The U.S. Army Is Spending $2.2 Billion on Micro Nuclear Reactors. This Stock Could Benefit.

America's nuclear energy renaissance is being driven by a few big forces. There is rising demand for energy in a growing economy, and artificial intelligence (AI) data centers need stable, reliable power supplies. Nuclear energy can be a part of the mix to meet this growing demand.

But the U.S. military needs power, too. The U.S. Army recently announced a new agreement with several nuclear energy companies to build nuclear microreactors for U.S. military installations. On Aug. 26, the Department of the Army announced $2.2 billion in funding to several companies to own, construct, and operate nuclear microreactors. This is part of the Army's Janus Program, launched in 2025 to help provide the U.S. military with next-generation nuclear energy.

The goal of this $2.2 billion funding is to provide safe, reliable, secure nuclear power to the U.S. military through more than 20 nuclear microreactors. Microreactors are a type of small modular reactor, meaning they can be built out of modular, factory-assembled parts. This can enable more flexible, faster construction at lower cost than for traditional, larger-scale nuclear power plants.

One publicly traded company selected as a vendor for these new Army nuclear microreactors was BWX Technologies (NYSE: BWXT). Let's see why this nuclear energy stock could be a good choice for long-term investors.

BWX Technologies (BWXT): Experienced in providing nuclear energy for the U.S. Navy

It makes sense that the U.S. Army would choose BWXT to help build nuclear microreactors. That's because BWXT already builds nuclear reactors for the U.S. Navy.

BWX Technologies is a well-established defense contractor with extensive experience since the 1950s as a nuclear energy supplier and partner for the U.S. Navy. BWXT nuclear reactors power U.S. Navy nuclear submarines and nuclear-powered aircraft carriers.

BWXT stock has gained about 136% in the past five years but has declined by about 40% in the past six months.

It's not the only nuclear energy stock that has gone through a sell-off. But BWXT's future might be brighter than that of most nuclear stocks. On its most recent quarterly earnings report, BWX Technologies raised its 2026 guidance for revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), non-GAAP earnings per share (EPS), and free cash flow.

Unlike some small modular reactor companies, BWXT has a proven track record of deploying its technology and earning profits. Compared to some companies that have promising technologies but no profits, BWXT might offer a more stable, well-established way to invest in the future of nuclear energy.

Ben Gran 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.