator of future revenues; the expected U.S. Navy long-term procurement schedules and

forecasts; the timing and impact of the missile tube welding issue; the expected Canadian nuclear power forecast for

services, refurbishment timelines and opportunities; R&D target market information, efforts and opportunities; the

expected impact of adoption of updated accounting guidance; our outlook, priorities, growth opportunities in our

businesses and guidance for 2018 and beyond. These forward-looking statements are based on current management

expectations and involve a number of risks and uncertainties, including, among other things, the availability of Federal

appropriations to government programs in which we participate; our ability to win new project awards; capital spending

of power generating utilities; adverse changes in the industries in which we operate; termination, delays and other

difficulties executing on contracts in backlog and adverse changes in the demand for or competitiveness of nuclear

power. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a

more complete discussion of these and other risks, please see BWXT’s filings with the Securities and Exchange

Commission, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q.

BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of

this presentation, and undertakes no obligation to update or revise any forward-looking statement, except to the extent

required by applicable law.

2

Forward-Looking Statements Disclaimer

3

BWXT Company Overview

2017 Segment Income

1) As of Dec 31, 2017 and the addition of approximately 150 employees from the medical radioisotopes acquisition in July, 2018

11 major manufacturing

facilities totaling 3.8

million square feet

6,250(1)

highly skilled

employees

60+

years producing

naval nuclear

propulsion systems

$1.7 billionin 2017 revenues

Only manufacturer

of large reactor

components in

North America

Reliable markets

with potential for

robust growth

Process-oriented

R&D team

developing

disruptive products

Disciplined growth

strategy with financial

strength and premium

competitive position

Nuclear

Operations

Group

Nuclear

Power

Group

Nuclear

Services

Group

4

Financial Overview and Investment Drivers

non-GAAP

operating

margin(1)(2)

Backlog 2,650 3,983 3,971

Capex 57 53 97

o Proven management team and effective

business strategy

o Strong balance sheet, solid cash generation

and prudent capital allocation

o Attractive EPS growth with long-cycle

businesses and positive long-term outlook

o Demonstrated track record of growing

revenue and margin expansion

o Investing capital for organic growth

o Continued focus on improving financial

efficiency and capacity

1) See Appendix for reconciliation of GAAP to adjusted, non-GAAP items

2) Historical operating income and operating margin amounts presented throughout have been adjusted to reflect the reclassification between operating income and other income (expense)

associated with the adoption of the new pension presentation accounting requirements. For further information see Note 1 to our March 31, 2018 Form 10-Q.

1,416

1,551

1,688

16.7%

15.1%

17.3%

15.0%

16.3%

17.0%

2015 2016 2017

Revenue

($million, except per share amounts)

GAAP

operating

margin(2)

Non-GAAP

EPS(1)

1.31

1.76

1.47

1.42

1.76

2.05

GAAP EPS

5

Strategy: A Solid Foundation to Support Growth

5 Pillars of Growth

Demand-Driven

Growth in the

U.S. Navy

Demand-Driven

Growth in

Canadian

Commercial

Nuclear Power

Technology-

Driven Growth

in Nuclear

Services with

Market Share

Gains

R&D-Driven

Organic Growth

Strategic

Acquisitions

Built on a Solid Foundation

o Strong cash generation

o Balanced capital deployment

o Financial capacity and flexibility

Financial Strength Operational Excellence

o Strong business execution

o Sustainable backlog

o Deep customer relationships

6

Demand-Driven Growth in the U.S. Navy

Nuclear Propulsion

o Sole manufacturer of naval

nuclear reactors for U.S.

submarines and aircraft carriers

o Complex, regulated and high-

consequence manufacturing

with ~3M sq. ft. capacity in four

states

o High-enriched uranium (HEU)

to low-enriched uranium (LEU)

fuel conversion for government

and commercial applications

o Proud nuclear Navy heritage

since 1950s

Navy Growth in Nuclear-Powered Vessels

o Long-range procurement plan provides dependable forecast; BWXT orders ~24

months in advance of shipyard (depicted in 30-year Navy Shipbuilding Plan(1) below)

o Included in BWXT 2018 long-term guidance:

Virginia-class production at two submarines per year and Columbia-class production

o Additional scenarios contemplated, but not included in current BWXT guidance

Accelerated aircraft carrier production

Additional (3rd) Virginia-class submarine in non-Columbia years

1) Source: Office of the Chief of Naval Operations report to Congress on the Annual Long-Range Plan for Construction of Naval Vessels for Fiscal Year 2019

2) Navy construction plan schedule that may not directly align with BWXT

3) Not funded with FYDP and not included in BWXT guidance. Represents available shipyard capacity for additional aggressive growth.

