BWX Technologies (BWXT) AI Stock Analysis

• Market Cap: $16.26B
• Dividend Yield: 0.56%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 53.2
• Beta (1Y): 1.10
• Revenue Growth: 14.01%
• EPS Growth: 10.92%
• Country: US
• Employees: 8,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.00
• Shares Outstanding: 91,426,740
• 10 Day Avg. Volume: 754,774
• 30 Day Avg. Volume: 1,240,755
• PEG Ratio: 2.42
• Price to Book (P/B): 9.44
• Price to Sales (P/S): 3.77
• P/FCF Ratio: 40.04
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 6.00
• Enterprise Value/Gross Profit: 25.49
• Enterprise Value/Ebitda: 35.26
• 1Y Price Target: $211.00
• Price Target Upside: 18.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.79
• Revenue Forecast (FY): $3.15B

• Rating: 75 Outperform
• Price Target: $201.00 ▲(12.45% Upside)

BWX Technologies receives a strong overall score driven by robust financial performance and positive earnings call highlights. The issuance of convertible notes further strengthens its financial position. However, high valuation metrics and mixed technical indicators temper the overall outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for BWXT's products and services, supporting long-term business expansion and market presence.

Record Backlog

A record backlog secures future revenue streams, ensuring business stability and providing a buffer against market fluctuations.

New Major Contracts

Securing major contracts enhances BWXT's market position and strengthens its competitive edge in the nuclear sector.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase vulnerability to interest rate hikes, impacting long-term financial health.

Microreactor Volume Decline

A decline in microreactor volumes may signal challenges in maintaining growth in this segment, potentially affecting future revenue.

Impact of Government Shutdown

An extended government shutdown poses risks to BWXT's government contracts, potentially disrupting operations and financial performance.

BWX Technologies Business Overview & Revenue Model

Company Description

BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. It operates in three segments: Nuclear Operations Group, Nuclear Power Group, and Nuclear Services Group. The Nuclear Operations Group segment provides precision naval and critical nuclear components, reactors, nuclear fuel, and assemblies for the United States Department of Energy/National Nuclear Security Administration's Naval Nuclear Propulsion Program and other uses; missile launch tubes for United States Navy submarines; close-tolerance and equipment for nuclear applications; and converts Cold War-era government stockpiles of high-enriched uranium, as well as receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; supplies research reactor fuel elements for colleges, universities, and national laboratories; and components for defense applications. The Nuclear Power Group segment offers commercial nuclear steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems, and containers; engineering and in-plant services for nuclear power plants; designs, manufactures, commissions, and services nuclear power generation equipment; in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and supplies medical radioisotopes and radiopharmaceuticals for research, diagnostic, and therapeutic uses. The Nuclear Services Group segment provides nuclear materials processing, environmental site restoration, and management and operating services; develops technology for nuclear power sources application; and designs, engineers, licenses, and manufactures nuclear reactors. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

How the Company Makes Money

BWXT generates revenue through a diversified business model that includes several key revenue streams. The Government segment contributes a significant portion of revenue, primarily through contracts with the U.S. Department of Defense for the design and production of nuclear reactors for naval vessels, as well as for other defense-related services. The Commercial segment earns revenue by providing engineering and manufacturing services to commercial nuclear power plants, including the supply of components and systems for reactor operations. Additionally, BWXT engages in advanced manufacturing processes, which can lead to increased efficiency and cost savings for its clients. The company benefits from long-term contracts and partnerships with government entities and commercial clients, which contribute to stable and predictable revenue. Furthermore, BWXT's focus on innovation and technology development in the nuclear sector positions it advantageously for future growth opportunities.

BWX Technologies Financial Statement Overview

Summary

BWX Technologies demonstrates solid financial performance with strong revenue growth and profitability. While the debt level is relatively high, the company manages to maintain strong returns on equity and generate healthy cash flows. The overall financial health is positive, with a focus on growth and operational efficiency.

