Revenue Recognition

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

As described in Note 1, our operations are assessed based on two reportable segments.

Disaggregated Revenues

Revenues by geographic area and customer type were as follows:


	Three Months Ended June 30, 2025				Three Months Ended June 30, 2024
	Government Operations		Commercial Operations		Total		Government Operations		Commercial Operations		Total
	(In thousands)
United States:
Government	$	513,749	$	—	$	513,749	$	511,498	$	—	$	511,498
Non-Government	69,873		24,852		94,725		22,217		16,063		38,280
	$	583,622	$	24,852	$	608,474	$	533,715	$	16,063	$	549,778
Canada:
Government	$	10	$	—	$	10	$	23	$	—	$	23
Non-Government	65		141,161		141,226		151		120,516		120,667
	$	75	$	141,161	$	141,236	$	174	$	120,516	$	120,690
Other:
Government	$	3,725	$	—	$	3,725	$	637	$	—	$	637
Non-Government	1,537		10,126		11,663		6,320		4,912		11,232
	$	5,262	$	10,126	$	15,388	$	6,957	$	4,912	$	11,869
Segment Revenues	$	588,959	$	176,139	765,098		$	540,846	$	141,491	682,337
Eliminations					(1,059)						(872)
Revenues					$	764,039					$	681,465


	Six Months Ended June 30, 2025				Six Months Ended June 30, 2024
	Government Operations		Commercial Operations		Total		Government Operations		Commercial Operations		Total
	(In thousands)
United States:
Government	$	1,039,044	$	—	$	1,039,044	$	973,730	$	—	$	973,730
Non-Government	94,146		40,914		135,060		43,827		32,858		76,685
	$	1,133,190	$	40,914	$	1,174,104	$	1,017,557	$	32,858	$	1,050,415
Canada:
Government	$	112	$	—	$	112	$	25	$	—	$	25
Non-Government	122		242,778		242,900		168		215,528		215,696
	$	234	$	242,778	$	243,012	$	193	$	215,528	$	215,721
Other:
Government	$	7,596	$	—	$	7,596	$	1,663	$	—	$	1,663
Non-Government	3,226		20,757		23,983		8,554		10,143		18,697
	$	10,822	$	20,757	$	31,579	$	10,217	$	10,143	$	20,360
Segment Revenues	$	1,144,246	$	304,449	1,448,695		$	1,027,967	$	258,529	1,286,496
Eliminations					(2,398)						(1,065)
Revenues					$	1,446,297					$	1,285,431

Revenues by timing of transfer of goods or services were as follows:


	Three Months Ended June 30, 2025				Three Months Ended June 30, 2024
	Government Operations		Commercial Operations		Total		Government Operations		Commercial Operations		Total
	(In thousands)
Over time	$	586,443	$	153,085	$	739,528	$	537,906	$	112,125	$	650,031
Point-in-time	2,516		23,054		25,570		2,940		29,366		32,306
Segment Revenues	$	588,959	$	176,139	765,098		$	540,846	$	141,491	682,337
Eliminations					(1,059)						(872)
Revenues					$	764,039					$	681,465


	Six Months Ended June 30, 2025				Six Months Ended June 30, 2024
	Government Operations		Commercial Operations		Total		Government Operations		Commercial Operations		Total
	(In thousands)
Over time	$	1,136,989	$	256,306	$	1,393,295	$	1,022,194	$	208,980	$	1,231,174
Point-in-time	7,257		48,143		55,400		5,773		49,549		55,322
Segment Revenues	$	1,144,246	$	304,449	1,448,695		$	1,027,967	$	258,529	1,286,496
Eliminations					(2,398)						(1,065)
Revenues					$	1,446,297					$	1,285,431

Revenues by contract type were as follows:


	Three Months Ended June 30, 2025				Three Months Ended June 30, 2024
	Government Operations		Commercial Operations		Total		Government Operations		Commercial Operations		Total
	(In thousands)
Fixed-Price Incentive Fee	$	220,653	$	3,517	$	224,170	$	357,737	$	5,420	$	363,157
Firm-Fixed-Price	259,153		118,365		377,518		81,026		68,507		149,533
Cost-Plus Fee	109,107		—		109,107		102,083		—		102,083
Time-and-Materials	46		54,257		54,303		—		67,564		67,564
Segment Revenues	$	588,959	$	176,139	765,098		$	540,846	$	141,491	682,337
Eliminations					(1,059)						(872)
Revenues					$	764,039					$	681,465


	Six Months Ended June 30, 2025				Six Months Ended June 30, 2024
	Government Operations		Commercial Operations		Total		Government Operations		Commercial Operations		Total
	(In thousands)
Fixed-Price Incentive Fee	$	429,205	$	7,844	$	437,049	$	654,988	$	10,942	$	665,930
Firm-Fixed-Price	515,015		210,305		725,320		175,946		135,712		311,658
Cost-Plus Fee	199,896		—		199,896		195,798		—		195,798
Time-and-Materials	130		86,300		86,430		1,235		111,875		113,110
Segment Revenues	$	1,144,246	$	304,449	1,448,695		$	1,027,967	$	258,529	1,286,496
Eliminations					(2,398)						(1,065)
Revenues					$	1,446,297					$	1,285,431

Performance Obligations

As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenues and/or costs of contracts. The aggregate impact of changes in estimates decreased our revenues and operating income as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(In thousands)				(In thousands)
Revenues (1)	$	17,520	$	(2,098)	$	5,930	$	(2,791)
Operating Income (1)	$	17,605	$	(2,079)	$	6,046	$	(3,350)

(1)During the three months ended June 30, 2025, our Government Operations segment results were favorably impacted by contract adjustments related to a nuclear operations contract. These adjustments resulted in an increase in revenue and operating income of $29.4 million for the three and six months ended June 30, 2025. During the three and six months ended June 30, 2024, no adjustments to any one contract had a material impact on our consolidated financial statements.

Contract Assets and Liabilities

We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. Costs specific to certain contracts for which we recognize revenue at a point in time are also included in Contracts in progress. We include in Advance billings on contract billings that exceed accumulated contract costs and revenues recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled receivables. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. Our fixed-price incentive fee contracts for our Government Operations segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments received during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts.


	June 30,		December 31,
	2025		2024
	(In thousands)
Included in Contracts in progress:
Unbilled receivables	$	620,627	$	559,415
Retainages	$	40,712	$	33,667
Advance billings on contracts	$	198,336	$	161,290

During the three months ended June 30, 2025 and 2024, we recognized $54.1 million and $43.6 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year. During the six months ended June 30, 2025 and 2024, we recognized $123.6 million and $86.4 million, respectively, of revenues that were in Advance billings on contracts at the beginning of each year.

Remaining Performance Obligations

Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. At June 30, 2025, our remaining performance obligations were $6,015.2 million. We expect to recognize approximately 53% of the revenue associated with our remaining performance obligations by the end of 2026, with the remainder to be recognized thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

BWX Technologies, Inc. 10-Q