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What changed in BWX Technologies, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of BWX Technologies, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+248 added−229 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-24)

Top changes in BWX Technologies, Inc.'s 2025 10-K

248 paragraphs added · 229 removed · 190 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

75 edited+14 added−7 removed121 unchanged
Biggest changeOur Technical Fellows offer a breadth of knowledge and diversity of technical expertise that can be focused on developing creative solutions to numerous challenges we face in our industry. Diversity and Inclusion We value the diversity of our employees and are committed to providing an engaging and inclusive atmosphere for all that promotes productivity and encourages creativity and innovation.
Biggest changeWe established the BWXT Technical Fellows program which honors and celebrates some of our most talented employees for their contributions to driving innovation and inspiring creativity. Our Technical Fellows offer a breadth of knowledge and technical expertise that can be focused on developing creative solutions to numerous challenges we face in our industry.
Item 1. BUSINESS General BWX Technologies, Inc. is a specialty manufacturer of nuclear components, a developer of nuclear technologies and a service provider with an operating history of more than 100 years. Our core businesses focus on the design, engineering and manufacture of precision naval nuclear components, reactors and nuclear fuel for the U.S. Government.
Item 1. BUSINESS General BWX Technologies, Inc. is a specialty manufacturer of nuclear components, a developer of nuclear technologies and a service provider with an operating history of more than 100 years. Our core businesses focus on the design, engineering and manufacture of precision naval nuclear components, nuclear reactors and nuclear fuel for the U.S. Government.
At any given time, a relatively small number of projects can represent a significant part of our operations. Business Segments We operate in two reportable segments: Government Operations and Commercial Operations. For financial information regarding each of our segments and financial information regarding geographic areas, see Note 15 and Note 3 to our consolidated financial statements included in this Report.
At any given time, a relatively small number of projects can represent a significant part of our operations. Business Segments We operate in two reportable segments: Government Operations and Commercial Operations. For financial information regarding each of our segments and financial information regarding geographic areas, see Note 3 and Note 15 to our consolidated financial statements included in this Report.
Examples of costs that may be incurred by us and not billable to the U.S. Government in accordance with the requirements of the FAR and CAS regulations include, but are not limited to, unallowable employee compensation and benefit costs, lobbying costs, interest, certain legal costs and charitable donations.
Examples of costs that may be incurred by us and not billable to the U.S. Government in accordance with the requirements of the FAR and CAS include, but are not limited to, unallowable employee compensation and benefit costs, lobbying costs, interest, certain legal costs and charitable donations.
The primary bases of competition for this segment are experience, past performance, availability of key personnel and technical capabilities. Commercial Operations Our Commercial Operations segment supplies heavy nuclear components, specialized engineering and maintenance services, nuclear fuel, fuel handling systems and tooling delivery systems for CANDU reactors.
The primary bases of competition for this segment are experience, past performance, availability of key personnel and technical capabilities. Commercial Operations Our Commercial Operations segment supplies heavy nuclear components, specialized engineering and maintenance services, nuclear fuel, fuel handling systems and tooling delivery systems for nuclear reactors.
We generally account for our investments in joint ventures under the equity method of accounting. Certain of our Government Operations segment unconsolidated joint ventures are described below. • Los Alamos Legacy Cleanup Contract.
We generally account for our investments in joint ventures under the equity method of accounting. Certain of our unconsolidated joint ventures are described below. Government Operations • Los Alamos Legacy Cleanup Contract.
With our specialized capabilities of full life-cycle management of special materials, facilities and technologies, we believe that we are well-positioned to continue participating in the ongoing cleanup, operation and management of critical government-owned nuclear sites, laboratories and manufacturing complexes maintained by the DOE, NASA and other federal agencies.
With our specialized capabilities of full life-cycle management of special materials, facilities and technologies, we believe that we are well-positioned to continue participating in the ongoing cleanup, operation and management of critical government-owned nuclear sites, laboratories and manufacturing complexes maintained by the DOE, NNSA and other federal agencies.
Customers We provide our products and services to a diverse customer base, including the U.S. Government, utilities and other customers in the nuclear power and radiopharmaceutical industries. Our largest and primary customer of our Government Operations segment is the U.S. Government. During the years ended December 31, 2024, 2023 and 2022, the U.S.
Customers We provide our products and services to a diverse customer base, including the U.S. Government, utilities and other customers in the nuclear power and radiopharmaceutical industries. Our largest and primary customer of our Government Operations segment is the U.S. Government. During the years ended December 31, 2025, 2024 and 2023, the U.S.
These contracts are generally structured as five-year contracts with options for up to five additional years, which are exercisable by the customer, or include provisions whereby the contract durations can be extended as a result of the achievement of certain performance metrics.
These contracts are generally structured as five-year contracts with options for five to ten additional years, which are exercisable by the customer, or include provisions whereby the contract durations can be extended as a result of the achievement of certain performance metrics.
Excluding customer-sponsored research and development, the majority of our activities in this area for the years ended December 31, 2024, 2023 and 2022 related to the development of technologies in the area of medical and industrial radioisotopes, radiopharmaceuticals, additive and autonomous manufacturing, advanced reactors and nuclear fuel.
Excluding customer-sponsored research and development, the majority of our activities in this area for the years ended December 31, 2025, 2024 and 2023 related to the development of technologies in the area of medical and industrial radioisotopes, radiopharmaceuticals, additive and autonomous manufacturing, advanced reactors and nuclear fuel.
We plan to make additional capital expenditures and investments in personnel to meet the current demand requirements, and we expect to continue making such expenditures and investments in the future. 1 Table of Contents This segment also provides various services to the U.S. Government by managing and operating high-consequence operations at U.S. nuclear weapons sites, national laboratories and manufacturing complexes.
We plan to make additional capital expenditures and investments in personnel to meet the current demand requirements, and we expect to continue making such expenditures and investments in the future. 1 Table of Contents This segment also provides various services to the U.S. and Canadian governments by managing and operating high-consequence operations at U.S. nuclear weapons sites, national laboratories and manufacturing complexes.
Of our total environmental accruals at December 31, 2024 and 2023, $9.2 million and $10.6 million, respectively, were included in current liabilities. Inherent in the estimates of these accruals are our expectations regarding the levels of contamination, decommissioning costs and recoverability from other parties, which may vary significantly as decommissioning activities progress.
Of our total environmental accruals at December 31, 2025 and 2024, $6.9 million and $9.2 million, respectively, were included in current liabilities. Inherent in the estimates of these accruals are our expectations regarding the levels of contamination, decommissioning costs and recoverability from other parties, which may vary significantly as decommissioning activities progress.
Our primary competitors in the delivery of goods and services to the U.S. Government and the operation of U.S. Government facilities include, but are not limited to, Bechtel National, Inc., Amentum Environment & Energy, Inc., Fluor Corporation, Jacobs Engineering Group, Inc., Northrop Grumman Corporation, Huntington Ingalls Industries, Inc., Honeywell International, Inc., Leidos, Inc., Westinghouse Electric Corporation and AtkinsRéalis.
Our primary competitors in the delivery of goods and services to the U.S. Government and the operation of U.S. Government facilities include, but are not limited to, Bechtel National, Inc., Amentum Environment & Energy, Inc., Fluor Corporation, Northrop Grumman Corporation, Huntington Ingalls Industries, Inc., Honeywell International, Inc., Leidos, Inc., Westinghouse Electric Corporation and AtkinsRéalis.
The primary bases of competition for this segment are price, technical capabilities, quality, timeliness of performance, breadth of products and services and willingness to accept project risks. This segment also manufactures medical radioisotopes, radiopharmaceuticals and medical devices, and partners with life science and pharmaceutical companies developing new drugs.
The primary bases of competition for this segment are price, technical capabilities, quality, timeliness of performance, breadth of products and services and willingness to accept project risks. 5 Table of Contents This segment also manufactures medical radioisotopes, radiopharmaceuticals and medical devices, and partners with life science and pharmaceutical companies developing new drugs.
Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. 13 Table of Contents We have discussed many of these factors in more detail elsewhere in this Report. These factors are not necessarily all the factors that could affect us.
Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. We have discussed many of these factors in more detail elsewhere in this Report. These factors are not necessarily all the factors that could affect us.
From 1961 to 1970, the SLDA was operated by the Nuclear Materials and Equipment Corporation ("NUMEC") pursuant to Atomic Energy Commission ("AEC") License SNM-145. The AEC was the predecessor to the NRC. The SLDA was used for the disposal of waste from NUMEC's nuclear fuels fabrication facility in Apollo, Pennsylvania.
From 1961 to 1970, the SLDA was operated by the Nuclear Materials and Equipment Corporation ("NUMEC") pursuant to Atomic Energy Commission ("AEC") License SNM-145. The AEC was the predecessor to the NRC. The SLDA was used for the disposal of waste from NUMEC's nuclear fuels fabrication facility in 12 Table of Contents Apollo, Pennsylvania.
Our goal is to be the employer of choice within our industry and the communities in which we operate. We focus on maintaining a solid pipeline of talent throughout our organization and developing the capabilities and skills in our workforce needed for the future of our business.
Our goal is to be the employer of choice within our industry and the communities in which we operate. We focus on maintaining a solid pipeline of talent throughout our organization and developing the capabilities and skills in our workforce 7 Table of Contents needed for the future of our business.
As a U.S. Government contractor, we are subject to federal regulations under which our right to receive future awards of new federal contracts would be unilaterally suspended or barred if we were convicted of a crime or indicted based on allegations of a violation of specific federal statutes. In addition, some of our contracts with the U.S.
Government 3 Table of Contents contractor, we are subject to federal regulations under which our right to receive future awards of new federal contracts would be unilaterally suspended or barred if we were convicted of a crime or indicted based on allegations of a violation of specific federal statutes. In addition, some of our contracts with the U.S.
Receivables for reinsurance coverage are recognized when realization is deemed probable. We may also have business reasons 10 Table of Contents in the future to have our insurance subsidiary accept other risks that we cannot or do not wish to transfer to outside insurance companies. These risks may be considerable in any given year or cumulatively.
Receivables for reinsurance coverage are recognized when realization is deemed probable. We may also have business reasons in the future to have our insurance subsidiary accept other risks that we cannot or do not wish to transfer to outside insurance companies. These risks may be considerable in any given year or cumulatively.
Government represented approximately 76%, 75% and 76% of our total consolidated revenues, respectively. No individual non-U.S. Government customer accounted for more than 10% of our consolidated revenues in the years ended December 31, 2024, 2023 or 2022.
Government represented approximately 68%, 76% and 75% of our total consolidated revenues, respectively. No individual non-U.S. Government customer accounted for more than 10% of our consolidated revenues in the years ended December 31, 2025, 2024 or 2023.
Our compliance with federal, foreign, state and local environmental control and protection regulations resulted in pre-tax expense of approximately $22.7 million, $20.0 million and $20.0 million in the years ended December 31, 2024, 2023 and 2022, respectively.
Our compliance with federal, foreign, state and local environmental control and protection regulations resulted in pre-tax expense of approximately $20.3 million, $22.7 million and $20.0 million in the years ended December 31, 2025, 2024 and 2023, respectively.
Hanford Tank Waste Operations & Closure, LLC is a limited liability company formed by BWXT TSG, Amentum Environment & Energy, Inc. and Fluor Federal Services, Inc. to achieve significant risk and financial liability reduction through accelerated cleanup of high-risk waste at the DOE-owned Hanford Tank Farms near Richland, Washington.
Hanford Tank Waste Operations & Closure, LLC is a limited liability company formed by BWXT TSG, Amentum Environment & Energy, Inc. and Fluor Federal Services, Inc. to achieve significant risk and financial liability reduction through accelerated cleanup of high-risk waste at the DOE-owned Hanford Tank Farms near Richland, Washington. • Strategic Petroleum Reserve Contract.
Instead, we rely on government contractual agreements and insurance purchased specifically for a site. The U.S. Government has historically fulfilled its contractual agreement to reimburse its contractors for covered claims, and we expect it to continue this process during our participation in the management and operation of these facilities. However, in most of these situations in which the U.S.
Instead, we rely on government contractual agreements and insurance purchased specifically for a site. The U.S. Government has historically fulfilled its contractual agreement to reimburse its contractors for covered claims, and we expect it to continue this process during our participation in the management and operation of these facilities.
Once completed, Kinectrics will be reported as part of our Commercial Operations segment. See Note 2 to our consolidated financial statements included in this Report for additional information about our recent acquisition activity. Contracts We execute our contracts through a variety of methods, including fixed-price incentive fee, cost-plus, cost-reimbursable, firm fixed-price or some combination of these methods.
Kinectrics is reported as part of our Commercial Operations segment. See Note 2 to our consolidated financial statements included in this Report for additional information about our recent acquisition activity. Contracts We execute our contracts through a variety of methods, including fixed-price incentive fee, cost-plus, cost-reimbursable, firm fixed-price or some combination of these methods.
In addition, we maintain the BWXT Ethics Helpline to allow employees to report any concerns 8 Table of Contents relating to ethics or other concerns confidentially and, if they choose, anonymously. We investigate and take prompt action to correct conduct that is inconsistent with our Code and other policies.
In addition, we maintain the BWXT Ethics Helpline to allow employees to report any concerns relating to ethics or other concerns confidentially and, if they choose, anonymously. We investigate and take prompt action to correct conduct that is inconsistent with our Code and other policies.
We expect to recognize approximately 48% of the revenue associated with our backlog by the end of 2025, with the remainder to be recognized thereafter. Major new awards from the U.S. Government are typically received following Congressional approval of appropriations for the U.S.
We expect to recognize approximately 40% of the revenue associated with our backlog by the end of 2026, with the remainder to be recognized thereafter. Major new awards from the U.S. Government are typically received following Congressional approval of appropriations for the U.S.
The Phase 1B contract begins in June 2025 and will continue the current cleanup mission and will include the demolition of remaining components of the main plant process building, soil remediation and disposition, waste management and disposition, environmental monitoring, surveillance and maintenance and program support activities. • Synergy Achieving Consolidated Operations & Maintenance (SACOM).
The Phase 1B contract began on June 24, 2025 and will continue the current cleanup mission and will include the demolition of remaining components of the main plant process building, soil remediation and disposition, waste management and disposition, environmental monitoring, surveillance and maintenance and program support activities. • Synergy Achieving Consolidated Operations & Maintenance (SACOM).
Joint Ventures We share in the ownership of a variety of entities with third parties, primarily through corporations, limited liability companies and partnerships, which we refer to as "joint ventures." Through these joint venture arrangements, our Government Operations segment primarily manages and operates nuclear facilities and associated plant infrastructure, constructs large capital facilities, provides safeguards and security for inventory and assets, supports and conducts research and development for advanced energy technology and manages environmental programs for the DOE, the NNSA and NASA.
Joint Ventures We share in the ownership of a variety of entities with third parties, primarily through corporations, limited liability companies and partnerships, which we refer to as "joint ventures." The majority of our joint venture arrangements are within our Government Operations segment and are primarily used to manage and operate nuclear facilities and associated plant infrastructure, constructs large capital facilities, provides safeguards and security for inventory and assets, supports and conducts research and development for advanced energy technology and manages environmental programs for the DOE, the NNSA and NASA.