= acceleration or addition compared to prior 30-year Navy Shipbuilding Plan

7

Demand-Driven Growth in the U.S. Navy

Illustrative nuclear power unit production ramp

o Nuclear power units a source of NOG

revenue

Virginia Class – 1 unit per ship (smallest)

Columbia Class – 1 unit per ship (larger)

Ford Class – 2 units per ship (largest)

o Typical nuclear power unit production

duration 6 – 8 years

Virginia Class on low end

Ford Class on high end

o Other considerations for NOG revenue

Improvements re-negotiated into next

Multi-year Pricing Agreements

High fixed-cost overhead

Downblending services and missile tubes

12 12 12 12 12 12 12 12 12 12 12 12 12 12

1 1 1 2 2 3 4 4 5 6 6 7

~15 ~15~16 ~16 ~16

~17 ~17~18

~19 ~19~20

~21 ~21~22

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Virginia Class

Ford Class

Columbia Class

(# of power units in-process)

2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4 2 – 4

8

Demand-Driven Growth in Canadian Commercial Nuclear Power

Non-Recurring

Refurbishment Market

~CAD$900M

Recurring Market

~CAD$900M

Outage & Field

Services

~CAD$400MComponents /

Engineering

~CAD$200M

Fuel & Fuel

Handling

~CAD$300M

~CAD$900M ~CAD$900M

~CAD$1.8B Annual Addressable Market 2018-2034

Unit 2

Unit 3

Unit 1

Unit 4

Unit 6

Unit 3

Unit 4

Unit 5

Unit 7

Unit 8

18 19 20

Anticipated Ontario refurbishment timeline

3322 23 24 25 26 27 28 29 30 31 322116 17

9

Technology-Driven Growth in Nuclear Services with Market Share Gains

o $1.4B Los Alamos Legacy Cleanup (Dec. 2017)

o $5.0B Idaho National Laboratory M&O five-year

extension (Apr. 2018)

o $850M Portsmouth Site Cleanup 30-month extension

(Sep. 2018)

Recent Services Wins

Site

Office

Plant

Idaho National Lab

NR D&D-NRF

Lawrence Livermore

National Lab

Los Alamos

National Lab

M&O, Legacy Cleanup

Waste Isolation

Pilot Plant

Oak Ridge National Laboratory

Isotek (U233)

BWXT Nuclear

Services Group

Savannah River Site

Liquid Waste Disposition

(LWD)

BWXT Nuclear

Services Group

BWXT Nuclear

Services Group

NR D&D-KAPL

West Valley

Demonstration Project

NR D&D-KSO

SACOM - Michoud

SACOM - Stennis

NR D&D-BAPLPortsmouth D&D

Paducah D&R

BWXT Intech

Awarded $18.8M NASA contract in

August 2017

o Feasibility and estimated costs

for nuclear thermal propulsion

reactor supporting possible future

crewed mission to Mars

o Scope: Initial reactor concept

development, initial fuel and core

fabrication development,

licensing support and engine test

program development

o Possible applications:

