BWXT secures $2.1 billion naval reactor contracts

LYNCHBURG, Va. - BWX Technologies, Inc. (NYSE:BWXT), a $9.7 billion market cap company, has been awarded contracts worth approximately $2.1 billion from the U.S. Naval Nuclear Propulsion Program for the production of naval reactor components. This work will support the U.S. Navy’s Columbia and Virginia class submarines and Ford (NYSE:F) class aircraft carriers. According to InvestingPro data, BWXT has demonstrated strong revenue growth of 12% over the last twelve months.

Manufacturing and procurement activities are set to take place at BWXT Nuclear Operations Group, Inc. facilities located in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana. The contracts cover a span of roughly seven years, starting from 2023.

These recent contracts complement a $300 million fuel contract previously secured by Nuclear Fuel Services, Inc., a subsidiary of BWXT, in October 2023. The fuel contract work is expected to be completed within this year in Erwin, Tennessee.

Gary D. Camper, president of BWXT Nuclear Operations Group, Inc., stated that the company’s 70-year legacy of supporting the U.S. Navy is a testament to its expertise in naval nuclear power and its commitment to maintaining global maritime freedom and security.

BWXT’s announcement includes forward-looking statements regarding the contracts’ performance, timing, impact, and value, noting that these are subject to risks and uncertainties which could cause actual results to differ materially. The company advises caution against placing undue reliance on these statements.

BWXT, a Fortune 1000 and Defense News Top 100 company, specializes in manufacturing and engineering for a variety of nuclear-related applications, including global security, clean energy, and space exploration. Employing around 8,700 people, BWXT operates across the U.S., Canada, and the U.K., and is involved in joint ventures managing U.S. Department of Energy and NASA facilities. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 2.25 and has consistently raised its dividend for 9 consecutive years. For deeper insights into BWXT’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a press release statement from BWXT Technologies, Inc.

In other recent news, BWX Technologies, Inc. has made significant strides in the nuclear energy sector. The company has secured contracts exceeding C$1 billion for nuclear energy projects in Ontario, including the life extension of the Pickering Nuclear Generating Station and the introduction of a new small modular reactor. In addition, BWXT has been awarded a contract by the U.S. Department of Energy, potentially valued at $3 billion, to continue cleanup efforts at the West Valley Demonstration Project in New York.

BWXT also announced the acquisition of Kinectrics, Inc., a Canadian firm specializing in lifecycle management services for the nuclear industry. The deal is expected to enhance BWXT’s Commercial Operations segment and nearly double its workforce in this area.

In terms of executive compensation, the company has granted 10,000 performance-based restricted stock units to its Executive Vice President and Chief Financial Officer, Robb A. LeMasters, contingent upon achieving specific financial targets over a three-year period.

These recent developments indicate BWXT’s commitment to growth and performance in the nuclear sector. Analysts from firms such as AtkinsRéalise and Aecon have noted the company’s strategic moves, including its involvement in the deployment of small modular reactors and the acquisition of Kinectrics.

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