A follow-on contract was awarded by the DOE to another contractor and transition is expected to occur during 2025. • West Valley Demonstration Project Phase I Decommissioning and Facility Disposition. CH2M Hill-BWXT West Valley, LLC is a limited liability company formed by Amentum Environment & Energy, Inc. (formerly CH2M Hill Constructors, Inc.), BWXT TSG and Environmental Chemical Corporation.
A follow-on contract was awarded by the DOE to another contractor and transition was completed in September 2025. • West Valley Demonstration Project Phase I Decommissioning and Facility Disposition. CH2M Hill-BWXT West Valley, LLC is a limited liability company formed by Amentum Environment & Energy, Inc. (formerly CH2M Hill Constructors, Inc.), BWXT TSG and Environmental Chemical Corporation.
This segment's capabilities include: • steam generation and separation equipment design and development; • thermal-hydraulic design of reactor plant components; • in-plant inspection, maintenance and modification services; • nuclear component modification and replacement; • commercial nuclear fuel design and manufacturing; • nuclear fuel handling system design, manufacturing, delivery, installation and commissioning; • containers for the storage of spent nuclear fuel and other high-level waste; • structural and thermal-hydraulic design and vibration analysis for heat exchangers; • structural component design for precision manufacturing; • materials expertise in high-strength, low-alloy steels and nickel-based materials; • material procurement of tubing, forgings and weld wire; and • metallographic and chemical analysis.
This segment's capabilities include: • steam generation and separation equipment design and development; • thermal-hydraulic design of reactor plant components; • in-plant inspection, maintenance and modification services; • nuclear component modification and replacement; • commercial nuclear fuel design and manufacturing; • nuclear fuel handling system design, manufacturing, delivery, installation and commissioning; • containers for the storage of spent nuclear fuel and other high-level waste; • lifecycle support and management services for the global nuclear power industry, transmission and distribution markets; • structural and thermal-hydraulic design and vibration analysis for heat exchangers; • structural component design for precision manufacturing; • materials expertise in high-strength, low-alloy steels and nickel-based materials; • material procurement of tubing, forgings and weld wire; and • metallographic and chemical analysis.
This segment competes with a number of companies specializing in nuclear capabilities including, but not limited to, Framatome, Cameco Corporation, Doosan Heavy Industries & Construction Co., Ltd., E.S. Fox Limited, AECON Group Inc., Bechtel National, Inc., Westinghouse Electric Corporation and AtkinsRéalis.
This segment competes with a number of companies specializing in nuclear capabilities including, but not limited to, Framatome, Cameco Corporation, Doosan Heavy Industries & Construction Co., Ltd., AECON Group Inc., Westinghouse Electric Corporation and AtkinsRéalis.
We provided financial assurance totaling $68.1 million and $68.1 million during the years ended December 31, 2024 and 2023, respectively, with surety bonds for the ultimate decommissioning of these licensed facilities.
We provided financial assurance totaling $71.5 million and $68.1 million during the years ended December 31, 2025 and 2024, respectively, with surety bonds for the ultimate decommissioning of these licensed facilities.
(formerly CH2M Hill Constructors, Inc.), BWXT TSG and Fluor Federal Services, Inc. to provide nuclear operations, deactivation and remediation services at the Paducah Gaseous Diffusion Plant in Paducah, Kentucky. 6 Table of Contents • Pantex Plant.
(formerly CH2M Hill Constructors, Inc.), BWXT TSG and Fluor Federal Services, Inc. to provide nuclear operations, deactivation and remediation services at the Paducah Gaseous Diffusion Plant in Paducah, Kentucky. • Pantex Plant.
The Government Operations segment is also a leader in the development of advanced nuclear reactors for a variety of power and propulsion applications in the space and terrestrial domains. U.S. Government customers for these applications include NASA, the U.S. Department of Defense ("DoD") and the DOE.
The Government Operations segment is also a leader in the development of advanced nuclear reactors for a variety of power and propulsion applications in the space and terrestrial domains. U.S. Government customers for these applications include NASA, the U.S. Department of War ("DoW"), also known as the Department of Defense, and the DOE.
Services provided include project management and support services, site operations, maintenance, utilities, high-level waste canister relocation, facility disposition, waste tank farm management, U.S. Nuclear Regulatory Commission ("NRC") licensed disposal area management, waste management and nuclear materials disposition, and safeguards and security. • West Valley Demonstration Project Phase 1B.
Services provided include project management and support services, site operations, maintenance, utilities, high-level waste canister relocation, facility disposition, waste tank farm management, U.S. Nuclear Regulatory Commission ("NRC") licensed disposal area management, waste management and nuclear materials disposition, and safeguards and security.
Government generally has the right not to exercise option periods and may not exercise an option period for various reasons including, but 3 Table of Contents not limited to, annual funding determinations. In addition, contracts between the U.S. Government and its prime contractors usually contain standard provisions for termination at the convenience of the U.S. Government or the prime contractor.
Government generally has the right not to exercise option periods and may not exercise an option period for various reasons including, but not limited to, annual funding determinations. In addition, contracts between the U.S. Government and its prime contractors usually contain standard provisions for termination at the convenience of the U.S. Government. As a U.S.
Governmental Regulations and Environmental Matters Governmental Regulations Many aspects of our operations and properties are affected by political developments and are subject to both domestic and foreign governmental regulations, including those relating to: • possessing and processing special nuclear materials; • workplace health and safety; • constructing and equipping electric power facilities; • currency conversions and repatriation; • taxation of earnings; and • protecting the environment.
Governmental Regulations and Environmental Matters Governmental Regulations Many aspects of our operations and properties are affected by political developments and are subject to both domestic and foreign governmental laws, regulations and presidential executive orders, including those relating to: • possessing and processing special nuclear materials; • workplace health and safety; • constructing and equipping electric power facilities; • currency conversions and repatriation; • taxation of earnings; • protecting the environment; and • dividends, repurchasing shares and executive compensation.
In addition, compliance with existing environmental regulations necessitated capital expenditures of $0.8 million, $0.7 million and $1.6 million in the years ended December 31, 2024, 2023 and 2022, respectively. We expect to spend another $3.7 million on such capital expenditures over the next five years.
In addition, compliance with existing environmental regulations necessitated capital expenditures of $1.2 million, $0.8 million and $0.7 million in the years ended December 31, 2025, 2024 and 2023, respectively. We expect to spend another $4.5 million on such capital expenditures over the next five years.
This segment competes with a number of nuclear medicine 5 Table of Contents companies which include, but are not limited to, Curium Pharma, Lantheus Holdings, Inc. and Jubilant DraxImage Inc. The primary bases of competition in this area are quality, distribution capabilities, price and reliability.
This segment competes with a number of nuclear medicine companies which include, but are not limited to, Curium Pharma, SHINE Technologies. and Jubilant DraxImage Inc. The primary bases of competition in this area are quality, distribution capabilities, price and reliability.
We provided financial assurance totaling $28.5 million and $44.3 million during the years ended December 31, 2024 and 2023, respectively, with letters of credit and surety bonds for the ultimate decommissioning of these licensed facilities. At December 31, 2024 and 2023, we had total environmental accruals, including asset retirement obligations, of $103.4 million and $101.1 million, respectively.
We provided financial assurance totaling $32.5 million and $28.5 million during the years ended December 31, 2025 and 2024, respectively, with letters of credit and surety bonds for the ultimate decommissioning of these licensed facilities. At December 31, 2025 and 2024, we had total environmental accruals, including asset retirement obligations, of $107.2 million and $103.4 million, respectively.
A reduced scope, follow-on contract was awarded by NASA to another contractor in 2024 and transition is expected to occur during 2025. • Paducah Gaseous Diffusion Plant Deactivation and Remediation Project. Four Rivers Nuclear Partnership, LLC is a limited liability company formed by Amentum Environment & Energy, Inc.
A reduced scope, follow-on contract was awarded by NASA to another contractor in 2024 and transition was completed in June 2025. 6 Table of Contents • Paducah Gaseous Diffusion Plant Deactivation and Remediation Project. Four Rivers Nuclear Partnership, LLC is a limited liability company formed by Amentum Environment & Energy, Inc.
We would expect to fund these opportunities with cash generated from operations or by raising additional capital through debt, equity or some combination thereof. Government Operations Through this segment, we engineer, design and manufacture precision naval nuclear components, reactors and nuclear fuel for the U.S. Department of Energy ("DOE")/National Nuclear Security Administration's ("NNSA") Naval Nuclear Propulsion Program.
We would expect to fund these opportunities with cash generated from operations or by raising additional capital through debt, equity or some combination thereof. Government Operations Through this segment, we engineer, design and manufacture precision naval nuclear components, reactors and nuclear fuel for the U.S.
Backlog may not be indicative of future operating results, and projects in our backlog may be cancelled, modified or otherwise altered by customers. 4 Table of Contents Our backlog at December 31, 2024 and 2023 was as follows: December 31, 2024 December 31, 2023 (In approximate millions) Government Operations $ 3,913 81 % $ 3,217 80 % Commercial Operations 930 19 % 781 20 % Total Backlog $ 4,843 100 % $ 3,998 100 % We do not include the value of our unconsolidated joint venture contracts in backlog.
Backlog may not be indicative of future operating results, and projects in our backlog may be cancelled, modified or otherwise altered by customers. 4 Table of Contents Our backlog at December 31, 2025 and 2024 was as follows: December 31, 2025 December 31, 2024 (In approximate millions) Government Operations $ 5,541 76 % $ 3,913 81 % Commercial Operations 1,720 24 % 930 19 % Total Backlog $ 7,261 100 % $ 4,843 100 % We do not include the value of our unconsolidated joint venture contracts in backlog.
Government is contractually obligated to pay, the payment obligation is subject to the availability of authorized government funds. The reimbursement obligation of the U.S. Government is also conditional, and provisions of the relevant contract or applicable law may preclude reimbursement.
However, in most of these situations in which the 10 Table of Contents U.S. Government is contractually obligated to pay, the payment obligation is subject to the availability of authorized government funds. The reimbursement obligation of the U.S. Government is also conditional, and provisions of the relevant contract or applicable law may preclude reimbursement.
Competition The competitive environments in which each segment operates are described below. Government Operations We have specialized technical capabilities that have allowed us to be a valued supplier of nuclear components and fuel for the U.S. Government's naval nuclear fleet since the 1950s. Because of the technical and regulatory standards required to meet U.S.
Government Operations We have specialized technical capabilities that have allowed us to be a valued supplier of nuclear components and fuel for the U.S. Government's naval nuclear fleet since the 1950s. Because of the technical and regulatory standards required to meet U.S.
Our compensation programs are further designed to ensure we remain competitive relative to the markets in which we operate; provide meaningful value to employees and those they care for; incentivize the short- and long-term success of BWXT and its stakeholders through programs with consistent performance measures throughout the organization; and recognize employees who make outstanding contributions to the organization. 7 Table of Contents Providing comprehensive, competitive, and affordable retirement, healthcare, income protection and other benefits is also central to our attraction and retention strategy.
Our compensation programs are further designed to ensure we remain competitive relative to the markets in which we operate; provide meaningful value to employees and those they care for; incentivize the short- and long-term success of BWXT and its stakeholders through programs with consistent performance measures throughout the organization; and recognize employees who make outstanding contributions to the organization.
On November 4, 2024, we announced our intention to acquire Aerojet Ordnance Tennessee, Inc. ("A.O.T"), a subsidiary of L3Harris Technologies, Inc. This acquisition was subsequently completed on January 3, 2025. A.O.T is a leading provider of advanced special materials which will further enhance our capabilities to develop and manufacture advanced materials and products for commercial, military and space applications.
On January 3, 2025, we completed the acquisition of Aerojet Ordnance Tennessee, Inc. ("A.O.T"), a subsidiary of L3Harris Technologies, Inc. A.O.T is a leading provider of advanced special materials which will further enhance our capabilities to develop and manufacture advanced materials and products for commercial, military and space applications. A.O.T. is reported as part of our Government Operations segment.
In furtherance of this objective, we provide regular training on the Code for our employees to identify and prevent misconduct, and the Code requires that employees report situations that violate our policies and/or negatively impact our work environment.
The Code describes what is appropriate behavior and guides ethical business decisions that maintain a commitment to integrity. In furtherance of this objective, we provide regular training on the Code for our employees to identify and prevent misconduct, and the Code requires that employees report situations that violate our policies and/or negatively impact our work environment.
Although this ARCO indemnity would cover claims by the Army Corps to seek recovery from BWXT for SLDA cleanup costs, 12 Table of Contents no assurance can be given that this indemnity will be available or sufficient in the event such claims are asserted.
Although this ARCO indemnity would cover claims by the Army Corps to seek recovery from BWXT for SLDA cleanup costs, no assurance can be given that this indemnity will be available or sufficient in the event such claims are asserted. For additional discussion of environmental matters, see Note 10 to our consolidated financial statements included in this Report.
In addition, we supply proprietary and sole-source valves, manifolds and fittings to global naval and commercial shipping customers. Our Government Operations segment specializes in the design and manufacture of close-tolerance and high-quality equipment for nuclear applications. In addition, we are a leading manufacturer of critical nuclear components, fuels and assemblies for government and limited other uses.
Our Government Operations segment specializes in the design and manufacture of close-tolerance and high-quality equipment for nuclear applications. In addition, we design advanced reactors and are a leading manufacturer of critical nuclear components, fuels and assemblies for government and limited other uses.
We are required by various governmental and quasi-governmental agencies to obtain certain permits, licenses and certificates with respect to our operations. The kinds of permits, licenses and certificates required in our operations depend upon a number of factors.
We are required by various governmental and quasi-governmental agencies to obtain certain permits, licenses and certificates with respect to our operations.
Government, such risks include, without limitation, budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling, the potential for government shutdowns and changing funding and acquisition priorities.
Government, such risks include, without limitation, budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling, the risk of government shutdowns, including program cancellations, schedule delays, production halts and other disruptions and nonpayment, and changing funding and acquisition priorities.
We have supplied the nuclear industry with more than 1,300 large, heavy components worldwide and are the only commercial heavy nuclear component manufacturer in North America. This segment is also a leading supplier of nuclear fuel, fuel handling systems, tooling delivery systems, nuclear-grade materials and precisely machined components, and related services for CANDU nuclear power plants.
We supply large, heavy components to the worldwide nuclear industry and are the only commercial heavy nuclear component manufacturer in North America. This segment is also a leading supplier of nuclear fuel, fuel handling systems, reactor controls, specialty tooling, nuclear-grade materials and precisely machined components, and related engineering and maintenance services for nuclear power plans.
These unconsolidated joint ventures are included in our Government Operations segment. See Note 4 to our consolidated financial statements included in this Report for financial information on our equity method investments. At December 31, 2024, our ending backlog was $4,842.5 million, which included $387.4 million of unfunded backlog related to U.S. Government contracts.
See Note 4 to our consolidated financial statements included in this Report for financial information on our equity method investments. At December 31, 2025, our ending backlog was $7,260.7 million, which included $2,151.3 million of unfunded backlog related to U.S. Government contracts.
As a result of these activities, we are subject to continuing reviews by governmental agencies, including the U.S. Environmental Protection Agency and the NRC. We are also involved in manufacturing activities at licensed facilities in Canada that are subject to continuing reviews by governmental agencies in Canada, including the CNSC.