Accelerated mission to mars,

space tug, DARPA missions

Advanced Reactors

10

Research and Development-Driven Organic Growth

BWXT R&D COUNCIL

Governs the enterprise-wide

partnership for collective R&D,

prioritizing development initiatives and

granting final approval on projects

TOLLGATE PROCESS

Multi-faceted development plan

designed to effectively evaluate

commercialization of new ideas

FELLOWSHIP PROGRAM

Provides subject matter experts with

an innovative platform to develop

leading-edge solutions to industry

challenges

Natural Molybdenum target

fabrication

o No proliferation concerns

o BWXT, commodity product

Irradiation (neutron capture)

o Reliable sources

o Commercial reactor

Processing & generator facility

o No fission or costly waste

o BWXT, co-located operations

Tc-99m generators to user

facilities

o Ability to recycle

delivery systems

o Ready replacement for

existing supply

BWXT Molybdenum-99

Proprietary Manufacturing Process

BWXT’s breakthrough technology is positioned to provide

a stable supply of the medical radioisotope technetium-

99m (Tc-99m) for diagnostic imaging.

11

Strategic Acquisitions

Core Competencies

End Markets

Types of Products &

Services

Preferred Attributes

History of successful transactions with a focused strategy moving forward

o Strategic and/or bolt-on acquisitions

o Increase position in current markets or

accelerate entry into adjacencies

o Cash generation and balance sheet strength

supports range of potential deal sizes

Acquired Marine

Mechanical

Corporation

$72M

Acquired Nuclear

Fuel Services

$161M

Babcock & Wilcox

spin off from

McDermottRebranded

BWXT

Acquired GE

Hitachi Nuclear

Energy Canada

$118M

Acquired Sotera

Health’s Nordion

Medical Isotopes

$213M

2007 2008 2010 20182016

Spun out Power

Generation business

(retained B&W name)

2015

12

Updated 2018 Guidance; Long-term non-GAAP EPS(1) guidance reiterated

Updated 2018 Guidance Details Long-Term Non-GAAP EPS(1) Guidance

o Revenue: ~$1.8B

o Non-GAAP EPS(1): $2.23 – $2.27

o NOG

Revenue: ~$1.3B

Operating margin: High teens inclusive of CAS

pension reimbursements and missile tube reserves

o NPG

Revenue: ~$370M

Operating margin: ~14%

o NSG operating income: ~$20M

o Corporate unallocated costs: ~$20M

o Research and development: ~$15M

o Other income, primarily pension and other

post-employment benefit plans: $30 – $35M

o Non-GAAP effective tax rate: 22 – 23%

o Capital expenditures: ~$150M

o Depreciation and amortization: ~$60M

On Nov. 6, 2018, the Company reiterated its long-term guidance that

beyond 2017, and excluding the benefit of tax reform, we anticipate

an EPS(1) Compound Annual Growth Rate (CAGR) in the low-double

digits over a three to five year period based on a robust organic

growth strategy and balance sheet capacity.

$1.42

$1.76

$2.05

2015 2016 2017

$2.23 - $2.27

2018

guide

2020 –

2022

2018: ~$0.26

favorable

impact from

Tax Cut and

Jobs Act

Low

double-

digit

CAGR

Non-

GAAP

EPS(1)

1) Non-GAAP EPS exclude any mark-to-market adjustment for pension and postretirement benefits recognized during 2018 and other one-time items, which

are not known at the time guidance is first provided. For 2015, 2016 and 2017, see Appendix for reconciliation of GAAP to adjusted, non-GAAP items.

= change from prior guidance

13

3Q18 and Year-to-Date Results Summary

14

3Q18 and YTD Company Results and Highlights

419 426

3Q17 3Q18

+1.5%

67

51

15.9%

12.1%

3Q17 3Q18

($million, except per share amounts)

o 3Q up 1.5% and YTD revenue growth of

5% driven primarily from volume in NPG

including the medical radioisotopes

acquisition

o 3Q non-GAAP EPS down 13% primarily

from $0.21 negative impact from missile

tube reserves; YTD non-GAAP EPS up

5% on volume, solid program performance

and lower tax partially offset by missile

tube reserves and other investments

including R&D

o 3Q non-GAAP operating income down on

missile tube reserves; YTD operating

down with higher NPG operating

performance more than offset by missile

tube reserves and lower NSG income

o 3Q consolidated backlog growth to

$3.8 billion

0.46 0.40

3Q17 3Q18

1,258 1,322

YTD17 YTD18

+5%

1.57 1.65

YTD17 YTD18

221204

17.5%

15.5%

YTD17 YTD181) Non-GAAP EPS exclude any mark-to-market adjustment for pension and postretirement benefits recognized and other one-time items. A reconciliation of GAAP

to adjusted, non-GAAP items can be found in the appendix of this presentation or on the investor relations website at www.bwxt.com/investors.