Income Statement

BWX Technologies shows strong revenue growth with a 6.78% increase in TTM, supported by consistent gross profit margins around 24%. The net profit margin is stable at 10.28%, indicating effective cost management. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.29, which is a potential risk, but it has improved from previous years. Return on equity is strong at 26.62%, indicating effective use of equity. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

Free cash flow growth is robust at 28.47%, and the operating cash flow to net income ratio is healthy at 0.88, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 0.69 suggests good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.06B	2.70B	2.50B	2.23B	2.12B	2.12B
Gross Profit	719.96M	655.21M	620.59M	551.93M	550.28M	575.40M
EBITDA	520.34M	474.06M	447.00M	424.63M	500.55M	453.86M
Net Income	307.04M	281.94M	245.85M	238.19M	305.87M	278.67M
Balance Sheet
Total Assets	3.78B	2.87B	2.75B	2.62B	2.50B	2.29B
Cash, Cash Equivalents and Short-Term Investments	82.65M	74.11M	78.62M	39.05M	37.70M	46.32M
Total Debt	1.51B	1.06B	1.21B	1.29B	1.19B	951.42M
Total Liabilities	2.54B	1.79B	1.81B	1.87B	1.86B	1.68B
Stockholders Equity	1.24B	1.08B	933.35M	748.31M	637.17M	617.77M
Cash Flow
Free Cash Flow	462.85M	254.78M	212.41M	46.39M	74.97M	-58.59M
Operating Cash Flow	629.73M	408.43M	363.70M	244.70M	386.03M	196.44M
Investing Cash Flow	-727.53M	-154.56M	-155.64M	-256.24M	-304.65M	-265.32M
Financing Cash Flow	156.72M	-252.78M	-169.37M	13.95M	-90.14M	25.05M

BWX Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 178.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWXT, the sentiment is Positive. The current price of 178.75 is below the 20-day moving average (MA) of 179.51, below the 50-day MA of 191.02, and above the 200-day MA of 146.40, indicating a neutral trend. The MACD of -4.18 indicates Negative momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 69.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BWXT.

BWX Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$91.11B	21.86	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$78.35B	19.71	26.15%	1.62%	-0.14%	72.35%
BWXT	75 Outperform	$16.26B	53.20	26.69%	0.56%	14.01%	10.92%
LMT	70 Outperform	$104.64B	25.24	62.78%	2.87%	2.88%	-35.15%
LHX	70 Neutral	$52.09B	29.90	9.13%	1.70%	2.83%	47.00%
HII	69 Neutral	$11.95B	21.04	12.39%	1.72%	2.60%	-18.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

BWX Technologies Corporate Events

BWX Technologies Issues $1.25B Convertible Notes

On November 10, 2025, BWX Technologies issued $1.25 billion in 0% Convertible Senior Notes due 2030, with an option for initial purchasers to buy an additional $150 million, which was fully exercised. The Notes are senior unsecured obligations and will mature on November 1, 2030. The company also entered into capped call transactions to mitigate potential dilution of its common stock upon conversion of the Notes. Additionally, BWX Technologies established a new $1.25 billion senior secured revolving credit facility to replace its existing one, with proceeds from the Notes used to repay outstanding indebtedness and for general corporate purposes. This financial maneuvering is expected to enhance BWX Technologies’ liquidity and financial flexibility, potentially impacting its market positioning positively.

BWX Technologies Announces $1 Billion Convertible Notes Offering

On November 5, 2025, BWX Technologies announced its intention to offer $1.0 billion in convertible senior notes due 2030, with an option for initial purchasers to acquire an additional $150 million. The proceeds from this offering will be used to fund capped call transactions, repay existing credit facility debt, and for general corporate purposes. Concurrently, BWXT plans to establish a new $1.25 billion senior secured revolving credit facility. The announcement comes amid a partial U.S. government shutdown that began on October 1, 2025, which poses risks of program cancellations and operational disruptions for BWXT, potentially affecting its financial performance.

BWX Technologies Announces Leadership Transition

On November 4, 2025, BWX Technologies announced that Ronald O. Whitford, Jr., Senior Vice President and General Counsel, stepped down from his role, transitioning to a non-executive position as Special Advisor to the CEO. This change is not due to any legal or operational disagreements, and the company plans to appoint a successor within a week, with Whitford receiving his base salary and severance benefits during the transition.