We are also involved in manufacturing activities at licensed facilities in Canada that are subject to continuing reviews by governmental agencies in Canada, including the CNSC.
We work closely with the DOE-supported nuclear non-proliferation program. Currently, this program is assisting in the development of a high-density, low-enriched uranium fuel required for high-enriched uranium test reactor conversions. We have also been a leader in the receipt, storage, characterization, dissolution, recovery and purification of a variety of uranium-bearing materials.
Currently, this program is assisting in the development of a high-density, low-enriched uranium fuel required for high-enriched uranium test reactor conversions. We have also been a leader in the receipt, storage, characterization, dissolution, recovery and purification of a variety of uranium-bearing materials. All phases of uranium downblending and uranium recovery are performed at our Lynchburg, Virginia and Erwin, Tennessee sites.
Each officer, director and employee is required to use good ethical judgment when conducting business; be respectful of colleagues, business partners, customers and others in their interactions; and comply with applicable laws, rules, and regulations. The Code describes what is appropriate behavior and guides ethical business decisions that maintain a commitment to integrity.
Our Code of Business Conduct ("Code") establishes the principles and standards that we expect our employees to follow. Each officer, director and employee is required to use good ethical judgment when conducting business; be respectful of colleagues, business partners, customers and others in their interactions; and comply with applicable laws, rules, and regulations.
In cases where we purchase insurance, we are subject to the creditworthiness of the relevant insurer(s), the available limits of the coverage, our retention under the relevant policy, exclusions in the policy and gaps in coverage. 9 Table of Contents Our operations in designing, engineering, manufacturing, constructing and servicing nuclear power equipment and components for our commercial nuclear utility customers subject us to various risks, including, without limitation, damage to our customers' property and third-party claims for personal injury, environmental liability, death and property damage.
Our operations in designing, engineering, manufacturing, constructing and servicing nuclear power equipment and components for our commercial nuclear utility customers subject us to various risks, including, without limitation, damage to our customers' property and third-party claims for personal injury, environmental liability, death and property damage.
We strive to maintain a highly-skilled and diverse workforce where employees are recruited, compensated, retained and promoted based on their performance and contribution to the Company. Employees At December 31, 2024, we employed approximately 8,700 persons worldwide, predominantly in the U.S. (6,800 employees) and Canada (1,900 employees). Many of our operations are subject to union contracts, which we negotiate periodically.
We strive to maintain a highly-skilled workforce where employees are recruited, compensated, retained and promoted based on their performance and contribution to the Company. Employees At December 31, 2025, we employed approximately 10,400 persons worldwide, predominantly in the U.S.
Navy issued its 30-year shipbuilding plan containing three alternative procurement profiles based upon varied funding assumptions. All three indicate growth in the total number of ships and a sustained, or increased, procurement profile for nuclear-powered submarines and aircraft carriers.
All three indicate growth in the total number of ships and a sustained, or increased, procurement profile for nuclear-powered submarines and aircraft carriers.
We have based our forward-looking statements on information currently available to us and our current expectations, estimates and projections about our industries, business environment and our Company. We caution that these statements are not guarantees of future performance, and you should not rely unduly on them as they involve risks, uncertainties and assumptions that we cannot predict.
We caution that these statements are not guarantees of future performance, and you should not rely unduly on them as they involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate.
Statements in this Report, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements appear in Item 1, Item 3, Item 7 and in the notes to our consolidated financial statements in Item 8 of this Report and elsewhere in this Report.
Statements in this Report, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements.
The success and growth of our business is attributable to our ability to attract, develop, engage and retain talented and high-performing employees at all levels in our Company.
Employee Compensation and Benefits Our compensation plans are designed to reward our employees for achieving and exceeding objectives that create long-term value for shareholders. The success and growth of our business is attributable to our ability to attract, develop, engage and retain talented and high-performing employees at all levels in our Company.
The scope of the protection may be limited, may be subject to conditions and may not be supported by adequate insurance or other means of risk financing. In addition, we may have difficulty enforcing our contractual rights with others following a material loss.
The scope of the protection may be limited, may be subject to conditions and may not be supported by adequate insurance or other means of risk financing.
Such laws and regulations may also expose us to liability for the conduct of or conditions caused by others or for our acts that were in compliance with all applicable laws at the time such acts were performed. 11 Table of Contents These laws and regulations include the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and similar laws that provide for responses to, and liability for, releases of hazardous substances into the environment.
These laws and regulations include the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and similar laws that provide for responses to, and liability for, releases of hazardous substances into the environment.
We have supplied nuclear components for DOE programs since the 1950s and are the largest domestic supplier of research reactor fuel elements for colleges, universities and national laboratories. We also downblend Cold War-era government stockpiles of high-enriched uranium. In addition, we have over 100 years of experience in supplying components for defense applications.
We have supplied nuclear components for DOE programs since the 1950s and are the largest domestic supplier of research reactor fuel elements for colleges, universities and national laboratories.
Ethics and Integrity We believe that maintaining a work environment that recognizes effort and teamwork, values mutual respect and open communication, and demonstrates care and concern for our employees' well-being is essential to retaining an engaged and productive workforce. Our Code of Business Conduct ("Code") establishes the principles and standards that we expect our employees to follow.
We use this information to further improve our safety culture and programs in an effort to prevent future occupational and environmental incidents. 8 Table of Contents Ethics and Integrity We believe that maintaining a work environment that recognizes effort and teamwork, values mutual respect and open communication, and demonstrates care and concern for our employees' well-being is essential to retaining an engaged and productive workforce.
We also offer retirement, investment, and tax savings/deferral opportunities to our employees. Employee Development The professional development of our employees is critical to our success. We offer online and in-person professional development and training, as well as mentoring programs, to enhance the knowledge, skills and advancement opportunities for our employees.
We offer online and in-person professional development and training, as well as mentoring programs, to enhance the knowledge, skills and advancement opportunities for our employees. To further our employee development goals, we partner with a number of educational institutions for accredited, vocational and technical upskilling programs.
To further our employee development goals, we partner with a number of educational institutions for accredited, vocational and technical upskilling programs. We provide tuition reimbursement to employees pursuing job-related, career enhancing courses and provide full tuition grants for the completion of undergraduate and graduate degree programs through an accredited university partner.
We provide tuition reimbursement to employees pursuing job-related, career enhancing courses and provide full tuition grants for the completion of undergraduate and graduate degree programs through an accredited university partner. For employees identified with high potential for promotion to leadership roles, we routinely offer leadership development programs focused on preparing future leaders for their next career steps.
We cannot determine the extent to which new legislation, new regulations or changes in existing laws or regulations may affect our future operations.
The kinds of permits, licenses and certificates required in our operations depend upon a number of factors. 11 Table of Contents We cannot determine the extent to which new legislation, regulations or presidential executive orders or changes in existing laws, regulations or presidential executive orders may affect our future operations.
For additional discussion of environmental matters, see Note 10 to our consolidated financial statements included in this Report. We perform significant amounts of work for the U.S. Government under both prime contracts and subcontracts and operate certain facilities that are licensed to possess and process special nuclear materials.
We perform significant amounts of work for the U.S. Government under both prime contracts and subcontracts and operate certain facilities that are licensed to possess and process special nuclear materials. As a result of these activities, we are subject to continuing reviews by governmental agencies, including the U.S. Environmental Protection Agency and the NRC.
All phases of uranium downblending and uranium recovery are performed at our Lynchburg, Virginia and Erwin, Tennessee sites. The demand for nuclear components by the U.S. Government determines a substantial portion of this segment's backlog. We expect that orders for nuclear components will continue to be a significant part of backlog for the foreseeable future. In March 2024, the U.S.
The demand for nuclear components by the U.S. Government determines a substantial portion of this segment's backlog. We expect that orders for nuclear components will continue to be a significant part of backlog for the foreseeable future. In March 2024, the U.S. Navy issued its 30-year shipbuilding plan containing three alternative procurement profiles based upon varied funding assumptions.
Similarly, insurance for certain potential losses or liabilities may not be available or may only be available at a cost or on terms we consider not to be economical. Insurers frequently react to market losses by ceasing to write or severely limiting coverage for certain exposures.
Insurers frequently react to market losses by ceasing to write or severely limiting coverage for certain exposures.
Kinectrics is a leader in providing lifecycle management services for the global nuclear power and transmission and distribution markets, and in the production and supply of isotopes for the radiopharmaceutical industry. Kinectrics employs over 1,300 employees located across 20 sites worldwide. This acquisition is targeted to close in the middle of 2025, following necessary regulatory and other approvals.
Kinectrics is a leader in providing lifecycle management services for the global nuclear power and transmission and distribution markets, and in the production and supply of isotopes for the radiopharmaceutical industry which will enable us to expand our portfolio of products and services in the global nuclear and nuclear medicine markets.
We offer health benefits which include various medical/pharmacy plan options, health savings accounts for those in high deductible health plans, and flexible spending accounts for both health care and dependent care are also available to employees, where applicable. Our income protection plans provide coverage for employees in the event of an unexpected illness or injury.
Our income protection plans provide coverage for employees in the event of an unexpected illness or injury. We also offer retirement, investment, and tax savings/deferral opportunities to our employees. Employee Development The professional development of our employees is critical to our success.
Removed
A.O.T. will be reported as part of our Government Operations segment. Kinectrics, Inc. On December 27, 2024, we entered into an agreement to acquire Kinectrics Holdings, Inc., the parent company of Kinectrics, Inc. ("Kinectrics").
Added
Department of Energy ("DOE")/National Nuclear Security Administration's ("NNSA") Naval Nuclear Propulsion Program and we have over 100 years of experience in supplying components for defense applications. In addition, we supply proprietary and sole-source valves, manifolds and fittings to global naval and commercial shipping customers.
Removed
At December 31, 2024, approximately 2,300 of our employees were members of labor unions. We consider our relationships with our employees to be satisfactory. Employee Compensation and Benefits Our compensation plans are designed to reward our employees for achieving and exceeding objectives that create long-term value for shareholders.
Added
We also downblend Cold War-era government stockpiles of high-enriched uranium, develop capabilities related to the manufacture of high-purity depleted uranium and manufacture other advanced materials and products for commercial, military and space applications. We work closely with the DOE-supported nuclear non-proliferation program.
Removed
For employees identified with high potential for promotion to leadership roles, we routinely offer leadership development programs focused on preparing future leaders for their next career steps. We established the BWXT Technical Fellows program which honors and celebrates some of our most talented employees for their contributions to driving innovation and inspiring creativity.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeUncertainty remains with respect to trade policies and treaties between the U.S. and other countries, including Canada, where we manufacture heavy nuclear components and products for our medical radioisotopes business that may be sold to US customers. The U.S. federal government has recently implemented tariffs on certain foreign goods and may implement additional tariffs on foreign goods.
Biggest changeSuch risks include the possibility of unfavorable circumstances arising from host country laws or regulations including, but not limited to changes in tariff and trade barriers. 16 Table of Contents Uncertainty remains with respect to trade policies and treaties between the U.S. and other countries, including Canada, where we manufacture heavy nuclear components and products for our medical radioisotopes business that may be sold to US customers.
In addition, a single-source or limited-source supplier of a key component could potentially exert significant bargaining power over price, quality, warranty claims or other terms 20 Table of Contents relating to these materials, which could have a material adverse effect on our financial condition, results of operations and cash flows.
In addition, a single-source or limited-source supplier of 20 Table of Contents a key component could potentially exert significant bargaining power over price, quality, warranty claims or other terms relating to these materials, which could have a material adverse effect on our financial condition, results of operations and cash flows.
There can be no assurance that we will be successful in addressing all of the technological challenges to developing and commercializing this technology or in obtaining the required authorizations from the FDA, Health Canada or the CNSC. In addition, commercialization of the medical radioisotope technology could 21 Table of Contents subject us to product liability claims.
There can be no assurance that we will be successful in addressing all of the technological challenges to developing and commercializing this technology or in obtaining the required authorizations 21 Table of Contents from the FDA, Health Canada or the CNSC. In addition, commercialization of the medical radioisotope technology could subject us to product liability claims.
Changes in environmental and climate change laws or regulations, including laws relating to greenhouse gas emissions, could lead to new or additional investment in facilities and could increase environmental 23 Table of Contents compliance expenditures, including increased energy, raw material and other costs.
Changes in environmental and climate change laws or regulations, including laws relating to greenhouse gas emissions, could lead to new or additional investment in facilities and could increase 23 Table of Contents environmental compliance expenditures, including increased energy, raw material and other costs.
However, if a government shutdown were to occur and were to continue for an extended period, our employees could be at risk of furlough and we could be at risk of program cancellations, schedule delays, production halts and other disruptions and nonpayment, which could have a material adverse effect on our financial condition, results of operations and cash flows.
If a government shutdown were to occur and were to continue for an extended period, our employees could be at risk of furlough and we could be at risk of program cancellations, schedule delays, production halts and other disruptions and nonpayment, which could have a material adverse effect on our financial condition, results of operations and cash flows.
Unfavorable economic conditions, competition from other forms of power generation, increased competition for refurbishment contracts, changes in government policy or operational or project execution issues may lead nuclear plant operators in Canada to cease operations or delay, curtail 15 Table of Contents or cancel proposed or existing life-extension projects, which may decrease the overall demand for our products and services in Canada and adversely affect our financial condition, results of operations and cash flows.
Unfavorable economic conditions, competition from other forms of power generation, increased competition for refurbishment contracts, changes in government policy or operational or project execution issues may lead nuclear plant operators in Canada to cease operations or delay, curtail or cancel proposed or existing life-extension projects, which may decrease the overall demand for our products and services in Canada and adversely affect our financial condition, results of operations and cash flows.
These factors include, but are not limited to, inflation, geopolitical issues, the availability and cost of credit, the demand for and competitiveness of nuclear power with other energy sources, the cyclical nature of the power generation industry, low business and consumer confidence, high unemployment, energy conservation measures and decisions of utilities that operate nuclear power plants.
These factors include, 15 Table of Contents but are not limited to, inflation, geopolitical issues, the availability and cost of credit, the demand for and competitiveness of nuclear power with other energy sources, the cyclical nature of the power generation industry, low business and consumer confidence, high unemployment, energy conservation measures and decisions of utilities that operate nuclear power plants.
The ultimate impact of any tariffs will depend on various factors, including if any tariffs are ultimately implemented, the timing of implementation, contractual terms, and the amount, scope, and nature of the tariffs. 16 Table of Contents Tariffs and other restrictive trade measures may require us to take various actions, including changing suppliers and restructuring business relationships.
The ultimate impact of any tariffs will depend on various factors, including if any tariffs are ultimately implemented, the timing of implementation, contractual terms, and the amount, scope, and nature of the tariffs. Tariffs and other restrictive trade measures may require us to take various actions, including changing suppliers and restructuring business relationships.
Our systems implementations and upgrades may not result in productivity improvements at the levels anticipated, or at all. In addition, the implementation of new technology systems may cause disruptions in our business operations.
Our systems implementations and upgrades may not result in productivity improvements at the levels anticipated, or at all. In 17 Table of Contents addition, the implementation of new technology systems may cause disruptions in our business operations.
