BWX Technologies, Inc. (NYSE:BWXT) is among the 11 best military technology stocks to buy right now. Earlier this month, the company provided an update on its role in delivering on the goals of the executive orders issued by the Trump administration in May last year to strengthen the nuclear energy industry. BWX Technologies, Inc. (BWXT) Making Progress on Goals of Executive Order to Strengthen Nuclear Energy Industry The company said it was forging ahead on the production of TRISO nuclear fuel compacts ...

Core Insights - The article discusses the best military technology stocks to invest in, highlighting a shift in military strategy towards agile and adaptable technologies, particularly AI-powered drones [1] - Traditional defense contractors are expanding capabilities through acquisitions to enhance offerings in AI, communications, and cybersecurity, driven by geopolitical conflicts and increased military budgets [2] - The NYSE Arca Defense Index has outperformed the S&P 500, returning 12.71% year-to-date compared to the S&P 500's 0.74% [3] Industry Trends - There is a growing emphasis on next-generation military technology, with small and mid-cap companies playing a crucial role in this evolution [1] - Increased military spending is being encouraged by government initiatives, although concerns exist regarding restrictions on capital allocation due to executive orders [5][6] - The executive order from President Trump restricts dividends, share buybacks, and CEO payouts, which may impact the attractiveness of the defense sector for top executives [4][5] Company Highlights - Planet Labs PBC (NYSE:PL) is recognized for its partnership with AXA Digital Commercial Platform to leverage satellite data for real-time disaster monitoring, showing a 21% stock return year-to-date [11][12][14] - BWX Technologies, Inc. (NYSE:BWXT) is advancing in nuclear fuel production and inaugurated a new facility for uranium enrichment, supported by a $1.5 billion contract from the Department of Energy [15][18][19]

Core Viewpoint - BWX Technologies, Inc. (BWXT) is expected to report its fourth-quarter 2025 results on February 23, 2026, with a prior earnings surprise of 20.91% in the last quarter [1] Group 1: Factors Affecting Q4 Results - Increased uranium processing, downblending operations, and higher manufacturing volume of nuclear components for U.S. government programs are anticipated to enhance the top-line performance of BWXT's Government Operations segment [2] - The Commercial Operations segment is expected to see revenue growth driven by higher revenues from components manufacturing and contributions from the Kinectrics acquisition [3] Group 2: Q4 Estimates - The Zacks Consensus Estimate for BWXT's fourth-quarter sales is $829.3 million, reflecting an 11.1% increase from the previous year [4] - The consensus estimate for earnings is 91 cents per share, indicating a year-over-year decline of 1.1% [4] Group 3: Earnings Prediction Model - The current model does not predict an earnings beat for BWX Technologies, as it has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [5]

Core Insights - NuScale Power and BWX Technologies are key players in the nuclear energy sector, with NuScale focusing on small modular reactors and BWX supplying nuclear components and fuel to the U.S. government [1][2] Market Overview - The global small modular reactor market was valued at $5.96 billion in 2025 and is projected to reach $8.77 billion by 2034, growing at a CAGR of approximately 4.59% [2] Company Analysis: NuScale Power - NuScale Power is the only small modular reactor vendor with U.S. Nuclear Regulatory Commission design approval, providing a competitive edge [4] - The company has a significant project with ENTRA1 and Tennessee Valley Authority, planning 6 GW across multiple plants, with 12 modules already in production [5] - However, NuScale's revenues are currently low at $8.2 million for Q3 2025, and it faces substantial milestone payments and long project timelines, with meaningful revenues expected only after 2030 [6][7] Company Analysis: BWX Technologies - BWX Technologies has expanded its backlog to $7.4 billion, a 119% increase year-over-year, indicating strong demand for its nuclear products [8] - The company secured major contracts worth $1.5 billion and $1.6 billion for defense-related projects, contributing to steady multi-year revenues [9] - BWXT's revenues grew 29% year-over-year to $866 million in Q3 2025, with a 10% increase in government operations revenue [10] Earnings Estimates Comparison - NuScale Power's 2026 earnings estimate is a loss of $0.62 per share, improving from a projected loss of $2.23 per share in 2025 [13] - In contrast, BWX Technologies' 2026 earnings estimate is $4.26 per share, up from $3.81 per share in 2025, indicating a strong growth outlook [15] Stock Performance and Valuation - Over the past six months, NuScale Power shares have decreased by 59.1%, while BWX Technologies shares have increased by 17.2% [16] - NuScale Power trades at a forward sales multiple of 25.8X, significantly higher than BWX Technologies' 4.96X, making BWXT more attractive for value-seeking investors [17] Conclusion - Both companies are positioned to benefit from the nuclear energy sector's growth, but BWX Technologies shows stronger earnings potential, established contracts, and a more favorable valuation, making it a better investment choice at this time [18][19]

