v3.25.4
Pension Plans and Postretirement Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension Plans and Postretirement Benefits PENSION PLANS AND POSTRETIREMENT BENEFITS
We have historically provided defined benefit retirement benefits, primarily through noncontributory pension plans, for most of our regular employees. Certain of our subsidiaries have made other benefits available to certain groups of employees, including postretirement health care and life insurance benefits. As of 2021, for salaried employees, all major U.S. and Canadian defined benefit retirement plans have been closed to new entrants, and benefit accruals have ceased. For hourly employees, certain defined benefit retirement plans have been closed to new entrants. On May 20, 2025, we completed the acquisition of Kinectrics, inclusive of the Kinectrics Inc. Pension Plan. Through the Kinectrics Inc. Pension Plan, Kinectrics employees are eligible for membership in the plan after completion of three months of continuous service and it is the Company's only defined benefit plan that is open to new participants.
Our funding policy is to fund the plans as recommended by the respective plan actuaries and in accordance with the Employee Retirement Income Security Act of 1974, as amended, or other applicable law including the Pension Benefits Act of the Province of Ontario. Assuming we continue as a government contractor, our contractual arrangements with the U.S. Government provide for the recovery of contributions to our pension and other postretirement benefit plans covering employees working primarily in our Government Operations segment.
Obligations and Funded Status
 Pension Benefits
Year Ended December 31,		Other Benefits
Year Ended December 31,
 2025202420252024
 (In thousands)
Change in benefit obligation:
Benefit obligation at beginning of period
$892,914 $954,369 $43,076 $43,316 
Service cost
13,156 7,523 1,990 384 
Interest cost
58,820 45,513 3,948 2,012 
Plan participants' contributions
5,340 156 473 396 
Amendments
4,642 1,307 — — 
Acquisitions453,635 — 61,915 — 
Settlements
— — (4,860)— 
Actuarial loss (gain)
36,707 (50,535)2,307 835 
Foreign currency exchange rate changes
2,028 (2,814)435 (1,054)
Benefits paid
(75,571)(62,605)(4,313)(2,813)
Benefit obligation at end of period
$1,391,671 $892,914 $104,971 $43,076 
Change in plan assets:
Fair value of plan assets at beginning of period
$818,153 $878,942 $47,506 $47,453 
Actual return on plan assets
96,974 271 2,498 1,661 
Plan participants' contributions
5,340 156 237 121 
Company contributions
32,878 4,611 5,617 1,048 
Settlements
— — (4,860)— 
Acquisitions421,730 — — — 
Foreign currency exchange rate changes
23,586 (3,222)(131)— 
Benefits paid
(75,571)(62,605)(4,399)(2,777)
Fair value of plan assets at the end of period
1,323,090 818,153 46,468 47,506 
Funded status
$(68,581)$(74,761)$(58,503)$4,430 
Amounts recognized in the balance sheet consist of:
Prepaid postretirement benefit obligation
$— $— $19,629 $22,880 
Prepaid pension
12,546 10,663 — — 
Prepaid (accrued) employee benefits(2,960)(2,822)328 (1,935)
Accumulated postretirement benefit obligation
— (78,460)(16,515)
Pension liability
(78,167)(82,602)— 
Accrued benefit liability, net
$(68,581)$(74,761)$(58,503)$4,430 
Amount recognized in accumulated comprehensive income (before taxes):
Prior service cost (credit)
$18,806 $17,301 $2,578 $2,666 
Supplemental information:
Plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation
$1,370,088 $872,933 N/AN/A
Accumulated benefit obligation
$1,299,983 $871,892 $77,034 $16,658 
Fair value of plan assets
$1,290,027 $787,514 $— $107 
Plans with plan assets in excess of accumulated benefit obligation:
Projected benefit obligation
$21,584 $19,974 N/AN/A
Accumulated benefit obligation
$21,584 $19,974 $27,937 $26,418 
Fair value of plan assets
$33,063 $30,638 $46,468 $47,399 
We record the service cost component of net periodic benefit cost within Operating income on our consolidated statements of income. For the years ended December 31, 2025, 2024 and 2023, these amounts were $15.1 million, $7.9 million and $7.9 million, respectively. All other components of net periodic benefit cost are included in Other – net on our consolidated statements of income. For the years ended December 31, 2025, 2024 and 2023, these amounts were $(15.2) million, $(0.8) million and $20.9 million, respectively. Components of net periodic benefit cost included in net income are as follows:
 Pension Benefits
Year Ended December 31,		Other Benefits
Year Ended December 31,
 202520242023202520242023
 (In thousands)
Components of net periodic benefit cost:
Service cost
$13,156 $7,523 $7,515 $1,990 $384 $338 
Interest cost
58,820 45,513 47,638 3,948 2,012 2,139 
Expected return on plan assets
(72,745)(60,291)(60,437)(1,945)(1,948)(2,536)
Amortization of prior service cost
3,152 3,280 3,238 88 45 40 
Recognized net actuarial loss (gain)
(8,362)9,485 31,755 1,811 1,122 (946)
Net periodic benefit cost (income)
$(5,979)$5,510 $29,709 $5,892 $1,615 $(965)
Net periodic benefit cost related to our pension plans is calculated in accordance with GAAP. In addition, we calculate pension costs in accordance with U.S. cost accounting standards ("CAS") for purposes of cost recovery on our U.S. Government contracts to the extent applicable. See further discussion of CAS pension costs under the heading "Critical Accounting Estimates" in Item 7 of this Annual Report on Form 10-K.
