BWX Technologies (BWXT, Financial) (BWXT - $58.12 – NYSE) provides nuclear components and products to the U.S. Navy andthe Canadian nuclear power markets, environmental site restoration services, and medical isotopes. e company’s stock came under pressure in the quarter due to concerns about potential changes to funding for the Navy’s shipbuilding program given the change in administration and the longer-than-expected roll-out of the moly-99 isotope initiative. From a fundamental basis, the stock remains attractive as the company is nearing an end to an elevated capex cycle that supported the growth of the Navy’s shipbuilding needs. is should lead to accelerating free-cash- ow generation that could be used for share repurchases and dividend increases. Additionally, the company has a couple of longer-term revenue opportunities with the commercialization of the medical isotope business and the potential for microreactors and fuel for use by various governmental bodies (DoD, DoE, and NASA).
From Keeley Asset Management Corp (Trades, Portfolio)'s Mid Cap Dividend Value Fund second-quarter letter.
