BWX Technologies (BWXT, Financial) recently announced a significant strategic partnership with Elementl Power Inc. to advance the future of nuclear energy. Elementl Power has committed to pre-position three sites for the development of advanced nuclear projects. These initiatives aim to generate at least 600 megawatts of power capacity each, with potential commercial off-take upon completion.
This collaboration underscores the growing momentum behind nuclear energy, especially as the demand for sustainable power increases. In a related development, the current U.S. administration is exploring executive orders to accelerate the construction of nuclear power plants, leveraging the Department of Defense and Energy to address rising electricity needs. This strategy aims to enhance the country's capacity to meet future energy demand through sustainable means.
BWX Technologies' involvement in these groundbreaking projects aligns with the broader governmental and industry efforts to expand nuclear energy infrastructure and highlights the company's role in shaping the future of energy solutions. The partnership reflects a strategic push towards embracing clean, reliable power sources to meet the evolving needs of consumers and industries alike.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for BWX Technologies Inc (BWXT, Financial) is $134.64 with a high estimate of $166.00 and a low estimate of $105.00. The average target implies an upside of 24.58% from the current price of $108.07. More detailed estimate data can be found on the BWX Technologies Inc (BWXT) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, BWX Technologies Inc's (BWXT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BWX Technologies Inc (BWXT, Financial) in one year is $102.31, suggesting a downside of 5.33% from the current price of $108.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BWX Technologies Inc (BWXT) Summary page.
BWXT Key Business Developments
Release Date: May 05, 2025
- Revenue: $682 million, up 13% year-over-year.
- Adjusted EBITDA: $130 million, up 13% year-over-year.
- Adjusted Earnings Per Share (EPS): $0.91, up 20% from $0.76 last year.
- Government Operations Revenue Growth: 14% increase.
- Government Operations Adjusted EBITDA Margin: 21.1%.
- Commercial Operations Revenue: $128 million, up 10% year-over-year.
- Commercial Operations Adjusted EBITDA Margin: 10.9%, down 100 basis points.
- Free Cash Flow: $17 million for the quarter.
- Capital Expenditures: $33 million or 4.9% of sales.
- Backlog: $1.3 billion in commercial operations, up 78% year-over-year.
- Adjusted Effective Tax Rate: 18.3% for the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BWX Technologies Inc (BWXT, Financial) reported double-digit year-over-year growth in revenue, adjusted EBITDA, and adjusted earnings per share for the first quarter of 2025.
- The company achieved a robust bookings performance, with a commercial operations backlog of $1.3 billion, up 78% year-over-year.
- BWXT secured significant contracts, including the management and operations contract for the Department of Energy's Strategic Petroleum Reserve and a sole-source contract for domestic uranium enrichment.
- The company is expanding its nuclear services portfolio through the pending acquisition of Connectrix and increasing capacity at its Cambridge manufacturing plant.
- BWXT's medical segment experienced double-digit revenue and adjusted EBITDA growth, driven by its pet diagnostic product lines, and remains on track for over 20% full-year revenue growth.
Negative Points
- BWXT faced negative EACs (Estimate at Completion) of about $11 million, impacting both government and commercial operations.
- The company experienced heightened inflation for specialized raw materials in its Candu fuel business line, affecting margins in the first half of the year.
- There is uncertainty around the ANPI program, with unclear funding and potential outcomes, despite BWXT being selected as an eligible supplier.
- The zirconium cost impact due to geopolitical factors and tariffs poses a challenge, although BWXT has mechanisms to manage this risk.
- The timeline for FDA approval of BWXT's moly product remains uncertain, with potential delays into early 2026, affecting the company's entry into contracted sales.
