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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

Breaking News: BWX Technologies Inc reported no recent earnings release. Artisan Partners Limited Partnership decreased its position in BWX Technologies by 6.6% during Q3, selling 84119 shares. Meanwhile, GE Aerospace and other nuclear plays are near buy points. Oklo, a small modular reactor developer, is generating interest but has no revenue and is losing money. Analysts are cautious, recommending a hold. Some analysts would recommend buying BWX Technologies instead of Oklo. BWX Technologies has a solid position in the nuclear industry.

1.c. Company Highlights

2. BWXT's Strong 2025 Results and Promising Outlook

BWXT reported a robust financial performance for 2025, with revenue growing 18% to a record level, adjusted EBITDA increasing 15%, earnings per share rising 20% to $1.08, beating estimates of $0.91, and free cash flow growing 16%. The company's backlog stood at $7.3 billion, up 50% year-over-year, driven by meaningful growth in both government and commercial segments.

Publication Date: Feb -25

📋 Highlights
  • 2025 Financial Performance:: Revenue grew 18%, adjusted EBITDA +15%, earnings per share +20%, and free cash flow +16%, all exceeding initial guidance.
  • Backlog Expansion:: Total backlog reached $7.3 billion (+50% YoY), with $1.7 billion in Commercial Operations (+85% YoY) driven by CANDU refurbishments and SMR design awards.
  • Government Segment Adjustments:: Q4 revenue declined 1%, but adjusted EBITDA hit $111 million (18.8% margin), offset by growth in defense fuels and HPDU contracts.
  • Commercial Momentum:: Revenue surged 95% YoY, with adjusted EBITDA rising 87% to $44 million, fueled by 31% organic growth and Kinectrics integration.
  • 2026 Guidance:: Revenue targets $3.75 billion (+high teens), adjusted EBITDA of $645–660 million (+low to mid-teens), and free cash flow of $305–320 million.

Segmental Performance

In Government Operations, revenue was down 1% in the fourth quarter, as expected, due to lower microreactor volumes and long lead material procurement for naval propulsion equipment. However, adjusted EBITDA margin remained healthy at 18.8%. In contrast, Commercial Operations revenue surged 95%, driven by 31% organic growth and the contribution from Kinectrics, with adjusted EBITDA up 87%.

Guidance and Outlook

BWXT expects revenue to grow to approximately $3.75 billion in 2026, up high teens compared to 2025, with Government Operations expected to grow low to mid-teens and Commercial Operations anticipated to grow 25%. Adjusted EBITDA is guided to $645 million to $660 million, up low to mid-teens. As Rex Geveden mentioned, "We see 2026 as another year of meaningful operational growth for BWXT, with strengthened balance sheet, expanded commercial platform, and positioned for continued margin improvement and cash generation."

Valuation Metrics

With a P/E Ratio of 56.69 and EV/EBITDA of 51.15, BWXT's valuation multiples indicate high expectations for future growth. The ROE of 27.73% suggests that the company is generating strong returns on equity. However, the Net Debt / EBITDA ratio of 4.98 indicates a relatively high level of debt.

Growth Drivers and Opportunities

BWXT is well-positioned for long-term growth, driven by its strong backlog, expanding commercial capabilities, and potential opportunities in new markets, such as small modular reactors. The company's investment in technologies to drive throughput within the factory and its focus on operational excellence are expected to support its growth trajectory.

3. NewsRoom

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GE Aerospace, Nuclear Play Lead 5 Stocks Near Buy Points

Feb -28

Source: investors.com

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Oklo Is Interesting, but Here's What I'd Buy Instead

Feb -27

Source: fool.com

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Artisan Partners Limited Partnership Sells 84,119 Shares of BWX Technologies, Inc. $BWXT

Feb -27

Source: defenseworld.net

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BWX Technologies: Time To Wait, Not To Buy

Feb -25

Source: seekingalpha.com

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Don't Overlook These Top Stocks After Q4 EPS Beats: ALSN, BWXT, VIV, VVX

Feb -25

Source: zacks.com

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Chase Investment Counsel Corp Invests $727,000 in BWX Technologies, Inc. $BWXT

Feb -24

Source: defenseworld.net

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BWX Technologies, Inc. (BWXT) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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Cathie Wood Is Buying DoorDash Stock After Identifying AI As Most 'Disruptive' Innovation In History: ARK Also Snaps Up AMD and Alphabet

Feb -24

Source: feeds.benzinga.com

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: 5.1/10

Value: 0.9

Growth: 6.9

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Textron

A-Score: 4.9/10

Value: 4.7

Growth: 5.9

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
BWXT

A-Score: 4.9/10

Value: 0.9

Growth: 6.3

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
AAR

A-Score: 4.2/10

Value: 4.8

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Leonardo DRS

A-Score: 4.1/10

Value: 2.3

Growth: 3.7

Quality: 6.2

Yield: 1.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Axon Enterprise

A-Score: 3.8/10

Value: 0.0

Growth: 9.6

Quality: 5.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

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

205.57$

Current Price

205.57$

Potential

-0.00%

Expected Cash-Flows