GAAP

Non-

GAAP(1)

0.46 0.78 1.63 2.04

GAAP50

11.8%

6715.9%

22818.2%

20215.3%

Re

ve

nu

eE

PS

Op

. In

co

me

an

d

Ma

rgin

Non-

GAAP(1)

15

3Q18 Segment Results and Highlights

325 319

3Q17 3Q18

Revenue

66.5

45.6 20.5%

14.3%

3Q17 3Q18

NOG

Segment Op. Income / Margin Summary

69

79

3Q17 3Q18

8.4 9.1

12.3%11.4%

3Q17 3Q18

NPG

0.8

6.5

3Q17 3Q18

NSG

o Revenue down slightly; lower missile tube

volume partially offset by higher revenue from

naval nuclear fuel and downblending services

o Operating income and margin down driven

primarily by missile tube reserves

o Revenue up 15% driven by the medical

radioisotope acquisition, fuel manufacturing

and higher service activity

o Operating income up 8% due to higher

volume

($million)

o Operating income up significantly on

solid operational performance and lower

costs

16

YTD non-GAAP(1) EPS Bridge

1.57 1.65

0.23 0.19

0.17 0.05

YTD17 Missile tubereserves

Taxes Operations Other YTD18

($ per diluted share)

NPG Volume

NPG Margins

NOG Margins (excl.

missile tube reserves)

R&D Expense /

Other

Pension

Interest, net

NSG Operating Income

NOG volume

1) Non-GAAP EPS exclude any mark-to-market adjustment for pension and postretirement benefits recognized and other one-time items. A reconciliation of

GAAP to adjusted, non-GAAP items can be found in the appendix of this presentation or on the investor relations website at www.bwxt.com/investors.

17

Segments

NUCLEAR OPERATIONS

Sole manufacturer of naval nuclear

reactors for U.S. submarines and

aircraft carriers; supplies research

reactor fuel and elements for

universities, national laboratories

and international customers

NUCLEAR POWER

Engineered, designed and precision-

manufactured components, services

for Canada Deuterium Uranium

(CANDU) and PWR nuclear reactor

stations; CANDU fuel production;

medical radioisotope and

radiopharmaceutical production for

hospitals and radiopharmacies

NUCLEAR SERVICES

Providing technical operations at

government sites, U.S. commercial

plant services and advanced

technology developments in space

power

Three reporting segments help define who we are as a company.

Our Businesses

18

Nuclear Operations

19

Financials Business Highlights Priorities and Outlook

GAAP

operating

margin

Revenue

1,180

1,269 1,272

20.1% 19.5%21.0%

2015 2016 2017

($million)

o ~4,100 employees (Dec. 2017)

o $2.9B backlog (Sep. 2018)

o Strong operating profit history

o Low / moderate forecast risk

o Unyielding quality expectations

o Increasing product demand

o Sustain operational excellence

Maintain excellent safety record, focus on

quality and meet growing demand signal

o Maintain financial strength

Maximize production at all sites, increase

backlog, maintain margins in high teens

and execute contracts

o Capitalize for growth

Ready for Columbia-class, support Navy

capability for more Virginia-class, missile

tube work, and expand research test

reactors

20

Nuclear Operations Contract Structure

Annual Award / Option Pricing Agreement Framework

PRICING

AGREEMENT #1

PRICING

AGREEMENT #2

PRICING

AGREEMENT #3

Year

1

Year

2

Year

3

Year

4

Year

5

Year

6

Year

7

Year

8

Year

9

Year

10

Year

11

Year

12

Year

13

Year

14

o Typical contract execution

6 - 8 years

o Employ best practices and cost-

saving initiatives for best customer

cost results maintaining highest

quality standards

o Pricing agreement every 2-3 years

includes annual awards / options

Cost parameters set for initial contract

awards

Subsequent years’ option prices as

authorized by Congress

o Fixed price incentive fee contracts

Target costs include fee percentage around 15%;

operating margin approximately 13%

Share cost underruns / overruns with customer;