Recognized net actuarial losses (gains) consist primarily of our reported actuarial losses (gains), settlements, and the differences between the actual returns on plan assets and the expected returns on plan assets. The benefit obligation of our pension plans as of December 31, 2025 and 2024 increased (decreased) by $13.8 million and $(49.0) million, respectively, due to changes in the discount rate.
Additional Information
 Pension Benefits
Year Ended December 31,		Other Benefits
Year Ended December 31,
 2025202420252024
 (In thousands)
Decrease in accumulated other comprehensive income due to actuarial losses – before taxes
$(3,147)$(1,307)$(88)$— 
In the current fiscal year, we have recognized expense in other comprehensive income as a component of net periodic benefit cost of approximately $3.2 million and $0.1 million for our pension benefits and other benefits, respectively.
Assumptions
 Pension BenefitsOther Benefits
 2025202420252024
Weighted-average assumptions used to determine net periodic benefit obligations at December 31:
Discount rate
5.30 %5.62 %5.09 %5.33 %
 Pension BenefitsOther Benefits
 202520242023202520242023
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate to determine interest cost
5.27 %4.88 %5.26 %4.99 %4.84 %5.23 %
Expected return on plan assets
6.89 %7.13 %7.13 %4.23 %4.20 %5.67 %
The expected return on plan assets rate assumptions are based on the long-term expected returns for the investment mix of assets in the portfolio. In setting these rates, we use a building-block approach. Historical real return trends for the various asset classes in the plan's portfolio are combined with anticipated future market conditions to estimate the real rate of return for each asset class. These rates are then adjusted for anticipated future inflation to estimate nominal rates of return for each asset class. The expected rate of return on plan assets is then determined to be the weighted-average nominal return based on the weightings of the asset classes within the total asset portfolio.
Our existing other benefit plans are unfunded, with the exception of the NFS postretirement benefit plans. These plans provide health benefits to certain salaried and hourly employees, as well as retired employees, of NFS. All of the assets for these postretirement benefit plans are contributed into a Voluntary Employees' Beneficiary Association trust.
20252024
Assumed health care cost trend rates at December 31:
Health care cost trend rate assumed for next year9.00 %7.50 %
Rates to which the cost trend rate is assumed to decline (ultimate trend rate)4.50 %4.50 %
Year that the rate reaches ultimate trend rate20382037
Investment Goals
General
The overall investment strategy of the pension trusts is to achieve long-term growth of principal, while avoiding excessive risk and to minimize the probability of loss of principal over the long term. The specific investment goals that have been set for the pension trusts, in the aggregate, are (1) to ensure that plan liabilities are met when due and (2) to achieve an investment return on trust assets consistent with a reasonable level of risk.
Allocations to each asset class for both domestic and foreign plans are reviewed periodically and rebalanced, if appropriate, to assure the continued relevance of the goals, objectives and strategies. The pension trusts for both our domestic and foreign plans employ a professional investment advisor and a number of professional investment managers whose individual benchmarks are, in the aggregate, consistent with the plan's overall investment objectives.
The goals of each investment manager are (1) to meet (in the case of passive accounts) or exceed (for actively managed accounts) the benchmark selected and agreed upon by the manager and the pension trust and (2) to display an overall level of risk in its portfolio that is consistent with the risk associated with the agreed upon benchmark.
The investment performance of total portfolios, as well as asset class components, is periodically measured against commonly accepted benchmarks, including the individual investment manager benchmarks. In evaluating investment manager performance, consideration is also given to personnel, strategy, research capabilities, organizational and business matters, adherence to discipline and other qualitative factors that may impact the ability to achieve desired investment results.
Domestic Plans
We sponsor the following domestic defined benefit pension plans:
•BWXT Retirement Plan;
•Nuclear Fuel Services, Inc. Retirement Plan for Salaried Employees; and
•Nuclear Fuel Services, Inc. Retirement Plan for Hourly Employees.
