BWXT secures $2.6 billion in naval nuclear reactor contracts

LYNCHBURG, Va. - BWX Technologies, Inc. (NYSE:BWXT) announced Thursday it has been awarded contracts valued at approximately $2.6 billion, including future year options, from the U.S. Naval Nuclear Propulsion Program for manufacturing naval nuclear reactor components. The contract value represents nearly 93% of the company’s annual revenue of $2.78 billion. According to InvestingPro data, BWXT has demonstrated solid financial performance with a 9.9% revenue growth over the last twelve months.

The contracts primarily support Virginia and Columbia-class submarines, with some work allocated for Ford-class aircraft carrier components. Deliveries of the contracted products are scheduled over the next six to eight years.

"The BWXT team is proud to produce this essential hardware that allows the U.S. Navy to carry out its critical national security mission," said Gary Camper, president of BWXT’s Nuclear Operations Group, in a press release statement.

Naval nuclear reactors are complex assemblies requiring large, heavy components, numerous smaller machined components, and highly enriched uranium fuel. BWXT manufactures and assembles these parts at its facilities in Ohio, Indiana, Tennessee and Virginia.

These new contracts build upon the $2.1 billion in awards BWXT announced in February.

BWXT, a Fortune 1000 and Defense News Top 100 company, employs nearly 10,000 people across 20 major operating sites in the U.S., Canada and the U.K. The company provides nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine and space exploration. With a market capitalization of $12.78 billion and a strong return on equity of 28%, BWXT has demonstrated consistent financial strength. InvestingPro analysis reveals 14 additional key insights about BWXT’s performance and valuation, available to subscribers along with a comprehensive Pro Research Report covering what matters most for investors.

In other recent news, BWX Technologies, Inc. announced that it will lead a joint venture to manage Canadian Nuclear Laboratories Ltd. under a contract valued at C$1.2 billion annually. This contract, awarded by Atomic Energy of Canada Limited, will last for six years with potential extensions. Additionally, BWX Technologies has appointed Kevin McCoy as chief nuclear officer to support U.S. Navy submarine programs, while Joseph K. Miller and Katherine Haggerty Kelly have taken on new leadership roles within the company. In another development, BWXT has appointed Mike T. Fitzgerald as interim chief financial officer following Robb A. LeMasters’ resignation. William Blair has initiated coverage of BWX Technologies with an Outperform rating, citing the company’s strong position in the nuclear supply chain and potential for growth in the commercial nuclear sector. These updates are part of BWX Technologies’ ongoing efforts to strengthen its leadership and expand its operations in the nuclear industry.

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