Industry Overview - The energy sector, particularly nuclear energy, presents significant income-investing opportunities, with nuclear energy being one of the cleanest and safest options available [1] - The demand for nuclear energy is increasing due to the power needs of artificial intelligence (AI), with the International Energy Agency (IEA) estimating that AI's global electrical consumption will double by 2030 [2] - The U.S. Department of Energy aims to triple nuclear energy production by 2050 to meet both AI demands and enhance energy independence [2] Company Analysis: Dominion Energy - Dominion Energy, based in Virginia, operates four nuclear power plants and generates half of Connecticut's electricity from the Millstone Nuclear plant [5] - The company offers a dividend yield of 4.19%, with a slow and steady growth model, maintaining an operating margin of 29.45% [6] - Despite a high payout ratio of 99.6%, Dominion has reduced this from 121.3% in 2024, indicating improved financial management [6] - The company's strategic location in Virginia, a state with high energy demand due to data center construction, enhances its operational advantages [8] Company Analysis: BWX Technologies - BWX Technologies, also based in Virginia, specializes in nuclear propulsion systems for the U.S. Navy and is developing small modular reactors (SMRs) [10] - The company has reported impressive growth, with Q3 2025 revenue increasing by 29%, net income by 19%, and earnings per share (EPS) by 20% year over year [13] - BWX's current dividend yield is 0.5%, but it has been growing at an annualized rate of 4.28% over the past five years, with a low payout ratio of 26%, allowing for further dividend growth [14]

Industry Overview - The Zacks Aerospace sector's fourth-quarter 2025 earnings are expected to rise by 51.6% with revenues increasing by 17.3% due to strong order activity, rising geopolitical tensions, solid defense spending, and a recovery in commercial aerospace [1] Defense Stocks Performance - U.S. defense stocks are anticipated to perform well in the fourth quarter, driven by heightened geopolitical tensions that encourage governments to maintain or expand defense spending [4] - Increased order inflows and long-term contract awards are expected, particularly for companies focused on advanced technologies such as artificial intelligence and cyber security [5] - Companies with exposure to commercial aerospace are likely to benefit from the recovery in global air travel, which supports demand for aircraft and related components [6] Challenges - Persistent challenges such as skilled labor shortages and supply-chain disruptions may partially offset the positive performance of defense companies [7] Potential Defense Outperformers - **BWX Technologies**: Expected to benefit from its role as a supplier of nuclear reactors and fuel for U.S. Navy submarines, with a consensus estimate of 91 cents per share, a decrease of 1.1% year-over-year, and an Earnings ESP of +4.71% [8][9] - **Curtiss-Wright**: Anticipated to gain from strong demand for defense technologies, with a consensus estimate of $3.66 per share, an increase of 11.9% year-over-year, and an Earnings ESP of +0.67% [10][11] - **CAE Inc.**: Expected to benefit from solid utilization rates in aviation training, with a consensus estimate of 22 cents per share, an increase of 4.8% year-over-year, and an Earnings ESP of +0.57% [12][13] - **Rocket Lab Corporation**: Demonstrated high operational reliability with 21 successful launches, expected to positively impact earnings, with a consensus estimate of a loss of 5 cents per share, an improvement of 50% year-over-year, and an Earnings ESP of +4.76% [14][15]

