BWX Technologies (BWXT) AI Stock Analysis

• Market Cap: $15.15B
• Dividend Yield: 0.61%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 51.7
• Beta (1Y): 0.98
• Revenue Growth: 10.13%
• EPS Growth: 10.04%
• Country: US
• Employees: 8,700
• Sector: Industrials
• Sector Strength: 76
• Industry: Aerospace & Defense
• EPS (TTM): 1.02
• Shares Outstanding: 91,398,740
• 10 Day Avg. Volume: 1,235,299
• 30 Day Avg. Volume: 1,242,874
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 21.16
• Enterprise Value/Ebitda: 31.62
• 1Y Price Target: $178.33
• Price Target Upside: 9.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $195.00 ▲(19.57% Upside)

BWX Technologies shows strong financial performance and positive earnings call sentiment, supported by strategic leadership changes. However, high valuation metrics and technical indicators suggest caution due to potential overvaluation and overbought conditions. The company should focus on improving operational efficiency and reducing leverage to enhance financial stability.

Positive Factors

Financial Performance

BWXT reported 2Q25 results with better-than-expected 12.0% revenue growth, 15.6% EBITDA growth and 7.6% EPS growth; and increased 2025 revenue, EBITDA and non-GAAP EPS guidance.

Navy Contracts

BWXT's naval nuclear power plants remain in high demand, with the recent $2.6bn Navy pricing agreement driving record backlog.

Space Exploration

BWXT could benefit from NASA’s recently announced plans to develop lunar surface nuclear power technology by 2030, expanding the space opportunity set.

Negative Factors

Commercial Operations Profitability

Commercial Operations (CO) segment EBITDA margin of 9.2% was below the 12.5% estimate due to lower Kinectrics margins than expected and more equipment manufacturing work compared to field services work.

Product Commercialization

BWXT does not expect to 'commercialize' its technetium-99m generator product this year, implying later potential FDA approval in 2026.

Valuation Concerns

BWXT shares currently trade at 27.4x our 2025 EBITDA forecast.

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

BWX Technologies generates revenue through multiple key streams, primarily from contracts and agreements with government agencies and commercial clients. The Government Group segment earns a significant portion of its revenue from contracts with the U.S. Department of Defense, providing services such as the design and manufacture of naval nuclear reactors and other defense-related systems. The Nuclear Energy segment generates revenue through the sale of nuclear components, fuel, and services to commercial power plants, including long-term contracts for the supply of nuclear fuel. Additionally, BWXT benefits from strategic partnerships and collaborations with various government entities and private sector companies, which enhance its market position and contribute to its earnings. The company's focus on innovation and safety in the nuclear industry further positions it for sustained revenue growth.

BWX Technologies Financial Statement Overview

Summary

BWX Technologies demonstrates robust financial performance with solid revenue growth and profitability margins. The balance sheet is stable with moderate leverage and a strong return on equity. Cash flow generation is strong, supporting operations and future investments.

Income Statement

BWX Technologies demonstrates solid performance in terms of revenue growth and profitability. The Gross Profit Margin improved significantly from prior years, reaching 42.7% TTM, indicating effective cost management. The company also achieved a robust EBIT margin of 13.4% and a Net Profit Margin of 10.4% TTM. Additionally, revenue growth over the past year was approximately 2.9%, showing consistent upward trajectory, though the EBIT margin saw a slight decrease compared to previous periods.

Balance Sheet

The company's balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 1.09 TTM, suggesting moderate leverage. ROE stands at 26.3% TTM, indicating efficient use of equity to generate profits. The Equity Ratio of 36% TTM shows a balanced approach toward financing through debt and equity, although it remains on the lower side, which could imply potential risk if liabilities increase significantly.

Cash Flow

BWX Technologies shows a commendable cash flow situation with an Operating Cash Flow to Net Income Ratio of 1.47 TTM, highlighting strong cash generation capabilities. Free Cash Flow grew by 5.8% compared to the previous year, and the Free Cash Flow to Net Income Ratio of 0.93 TTM indicates efficient conversion of net income into free cash. Despite moderate capital expenditures, the company maintains a healthy cash flow position, supporting future growth prospects.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.86B	2.70B	2.50B	2.23B	2.12B	2.12B
Gross Profit	694.92M	655.21M	620.59M	551.93M	550.28M	575.40M
EBITDA	465.00M	474.06M	447.00M	386.01M	470.85M	422.34M
Net Income	294.42M	281.94M	245.85M	238.19M	305.87M	278.67M
Balance Sheet
Total Assets	3.70B	2.87B	2.75B	2.62B	2.50B	2.29B
Cash, Cash Equivalents and Short-Term Investments	36.98M	74.11M	78.62M	39.05M	37.70M	46.32M
Total Debt	1.53B	1.06B	1.21B	1.29B	1.19B	951.42M
Total Liabilities	2.52B	1.79B	1.81B	1.87B	1.86B	1.68B
Stockholders Equity	1.18B	1.08B	933.35M	748.31M	637.17M	617.77M
Cash Flow
Free Cash Flow	360.28M	254.78M	212.41M	46.39M	74.97M	-58.59M
Operating Cash Flow	519.20M	408.43M	363.70M	244.70M	386.03M	196.44M
Investing Cash Flow	-723.42M	-154.56M	-155.64M	-256.24M	-304.65M	-265.32M
Financing Cash Flow	198.04M	-252.78M	-169.37M	13.95M	-90.14M	25.05M

BWX Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 163.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 163.09 is below the 20-day moving average (MA) of 166.82, above the 50-day MA of 151.14, and above the 200-day MA of 122.28, indicating a neutral trend. The MACD of 5.38 indicates Positive momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, 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
AIR	77 Outperform	$2.65B	214.69	1.02%	―	19.91%	-73.61%
HII	77 Outperform	$10.41B	19.88	11.59%	1.98%	-1.75%	-29.19%
BWXT	70 Outperform	$15.15B	51.72	26.97%	0.61%	10.13%	10.04%
KTOS	68 Neutral	$10.81B	689.59	0.88%	―	7.76%	40.33%
DRS	68 Neutral	$10.92B	44.11	9.99%	0.66%	11.43%	32.31%
Sector *	65 Neutral	$2.64B	15.29	15.18%	3.77%	0.27%	26.17%
SARO	62 Neutral	$8.99B	68.57	7.25%	―	16.09%	―

BWX Technologies Corporate Events

BWX Technologies Appoints New CFO Mike Fitzgerald

On July 30, 2025, BWX Technologies appointed Mike T. Fitzgerald as Senior Vice President, Chief Financial Officer, and Chief Accounting Officer, following his interim role since May 12, 2025. Fitzgerald, who joined BWXT in 2022, has been recognized for his financial leadership and strategic vision, which is expected to positively impact the company’s operations and industry positioning.

The most recent analyst rating on (BWXT) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on BWX Technologies stock, see the BWXT Stock Forecast page.

BWX Technologies Announces New Leadership Appointments

On June 16, 2025, BWX Technologies announced leadership changes with Kevin M. McCoy appointed as Chief Nuclear Officer to support the U.S. Navy’s submarine production, while Joseph K. Miller and Katherine Haggerty Kelly were promoted to key roles in Government Operations and Advanced Technologies, respectively. These appointments are expected to enhance BWXT’s capabilities in nuclear operations and advanced technology development, strengthening its position in the defense and energy sectors.

The most recent analyst rating on (BWXT) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on BWX Technologies stock, see the BWXT Stock Forecast page.