The assets of the domestic pension plans are commingled for investment purposes and held by the trustee in the BWXT Master Trust (the "Master Trust"). For the years ended December 31, 2025 and 2024, the investment returns on domestic plan assets of the Master Trust (net of deductions for management fees) were approximately 10% and 0%, respectively.
The following is a summary of the asset allocations for the Master Trust at December 31, 2025 and 2024 by asset category:
December 31,
20252024
Asset Category:
U.S. Government Securities38 %33 %
Commingled and Mutual Funds4 %27 %
Real Estate14 %14 %
Diversified Credit13 %14 %
Fixed Income (excluding U.S. Government Securities)7 %6 %
Partnerships with Security Holdings1 %2 %
Cash and Accrued Items23 %4 %
Total100 %100 %
The target allocation for 2026 for the domestic plans, by asset class, is as follows:
Asset Class:
Fixed Income56 %
Equities33 %
Other11 %
Foreign Plans
We sponsor the following foreign defined benefit plans, both of which are in Canada:
•BWXT Canada Ltd. Bargaining Unit Employees' Pension Plan; and
•Kinectrics Inc. Pension Plan.
The assets of the foreign plans are maintained in separate trusts. The following is a summary of the asset allocations of the foreign plans at December 31, 2025 and 2024 by asset category:
December 31,
20252024
Asset Category:
Fixed Income29 %60 %
Commingled and Mutual Funds49 %37 %
Cash and Other22 %3 %
Total100 %100 %
The target allocation for 2026 for the foreign plans, by asset class, is as follows:
Asset Class:
Fixed Income65 %
Equities35 %
Fair Value
See Note 14 for a detailed description of fair value measurements and the hierarchy established for valuation inputs. The following is a summary of total assets for our plans measured at fair value at December 31, 2025:
12/31/2025Level 1Level 2Level 3Unclassified
 (In thousands)
Pension and Other Benefits:
U.S. Government Securities$187,854 $187,854 $— $— $— 
Commingled and Mutual Funds280,517 10,709 — — 269,808 
Real Estate125,031 — — — 125,031 
Diversified Credit105,421 — — — 105,421 
Fixed Income514,772 317,608 — — 197,164 
Partnerships with Security Holdings99,933 — — — 99,933 
Cash, Cash Equivalents and Accrued Items (1)
56,030 — — — 56,030 
Total Assets$1,369,558 $516,171 $— $— $853,387 
(1)Includes items that are not required to be categorized in the fair value hierarchy in order to permit reconciliation of the fair value hierarchy to the fair value of plan assets presented in the Obligations and Funded Status table.
The following is a summary of total assets for our plans measured at fair value at December 31, 2024:
12/31/2024Level 1Level 2Level 3Unclassified
 (In thousands)
Pension and Other Benefits:
U.S. Government Securities$261,008 $261,008 $— $— $— 
Commingled and Mutual Funds231,292 42,909 — — 188,383 
Fixed Income107,287 36,277 — — 71,010 
Diversified Credit111,003 — — — 111,003 
Real Estate110,223 — — — 110,223 
Partnerships with Security Holdings14,348 — — — 14,348 
Cash, Cash Equivalents and Accrued Items (1)
30,391 — — — 30,391 
Total Assets$865,552 $340,194 $— $— $525,358 
(1)Includes items that are not required to be categorized in the fair value hierarchy in order to permit reconciliation of the fair value hierarchy to the fair value of plan assets presented in the Obligations and Funded Status table.
Cash Flows
 Domestic PlansForeign Plans
 Pension
Benefits		Other
Benefits		Pension
Benefits		Other
Benefits
 (In thousands)
Expected employer contributions to trusts of defined benefit plans:
2026$2,700 $288 $10,842 $2,379 
Expected benefit payments:
2026$66,070 $2,241 $20,481 $2,379 
2027$66,960 $2,280 $21,555 $2,631 
2028$67,484 $2,311 $22,918 $2,836 
2029$67,623 $2,336 $24,044 $3,038 
2030$67,523 $2,380 $24,977 $3,200 
2031-2035$328,954 $11,597 $142,363 $19,466 
Defined Contribution Plans
We also provide benefits under the BWXT Retirement Savings Plan (The "Thrift Plan"). The Thrift Plan generally provides for matching employer contributions of 50% of the first 6% of compensation, as defined in the Thrift Plan, contributed by participants, and fully vest and are nonforfeitable after three of service or upon retirement, death, lay-off or approved disability. These matching employer contributions are made in cash and invested at the employees' discretion. We also provide service-based cash contributions under the Thrift Plan to employees not accruing benefits under our defined benefit plans. One of our foreign plans includes a defined contribution component whereby we make cash, service-based contributions. Amounts charged to expense for employer contributions under our defined contribution plans totaled approximately $43.0 million, $47.4 million and $41.5 million in the years ended December 31, 2025, 2024 and 2023, respectively.