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OAK RIDGE, Tenn. - BWX Technologies, Inc. (NYSE:BWXT), a company with a market capitalization of $16.18 billion and impressive year-to-date returns of 57%, has been awarded a $1.5 billion contract by the Department of Energy’s National Nuclear Security Administration (NNSA) to develop domestic uranium enrichment capabilities for defense purposes, according to a press release statement. InvestingPro analysis indicates the stock is currently trading above its Fair Value, reflecting strong investor confidence in the company’s growth prospects.
The contract tasks BWXT with building the Domestic Uranium Enrichment Centrifuge Experiment (DUECE) pilot plant, which will initially demonstrate low-enriched uranium production before being repurposed to produce highly enriched uranium for naval propulsion applications. The company will locate the plant at its Nuclear Fuel Services site in Erwin, Tennessee.
BWXT began construction of its Centrifuge Manufacturing Development Facility in Oak Ridge, Tennessee, in June. The Oak Ridge facility will manufacture centrifuges for use at the Erwin pilot plant. Once fully operational, the manufacturing facility is expected to create approximately 100 jobs. The company’s solid financial foundation, with revenue growth of 10.13% and an "GOOD" overall financial health rating according to InvestingPro, positions it well for this expansion. InvestingPro subscribers have access to 17 additional key insights about BWXT’s financial performance and outlook.
"NNSA’s selection of BWXT for this project acknowledges our long-standing role as a trusted partner in advancing the nation’s nuclear defense mission," said Rex D. Geveden, BWXT president and chief executive officer.
The NNSA stated in its release that partnering with commercial industry helps establish critical supply chains for defense enrichment requirements and ensures capabilities are ready to support mission needs.
The state of Tennessee is supporting the centrifuge manufacturing project with a grant from its Nuclear Energy Fund. BWXT has acquired nearly 97 acres of land in Oak Ridge for the facility.
The contract includes designing the plant, applying for necessary licenses, procuring equipment, preparing the site, demonstrating centrifuge manufacturing readiness, and operating the plant.
In other recent news, BWX Technologies reported impressive financial results for the second quarter of 2025. The company’s earnings per share (EPS) came in at $1.02, significantly beating the forecast of $0.79. Revenue also surpassed expectations, totaling $764 million compared to the anticipated $708.55 million. Following these results, Truist Securities raised its price target for BWX Technologies from $114 to $145, maintaining a Hold rating, citing the company’s strong performance and improved outlook for the year.
Additionally, BofA Securities increased its price target for BWX Technologies from $155 to $220, continuing to recommend a Buy rating on the stock. In other developments, BWX Technologies appointed Rik Geiersbach as its new chief strategy officer. Geiersbach, a former vice president of strategy and corporate development at Boeing, will focus on leading the company’s enterprise strategy and merger and acquisition initiatives. These recent developments highlight BWX Technologies’ strategic moves and strong financial performance.
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