“This has been a very good market for the defense contractors and the nuclear energy plays. So what about a company that’s in both of these businesses? I’m talking about BWX Technologies, which makes nuclear reactors for submarines and aircraft carriers. Here’s a stock that has more than tripled over the past three years, up significantly in recent periods, following a strong earnings beat and bullish outlook.”
BWX Technologies: A Dual-Force Powerhouse in National Security and Clean Energy
BWX Technologies (NYSE: BWXT) has emerged as a compelling name in the current investment landscape, drawing attention from market commentators for its unique positioning at the intersection of U.S. defense priorities and the accelerating revival of nuclear power. The company specializes in designing, manufacturing, and servicing nuclear components critical to naval propulsion systems, while also expanding into commercial nuclear applications, medical isotopes, and advanced fuel technologies.
Recent performance underscores this momentum. In its latest quarterly results covering the end of 2025, BWXT delivered adjusted earnings per share of $1.08, surpassing expectations, on revenue of approximately $886 million, reflecting robust year-over-year growth. For the full year 2025, the company posted revenue of about $3.2 billion, with adjusted EBITDA reaching $574 million and a record backlog swelling to $7.3 billion—a 50% increase from the prior year. This backlog is fueled by multi-year contracts in naval propulsion, special nuclear materials, and emerging commercial nuclear projects.
The company’s government segment remains its cornerstone, supplying nuclear reactors and related components for U.S. Navy submarines and aircraft carriers. This provides stable, long-term revenue visibility tied to national security imperatives. With ongoing U.S. Navy shipbuilding plans emphasizing nuclear-powered vessels, BWXT benefits from sustained demand in this area. Recent awards include new pricing agreements for naval equipment and fuel, along with scopes for expanding domestic uranium enrichment capabilities vital for defense needs.
On the commercial side, BWXT is capitalizing on the nuclear renaissance driven by surging energy demands from data centers, artificial intelligence infrastructure, and decarbonization goals. The company is advancing small modular reactor (SMR) technologies, supporting projects like AP1000 reactors and CANDU designs, and expanding production of high-assay low-enriched uranium (HALEU) for next-generation reactors. Acquisitions in recent years have bolstered its capabilities in technical services and international operations, including management contracts for nuclear laboratories.
Financially, BWXT demonstrated strong cash generation, with operating cash flow of nearly $480 million and free cash flow around $295 million for 2025. The company has invested in facility expansions, such as manufacturing sites for commercial nuclear components and a new centrifuge development facility, positioning it for future scaling. A recently increased quarterly dividend to $0.27 per share signals confidence in ongoing cash flow strength.
Looking ahead, management has outlined optimistic guidance for 2026, projecting revenue of approximately $3.75 billion—representing solid growth from the prior year—along with adjusted EPS in the range of $4.55 to $4.70, adjusted EBITDA between $645 million and $660 million, and free cash flow of $305 million to $320 million. This outlook reflects continued execution on the massive backlog and tailwinds from both defense spending and commercial nuclear momentum.
Analysts have responded positively to these developments, with recent price target increases reflecting the earnings strength and growth visibility. The stock has shown impressive performance, more than tripling over the past three years amid rising interest in defense resilience and nuclear energy as a reliable baseload power source.
Key Financial Metrics (2025 Full Year)
Revenue: ~$3.20 billion (up 18% YoY)
Adjusted EBITDA: $574 million
Backlog: $7.3 billion (up 50% YoY)
Operating Cash Flow: ~$480 million
Free Cash Flow: ~$295 million
Dividend: Increased to $0.27 per share quarterly
2026 Guidance Highlights
Revenue: ~$3.75 billion
Adjusted EPS: $4.55–$4.70
Adjusted EBITDA: $645–$660 million
Free Cash Flow: $305–$320 million
BWXT’s dual exposure offers investors a balanced play: reliable government-backed contracts for stability and high-growth potential in commercial nuclear amid global energy transitions. As geopolitical tensions sustain defense budgets and AI-driven power needs boost nuclear interest, the company stands poised to deliver sustained performance in these strategic sectors.