As of December 31, 2024, we had underfunded defined benefit pension and postretirement benefit plans with obligations totaling approximately $103.9 million. A substantial portion of our postretirement benefit plan costs are recoverable on our U.S. Government contracts. See Note 7 to our consolidated financial statements included in this Report for additional information regarding our pension and postretirement benefit plan obligations.
As of December 31, 2025, we had underfunded defined benefit pension and postretirement benefit plans with obligations totaling approximately $153.3 million. A substantial portion of our postretirement benefit plan costs are recoverable on our U.S. Government contracts. See Note 7 to our consolidated financial statements included in this Report for additional information regarding our pension and postretirement benefit plan obligations.
Item 1A. RISK FACTORS Industry Risks We rely on U.S. Government contracts for a substantial percentage of our revenue, and some of those contracts are subject to continued appropriations by Congress and may be terminated or delayed if future funding is not made available. In addition, the U.S.
Item 1A. RISK FACTORS Industry Risks We rely on U.S. Government contracts (either directly or as a sub-tier contractor to a government contractor) for a substantial percentage of our revenue, and some of those contracts are subject to continued appropriations by Congress and may be terminated or delayed if future funding is not made available. In addition, the U.S.
Our nuclear operations are subject to various safety-related requirements imposed by the U.S. Government, the DOE, the NRC and the CNSC. In the event of non-compliance, these agencies might increase regulatory oversight, impose fines or shut down our operations, depending upon the assessment of the severity of the situation.
Our nuclear operations are subject to various safety and quality-related requirements, and occupational radiation protection requirements, imposed by the U.S. Government, the DOE, the NRC and the CNSC. In the event of non-compliance, these agencies might increase regulatory oversight, impose fines or shut down our operations, depending upon the assessment 24 Table of Contents of the severity of the situation.
Such tariffs and, if enacted, any further legislation or actions taken by the U.S. federal government or Canadian government that restrict trade, such as additional tariffs, trade barriers, and other protectionist or retaliatory measures taken by such governments, could adversely impact our profitability and ability to sell products and services.
Legislation or actions taken by the U.S. federal government, Canadian government or other foreign governments that restrict trade, such as tariffs, trade barriers, and other protectionist or retaliatory measures, could adversely impact our profitability and ability to sell products and services.
Our inability to obtain adequate letters of credit, bank guarantees and surety bonds and, as a result, to bid on new work could have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2024, we had $35.0 million in letters of credit and bank guarantees and $278.7 million in surety bonds outstanding.
Our inability to obtain adequate letters of credit, bank guarantees and surety bonds and, as a result, to bid on new work could have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2025, we had $50.0 million in letters of credit and bank guarantees and $363.0 million in surety bonds outstanding.
Government generally has the right not to exercise option periods and may not exercise an option period for various reasons. We also have several significant contracts with the U.S. Government that are subject to periodic renewal and rebidding through a competitive process. If the U.S.
Government contracts span one or more base years and multiple option years. The U.S. Government generally has the right not to exercise option periods and may not exercise an option period for various reasons. We also have several significant contracts with the U.S. Government that are subject to periodic renewal and rebidding through a competitive process. If the U.S.
Government would enter a whole or partial shutdown. Additionally, there is a risk that no continuing resolution would be entered into in certain circumstances, which would also cause a whole or partial government shutdown. The impact of any government shutdown is uncertain.
Government would enter a whole or partial shutdown. Additionally, there is a risk that no continuing resolution would be entered into in certain circumstances, which would also cause a whole or partial government shutdown.
In addition, effective intellectual property protection may be limited or unavailable in certain jurisdictions where we operate. Our failure to protect our intellectual property rights may result in the loss of valuable technologies or adversely affect our competitive business position. We rely significantly on proprietary technology, information, processes and know-how that are not subject to patent or copyright protection.
Our failure to protect our intellectual property rights may result in the loss of valuable technologies or adversely affect our competitive business position. We rely significantly on proprietary technology, information, processes and know-how that are not subject to patent or copyright protection.
The loss of the services of qualified employees and any inability to recruit effective replacements or to otherwise attract, motivate, train or retain highly qualified and diverse employees could have a material adverse effect on our business, financial condition and results of operations. We also have established leadership development and succession planning programs throughout our business.
The loss of the services of qualified employees and any inability to recruit effective replacements or to otherwise attract, motivate, train or retain highly qualified and diverse employees could have a material adverse effect on our business, financial condition and results of operations.
Because we provide nuclear fabrication and other services to the DOE relating to its nuclear devices, facilities and other programs and the nuclear power industry in the ongoing maintenance and modifications of its nuclear power plants, including the manufacture of equipment and other components for use in such nuclear power plants, we expect, in the event of a nuclear incident or precautionary evacuation (as such terms are defined in the Atomic Energy Act), to be entitled to the indemnification protections under the Price-Anderson Act against liability arising from nuclear incidents occurring in the U.S.
Because we provide nuclear fabrication and other services to the DOE relating to its nuclear devices, facilities and other programs and the nuclear power industry in the ongoing maintenance and modifications of its nuclear power plants, including the manufacture of equipment and other components for use in such nuclear power plants, we expect, in the event of a nuclear incident or precautionary evacuation (as such terms are defined in the Atomic Energy Act), to be entitled to the indemnification protections under the Price-Anderson Act against liability arising from nuclear incidents occurring in the U.S., with an available indemnification amount, for our DOE contracts, of approximately $16.5 billion (for nuclear incidents or precautionary evacuations occurring within the US) and of $2 billion (for nuclear incidents or precautionary evacuations occurring in foreign countries).
Revised security and safety requirements promulgated by these agencies could necessitate substantial capital and other expenditures. In addition, we must comply with and are affected by laws and regulations relating to the award, administration and performance of U.S. Government contracts. U.S.
Non-compliance may also impact our competitive position when seeking future contracts. Revised security and safety requirements promulgated by these agencies could necessitate substantial capital and other expenditures. In addition, we must comply with and are affected by laws and regulations relating to the award, administration and performance of U.S. Government contracts. U.S.
We also provide nuclear fabrication and other services to the nuclear power industry in Canada and other countries. Canada's NLCA generally conforms to international conventions and is conceptually similar to the Price-Anderson Act in the U.S. Accordingly, indemnification protections and the possibility of exclusions under Canada's NLCA are similar to those under the Price-Anderson Act in the U.S.
Canada's NLCA generally conforms to international conventions and is conceptually similar to the Price-Anderson Act in the U.S. Accordingly, indemnification protections and the possibility of exclusions under Canada's NLCA are similar to those under the Price-Anderson Act in the U.S.
Government may not renew or may seek to modify or terminate our existing contracts. For the year ended December 31, 2024, U.S. Government contracts comprised approximately 76% of our total consolidated revenues.
Government may not renew or may seek to modify or terminate our existing contracts. For the year ended December 31, 2025, whether directly or as a sub-tier contractor to a government contractor, U.S. Government contracts comprised approximately 68% of our total consolidated revenues.
Government fails to renew these contracts or modifies key terms, our results of operations and cash flows would be adversely affected. 14 Table of Contents As a result of these and other factors, reductions in the level of funding for individual programs that are important to our business, the termination of one or more of our significant government contracts, our suspension from government contract work, the failure of the U.S.
As a result of these and other factors, reductions in the level of funding for individual programs that are important to our business, the termination of one or more of our significant government contracts, our suspension from government contract work, the failure of the U.S.
Government's defense program, we may be entitled to some of the indemnification protections afforded by Public Law 85-804 for certain of our nuclear operations risks. Public Law 85-804 authorizes certain agencies of the U.S. Government, such as the DOE and the DoD, to indemnify their contractors against unusually hazardous or nuclear risks when such action would facilitate the national defense.
Government's defense program, we may be entitled to some of the indemnification protections afforded by Public Law 85-804 for certain of our nuclear and hazardous operations risks. Public Law 85-804 authorizes certain agencies of the U.S.
The Price-Anderson Act partially indemnifies the nuclear industry against liability arising from nuclear incidents in the U.S., while ensuring compensation for the general public. The Price-Anderson Act comprehensively regulates the manufacture, use and storage of radioactive materials, while promoting the nuclear industry by offering broad indemnification to commercial nuclear power plant operators and DOE contractors.
The Price-Anderson Act comprehensively regulates the manufacture, use and storage of radioactive materials, while promoting the nuclear industry by offering broad indemnification to commercial nuclear power plant operators and DOE contractors.
(with an available indemnification amount of approximately $16.5 billion) and in foreign countries (with an available indemnification amount of $2 billion). The statutory authority for indemnification under the Price-Anderson Act has been extended by Congress five times, most recently through December 2065 by Section 107 to the Further Consolidated Appropriations Action, 2024 (Public Law 118-47, March 23, 2024).
The statutory authority for indemnification under the Price-Anderson Act has been extended by Congress five times, most recently through December 2065 by Section 107 to the Further Consolidated Appropriations Action, 2024 (Public Law 118-47, March 23, 2024). We also provide nuclear fabrication and other services to the nuclear power industry in Canada and other countries.
Our success depends, in part, on our ability to protect our proprietary information and other intellectual property. Our intellectual property could be stolen, challenged, invalidated, circumvented or rendered unenforceable. Furthermore, the increased use of artificial intelligence may raise potential liabilities related to privacy and intellectual property or result in a loss of intellectual property.
Our intellectual property could be stolen, challenged, invalidated, circumvented or rendered unenforceable. Furthermore, the increased use of artificial intelligence may raise potential liabilities related to privacy and intellectual property or result in a loss of intellectual property. In addition, effective intellectual property protection may be limited or unavailable in certain jurisdictions where we operate.
We rely on intellectual property law and confidentiality agreements to protect our intellectual property. We also rely on intellectual property we license from third parties. Failure to protect our intellectual property rights, alleged infringement of third-party intellectual property rights or our inability to obtain or renew licenses to use intellectual property of third parties, could adversely affect our business.
Failure to protect our intellectual property rights, alleged infringement of third-party intellectual property rights or our inability to obtain or renew licenses to use intellectual property of third parties, could adversely affect our business. Our success depends, in part, on our ability to protect our proprietary information and other intellectual property.
However, because the indemnification protections afforded by Public Law 85-804 are granted on a discretionary basis, situations could arise where the U.S. Government elects not to offer such protections.
Government, such as the DOE and the DoW, to indemnify their contractors against unusually hazardous or nuclear risks when such action would facilitate the national defense. However, because the indemnification protections afforded by Public Law 85-804 are granted on a discretionary basis, situations could arise where the U.S. Government elects not to offer such protections.
These laws and regulations include the FAR, Defense Federal Acquisition Regulations, the Truth in Negotiations Act, CAS, and laws, regulations, and orders restricting the use and dissemination of classified information under the U.S. export control laws and the export of certain products and technical information.
These laws and regulations include the FAR, the Defense FAR Supplement ("DFARS"), the Truthful Cost or Pricing Data Act, the CAS national security laws, regulations, and orders restricting the use and dissemination of classified information, and U.S. export control laws governing the export of certain products and technical information.
Government could terminate a prime contract under which we are a subcontractor, irrespective of the quality of our products and services as a subcontractor. Furthermore, certain of our U.S. Government contracts span one or more base years and multiple option years. The U.S.
In addition, on those contracts for which we are teamed with others and are not the prime contractor, the U.S. Government could terminate a prime contract under which we are a subcontractor, irrespective of the quality of our products and services as a subcontractor. Furthermore, certain of our U.S.
In addition, if new legislation or regulations are enacted or implemented, or if existing laws or regulations are amended or are interpreted or enforced differently, we may be required to obtain additional operating permits or approvals. Our inability to obtain, and to comply with, the permits and approvals required for our business could have a material adverse effect on us.
In addition, if new legislation, regulations or presidential executive orders are enacted or implemented, or if existing laws, regulations or presidential executive orders are amended or are interpreted or enforced differently, we may be required to obtain additional operating permits or approvals.
Similar events impacting the facilities of our customers, suppliers and other subcontractors could also impact our business or disrupt our operations. If insurance or other risk mitigating mechanisms are insufficient for us to recover our costs and resume operations in a timely fashion, it could have a material adverse effect on our business, financial condition and results of operations.
If insurance or other risk mitigating mechanisms are insufficient for us to recover our costs and resume operations in a timely fashion, it could have a material adverse effect on our business, financial condition and results of operations. 18 Table of Contents Our operations are subject to operating risks, which could expose us to potentially significant professional liability, product liability, warranty and other claims.
Government contract laws and regulations affect how we do business with our customers and, in some instances, impose added costs on our business.
Government contract laws and regulations affect how we do business with our customers and, in some instances, impose added costs on our business. A violation of specific laws and regulations could result in the imposition of fines and penalties or the termination of our contracts or debarment from bidding on contracts.
Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by failing to perform under the terms of the applicable contract. A termination arising out of our default could expose us to liability and have an adverse effect on our ability to compete for future contracts and orders.
This may result in shifting funding priorities, which could have material adverse impacts on defense spending broadly and our programs. The U.S. Government typically can terminate or modify any of its contracts with us either for its convenience or if we default by failing to perform under the terms of the applicable contract.
Government programs, either of which may result in a reduction in the number of contract award opportunities available to us, a reduction of activities at DOE sites and an increase in costs, including the costs of obtaining contract awards.
Government programs, either of which may result in a reduction in the number of contract award opportunities available to us, a reduction of activities at DOE sites and an increase in costs, including the costs of obtaining contract awards. 14 Table of Contents We anticipate the federal budget will continue to be subject to debate and compromise shaped by, among other things, heightened political tensions, the global security environment, inflationary pressures and macroeconomic conditions.
If any of our contracts reflected in backlog are terminated by the U.S. Government, our backlog would be reduced by the expected value of the remaining work under such contracts. In addition, on those contracts for which we are teamed with others and are not the prime contractor, the U.S.
A termination arising out of our default could expose us to liability and have an adverse effect on our ability to compete for future contracts and orders. If any of our contracts reflected in backlog are terminated by the U.S. Government, our backlog would be reduced by the expected value of the remaining work under such contracts.
We are required to maintain minimum security standards for handling information under our government contracts and failure to do so could result in termination of those contracts. From time to time, we experience system interruptions and delays; however, prior cyber-based attacks directed at us have not had a material adverse impact on our results of operations.
We continue to monitor evolving data-privacy requirements and the use of emerging technologies, such as artificial intelligence, and maintain policies intended to promote their secure and responsible use. From time to time, we experience system interruptions and delays; however, prior cyber-based attacks directed at us have not had a material adverse impact on our results of operations.
Removed
We anticipate the federal budget will continue to be subject to debate and compromise shaped by, among other things, heightened political tensions, the global security environment, inflationary pressures and macroeconomic conditions. This may result in shifting funding priorities, which could have material adverse impacts on defense spending broadly and our programs. The U.S.
Added
Government fails to renew these contracts or modifies key terms, our results of operations and cash flows would be adversely affected.
Removed
Such risks include the possibility of unfavorable circumstances arising from host country laws or regulations including, but not limited to changes in tariff and trade barriers.
Added
In the event of a government shutdown, there is uncertainty regarding which government functions would shut down or continue operations during a lapse in appropriations, and corresponding uncertainty regarding the extent or magnitude of potential impacts to our operations.
