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Is This $17.5 Billion Nuclear Stock Your Ticket to Future Riches?
Key Points
BWX dominates a crucial link of the nuclear supply chain.
It has better scale and diversification than many of its industry peers.
The nuclear energy market cooled off for a decade after the 2011 Fukushima disaster. But over the past few years, it warmed up again as countries implemented new decarbonization initiatives and the cloud, AI, data center, and industrial automation markets expanded.
From 2025 to 2020, the International Energy Agency (IEA) expects the world's nuclear capacity to rise by over 50%. To capitalize on that secular trend, investors should take a closer look at BWX Technologies (NYSE: BWXT) -- a $17.5 billion nuclear energy bellwether that is much better diversified than most of its industry peers.
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Why is BWX Technologies a great long-term investment?
BWX is the top producer of specialized nuclear components, fuel systems, and naval reactor systems in North America. It's one of the only companies authorized to handle regulated nuclear materials, work with high-assay enriched uranium (HALEU) and tri-structural isotropic (TRISO) fuel, and produce naval reactor components for the U.S. Navy.
It's also developing modular microreactors that can be deployed in smaller areas for Project Pele, one of the most important U.S. advanced nuclear programs. Its heavy exposure to the defense market insulated it from the post-Fukushima decline in nuclear spending, and its year-end backlog swelled 50% year over year to $7.3 billion in 2025.
From 2025 to 2028, analysts expect BWX's revenue and EPS to grow at CAGRs of 13% and 16%, respectively. It might not seem like a bargain at 37 times next year's earnings, but its growing backlog and long-term strengths justify that premium valuation.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BWX Technologies. The Motley Fool has a disclosure policy.