Rewarded for underruns; penalized for overruns;

responsible for all costs above ceiling price

Contract execution at underrun enhances margins

= initial award = option exercise = contract execution

21

Nuclear Operations Group – capitalizing for growth

13

27 25

32

45

32 35 36

44

86

~120

1.9%

2.9%2.5%

3.1%

4.1%

2.7% 2.8% 3.0%3.4%

6.8%

~9%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 est.

NOG long-term “maintenance” CAPEX = ~3% of sales

NOG CAPEX

NOG CAPEX

as % of sales

Significant capital investments planned for future growth

($million)

Nuclear Power

22


non-GAAP

operating

margin

121

162

286 7.7%

15.0% 12.8%

24.3%(1)

2015 2016 2017

GAAP

operating

margin

Revenue

($million)

1) 2016 GAAP operating margin includes a one-time, $15M gain related to the reversal of the unfavorable verdict in the AREVA litigation originally booked in 2014

o ~925 employees (Dec. 2017)

o $868M backlog (Sep. 2018)

o Forecasted refurbishment work

through 2033

o Sustain operational excellence

Maintain excellent safety record, focus on

exceptional quality and deliver products and

services as committed

o Medical Radioisotope Integration / Tc-99m

Integrate acquired medical radioisotopes

business

Execute plan to bring BWXT Tc-99m generator

to market through acquired infrastructure

o Business growth

Capture additional refurbishment work, expand

project service capabilities and position business

to support potential new builds in Canada and

abroad

23

Medical radioisotopes acquisition

o Acquired medical radioisotopes business for $213 million, which

includes approximately $14 million of cash tax benefits

Deal structure will allow for ~$50 million of future cash tax benefits for

tax deductible goodwill and intangibles

Closed July 30, 2018

o Financials

Revenue: ~$40M annualized

Margins: accretive to NPG segment excl. amortization

Backlog: $8M

Expected to be EPS accretive in first 12 months

o Leading global manufacturer and supplier of critical medical

radioisotopes and radiopharmaceuticals for research, diagnostic

and therapeutic uses

o Primary operations in Kanata, Ontario and Vancouver, British

Columbia with ~150 highly trained and experienced personnel

o Extensive nuclear and drug regulatory approvals and compliance

o Two specialized production centers with licensed infrastructure

and 6 active product lines with various applications:

Liver and prostate cancer treatment

Cardiac, thyroid, and blood infection imaging

White blood cell labeling

Medical radioisotopes acquisition……aligned with BWXT core competencies

and growth strategyo Ideal platform to launch BWXT Mo-99 product line and future

radioisotope-based imaging and therapeutic products

o Prior Moly-99 production experience

o Licensed shipping containers

o Underutilized hot cells (for radioactive material processing) and

floor space

o Existing customer relationships

o Reported as part of the Nuclear Power Group segment

24

The road to BWXT commercial Tc-99m generator production

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Man

ufa

ctu

rin

g

pro

du

ct

lin

e

Reacto

r access

eq

uip

men

t

Reg

ula

tory

pro

cess

Medical radioisotope

facility modifications

complete

Final equipment

installation

Access equipment

design complete

Anticipated

reactor outage for

equipment install

Complete

manufacture of

access equipment

Complete manufacturing

and processing

equipment design

Commence OPG target

irradiations, Mo-99

reference batches

Anticipated regulatory

approval for BWXT Tc-99m

generator NDA

First revenue

FDA, BWXT

Type C

meeting

25


7

11

22(1)

2015 2016 2017

Non-GAAP

operating

income

GAAP

operating

income

14

($million)o Sustain operational excellence

Maintain high safeguards, security and

industry-best metrics in U.S. nuclear

services market

o Maintain financial strength

Drive bottom-line performance, build

backlog in the DOE / NNSA and

increase margins through technology

o Business growth

Capture additional refurbishment

equipment supply, gain market share

in services and drive growth through

technology investments

o ~500 employees (Dec. 2017)

o Three major business lines in

government services,

commercial nuclear and

advanced nuclear technology

o 13 joint ventures across the

Weapons Complex, DOE labs,

Naval Reactors and NASA sites

Nuclear Services

1) 2017 GAAP operating income includes a one-time, $7.9M gain from favorable legal settlement

