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1. Company Snapshot

1.a. Company Description

BWX Technologies, Inc.manufactures and sells nuclear components in the United States, Canada, and internationally.It operates in three segments: Nuclear Operations Group, Nuclear Power Group, and Nuclear Services Group.


The Nuclear Operations Group segment provides precision naval and critical nuclear components, reactors, nuclear fuel, and assemblies for the United States Department of Energy/National Nuclear Security Administration's Naval Nuclear Propulsion Program and other uses; missile launch tubes for United States Navy submarines; close-tolerance and equipment for nuclear applications; and converts Cold War-era government stockpiles of high-enriched uranium, as well as receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; supplies research reactor fuel elements for colleges, universities, and national laboratories; and components for defense applications.The Nuclear Power Group segment offers commercial nuclear steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems, and containers; engineering and in-plant services for nuclear power plants; designs, manufactures, commissions, and services nuclear power generation equipment; in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and supplies medical radioisotopes and radiopharmaceuticals for research, diagnostic, and therapeutic uses.The Nuclear Services Group segment provides nuclear materials processing, environmental site restoration, and management and operating services; develops technology for nuclear power sources application; and designs, engineers, licenses, and manufactures nuclear reactors.


The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc.in June 2015.BWX Technologies, Inc.


was founded in 1867 and is headquartered in Lynchburg, Virginia.

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1.b. Last Insights on BWXT

BWX Technologies' recent performance was driven by strong Q3 results, including double-digit organic revenue growth and healthy free cash flow. The company's record $6B backlog, aided by recent acquisitions like Kinectrics, and multi-year government contracts provide visibility. Its unique supply lead in US Navy reactors and accelerating commercial growth in medical isotopes and SMR components underpin its growth thesis. A $1 EPS beat and raised guidance also contributed to positive momentum, with a conservative DCF supporting long-term intrinsic value. (Source: BWX Technologies Reports Third Quarter 2025 Results)

1.c. Company Highlights

2. BWX Technologies Delivers Strong Q3 2025 with 29% Revenue Growth

BWX Technologies reported a strong third quarter with revenue of $866 million, up 29% year over a year, driven by both Government and Commercial Operations segments. The company's adjusted EBITDA was $151 million, up 19% year-over-year, resulting in an adjusted EBITDA margin of 17.4%. Earnings per share came in at $1, beating estimates of $0.85. The company's total backlog stood at $7.4 billion, up 23% from last quarter and 119% year-over-year, providing a strong foundation for future growth.

Publication Date: Nov -05

📋 Highlights
  • Revenue & Profit Growth: Q3 2025 revenue rose 29% to $866M, with adjusted EBITDA up 19% to $151M and EPS growth of 20%.
  • Commercial Segment Surge: Commercial Operations revenue jumped 122% (163% EBITDA growth), driven by the $540M+ Kinectrics acquisition and 38% organic growth.
  • Backlog Expansion: Total backlog reached $7.4B, up 119% YoY and 23% sequentially, fueled by large contracts including a $1.5B depleted uranium enrichment award.
  • 2026 Outlook: Guidance forecasts low double-digit EBITDA growth, 8–11% EPS growth, and flat to slightly higher free cash flow ($10M annual improvement) via cash conversion cycle optimization.

Segment Performance

Government Operations revenue grew 10%, driven by Naval Propulsion, Long Lead Material Procurement, and Special Materials. The company expects this segment to grow in the mid-teens in 2026, led by growth in Special Materials. Commercial Operations revenue, on the other hand, grew 122%, driven by the Kinectrics acquisition, with organic revenue growth of 38% driven by strong year-over-year growth in Commercial Power business and double-digit growth in Medical.

Outlook and Valuation

The company expects another year of record financial results in 2026, with low double-digit to low teens adjusted EBITDA growth, yielding high single-digit to low double-digit adjusted earnings per share growth. Analysts estimate next year's revenue growth at 13.6%. With a current P/E Ratio of 62.31 and EV/EBITDA of 40.26, the market is pricing in high expectations for the company's future growth. The company's ROE of 26.62% and ROIC of 10.22% indicate a strong ability to generate returns on equity and invested capital.

