This Is My Favorite Nuclear Stock, and it Looks Like a Great Long-Term Buy

BWX Technologies (BWXT) reported strong Q3 earnings, with revenue up 29% to $866 million and EPS growing 20%, leading to a raised 2025 guidance projecting over $3.1 billion in revenue and $3.75-$3.80 EPS. The company, a key player in naval nuclear propulsion and small modular reactors (SMRs), is strategically positioned for significant growth, particularly through its involvement in Project Pele and its strong candidacy for Project Janus. Project Janus is a new military initiative aiming to deploy a domestic nuclear reactor by September 2028, which is expected to be a major catalyst for BWXT's continued expansion amid a favorable pro-nuclear policy environment.

Analysis

BWX Technologies (BWXT) reported robust Q3 earnings, with revenues surging 29% year-over-year to $866 million, driven by a 10% increase in government operations and a significant 122% growth in commercial operations. Net income and EPS also saw strong growth of 19% and 20% respectively, with EPS beating expectations by 17%. This strong performance led management to raise its 2025 guidance, now projecting annual revenue to exceed $3.1 billion and EPS in the range of $3.75-$3.80.

The company is strategically positioned at the forefront of nuclear innovation, particularly with its BWXT Advanced Nuclear Reactor (BANR) in the small modular reactor (SMR) space and its leadership in Project Pele for the Army, which has already produced the first electricity-generating Gen IV reactor outside China. BWXT's deep, seven-decade relationship with the military, accounting for 71% of its revenue, underpins its stable core business of naval nuclear propulsion systems.

A significant future catalyst is Project Janus, a new military initiative aiming to deploy a domestic nuclear reactor by September 2028. Given BWXT's existing involvement in Project Pele and its long-standing military ties, the company is a prime candidate for contracts under this program, which is modeled on NASA's COTS outsourcing approach. This aligns with broader pro-nuclear energy policies, including the Department of Energy's goal to quadruple U.S. nuclear capacity by mid-century, providing substantial secular tailwinds for BWXT's continued growth.

Key Decisions for Investors

• Maintain or initiate a long position in BWXT, supported by strong Q3 earnings, raised 2025 guidance, and a solid balance sheet
• Closely monitor developments and potential contract awards related to Project Janus, as this represents a significant near-term growth catalyst
• Evaluate BWXT's long-term growth trajectory, considering its strategic role in nuclear innovation and the favorable macro tailwinds from increasing defense spending and pro-nuclear energy policies