There are nuclear stocks trading at lower valuations than BWX Technologies (NYSE: BWXT), including Constellation (NASDAQ: CEG) and Duke Energy (NYSE: DUK), large utility companies that use nuclear power, but compared with its peers, BWX stock is still a steal. The stock is down more than 7% so far this year.
Hot nuclear stocks GE Vernova (GEV +0.01%), NuScale Power (SMR -0.51%), Oklo (OKLO +3.59%), Cameco (CCJ +0.12%), and Uranium Energy (UEC +0.26%) all trade at higher valuations than BWX whether you look at trailing price-to-earnings (P/E), forward P/E, or price-to-sales (P/S) ratio.
BWX may not be the flavor of the month, but that presents an opportunity for investors. The stock benefits from a near-sole-source monopoly supplying nuclear reactors and high-assay enriched fuel for the U.S. Navy's submarine and aircraft carrier fleet. Here are three reasons to buy this stock now.
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Strong financial health and a big backlog
In the second quarter, the defense company reported $901.6 million in revenue, up 18% year over year, driven by expansion in government and commercial nuclear services. It also reported $1.07 in earnings per share (EPS), a 5% increase from the same quarter a year ago.
NYSE: BWXT
Key Data Points
The company recently signed more than $1.4 billion in contracts with the U.S. Navy to support its Nuclear Propulsion Program, including a five-year, $1.3 billion long-lead material procurement deal and $165 million to procure long-lead time nuclear system components and manufacturing to support the Navy's Ford-class aircraft carrier program.
BWX carries a backlog of more than $8.6 billion, giving it multiyear revenue visibility that insulates it from broader economic downturns.
The company was confident enough to raise its yearly revenue guidance to $3.8 billion, up 61.7%, and non-GAAP EPS of $4.70 to $4.80, up 18% at the midpoint.
A nice naval military-driven moat
BWX is the lone manufacturer of nuclear reactors and fuel for the U.S. Navy's submarine, Virginia-class and Columbia-class, and aircraft carrier fleets.
There are high levels of regulatory requirements, security clearances, and technology that any competitor would have to address to process high-assay, low-enriched uranium (HALEU) and build military-grade naval nuclear reactors. That gives BWX significant pricing power.
In addition, the war in Iran has highlighted the need for Navy modernization and fleet expansion. That's become a high-priority defense agenda, ensuring long-term government demand for BWX's services.
The company is expanding its commercial sales
Thanks to its position as a component and fuel manufacturer for next-generation small modular reactors (SMRs) and its manufacture of radioisotopes for diagnostic imaging and targeted cancer therapies, BWX is diversifying its revenue stream into high-margin markets.
In Q2, it reported commercial revenue of $303 million, up 72%, year over year, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $36 million, up 123% over the same period a year ago. The company is predicting 45% growth in commercial sales this year thanks in large part to two recent acquisitions. In 2025, it purchased Kinectrics , which serves the small modular reactor and traditional large-scale nuclear reactor markets. This past July, it completed its purchase of Precision Components Group, which makes complex, heavy-walled, and heat-transfer components.