Core Insights - BWX Technologies Inc. is recognized as one of the 12 Best Nuclear Energy Stocks to Buy Now, highlighting its strong position in the nuclear sector [1] - The company has opened a Centrifuge Manufacturing Development Facility in Oak Ridge, Tennessee, aimed at enhancing domestic uranium enrichment capabilities in line with U.S. national security objectives [1] - Analysts are increasingly focused on BWX Technologies, with price targets being raised and positive ratings reflecting confidence in the company's long-term prospects [2][3] Group 1: Company Developments - On January 26, 2026, BWX Technologies announced the opening of its Centrifuge Manufacturing Development Facility, which is part of a $1.5 billion contract from the Department of Energy's National Nuclear Security Administration [1] - The company operates across various sectors including defense, clean energy, environmental remediation, medical applications, and space, with a presence in 20 major sites across the U.S., Canada, and the U.K. [4] Group 2: Analyst Ratings and Market Outlook - Truist analyst Michael Ciarmoli raised the price target for BWX Technologies to $205 from $200 while maintaining a Hold rating, citing a bullish outlook for the Aerospace and Defense sector [2] - BNP Paribas initiated coverage of BWX Technologies with a Neutral rating and a price target of $215, indicating growing analyst interest in the stock [3] - CLSA has included BWX Technologies among its top picks for 2026, suggesting the company is well-positioned to benefit from long-term spending in nuclear and defense sectors [3]

Core Viewpoint - BWX Technologies, Inc. has appointed Kurt Bender as senior vice president and chief digital officer effective February 5, 2026, to enhance its integrated digital strategy across global operations [1] Group 1: Leadership Appointment - Kurt Bender will oversee BWXT's digital strategy supporting operations in the U.S., Canada, and the United Kingdom [1] - Prior to this role, Bender served as vice president of IT applications, quality, and continuous improvement at BWXT [1] - In his previous position, he led the modernization of core systems and the implementation of AI technologies and cybersecurity measures [1]

Core Viewpoint - BWX Technologies, Inc. is recognized as one of the 12 best HVAC stocks to buy now, indicating strong market interest and potential investment appeal [1] Group 1: Analyst Coverage and Valuation - BNP Paribas initiated coverage of BWX Technologies with a Neutral rating and a price target of $215, suggesting that the stock's current valuation reflects its defense exposure and commercial nuclear optionality [2] - Analyst Matthew Akers noted that while BWXT has an attractive defense business, much of its appeal appears to be priced in, with margin improvements expected to be more of a 2027+ opportunity [2] - BNP Paribas anticipates limited near-term total shareholder return at current valuation levels, indicating caution regarding immediate investment prospects [2] Group 2: Margin Pressures - Margins in BWXT's government operations segment are expected to remain under pressure in the near term, having fallen by approximately 150 basis points since 2021 [3] - The decline in margins is attributed to inflation affecting long-term contracts and a higher mix of lower-margin development programs, such as microreactors and space nuclear propulsion initiatives [3] Group 3: New Facility and Strategic Initiatives - BWXT announced the opening of its Centrifuge Manufacturing Development Facility in Oak Ridge, which is a significant step towards rebuilding domestic uranium enrichment capabilities aligned with US national security priorities [4] - The facility will serve as the main center for the design, engineering, fabrication, and testing of advanced gas centrifuge machines, supporting broader goals related to energy security and defense preparedness [5] - BWXT was awarded a $1.5 billion contract by the National Nuclear Security Administration to secure a reliable supply of enriched uranium for defense-related fuel needs, highlighting the strategic importance of the new facility [4]

Core Viewpoint - BWX Technologies (BWXT) was previously analyzed in July of the last year when the stock price was approximately $150 per share, indicating an 8% undervaluation based on a custom free cash flow valuation [1] Group 1 - The analyst has a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting, with over 10 years of experience in the investment field, starting as an analyst and advancing to a management role [1] - Dividend investing is highlighted as a personal interest of the analyst, indicating a focus on income-generating investments [1] Group 2 - There is a potential for the analyst to initiate a long position in BWXT through stock purchases or call options within the next 72 hours [2]