Growth Drivers and Risks

The company's growth is driven by a robust pipeline of commercial nuclear opportunities, a positive turn in the naval nuclear propulsion business, and the AUKUS program. However, there are risks to achieving the 2026 outlook, including the timing of commercial nuclear opportunities, defense spending, and an extended government shutdown. As Michael Fitzgerald mentioned, the recent $80 billion nuclear partnership could create opportunities for component manufacturing, but the opportunity set is still unclear.

3. NewsRoom

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Why BWX Technologies Stock Just Popped

Dec -04

Source: fool.com

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BWXT Delivers Full Core of TRISO Nuclear Fuel for Project Pele Microreactor

Dec -02

Source: businesswire.com

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BWXT Expands Service Offerings with Owner's Engineer Contract at Bulgaria's New Kozloduy Nuclear Power Plant Units 7 & 8

Dec -02

Source: businesswire.com

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BWX Technologies, Inc. (NYSE:BWXT) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Dec -01

Source: defenseworld.net

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Miss These Genesis Mission Stocks, and You’ll Regret It for a Decade

Dec -01

Source: investorplace.com

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BWX Technologies: Q3 Execution Highlights Strategic Pivot Beyond Defense

Nov -27

Source: seekingalpha.com

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Aristides Capital LLC Decreases Position in BWX Technologies, Inc. $BWXT

Nov -27

Source: defenseworld.net

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Atika Capital Management LLC Has $30.31 Million Stake in BWX Technologies, Inc. $BWXT

Nov -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.62%)

6. Segments

Government

Expected Growth: 6%

Government segment growth of 6% is driven by increasing demand for nuclear components and services, driven by the U.S. Navy's nuclear-powered fleet expansion and modernization efforts, as well as growing international nuclear power generation and non-nuclear government contracts.

Commercial

Expected Growth: 4%

BWX Technologies, Inc.'s commercial segment growth is driven by increasing demand for nuclear medicine and radioisotope products, expansion into new markets, and strategic partnerships. Additionally, investments in research and development, as well as a strong order backlog, contribute to the segment's 4% growth rate.

Eliminations

Expected Growth: 0%

No growth in eliminations from BWX Technologies, Inc. is attributed to the absence of intersegment sales, lack of consolidation of financial statements, and minimal impact of corporate allocations, resulting in no eliminations required to present consolidated financial statements.

7. Detailed Products

Nuclear Operations

BWXT provides nuclear components, fuel, and services to the US government and commercial customers, including the design and manufacture of nuclear reactors for the US Navy.

Nuclear Energy

BWXT offers a range of nuclear energy products and services, including nuclear fuel, reactor components, and engineering services.

Nuclear Medicine

BWXT produces and supplies radioisotopes and radiopharmaceuticals for medical research, diagnostic, and therapeutic applications.

Technical Services

BWXT provides technical services, including engineering, design, and consulting services, to government and commercial customers.

Nuclear Waste Management

BWXT offers nuclear waste management services, including the design and operation of nuclear waste storage and disposal facilities.

8. BWX Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BWX Technologies, Inc. is medium due to the presence of alternative nuclear components and services providers.

Bargaining Power Of Customers

The bargaining power of customers for BWX Technologies, Inc. is low due to the company's strong relationships with its customers and the lack of buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for BWX Technologies, Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for BWX Technologies, Inc. is low due to the high barriers to entry in the nuclear industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for BWX Technologies, Inc. is high due to the presence of several competitors in the nuclear industry, leading to a competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.53%
Debt Cost 7.66%
Equity Weight 43.47%
Equity Cost 7.66%
WACC 7.66%
Leverage 130.03%

11. Quality Control: BWX Technologies, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Woodward

A-Score: 5.0/10

Value: 1.1

Growth: 5.6

Quality: 6.7

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Textron

A-Score: 4.9/10

Value: 5.5

Growth: 5.9

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
BWXT

A-Score: 4.7/10

Value: 0.2

Growth: 6.3

Quality: 5.3

Yield: 1.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Leonardo DRS

A-Score: 4.6/10

Value: 2.0

Growth: 3.7

Quality: 6.2

Yield: 1.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Axon Enterprise

A-Score: 4.6/10

Value: 0.0

Growth: 9.6

Quality: 5.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
AAR

A-Score: 4.4/10

Value: 4.5

Growth: 4.9

Quality: 3.1

Yield: 0.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

174.96$

Current Price

174.96$

Potential

-0.00%

Expected Cash-Flows