Removed
For example, in January 2025, the U.S. presidential administration stated its intention to impose a 25% tariff on imports from Canada into the United States, and the Canadian government stated it would take certain retaliatory measures. On February 3, 2025, the U.S. presidential administration and the Canadian prime minister announced a 30-day pause to the implementation of these tariffs.
Added
We are required to maintain minimum security standards for handling information under our government contracts and failure to do so could result in termination of those contracts. For example, as a contractor to the DoW, we are required to comply with applicable cybersecurity standards, including the DoW's Cybersecurity Maturity Model Certification, ("CMMC") program.
Removed
As we currently manufacture substantially all of our products for our medical radioisotope business in Canada, a 25% tariff on all imports from Canada would increase the costs of those products manufactured in Canada and could adversely impact our gross profit for this business if we are unable to pass this cost to our customers.
Added
CMMC requirements may change over time and could impose additional compliance obligations on us and our suppliers, and failure to meet applicable CMMC requirements could affect our ability to receive or perform certain defense-related contracts.
Removed
Our Canadian business does not currently have any material contracts for the sale of heavy nuclear components to US customers so the direct risk related to those tariffs is currently negligible.
Added
Actual or threatened public health epidemics, pandemics or outbreaks, such as the global outbreak of COVID-19, could materially adversely affect our business. By disrupting our employees, suppliers, contractors, customers or facilities through illness, quarantines, government-mandated shutdowns, cost increases, operational restrictions, and unfavorable contract impacts that may not be fully recoverable through insurance or government assistance.
Removed
Actual or threatened public health epidemics, pandemics or outbreaks, such as the global outbreak of COVID-19, could have a material adverse effect on our business and results of operations.
Added
Such events may also negatively affect global economic conditions, and the ultimate impact on our business may depend on uncertain future developments, including the severity of the outbreak and measures taken to contain it. We rely on intellectual property law and confidentiality agreements to protect our intellectual property. We also rely on intellectual property we license from third parties.
Removed
Any public health epidemic, pandemic or outbreak poses the risk that we or our employees, contractors, suppliers, customers and other partners may be prevented from conducting business activities for an indefinite period of time, including due to shutdowns that may be requested or mandated by governmental authorities.
Added
Similar events impacting the facilities of our customers, suppliers and other subcontractors could also impact our business or disrupt our operations.
Removed
Our business could be materially adversely impacted by employee illness, quarantines, government actions, facility closures, other actions to contain the impact of such diseases and/or potential responses to such actions by our customers, suppliers, contractors and employees.
Added
Separately, the recent presidential executive order regarding executive salaries and incentive compensation metrics applicable to defense contractors could adversely impact our ability to attract or retain executive talent. We also have established leadership development and succession planning programs throughout our business.
Removed
If our operations or the operations of our customers or our suppliers are restricted, we may be unable to perform fully on our contracts and our costs may increase as a result of a public health 17 Table of Contents epidemic, pandemic or outbreak.
Added
In addition, the President recently issued Executive Order ("EO") 14372 that could limit certain contractors performing work under critical defense weapons, supplies, and equipment contracts from issuing dividends or distributions, share repurchases, increasing executive salaries, and using particular metrics to determine executive incentive compensation.
Removed
These cost increases may result in unfavorable changes in estimates which may not be fully recoverable or adequately covered by insurance or through government assistance programs. A public health epidemic, pandemic or outbreak and mitigation measures may also have an adverse impact on global economic conditions, which could have an adverse effect on our business.
Added
While there remains uncertainty as to how EO 14372 will be interpreted and implemented, it is expected that EO 14372 will be implemented this year through a new DFARS clause and related contract provisions and that the EO's restrictions on dividends, distributions, share repurchases, executive salaries and foreign sales programs will, in some cases, be imposed only after the DoW determines that a contractor has failed to meet identified contract performance requirements.
Removed
The extent to which such an epidemic, pandemic or outbreak impacts our business will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of a public health epidemic, pandemic or outbreak and the actions to contain its impact.
Added
Limitations or modifications to indemnification regulations of the U.S. or foreign countries could adversely affect our business. The Price-Anderson Act partially indemnifies the nuclear industry against liability arising from nuclear incidents in the U.S., while ensuring compensation for the general public.
Removed
Additionally, increased concern regarding the environment and global climate change may result in state, federal or international requirements such as the imposition of stricter limits on greenhouse gas emissions, carbon pricing mechanisms, increasing global chemical restrictions and bans, water and waste requirements and compliance and disclosure requirements.
Added
Our inability to obtain, and to comply with, the permits and approvals required for our business could have a material adverse effect on us. Item 1B. UNRESOLVED STAFF COMMENTS None. 26 Table of Contents
Removed
If environmental or climate-change laws or regulations are adopted or changed, they could necessitate the need for substantial capital and other expenditures and have further negative impacts on our financial condition, results of operations and cash flows.
Removed
Increasing sustainability disclosure requirements may result in increased costs or reputational risks and could limit our ability to manufacture certain of our products. 18 Table of Contents Our operations are subject to operating risks, which could expose us to potentially significant professional liability, product liability, warranty and other claims.
Removed
A violation of specific laws and regulations could result in the imposition of fines and penalties or the termination of our contracts or debarment from bidding on contracts. 24 Table of Contents Environmental, social and governance matters and any related reporting obligations may impact our business.
Removed
U.S. and international regulators, investors and other stakeholders are increasingly focused on environmental, social and governance matters. For example, new domestic and international laws and regulations relating to environmental, social and governance matters, including environmental sustainability and climate change, human capital management and cybersecurity, are under consideration or being adopted, which may include specific, target-driven disclosure requirements or obligations.
Removed
Our response will require increased costs to comply, the implementation of new reporting processes, entailing additional compliance risk, a skilled workforce and other incremental investments. Limitations or modifications to indemnification regulations of the U.S. or foreign countries could adversely affect our business.
Removed
Item 1B. UNRESOLVED STAFF COMMENTS None. 26 Table of Contents

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeAs a U.S. Government contractor, we may be prone to a greater number of cybersecurity threats than companies in other industries. We believe we are well positioned to meet the requirements of the Cybersecurity Maturity Model Certification ("CMMC") program and are preparing for certification once the requirements are effective.
Biggest changeAs a U.S. Government contractor, we may be prone to a greater number of cybersecurity threats than companies in other industries.
The Governance Committee of our Board of Directors oversees the Company’s guidelines, policies and processes to assess and manage the Company’s exposure to risks, which include cybersecurity risks. The Committee meets periodically with management to review and discuss major financial risk exposures, including from cybersecurity threats, and the steps management has taken to monitor and control those exposures.
The Governance Committee of our Board of Directors oversees the Company’s guidelines, policies and processes to assess and manage the Company’s exposure to risks, which include cybersecurity risks. The Governance Committee meets periodically with management to review and discuss major financial risk exposures, including from cybersecurity threats, and the steps management has taken to monitor and control those exposures.
If a cybersecurity threat appears to progress into a possible cybersecurity incident, our IT Director, Cyber Security serves as the CIMT’s incident manager and the CDO or designee notifies the Chief Risk 27 Table of Contents Officer of a need to activate the CIMT as appropriate, informs and updates the CIMT and may consult other internal and external resources with the required technical, application, organizational and business knowledge to provide effective advice to the CIMT.
If a cybersecurity threat appears to progress into a possible cybersecurity incident, our IT Director, Cyber Security serves as the CIMT’s incident manager and the CDO or designee notifies the Chief Risk Officer of a need to activate the CIMT as appropriate, informs and updates the CIMT and may consult other internal and 27 Table of Contents external resources with the required technical, application, organizational and business knowledge to provide effective advice to the CIMT.
As necessary, our Cybersecurity Incident Management Team (“CIMT”) (described below) reports significant cybersecurity threats and incidents to the Governance Committee. The Governance Committee is also periodically briefed by management, including our Chief Digital Officer (“CDO”), with respect to our cybersecurity posture to facilitate its role in overseeing the Company’s overall cybersecurity program.
As necessary, our Cybersecurity Incident Management Team ("CIMT") (described below) reports significant cybersecurity threats and incidents to the Governance Committee. The Governance Committee is also periodically briefed by management, including our Chief Digital Officer ("CDO"), with respect to our cybersecurity posture to facilitate its role in overseeing the Company’s overall cybersecurity program.
As of the date of this Report, risks from cybersecurity threats, including as a result of previous cybersecurity incidents, have not materially affected us, including our business strategy, results of operations or financial condition. However, there can be no guarantee that cybersecurity threats and incidents will not materially affect us in the future.
As of the date of this Report, risks from cybersecurity threats, including as a result of previous cybersecurity incidents, have not materially affected us, including our business strategy, results of operations or financial condition during the prior three fiscal years. However, there can be no guarantee that cybersecurity threats and incidents will not materially affect us in the future.
Our CDO holds a bachelor’s degree in electronics and telecommunications engineering and has more than 35 years of information technology and cybersecurity experience in various leadership and executive roles.
Our CDO holds a bachelor’s degree in electrical engineering and technology and a master’s degree in technology and has more than 22 years of information technology and cybersecurity experience in various leadership and executive roles.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changePROPERTIES The following table provides the segment name, location and general use of each of our principal properties at December 31, 2024 that we own or lease: Business Segment and Location Principal Use Owned/Leased (Lease Expiration) Government Operations Lynchburg, Virginia Manufacturing facility (1) (4) Owned Barberton, Ohio Manufacturing facility Owned Euclid, Ohio Manufacturing facility Owned Mount Vernon, Indiana Manufacturing facility Owned Erwin, Tennessee Manufacturing facility (2) (4) Owned Commercial Operations Cambridge, Ontario, Canada Manufacturing facility Owned Peterborough, Ontario, Canada Manufacturing facility (3) (4) Leased (2036) Toronto, Ontario, Canada Manufacturing facility (3) (4) Leased (2036) Kanata, Ontario, Canada Manufacturing facility (3) (4) Leased (2038) Vancouver, British Columbia, Canada Manufacturing facility (3) (4) Leased (2031) Oakville, Ontario, Canada Manufacturing facility Leased (2029) Corporate Lynchburg, Virginia Administrative office Leased (2026) Washington, District of Columbia Administrative office Leased (2033) Charlotte, North Carolina Administrative office Leased (2025) McLean, Virginia Administrative office Leased (2035) (1) Our Government Operations segment operates two facilities in Lynchburg, Virginia: • The segment's primary manufacturing plant which resides on 497 acres and has approximately 1 million square feet under roof.
Biggest changePROPERTIES The following table provides the segment name, location and general use of each of our principal properties at December 31, 2025 that we own or lease: Business Segment and Location Principal Use Owned/Leased (Lease Expiration) Government Operations Lynchburg, Virginia Manufacturing facility (1) (4) Owned Barberton, Ohio Manufacturing facility Owned Euclid, Ohio Manufacturing facility Owned Mount Vernon, Indiana Manufacturing facility Owned Erwin, Tennessee Manufacturing facility (2) (4) Owned Jonesborough, Tennessee Manufacturing facility Owned Commercial Operations Cambridge, Ontario, Canada Manufacturing facility Owned Peterborough, Ontario, Canada Manufacturing facility (3) (4) Leased (2036) Toronto, Ontario, Canada Manufacturing facility (3) (4) Leased (2036) Kanata, Ontario, Canada Manufacturing facility (3) (4) Leased (2038) Vancouver, British Columbia, Canada Manufacturing facility (3) (4) Leased (2031) Oakville, Ontario, Canada Manufacturing facility Leased (2029) Kitchener, Ontario, Canada Manufacturing facility Leased (2034) Etobicoke, Ontario, Canada Manufacturing facility (3) (4) Owned Corporate Lynchburg, Virginia Administrative office Leased (2026) Washington, District of Columbia Administrative office Leased (2033) Charlotte, North Carolina Administrative office Leased (2028) McLean, Virginia Administrative office Leased (2035) (1) Our Government Operations segment operates two facilities in Lynchburg, Virginia: • The segment's primary manufacturing plant which resides on 497 acres and has approximately 1 million square feet under roof.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−0 removed3 unchanged
Biggest changeIssuer Purchases of Equity Securities Period Total number of shares purchased (1) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (2) October 1, 2024 – October 31, 2024 2,109 $ 116.52 — $ 377.6 November 1, 2024 – November 30, 2024 653 121.75 — $ 377.6 December 1, 2024 – December 31, 2024 — — — $ 377.6 Total 2,762 $ 117.76 — (1) Includes 2,109, 653 and 0 shares repurchased during October, November and December, respectively, pursuant to the provisions of employee benefit plans that permit the repurchase of shares to satisfy statutory tax withholding obligations.
Biggest changeIssuer Purchases of Equity Securities Period Total number of shares purchased (1) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (2) October 1, 2025 – October 31, 2025 719 $ 200.14 — $ 347.6 November 1, 2025 – November 30, 2025 377 $ 213.78 — $ 347.6 December 1, 2025 – December 31, 2025 238 $ 180.68 — $ 347.6 Total 1,334 $ 200.52 — (1) Includes 719, 377 and 238 shares repurchased during October, November and December, respectively, pursuant to the provisions of employee benefit plans that permit the repurchase of shares to satisfy statutory tax withholding obligations.
Since November 2012, we have periodically announced that our Board of Directors has authorized share repurchase programs. The following table provides information on our purchases of equity securities during the quarter ended December 31, 2024.
Since November 2012, we have periodically announced that our Board of Directors has authorized share repurchase programs. The following table provides information on our purchases of equity securities during the quarter ended December 31, 2025.
This graph assumes the investment of $100 on December 31, 2019 and the reinvestment of dividends thereafter. Item 6. [RESERVED] 31 Table of Contents
This graph assumes the investment of $100 on December 31, 2020 and the reinvestment of dividends thereafter. Item 6. [RESERVED] 31 Table of Contents
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the New York Stock Exchange under the symbol BWXT. As of February 20, 2025, there were approximately 1,268 holders of record of our common stock.
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the New York Stock Exchange under the symbol BWXT. As of February 19, 2026, there were approximately 1,236 holders of record of our common stock.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeFinancial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm 44 Consolidated Statements of Income Years Ended December 31, 2024, 2023 and 2022 46 Consolidated Statements of Comprehensive Income Years Ended December 31, 2024, 2023 and 2022 47 i Table of Contents PAGE Consolidated Balance Sheets December 31, 2024 and 2023 48 Consolidated Statements of Stockholders' Equity Years Ended December 31, 2024, 2023 and 2022 50 Consolidated Statements of Cash Flows Years Ended December 31, 2024, 2023 and 2022 51 Notes to Consolidated Financial Statements 52
Biggest changeFinancial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm 45 Consolidated Statements of Income Years Ended December 31, 2025, 2024 and 2023 47 Consolidated Statements of Comprehensive Income Years Ended December 31, 2025, 2024 and 2023 48 i Table of Contents PAGE Consolidated Balance Sheets December 31, 2025 and 2024 49 Consolidated Statements of Stockholders' Equity Years Ended December 31, 2025, 2024 and 2023 51 Consolidated Statements of Cash Flows Years Ended December 31, 2025, 2024 and 2023 52 Notes to Consolidated Financial Statements 53
Item 6. [Reserved] 31 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 General 32 Critical Accounting Estimates 33 Results of Operations Years Ended December 31, 2024, 2023 and 2022 36 Effects of Inflation and Changing Prices 38 Liquidity and Capital Resources 38 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 42 Item 8.
