Company: BWXT
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001486957-25-000026
Chunk: 68

Company: BWX Technologies, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 to on-site inspection, maintenance and refurbishment work when compared to the corresponding period in the prior year.

Operating income decreased $2.1 million to $6.5 million in the three months ended March 31, 2025 compared to $8.6 million for the corresponding period of 2024. The decrease was primarily related to an unfavorable shift in our product mix as well as a $2.6 million increase in expenses associated with merger and acquisition and restructuring-related activities when compared to the corresponding period of the prior year.

Unallocated Corporate

Unallocated corporate expenses increased $6.3 million in the three months ended March 31, 2025 compared to the corresponding period of 2024. The increase was due to higher healthcare costs of $3.2 million related to the timing of claims in addition to an increase in legal and consulting costs associated with merger and acquisition related activities of $1.9 million when compared to the corresponding period in the prior year. We also experienced a $0.9 million increase in expenditures related to the transformation of our information technology infrastructure.

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Provision for Income Taxes

 Three Months EndedMarch 31,  20252024$ Change (In thousands)Income before Provision for Income Taxes$91,817 $88,377 $3,440 Provision for Income Taxes$16,291 $19,843 $(3,552)Effective Tax Rate17.7%22.5%

We primarily operate in the U.S., Canada and the U.K. and we recognize our U.S. income tax provision based on the U.S. federal statutory rate of 21%, our Canadian tax provision based on the Canadian local statutory rate of approximately 25%, and our U.K. tax provision based on the U.K. local statutory rate of 25%.

Our effective tax rate for the three months ended March 31, 2025 was 17.7% as compared to 22.5% for the three months ended March 31, 2024. The effective tax rate for the three months ended March 31, 2025 was lower than the U.S. corporate income tax rate of 21% primarily due to excess tax benefits associated with equity compensation partially offset by the unfavorable foreign rate differential. The effective tax rate for the three months ended March 31, 2024 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