Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Mar, 26 | BWXT | Buy | USD 200.39 | USD 211.0 | USD 222.0 | 8 days | Closed |
5.29%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. The company operates through two segments, Government Operations and Commercial Operations. It manufactures precision naval nuclear components, reactors, and nuclear fuel; close-tolerance and high-quality equipment for nuclear applications; critical nuclear components, fuels and assemblies for government and limited other uses; down blend government stockpiles of uranium; and fabricate fuel-bearing precision components. The company also supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers; research reactor fuel elements for colleges, universities, and national laboratories; and components for defense applications. In addition, it manufactures commercial nuclear steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems; and containers for the storage of nuclear fuel and other high-level nuclear waste. Further, the company supplies nuclear fuel, fuel handling systems, tooling delivery systems, nuclear-grade materials and precisely machined components; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. Additionally, it provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering; in-plant inspection, maintenance and modification services; and non-destructive examination and tooling/repair solutions. It also offers nuclear power plant lifecycle support and management services. 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.
Significant Commercial Segment Growth: FY25 Commercial Operations revenue increased to USD 853 million compared with USD 524 million in FY24
Expansion in Cash Flow Generation: FY25 free cash flow increased to USD 295.3 million compared with USD 254.8 million in FY24
Higher Capital Expenditure Requirements: FY25 capital expenditures increased to USD 184.6 million compared with USD 153.6 million in FY24
Lower Fourth-Quarter Free Cash Flow: Q4FY25 free cash flow declined to USD 56.8 million compared with USD 224.4 million in Q4FY24
BWXT’s future performance remains exposed to risks associated with government budget uncertainty, contract execution delays, regulatory approvals in nuclear markets, and fluctuations in demand for nuclear energy infrastructure and defense-related programs
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 200.39 | 178.0 | 211.0 | 222.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth Driven by Expanding Nuclear and Defense Demand: During FY25, BWX Technologies delivered strong top-line expansion supported by growing demand across both government and commercial nuclear markets. The company reported consolidated revenue of USD 3.19 billion in FY25 compared with USD 2.70 billion in FY24, reflecting an increase of approximately 18%. This growth was driven by higher production of naval nuclear components, increased special materials processing activities, and significant expansion in commercial nuclear power and medical isotope businesses. Additionally, recent acquisitions contributed to revenue growth by expanding the company’s capabilities and service offerings across strategic nuclear markets.
Strength in Government Operations Segment: BWXT’s Government Operations segment remained a core contributor to overall revenue during FY25. Segment revenue increased to USD 2.35 billion in FY25 from USD 2.18 billion in FY24, reflecting an increase of approximately 8%. The improvement was primarily supported by higher naval nuclear component production and special materials processing activities. Despite the revenue growth, the segment experienced modest margin pressure due to contract adjustments and project mix as certain new programs began ramping during the year.
Accelerated Expansion in Commercial Operations: The Commercial Operations segment recorded substantial expansion during FY25, reflecting BWXT’s increasing presence in commercial nuclear energy markets. Segment revenue rose significantly to USD 853 million in FY25 compared with USD 524 million in FY24, representing an increase of approximately 63%. Growth was driven by higher nuclear component manufacturing, fuel handling services, and medical isotope sales, along with contributions from the acquisition of Kinectrics. This segment continues to represent a key long-term growth platform for the company as global interest in nuclear power and clean energy solutions strengthens.
Profitability and Operating Performance: BWXT reported strong profitability improvements during FY25 as operating leverage and commercial growth supported earnings expansion. Adjusted EBITDA increased to USD 574.3 million in FY25 compared with USD 498.7 million in FY24, reflecting growth of approximately 15%. The EBITDA margin remained stable at around 18.0% during FY25 compared with approximately 18.4% in FY24. The increase in operating profitability was largely supported by higher revenue contributions from both government and commercial segments and improved operational efficiency across manufacturing facilities.
Earnings Growth and Shareholder Returns: The company delivered strong earnings growth during FY25 supported by improved operating income and favorable non-operating factors. Diluted GAAP earnings per share increased to USD 3.58 in FY25 compared with USD 3.07 in FY24, representing growth of approximately 17%. On a non-GAAP basis, earnings per share increased to USD 4.01 compared with USD 3.33 in FY24, reflecting an increase of approximately 20%. Net income rose to USD 329.9 million in FY25 from USD 282.3 million in FY24, highlighting improved operational performance and stronger earnings contribution across business segments.
Cash Flow Generation and Capital Investment: BWXT continued to generate strong operating cash flows during FY25 while increasing investments in infrastructure and growth initiatives. Operating cash flow increased to USD 479.8 million in FY25 compared with USD 408.4 million in FY24, reflecting improved working capital management and higher net income. Free cash flow reached USD 295.3 million in FY25 compared with USD 254.8 million in FY24. Capital expenditures increased during the year as the company expanded manufacturing facilities and invested in infrastructure to support new government programs and commercial nuclear projects.
Strategic Growth, Backlog Expansion and Market Positioning: BWXT strengthened its long-term growth outlook during FY25 through new contract awards and strategic acquisitions. The company ended the year with a record backlog of approximately USD 7.3 billion, representing a 50% increase compared with FY24. The backlog expansion was supported by major multi-year contracts related to naval propulsion systems, defense uranium enrichment programs, and commercial nuclear projects. These awards position the company to benefit from rising global investment in nuclear energy, national security programs, and advanced nuclear technologies.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to BWX Technologies, Inc. (NYSE: BWXT) at the current market price of USD 200.39, as on Mar 10,2026 at 6:52 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Aerospace & Defense
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BWXT BWX Technologies Inc |
2.33 1.15% | 205.40 | 63.75 | 51.81 | 6.54 | 16.96 | 7.01 | 40.66 |
| GE GE Aerospace |
0.61 0.17% | 357.64 | 35.57 | 40.82 | 6.53 | 16.98 | 7.09 | 26.97 |
| BA The Boeing Company |
-2.91 1.29% | 222.72 | 88.37 | 153.85 | 1.93 | 31.61 | 2.21 | 26.81 |
| EADSY Airbus Group NV |
- -% | 55.00 | 26.90 | 24.39 | 2.26 | 5.35 | 1.79 | 12.83 |
| EADSF Airbus Group SE |
- -% | 220.48 | 25.86 | 24.21 | 2.15 | 5.30 | 1.79 | 12.83 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 10, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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