Item 6. [Reserved] 31 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 General 32 Critical Accounting Estimates 33 Results of Operations Years Ended December 31, 2025, 2024 and 2023 36 Effects of Inflation and Changing Prices 38 Liquidity and Capital Resources 38 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 43 Item 8.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

60 edited+32 added−14 removed64 unchanged
Biggest changeThe Senior Notes due 2029 will mature on April 15, 2029. 39 Table of Contents We may redeem the Senior Notes due 2029, in whole or in part, at any time on or after April 15, 2024 at a redemption price equal to (i) 102.063% of the principal amount to be redeemed if the redemption occurs during the 12-month period beginning on April 15, 2024, (ii) 101.031% of the principal amount to be redeemed if the redemption occurs during the 12-month period beginning on April 15, 2025 and (iii) 100.0% of the principal amount to be redeemed if the redemption occurs on or after April 15, 2026, in each case plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
Biggest changeWe may redeem the Senior Notes due 2028, in whole or in part, at any time at a redemption price equal to 100.0% of the principal amount to be redeemed plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
Under the Credit Facility, (1) if an event of default relating to bankruptcy or other insolvency events occur with respect to the Company, all related obligations will immediately become due and payable; (2) if any other event of default exists, the lenders will be permitted to accelerate the maturity of the related obligations outstanding; and (3) if any event of default exists, the lenders will be permitted to terminate their commitments thereunder and exercise other rights and remedies, including the commencement of foreclosure or other actions against the collateral.
Under the New Credit Facility, (1) if an event of default relating to bankruptcy or other insolvency events occur with respect to the Company, all related obligations will immediately become due and payable; (2) if any other event of default exists, the lenders will be permitted to accelerate the maturity of the related obligations outstanding; and (3) if any event of default exists, the lenders will be permitted to terminate their commitments thereunder and exercise other rights and remedies, including the commencement of foreclosure or other actions against the collateral.
If any default occurs under the Credit Facility, or if we are unable to make any of the representations and warranties in the Credit Facility, we will be unable to borrow funds or have letters of credit issued under the Credit Facility.
If any default occurs under the New Credit Facility, or if we are unable to make any of the representations and warranties in the New Credit Facility, we will be unable to borrow funds or have letters of credit issued under the New Credit Facility.
We utilize our Revolving Credit Facility and a bilateral letter of credit facility to support such obligations, but the issuance of letters of credit and bank guarantees under our bilateral letter of credit facility is at the issuer’s discretion, and our bilateral letter of credit facility generally permits the issuer, in its sole discretion, to demand collateral if the issuer does not otherwise have the benefit of the collateral under our Credit Facility.
We utilize our New Credit Facility and a bilateral letter of credit facility to support such obligations, but the issuance of letters of credit and bank guarantees under our bilateral letter of credit facility is at the issuer's discretion, and our bilateral letter of credit facility generally permits the issuer, in its sole discretion, to demand collateral if the issuer does not otherwise have the benefit of the collateral under our New Credit Facility.
Although there can be no assurance that we will maintain our bilateral letter of credit capacity, we believe our current capacity, together with capacity under our Revolving Credit Facility, is adequate to support our existing requirements for the next 12 months.
Although there can be no assurance that we will maintain our bilateral letter of credit capacity, we believe our current capacity, together with capacity under our New Credit Facility, is adequate to support our existing requirements for the next 12 months.
Discussions of our 2023 results and year-to-year comparisons between 2023 and 2022 that are not included in this Report can be found in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023.
Discussions of our 2024 results and year-to-year comparisons between 2024 and 2023 that are not included in this Report can be found in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.
We have completed our annual review of our indefinite-lived intangible assets for the year ended December 31, 2024, which indicated that we had no impairment. The fair value of our indefinite-lived intangible assets was substantially in excess of carrying value.
We have completed our annual review of our indefinite-lived intangible assets for the year ended December 31, 2025, which indicated that we had no impairment. The fair value of our indefinite-lived intangible assets was substantially in excess of carrying value.
We completed our annual review of goodwill for each of our reporting units for the year ended December 31, 2024, which indicated that we had no impairment of goodwill. The fair value of our reporting units was substantially in excess of carrying value.
We completed our annual review of goodwill for each of our reporting units for the year ended December 31, 2025, which indicated that we had no impairment of goodwill. The fair value of our reporting units was substantially in excess of carrying value.
Senior Notes due 2029 We issued $400 million aggregate principal amount of 4.125% senior notes due 2029 (the "Senior Notes due 2029") pursuant to an indenture dated April 13, 2021 (the "2021 Indenture"), among the Company, certain of our subsidiaries, as guarantors, and U.S. Bank, as trustee.
Senior Notes due 2029 We issued $400 million aggregate principal amount of 4.125% senior notes due 2029 (the "Senior Notes due 2029") pursuant to an indenture dated April 13, 2021 (the "2021 Indenture"), among the Company, certain of our subsidiaries, as 39 Table of Contents guarantors, and U.S. Bank, as trustee.
As of December 31, 2024, we were in compliance with all covenants set forth in the 2020 Indenture and the Senior Notes due 2028.
As of December 31, 2025, we were in compliance with all covenants set forth in the 2020 Indenture and the Senior Notes due 2028.
In April 2021, our Board of Directors authorized us to repurchase an indeterminate number of shares of our common stock up to an aggregate market value of $500 million. As of December 31, 2024, the total remaining share repurchase authorization was $377.6 million. See Item 5 of this Report for additional share repurchase information.
In April 2021, our Board of Directors authorized us to repurchase an indeterminate number of shares of our common stock up to an aggregate market value of $500 million. As of December 31, 2025, the total remaining share repurchase authorization was $347.6 million. See Item 5 of this Report for additional share repurchase information.
We would expect to fund these opportunities with cash generated from operations or by raising additional capital through debt, equity or some combination thereof. Outlook We expect to recognize approximately 48% of the revenue associated with our backlog by the end of 2025, with the remainder to be recognized thereafter.
We would expect to fund these opportunities with cash generated from operations or by raising additional capital through debt, equity or some combination thereof. Outlook We expect to recognize approximately 40% of the revenue associated with our backlog by the end of 2026, with the remainder to be recognized thereafter.
Since 2017, we have made considerable investments in property, plant and equipment to support the growth of our Government Operations and Commercial Operations segments. Significant projects included the expansion of Government Operations facilities to support increased demand from the U.S. Government and the commercialization of our medical radioisotope technology in our Commercial Operations segment.
Since 2017, we have made considerable investments in property, plant and equipment to support the growth of our Government Operations and Commercial Operations segments. Significant projects included the expansion of Government Operations facilities to support increased demand from the U.S.
Included in other income (expense) are components of net periodic benefit cost, which include mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans which changed to a gain of $0.8 million during the year ended December 31, 2024 compared to a loss of $20.9 million for the year ended December 31, 2023.
Included in other income (expense) are components of net periodic benefit cost, which include mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans which changed to a gain of $15.2 million during the year ended December 31, 2025 compared to a gain of $0.8 million for the year ended December 31, 2024.
We may redeem the Senior Notes due 2028, in whole or in part, at any time on or after June 30, 2024 at a redemption price equal to (i) 101.031% of the principal amount to be redeemed if the redemption occurs during the 12-month period beginning on June 30, 2024 and (ii) 100.0% of the principal amount to be redeemed if the redemption occurs on or after June 30, 2025, in each case plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
We may redeem the Senior Notes due 2029, in whole or in part, at any time on or after April 15, 2025 at a redemption price equal to (i) 101.031% of the principal amount to be redeemed if the redemption occurs during the 12-month period beginning on April 15, 2025 and (ii) 100.0% of the principal amount to be redeemed if the redemption occurs on or after April 15, 2026, in each case plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
Pension costs calculated under CAS are utilized as the basis for recovery of pension costs on our U.S. Government contracts. For the years ended December 31, 2024, 2023 and 2022, our CAS pension costs attributed to U.S. Government contracts totaled $20.5 million, $13.6 million and $11.7 million, respectively.
Pension costs calculated under CAS are utilized as the basis for recovery of pension costs on our U.S. Government contracts. For the years ended December 31, 2025, 2024 and 2023, our CAS pension costs attributed to U.S. Government contracts totaled $32.2 million, $20.5 million and $13.6 million, respectively.
The Credit Facility allows for additional parties to become lenders and, subject to certain conditions, for the increase of the commitments under the Credit Facility, subject to an aggregate maximum for all additional commitments of (1) the greater of (a) $400 million and (b) 100% of EBITDA, as defined in the Credit Facility, for the last four full fiscal quarters, plus (2) all voluntary prepayments of the Term Loan, plus (3) additional amounts provided the Company is in compliance with a pro forma first lien leverage ratio test of less than or equal to 2.50 to 1.00.
The New Credit Facility allows for additional parties to become lenders and, subject to certain conditions, for the increase of the commitments under the New Credit Facility, subject to an aggregate maximum for all additional commitments of (1) the greater of (a) $600 million and (b) 100% of EBITDA, as defined in the New Credit Facility, for the last four full fiscal quarters, plus (2) additional amounts provided the Company is in compliance with a pro forma first lien leverage ratio test 3.00 to 1.00 or less.
We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue. As of December 31, 2024, surety bonds issued and outstanding under these arrangements totaled approximately $278.7 million.
We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue. As of December 31, 2025, surety bonds issued and outstanding under these arrangements totaled approximately $363.0 million.
The following sensitivity analysis shows the impact of a 25 basis point change in the assumed discount rate and return on plan assets on our FAS pension benefit plan obligations and expense for the year ended December 31, 2024: .25% Increase .25% Decrease (In millions) Discount Rate: Effect on ongoing net periodic benefit cost (1) $ 0.6 $ (0.7) Effect on projected benefit obligation $ (21.0) $ 21.8 Return on Plan Assets: Effect on ongoing net periodic benefit cost $ (2.1) $ 2.1 (1) Excludes effect of annual mark to market adjustment.
The following sensitivity analysis shows the impact of a 25 basis point change in the assumed discount rate and return on plan assets on our FAS pension benefit plan obligations and expense for the year ended December 31, 2025: .25% Increase .25% Decrease (In millions) Discount Rate: Effect on projected benefit obligation $ (40.2) $ 42.3 Return on Plan Assets: Effect on ongoing net periodic benefit cost $ (9.1) $ 7.2 (1) Excludes effect of annual mark to market adjustment.
Our effective tax rate was 19.0% for the year ended December 31, 2024 compared to 23.4% for the year ended December 31, 2023. Our effective tax rate for the year ended December 31, 2024 was lower than the U.S. corporate income tax rate of 21% primarily due to increased benefits from U.S. federal research and development tax credits.
Our effective tax rate was 17.1% for the year ended December 31, 2025 compared to 19.0% for the year ended December 31, 2024. Our effective tax rate for the years ended December 31, 2025 and 2024 were lower than the U.S. corporate income tax rate of 21% primarily due to increased benefits from U.S. federal research and development tax credits.
However, there can be no assurance we will be able to cover all changes in cost using this strategy.
However, there can be no assurance we will be able to mitigate all increases in cost using this strategy.
Based on the total net leverage ratio applicable at December 31, 2024, the margin for Term SOFR and base rate loans was 1.25% and 0.25%, respectively, the letter of credit fee for financial letters of credit and performance letters of credit was 1.25% and 0.825%, respectively, and the commitment fee for the unused portion of the Revolving Credit Facility was 0.175%.
Based on the total net leverage ratio applicable at December 31, 2025, the margin for Term SOFR and base rate loans was 1.50% and 0.50%, respectively, the letter of credit fee for financial letters of credit and performance letters of credit was 1.50% and 0.90%, respectively, and the commitment fee for the unused portion of the New Credit Facility was 0.20%.
In addition, we experienced a decrease in interest expense of $7.6 million in 2024 when compared to the prior year due primarily to a decrease in borrowings coupled with a decline in the weighted-average interest rate on outstanding borrowings under our Credit Facility, as defined below.
In addition, we experienced an increase in interest expense of $4.7 million in 2025 when compared to the prior year due primarily to an increase in borrowings coupled with an increase in the weighted-average interest rate on outstanding borrowings under our Former Credit Facility, as defined below.
Cash Requirements We believe we have sufficient cash and cash equivalents and borrowing capacity, along with cash generated from operations and continued access to debt markets, to satisfy our cash requirements for the next 12 months and beyond.
Our investment portfolio consists primarily of corporate bonds and mutual funds. Cash Requirements We believe we have sufficient cash and cash equivalents and borrowing capacity, along with cash generated from operations and continued access to debt markets, to satisfy our cash requirements for the next 12 months and beyond.
Credit Facility On October 12, 2022, we entered into an Amended and Restated Credit Agreement (the "Credit Facility") with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, which amended and restated our then existing secured credit facility (the "Former Credit Facility"), which consisted of a $750 million senior secured revolving credit facility.
New Credit Facility On November 10, 2025, we entered into a second Amended and Restated Credit Agreement (the "New Credit Facility") with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto, which amended and restated our then-existing secured credit facility (the "Former Credit Facility"), which consisted of a $750 million senior secured revolving credit facility (the "Revolving Credit Facility") and a $250 million senior secured term A loan (the "Term Loan").
The increase was primarily due to the increase in revenues noted above as well as a favorable shift in our product mix which was partially offset by a $4.4 million increase in expenses associated with due diligence and restructuring-related activities when compared to the prior year.
The increase was primarily due to the increase in revenues noted above, which was partially offset by a $19.9 million increase in expenses associated with due diligence and post-acquisition integration activities as well as restructuring-related activities when compared to the prior year.
Our net cash provided by operating activities increased by $44.7 million to $408.4 million in the year ended December 31, 2024, compared to $363.7 million in the year ended December 31, 2023.
Our net cash provided by operating activities increased by $71.4 million to $479.8 million in the year ended December 31, 2025, compared to $408.4 million in the year ended December 31, 2024.
Government is obligated to pay substantially all the decommissioning costs. 35 Table of Contents Results of Operations – Years Ended December 31, 2024, 2023 and 2022 Selected financial highlights are presented in the table below: Year Ended December 31, 2024 2023 2022 (In thousands) REVENUES: Government Operations $ 2,183,040 $ 2,031,337 $ 1,808,483 Commercial Operations 523,972 466,344 427,358 Eliminations (3,358) (1,372) (3,007) $ 2,703,654 $ 2,496,309 $ 2,232,834 OPERATING INCOME: Government Operations $ 377,875 $ 374,682 $ 336,501 Commercial Operations 46,816 37,532 27,418 $ 424,691 $ 412,214 $ 363,919 Unallocated Corporate (44,084) (29,155) (15,348) Total Operating Income $ 380,607 $ 383,059 $ 348,571 This section discusses our 2024 and 2023 results of operations and contains year-to-year comparisons between 2024 and 2023.