26

Appendix

6%

51%

43%

27

Sources and Uses of Cash

34%

11%19%

27%

7%

*As of 9/30/18

Cash from Operations

Borrowings

Legal Settlements

Garnered $1,241M* of cash since spin; deployed $1,241M* in a balanced, shareholder-friendly manner

Share Repurchases

Capital

Expenditures

Acquisitions

Dividends

Debt Other

BWXT Credit Ratings

Corporate family: Ba2

Senior notes: Ba3

Corporate credit: BB+

Senior notes: BB+

~$160M~$240M

28

Medical Radioisotopes – Global Technetium-99m Generator Segment

Technetium-99m (Tc-99m)

(~$2.8B)

Other/Therapeutic

PET

SPECT

~$6.1B Global Radiopharmaceutical Segment

Other Diagnostic

(~$700M)

~$400M+ Global Technetium-99m Generator Segment

~$2.8B global technetium-

99m (Tc-99m) segment

North America Tc-99m

generators


cold kits

North America

Tc-99m generators

Rest of the world

Tc-99m generators

Rest of the world

Tc-99m cold kits


~$1B+

46%

12%

20%

12%

10%

9%6%

34%

51%

29

Pension and Other Post-Employment Benefits (OPEB) Summary

Pension Obligations and Funded Status

12/31/2015 12/31/2016 12/31/2017

Benefit Obligation at end

of period$1,565,905 $1,571,586 $1,543,343

Fair Value of plan assets

at end of period1,209,814 1,217,859 1,256,199

Funded Status $(356,091) $(353,727) $(285,644)

Pension Net Periodic Benefit Cost (Income)

2015 2016 2017

Service cost $23,562 $7,358 $8,031

Interest cost 63,867 54,860 54,353

Expected return on plan assets (90,137) (82,690) (83,617)

Amortization of prior service

cost1,797 1,932 2,074

Recognized net actuarial mark

to market loss60,863 27,531 8,332

Net periodic benefit cost

(income)$59,952 $8,991 $(10,837)

o Effective December 31, 2015, defined pension benefit

accruals for salaried employees ceased.

o The majority of our pension costs are calculated under

both FAS(1) and CAS(2).

1) FAS – Financial accounting standards in accordance with GAAP and the way we report our financial results

2) CAS – Cost accounting standards in accordance with the Federal Acquisition Regulation and the related U.S. Government Cost Accounting Standards –

used as basis for recovery of costs on government contracts

2015 2016 2017

Recoverable CAS

pension costs$57,670 $49,581 $56,108

NOG Operating Margin 2015 2016 2017

Historical, as reported 21.8% 21.2% 22.8%

Pro-forma 20.1% 19.5% 21.0%

o We have adopted the updated pension accounting

guidance beginning in 2018, which requires non-

service cost components of net periodic benefit cost to

be classified outside of operating income within the

statement of income.

Does not impact EPS or net income, but negatively impacts

segment operating income and margins, reducing what we

report as operating margin in NOG by 150-200 basis points.

See pro-forma effect below:

($thousands)

30

Supplemental information – Missile tube impact on NOG segment results

3Q18 YTD

Revenue $319.3 $968.1

Y/Y (1.6%) 0.6%

Operating income $45.6 $180.3

Y/Y (31.4%) (11.4%)

Operating margin 14.3% 18.6%

Y/Y (620 bps) (250 bps)

3Q18 YTD

Revenue $333.7 $982.5

Y/Y 2.8% 2.1%

Operating income $72.3 $209.5

Y/Y 8.8% 2.9%

Operating margin 21.7% 21.3%

Y/Y 120 bps 20 bps

Reported

results

Results excluding

missile tube reserves($million)

Missile tube

reserve impact

3Q18 YTD

$(14.4) $(14.4)

$(26.7) $(29.2)

31

Reconciliation of 3Q Non-GAAP Items for 2017 and 2018(1)

1) Tables may not foot due to rounding.