Government is obligated to pay substantially all the decommissioning costs. 35 Table of Contents Results of Operations – Years Ended December 31, 2025, 2024 and 2023 Selected financial highlights are presented in the table below: Year Ended December 31, 2025 2024 2023 (In thousands) REVENUES: Government Operations $ 2,350,090 $ 2,183,040 $ 2,031,337 Commercial Operations 853,070 523,972 466,344 Eliminations (4,735) (3,358) (1,372) $ 3,198,425 $ 2,703,654 $ 2,496,309 OPERATING INCOME: Government Operations $ 394,850 $ 377,875 $ 374,682 Commercial Operations 57,728 46,816 37,532 $ 452,578 $ 424,691 $ 412,214 Unallocated Corporate (48,119) (44,084) (29,155) Total Operating Income $ 404,459 $ 380,607 $ 383,059 This section discusses our 2025 and 2024 results of operations and contains year-to-year comparisons between 2025 and 2024.
Consolidated Results of Operations Year Ended December 31, 2024 vs. 2023 Consolidated revenues increased 8.3%, or $207.3 million, to $2,703.7 million in the year ended December 31, 2024 compared to $2,496.3 million in 2023, due to increases in revenues in our Government Operations and Commercial Operations segments of $154.0 million and $57.6 million, respectively.
Consolidated Results of Operations Year Ended December 31, 2025 vs. 2024 Consolidated revenues increased 18.3%, or $494.8 million, to $3,198.4 million in the year ended December 31, 2025 compared to $2,703.7 million in 2024, due to increases in revenues in our Government Operations and Commercial Operations segments of $167.1 million and $329.1 million, respectively.
Provision for Income Taxes Year Ended December 31, 2024 2023 $ Change (In thousands) Income before Provision for Income Taxes $ 348,720 $ 321,400 $ 27,320 Provision for Income Taxes $ 66,422 $ 75,079 $ (8,657) Effective Tax Rate 19.0% 23.4% For the year ended December 31, 2024, our provision for income taxes decreased $8.7 million to $66.4 million, while income before provision for income taxes increased $27.3 million to $348.7 million when compared to the prior year.
Provision for Income Taxes Year Ended December 31, 2025 2024 $ Change (In thousands) Income before Provision for Income Taxes $ 398,120 $ 348,720 $ 49,400 Provision for Income Taxes $ 68,259 $ 66,422 $ 1,837 Effective Tax Rate 17.1% 19.0% For the year ended December 31, 2025, our provision for income taxes increased $1.8 million to $68.3 million, while income before provision for income taxes increased $49.4 million to $398.1 million when compared to the prior year.
We experienced net cash generated from operations in each of the years ended December 31, 2024, 2023 and 2022. Typically, the fourth quarter has been the period of highest cash flows from operating activities because of the timing of payments received from the U.S. Government on accounts receivable retainages and cash dividends received from our joint ventures.
These were offset partially by repayments on the Term Loan and Capped Call Transaction premiums. We generated net cash from operations in each of the years ended December 31, 2025, 2024 and 2023. Typically, the fourth quarter has been the period of highest cash flows from operating activities because of the timing of payments received from the U.S.
The Senior Notes due 2028 are guaranteed by each of the Company's present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the Credit Facility. Interest on the Senior Notes due 2028 is payable semi-annually in cash in arrears on June 30 and December 30 of each year at a rate of 4.125% per annum.
Interest on the Senior Notes due 2028 is payable semi-annually in cash in arrears on June 30 and December 30 of each year at a rate of 4.125% per annum. The Senior Notes due 2028 will mature on June 30, 2028.
This was caused by a decrease in losses related to mark to market adjustments totaling $20.2 million.
This was caused by favorable changes in income (expense) related to mark to market adjustments totaling $17.2 million.
The aggregate impact of changes in estimates increased our revenue and operating income as follows: Year Ended December 31, 2024 2023 2022 (In thousands) Revenues $ 37,908 $ 24,728 $ 26,629 Operating Income (1) $ 36,770 $ 24,813 $ 24,405 (1) During the year ended December 31, 2024, no adjustments to any one contract had a material impact on our consolidated financial statements.
The aggregate impact of changes in estimates increased our revenue and operating income as follows: Year Ended December 31, 2025 2024 2023 (In thousands) Revenues $ 5,544 $ 37,908 $ 24,728 Operating Income (1) $ 4,318 $ 36,770 $ 24,813 (1) During the year ended December 31, 2025, our Government Operations segment results were favorably impacted by material contract adjustments related to a nuclear operations contract.
Government Operations Year Ended December 31, 2024 2023 $ Change (In thousands) Revenues $ 2,183,040 $ 2,031,337 $ 151,703 Operating Income $ 377,875 $ 374,682 $ 3,193 % of Revenues 17.3% 18.4% Year Ended December 31, 2024 vs. 2023 Revenues increased 7.5%, or $151.7 million, to $2,183.0 million in the year ended December 31, 2024 compared to $2,031.3 million in 2023.
Government Operations Year Ended December 31, 2025 2024 $ Change (In thousands) Revenues $ 2,350,090 $ 2,183,040 $ 167,050 Operating Income $ 394,850 $ 377,875 $ 16,975 % of Revenues 16.8% 17.3% Year Ended December 31, 2025 vs. 2024 Revenues increased 7.7%, or $167.1 million, to $2,350.1 million in the year ended December 31, 2025 compared to $2,183.0 million in 2024.
No single item had a significant impact on the change in cash used in investing activities. Our net cash used in financing activities increased by $83.4 million to $252.8 million in the year ended December 31, 2024, compared to cash used in financing activities of $169.4 million in the year ended December 31, 2023.
Our net cash provided by financing activities increased by $946.4 million to $693.6 million in the year ended December 31, 2025, compared to cash used in financing activities of $252.8 million in the year ended December 31, 2024.
Additionally, we are charged a letter of credit fee of between 1.0% and 1.75% per year with respect to the amount of each financial letter of credit issued under the Revolving Credit Facility, and a letter of credit fee of between 0.75% and 1.05% per year with respect to the amount of each performance letter of credit issued under the Revolving Credit Facility.
In addition, the Company will be charged (1) a commitment fee of between 0.15% and 0.225% per year on the unused portion of the New Credit Facility, (2) a letter of credit fee of between 1.00% and 1.75% per year with respect to the amount of each financial letter of credit issued under the New Credit Facility, and (3) a letter of credit fee of between 0.75% and 1.05% per year with respect to the amount of each performance letter of credit or commercial letter of credit issued under the New Credit Facility.
The Senior Notes due 2028 will mature on June 30, 2028.
The Senior Notes due 2029 will mature on April 15, 2029.
Our cash requirements as of December 31, 2024 include the following contractual obligations: Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years (In thousands) Long-term debt principal $ 1,062,500 $ 12,500 $ 250,000 $ 800,000 $ — Interest payments $ 203,199 $ 58,439 $ 111,760 $ 33,000 $ — Lease payments $ 30,090 $ 3,930 $ 5,600 $ 4,318 $ 16,242 Our contingent commitments under letters of credit and surety bonds currently outstanding expire as follows: Total Less than 1 Year 1-3 Years 3-5 Years Thereafter (In thousands) $ 313,671 $ 133,100 $ 30,192 $ 150,380 $ — Other cash requirements include, among other things, capital expenditures, payment of dividends, repurchases of common stock, capital contributions for joint ventures and contributions to our pension and other postretirement benefit plans.
Our cash requirements as of December 31, 2025 include the following contractual obligations: Total Less than 1 Year 1-3 Years 3-5 Years After 5 Years (In thousands) Long-term debt principal $ 2,051,967 $ — $ 400,000 $ 1,650,000 $ 1,967 Interest payments $ 132,000 $ 33,000 $ 66,000 $ 33,000 $ — Lease payments $ 59,080 $ 9,079 $ 15,603 $ 10,503 $ 23,895 Our contingent commitments under letters of credit and surety bonds currently outstanding expire as follows: Total Less than 1 Year 1-3 Years 3-5 Years Thereafter (In thousands) $ 413,006 $ 193,721 $ 193,506 $ 25,779 $ — 42 Table of Contents Other cash requirements include, among other things, capital expenditures, payment of dividends, repurchases of common stock, capital contributions for joint ventures and contributions to our pension and other postretirement benefit plans.
Liquidity and Capital Resources Our overall liquidity position, which we generally define as our unrestricted cash and cash equivalents plus amounts available for borrowings under our credit facility, increased by approximately $148.6 million to $797.7 million at December 31, 2024 compared to $649.1 million at December 31, 2023, primarily attributable to improvements in operating cash flows which were used, in part, to repay borrowings under our Revolving Credit Facility, as defined below.
Liquidity and Capital Resources Our overall liquidity position, which we generally define as our unrestricted cash and cash equivalents plus amounts available for borrowings under our credit facility, increased by approximately $950.7 million to $1,748.4 million at December 31, 2025 compared to $797.7 million at December 31, 2024, primarily attributable to the issuance of $1.25 billion of 0% Convertible Senior Notes due 2030 (the "2030 Notes") and an increase of $250 million in available borrowings from our New Credit Facility.
In addition, the Credit Facility contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales.
The minimum consolidated interest coverage ratio is 3.00 to 1.00. In addition, the New Credit Facility contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. As of December 31, 2025, we were in compliance with all covenants set forth in the New Credit Facility.
As of December 31, 2024, borrowings under our Term Loan totaled $237.5 million, borrowings and letters of credit issued under the Revolving Credit Facility totaled $25.0 million and $1.4 million, respectively, and we had $723.6 million available under the Revolving Credit Facility for borrowings and to meet letter of credit requirements.
As of December 31, 2025, letters of credit issued under the New Credit Facility totaled $1.4 million and we had no outstanding borrowings and had $1,248.6 million available under the New Credit Facility for borrowings and to meet letter of credit requirements. The New Credit Facility generally includes customary events of default for a secured credit facility.
Our domestic and foreign cash and cash equivalents, restricted cash and cash equivalents and investments as of December 31, 2024 and 2023 were as follows: December 31, 2024 2023 (In thousands) Domestic $ 69,595 $ 71,177 Foreign 21,585 19,934 Total $ 91,180 $ 91,111 Our working capital increased by $13.0 million to $455.8 million at December 31, 2024 from $442.8 million at December 31, 2023, primarily attributable to the change in income taxes receivable and prepaid expenses which was partially offset by the timing of project cash flows.
Our domestic and foreign cash and cash equivalents, restricted cash and cash equivalents and investments as of December 31, 2025 and 2024 were as follows: December 31, 2025 2024 (In thousands) Domestic $ 501,259 $ 69,595 Foreign 14,188 21,585 Total $ 515,447 $ 91,180 Our working capital increased by $432.5 million to $888.3 million at December 31, 2025 from $455.8 million at December 31, 2024, primarily attributable to the change in cash and cash equivalents resulting from the issuance of long-term debt.
The maximum permitted leverage ratio is 4.00 to 1.00, which may be increased to 4.50 to 1.00 for up to four consecutive fiscal quarters after a material acquisition. The minimum consolidated interest coverage ratio is 3.00 to 1.00.
The New Credit Facility includes financial covenants that are evaluated on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The maximum permitted leverage ratio is 4.00 to 1.00, which may be increased to 4.50 to 1.00 for up to four consecutive fiscal quarters after a material acquisition.
The increase in cash provided by operating activities was primarily attributable to the timing of project cash flows. 40 Table of Contents Our net cash used in investing activities decreased by $1.1 million to $154.6 million in the year ended December 31, 2024, compared to $155.6 million in the year ended December 31, 2023.
Our net cash used in investing activities increased by $587.5 million to $742.1 million in the year ended December 31, 2025, compared to $154.6 million in the year ended December 31, 2024.
As of December 31, 2024, letters of credit and bank guarantees issued and outstanding under our bilateral letter of credit facility totaled approximately $33.7 million, and such letters of credit and bank guarantees are secured by the collateral under our Credit Facility.
As of December 31, 2025, letters of credit and bank guarantees issued and outstanding under our bilateral letter of credit facility totaled approximately $48.7 million, and such letters of credit and bank guarantees are secured by the collateral under our New Credit Facility. 41 Table of Contents Other Cash, Cash Equivalents, Restricted Cash and Investments In the aggregate, our cash and cash equivalents, restricted cash and cash equivalents and investments increased by $424.3 million to $515.4 million at December 31, 2025 from $91.2 million at December 31, 2024, primarily due to the items discussed below.
All proceeds from the Term Loan were used to repay outstanding indebtedness under the Former Credit Facility. The proceeds of loans under the Credit Facility are available for working capital needs, permitted acquisitions and other general corporate purposes.
The Revolving Credit Facility and the Term Loan were repaid, in their entirety, with the proceeds from the 2030 Notes as discussed below. The New Credit Facility includes a $1.25 billion senior secured revolving credit facility. The proceeds of loans under the New Credit Facility are available for working capital needs, permitted acquisitions and other general corporate purposes.
We expect these heightened spending levels to decline as these capital expansion projects are largely complete. During the year ended December 31, 2024, we paid $88.3 million in dividends to holders of our common stock.
During the year ended December 31, 2025, we paid $92.5 million in dividends to holders of our common stock.
Consolidated operating income decreased $2.5 million to $380.6 million in the year ended December 31, 2024 compared to $383.1 million in 2023. Operating income in our Government Operations and Commercial Operations segments increased $5.5 million and $9.3 million, respectively.
Consolidated operating income increased $23.9 million to $404.5 million in the year ended December 31, 2025 compared to $380.6 million in 2024. Operating income in our Government Operations and Commercial Operations segments increased $16.8 million and $10.9 million, respectively. These increases were partially offset by an increase in Unallocated Corporate expenses of $4.0 million when compared to the prior year.
Operating income increased $3.2 million to $377.9 million in the year ended December 31, 2024 compared to $374.7 million in 2023, primarily driven by the operating income impact of the changes in revenues noted above. 36 Table of Contents Commercial Operations Year Ended December 31, 2024 2023 $ Change (In thousands) Revenues $ 523,972 $ 466,344 $ 57,628 Operating Income $ 46,816 $ 37,532 $ 9,284 % of Revenues 8.9% 8.0% Year Ended December 31, 2024 vs. 2023 Revenues increased 12.4%, or $57.6 million, to $524.0 million in the year ended December 31, 2024 compared to $466.3 million in 2023.
Operating income increased $17.0 million to $394.9 million in the year ended December 31, 2025 compared to $377.9 million in 2024, primarily driven by the operating income impact of the changes in revenues noted above which was partially offset by a $13.1 million increase in expenses associated with due diligence and post-acquisition integration activities as well as restructuring-related activities when compared to the prior year. 36 Table of Contents Commercial Operations Year Ended December 31, 2025 2024 $ Change (In thousands) Revenues $ 853,070 $ 523,972 $ 329,098 Operating Income $ 57,728 $ 46,816 $ 10,912 % of Revenues 6.8% 8.9% Year Ended December 31, 2025 vs. 2024 Revenues increased 62.8%, or $329.1 million, to $853.1 million in the year ended December 31, 2025 compared to $524.0 million in 2024.
These increases were partially offset by a decrease in unallocated healthcare costs when compared to the prior year. Other Income (Expense) During the year ended December 31, 2024, other income (expense) increased $29.8 million to a loss of $31.9 million compared to a loss of $61.7 million in 2023.
Other Income (Expense) During the year ended December 31, 2025, other income (expense) increased $25.5 million to a loss of $6.3 million compared to a loss of $31.9 million in 2024.
The applicable margin for loans, the commitment fee and the letter of credit fees set forth above will vary quarterly based on our consolidated total net leverage ratio.
The applicable margin for loans, the commitment fee and the letter of credit fees set forth above will vary quarterly based on the Company's consolidated total net leverage ratio. 38 Table of Contents The Company may prepay all loans under the New Credit Facility at any time without premium or penalty (other than customary Term SOFR rate breakage costs), subject to notice requirements.
As of December 31, 2024, we were in compliance with all covenants set forth in the 2021 Indenture and the Senior Notes due 2029. Other Arrangements We have posted surety bonds to support regulatory and contractual obligations for certain decommissioning responsibilities, projects and legal matters.
The impact of this tax treatment results in the Capped Call Transactions being deductible with the cost of the Capped Call Transactions qualifying as original issue discount for tax purposes over the term of the 2030 Notes. Other Arrangements We have posted surety bonds to support regulatory and contractual obligations for certain decommissioning responsibilities, projects and legal matters.
The Kinectrics acquisition is targeted to close in the middle of 2025 at which time we expect to make a cash investment of approximately $525.0 million U.S. dollar equivalent. 41 Table of Contents We expect cash requirements totaling approximately $7.8 million and $1.2 million for contributions to our pension plans and other postretirement benefit plans, respectively, in 2025.
We expect cash requirements totaling approximately $12.7 million and $2.7 million for contributions to our pension plans and other postretirement benefit plans, respectively, in 2026.
As of December 31, 2024, we were in compliance with all covenants set forth in the Credit Facility. 38 Table of Contents Outstanding loans under the Credit Facility bear interest at our option at either (1) the Term SOFR plus a credit spread adjustment of 0.10% plus a margin ranging from 1.0% to 1.75% per year or (2) the base rate plus a margin ranging from 0.0% to 0.75% per year.
Outstanding loans under the New Credit Facility bear interest at our option at either (i) the Term SOFR rate plus a margin ranging from 1.00% to 1.75% per year or (ii) the base rate (the highest of (x) the administrative agent's prime rate, (y) the Federal Funds rate plus 0.50% and (z) the Term SOFR rate for a one-month tenor plus 1.00%) plus a margin ranging from 0.0% to 0.75% per year.
The Company's obligations under the Credit Facility are guaranteed, subject to certain exceptions, by substantially all of the Company's present and future wholly owned domestic restricted subsidiaries. The Credit Facility is secured by first-priority liens on certain assets owned by the Company and its subsidiary guarantors (other than its subsidiaries comprising a portion of its Government Operations segment).
The New Credit Facility is secured by first-priority liens on certain assets owned by the Company and the guarantors (other than its subsidiaries comprising a portion of its Government Operations segment), provided such liens may be released if the Company obtains investment grade ratings of at least BBB- from S&P or Baa3 from Moody's and no default or event of default exists.
These initiatives are expected to continue into 2026 and accounted for increases in expense of $9.5 million for the year ended December 31, 2024. We also experienced an increase in legal and consulting costs associated with due diligence activities of $4.5 million for the year ended December 31, 2024.
Unallocated Corporate Unallocated Corporate expenses increased $4.0 million to $48.1 million in the year ended December 31, 2025 compared to $44.1 million in 2024. The increase was due to an increase in legal and consulting costs associated with merger and acquisition related activities of $3.9 million when compared to the corresponding period in the prior year.
These increases were partially offset by a decrease in revenues associated with our downblending operations as well as a decrease in revenues caused by the timing of long-lead material procurements of $36.5 million and $24.7 million, respectively.
These increases were partially offset by a decrease in revenues associated with our advanced technologies business.
The increase was primarily related to higher revenues in nuclear components, medical radioisotopes, fuel handling and fuel fabrication, partially offset by lower revenues related to on-site refurbishment work when compared to the prior year. Operating income increased $9.3 million to $46.8 million in the year ended December 31, 2024 compared to $37.5 million in 2023.
The increase was primarily related to the acquisition of Kinectrics, completed on May 20, 2025, which resulted in an increase in revenues of $231.0 million as well as an increase in revenues related to components manufacturing of $74.0 million. Operating income increased $10.9 million to $57.7 million in the year ended December 31, 2025 compared to $46.8 million in 2024.
The increase in cash used in financing activities was primarily attributable to a reduction in net borrowings of long-term debt of $75.0 million and an increase in repurchases of common stock of $20.0 million. At December 31, 2024, we had long-term investments with a fair value of $10.6 million. Our investment portfolio consists primarily of corporate bonds and mutual funds.
The increase in cash provided in financing activities was primarily attributable to the issuance of $1.25 billion of 2030 Notes offset partially by repayments on the Revolving Credit Facility and Term Loan and Capped Call Transaction premiums. At December 31, 2025, we had long-term investments with a fair value of $8.2 million.
Removed
During the year ended December 31, 2022, our Government Operations segment results were negatively affected by contract adjustments for cost growth related to the manufacture of non-nuclear components which resulted in a decrease in operating income of $11.3 million.
Added
The material adjustments resulted in an increase in revenue and operating income of $29.4 million during the year ended December 31, 2025. During the year ended December 31, 2024, no adjustments to any one contract had a material impact on our consolidated financial statements.
Removed
These increases were more than offset by an increase in Unallocated Corporate expenses of $15.8 million when compared to the prior year.
Added
The increase was primarily driven by the timing of long-lead material procurements of $83.4 million, increases in uranium processing and downblending operations of $68.1 million and an increase in revenues of $52.2 million associated with the acquisition of A.O.T., which was completed on January 3, 2025.
Removed
The increase was primarily driven by higher volume in the manufacture of nuclear components for U.S. Government programs of $138.7 million when compared to the prior year. Continued growth in design and engineering work executed by our advanced technologies business, particularly in the defense market, resulted in additional revenues of $62.2 million.
Added
We also experienced a $7.1 million increase in restructuring-related expenditures. These increases were partially offset by a decrease in expenditures related to the transformation of our information technology infrastructure of $3.2 million.
Removed
Unallocated Corporate Unallocated Corporate expenses increased $14.9 million to $44.1 million in the year ended December 31, 2024 compared to $29.2 million in 2023. During the third quarter of 2023, we undertook several initiatives to transform our current information technology infrastructure and to improve the effectiveness of our digital framework.
Added
Other income (expense) also includes the effect of foreign currency transaction gains and losses as well as gains and losses on FX forward contracts which resulted in a net increase in other income (expense) of $17.7 million when compared to the prior year.
Removed
Our effective tax rate for the year ended December 31, 2023 was higher than the U.S. corporate income tax rate of 21% primarily due to state income taxes within the U.S. and the unfavorable rate differential associated with our non-U.S. earnings.
Added
Government on accounts receivable retainages and cash dividends received from our joint ventures.
Removed
The Credit Facility consists of a $750 million senior secured revolving credit facility (the "Revolving Credit Facility") and a $250 million senior secured term A loan (the "Term Loan"). The Revolving Credit Facility and the Term Loan are scheduled to mature on October 12, 2027.
Added
The New Credit Facility is scheduled to mature on November 10, 2030, subject to an early maturity trigger if on any date the aggregate outstanding principal amount of unsecured indebtedness due within 91 days thereof is in excess of 100% of EBITDA, as defined in the New Credit Facility, for the last four full fiscal quarters.
Removed
The Credit Facility requires interest payments on outstanding loans on a periodic basis until maturity.
Added
However, this early maturity trigger will not apply if (1) the total Net Leverage Ratio is less than or equal to 2.00 to 1.00 or (2) liquidity is at least 125% of such outstanding unsecured indebtedness. The Company’s obligations under the New Credit Facility are guaranteed by the same guarantors that guarantee the 2030 Notes.
Removed
We were required to make quarterly amortization payments on the Term Loan in an amount equal to 0.625% of the initial aggregate principal amount of the Term Loan on the last business day of each quarter beginning the quarter ending March 31, 2023 and ending the quarter ending December 31, 2024 and are now required to make quarterly amortization payments in an amount equal to 1.25% of the initial aggregate principal amount of the Term Loan on the last business day of each quarter ending after December 31, 2024, with the balance of the Term Loan due at maturity.
Added
The New Credit Facility contains representations and warranties, affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including covenants setting a maximum consolidated total net leverage ratio and a minimum consolidated interest coverage ratio.
Removed
We may prepay all loans under the Credit Facility at any time without premium or penalty (other than customary Term Secured Overnight Financing Rate ("SOFR") breakage costs), subject to notice requirements. The Credit Facility includes financial covenants that are evaluated on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter.
Added
If any event of default relating to bankruptcy or other insolvency events occurs with respect to the Company, the lenders’ commitments under the New Credit Facility will automatically terminate and all outstanding obligations under the New Credit Facility will immediately become due and payable.
Removed
We are charged a commitment fee on the unused portion of the Revolving Credit Facility, and that fee ranges from 0.15% to 0.225% per year.
Added
If any other event of default occurs, the lenders will be permitted to terminate their commitments under the New Credit Facility, accelerate all outstanding obligations under the New Credit Facility and exercise other rights and remedies, including the commencement of foreclosure or other actions against the collateral.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changePrincipal Amount by Expected Maturity (In thousands) At December 31, 2024: Fair Value at Years Ending December 31, December 31, 2025 2026 2027 2028 2029 Thereafter Total 2024 Investments — — $ 1,479 $ — — $ 7,700 $ 9,179 $ 10,609 Average Interest Rate — — — — — — Note Receivable $ 6,467 — — — — — $ 6,467 $ 6,367 Average Interest Rate 6.80 % — — — — — Fixed Interest Rate Debt — — — $ 400,000 $ 400,000 $ — $ 800,000 $ 746,529 Average Interest Rate — — — 4.13 % 4.13 % — Variable Interest Rate Debt $ 12,500 $ 12,500 $ 237,500 — — — $ 262,500 $ 262,479 Average Interest Rate 5.39 % 5.27 % 5.28 % — — — At December 31, 2023: Fair Value at Years Ending December 31, December 31, 2024 2025 2026 2027 2028 Thereafter Total 2023 Investments — — — $ 1,479 — $ 7,002 $ 8,481 $ 9,496 Average Interest Rate — — — 9.57 % — — Note Receivable $ 396 $ 7,022 — — — — $ 7,418 $ 7,300 Average Interest Rate 6.80 % 6.80 % — — — — Fixed Interest Rate Debt — — — — $ 400,000 $ 400,000 $ 800,000 $ 734,667 Average Interest Rate — — — — 4.13 % 4.13% Variable Interest Rate Debt $ 6,250 $ 12,500 $ 12,500 $ 387,500 — — $ 418,750 $ 424,751 Average Interest Rate 6.24% 4.98% 4.73% 4.75% — — 42 Table of Contents Exchange Rate Sensitivity The following table provides information about our FX forward contracts outstanding at December 31, 2024 and presents such information in U.S. dollar equivalents.
Biggest changePrincipal Amount by Expected Maturity (In thousands) At December 31, 2025: Fair Value at Years Ending December 31, December 31, 2026 2027 2028 2029 2030 Thereafter Total 2025 Investments — — — — — $ 6,945 $ 6,945 $ 8,243 Average Interest Rate — — — — — — Note Receivable 6,399 — — — — — $ 6,399 $ 6,433 Average Interest Rate 6.40% — — — — — Fixed Interest Rate Debt — — $ 400,000 $ 400,000 — $ 1,967 $ 801,967 $ 784,108 Average Interest Rate — — 4.13% 4.13% — — Convertible Senior Notes — $ — $ — — $ 1,250,000 — $ 1,250,000 $ 1,194,533 Average Interest Rate — — — — — — At December 31, 2024: Fair Value at Years Ending December 31, December 31, 2025 2026 2027 2028 2029 Thereafter Total 2024 Investments — — $ 1,479 — — $ 7,700 $ 9,179 $ 10,609 Average Interest Rate — — — — — — Note Receivable $ 6,467 — — — — — $ 6,467 $ 6,367 Average Interest Rate 6.80% — — — — — Fixed Interest Rate Debt — — — $ 400,000 $ 400,000 $ — $ 800,000 $ 746,529 Average Interest Rate — — — 4.13% 4.13% — Variable Interest Rate Debt $ 12,500 $ 12,500 $ 237,500 — — — $ 262,500 $ 262,479 Average Interest Rate 5.39% 5.27% 5.28% — — — Exchange Rate Sensitivity The following table provides information about our FX forward contracts outstanding at December 31, 2025 and presents such information in U.S. dollar equivalents.
Historically, we have hedged those risks with FX forward contracts. At December 31, 2024, the fair values of our outstanding derivative instruments were not significant. We do not enter into speculative derivative positions. Interest Rate Sensitivity The following tables provide information about our financial instruments that are sensitive to changes in interest rates.
Historically, we have hedged those risks with FX forward contracts. At December 31, 2025, the fair values of our outstanding FX derivative instruments were not significant. We do not enter into speculative derivative positions. 43 Table of Contents Interest Rate Sensitivity The following tables provide information about our financial instruments that are sensitive to changes in interest rates.
At December 31, 2024, we had (i) $237.5 million in outstanding borrowings under our Term Loan, $25.0 million in outstanding borrowings under the Revolving Credit Facility, $1.4 million in letters of credit issued under the Revolving Credit Facility and $723.6 million available under the Credit Facility, (ii) an aggregate principal amount of $400 million of Senior Notes due 2028 and (iii) an aggregate principal amount of $400 million of Senior Notes due 2029.
At December 31, 2025, we had (i) no outstanding borrowings under the New Credit Facility, $1.4 million in letters of credit issued under the New Credit Facility and $1,248.6 million available under the New Credit Facility, (ii) an aggregate principal amount of $400 million of Senior Notes due 2028 and (iii) an aggregate principal amount of $400 million of Senior Notes due 2029, and (iv) an aggregate principal amount of $1.25 billion of 2030 Notes.
Dollars (in thousands) Year Ending Fair Value at Average Contractual Foreign Currency December 31, 2025 December 31, 2024 Exchange Rate Canadian dollar $ 6,786 $ (290) 1.3767 U.S. dollar (selling Canadian dollar) $ 409,848 $ 8,371 1.4055 Euro (selling Canadian dollar) $ 19,175 $ (38) 1.4957 Year Ending Fair Value at Average Contractual Foreign Currency December 31, 2026 December 31, 2024 Exchange Rate U.S. dollar (selling Canadian dollar) $ 4,318 $ 179 1.3502 Euro (selling Canadian dollar) $ 1,720 $ (25) 1.5216 43 Table of Contents
Dollars (in thousands) Year Ending Fair Value at Average Contractual Foreign Currency December 31, 2026 December 31, 2025 Exchange Rate Canadian dollar $ 1,891 $ 9,820 1.3689 U.S. dollar (selling Canadian dollar) $ 215,979 $ (4,601) 1.3786 Euro (selling Canadian dollar) $ 13,099 $ 122 1.6128 Year Ending Fair Value at Average Contractual Foreign Currency December 31, 2027 December 31, 2025 Exchange Rate U.S. dollar (selling Canadian dollar) $ 3,569 $ (14) 1.3559 Euro (selling Canadian dollar) $ 6,444 $ (41) 1.6296 Year Ending Fair Value at Average Contractual Foreign Currency December 31, 2028 December 31, 2025 Exchange Rate Euro (selling Canadian dollar) $ 5,901 $ (93) — 44 Table of Contents

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