GAAP

Pension &

OPEB MTM

(Gain) / Loss

Acquisition

Related Costs

Loss on

Forward

Contracts

One-Time Tax

Benefit

Missile tube

reserve Non-GAAP

Operating Income 50.4$ -$ 0.9$ -$ -$ 51.3$

Other Income (Expense) 34.2 (35.1) - 1.3 - 0.3

Provision for Income Taxes (6.5) 8.1 (0.2) (0.3) (12.5) (11.3)

Net Income 78.1 (27.0) 0.7 1.0 (12.5) 40.3

Net Income Attributable to Noncontrolling Interest (0.2) - - - - (0.2)

Net Income Attributable to BWXT 77.9$ (27.0)$ 0.7$ 1.0$ (12.5) 40.1$

Diluted Shares Outstanding 100.4 100.4

Diluted Earnings per Common Share 0.78$ (0.27)$ 0.01$ 0.01$ (0.12)$ 0.40$

Effective Tax Rate 7.7% 22.0%

NOG segment margins 14.3% 7.4% 21.7%

GAAP Non-GAAP

Operating Income 66.8$ -$ -$ -$ 66.8$

Other Income (Expense) 3.8 - - - 3.8

Provision for Income Taxes (23.9) - - - (23.9)

Net Income 46.7 - - - 46.7

Net Income Attributable to Noncontrolling Interest (0.1) - - - (0.1)

Net Income Attributable to BWXT 46.6$ - - - 46.6$


Diluted Earnings per Common Share 0.46$ -$ -$ -$ 0.46$


(In millions, except per share amounts)


For the Three Months Ended September 30, 2017

For the Three Months Ended September 30, 2018

32

Reconciliation of YTD Non-GAAP Items for 2017 and 2018(1)

GAAP

Pension &

OPEB MTM

(Gain) / Loss

Acquisition

Related Costs

Recognition of

Debt Issuance

Costs from

Former Credit

Facility

Gain on Forward

Contracts

One-Time Tax

Benefit Non-GAAP

Operating Income 201.8$ -$ 2.5$ -$ -$ -$ 204.3$

Other Income (Expense) 47.0 (35.1) - 2.4 (4.7) - 9.5

Provision for Income Taxes (43.6) 8.1 (0.6) (0.6) 1.2 (12.5) (47.9)

Net Income 205.2 (27.0) 1.9 1.8 (3.49) (12.5) 166.0

Net Income Attributable to Noncontrolling Interest (0.2) - - - - - (0.2)

Net Income Attributable to BWXT 205.0$ (27.0)$ 1.9$ 1.8$ (3.5)$ (12.5)$ 165.8$


Diluted Earnings per Common Share 2.04$ (0.27)$ 0.02$ 0.02$ (0.03)$ 0.12$ 1.65$


GAAP

Framework

Agreement &

Litigation

Impairment

(Gains) /

Charges Non-GAAP

Operating Income 228.5$ -$ -$ (7.9)$ -$ 220.6$

Other Income (Expense) 11.0 - - - (0.4) 10.6

Provision for Income Taxes (75.6) - - 2.8 0.0 (72.7)

Net Income 163.9 - - (5.1) (0.4) 158.4

Net Income Attributable to Noncontrolling Interest (0.4) - - - - (0.4)

Net Income Attributable to BWXT 163.5$ -$ -$ (5.1)$ (0.4)$ 158.1$


Diluted Earnings per Common Share 1.63$ -$ -$ (0.05)$ (0.00)$ 1.57$




For the Nine Months Ended September 30, 2017

For the Nine Months Ended September 30, 2018


33

Reconciliation of Non-GAAP Items for 2016, 2017(1)


34

Reconciliation of Non-GAAP Items for 2015(1)

1) Financials are presented on a continuing operations basis and exclude the results of operations from our former Power Generation business.

Investor Briefing - Seeking Alpha

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