Core Thesis - BWX Technologies, Inc. is viewed positively due to its strong positioning in the nuclear sector, with a share price of $173.20 as of December 16th and P/E ratios of 51.86 trailing and 41.32 forward [1][2] Company Overview - BWX Technologies, Inc. manufactures and sells nuclear components in the U.S., Canada, and internationally, characterized as a high-quality, strategically critical nuclear franchise with strong long-term demand visibility [2] - The company has expanded into commercial nuclear components, advanced fuels, microreactors, and medical isotopes, projecting double-digit earnings growth through 2025 [3] Financial Performance - Government Operations are supported by long-term Navy pricing agreements and stable demand for submarines and carriers, while Technical Services contribute to diversified growth through DOE and NNSA site management [4] - Commercial Operations are becoming a significant growth driver, particularly through CANDU life-extension work and medical isotopes, with ongoing margin expansion [4] Valuation and Market Expectations - Despite a recent pullback in share price to approximately $175–$180, BWXT's valuation assumes sustained mid-teens non-Navy revenue growth for over a decade and commercial nuclear revenues exceeding $10 billion by 2040 [5] - The current equity valuation is considered demanding, with the investment debate focusing on the pace of the nuclear renaissance and its ability to meet market expectations [6] Strategic Positioning - BWXT is recognized for its best-in-class strategic positioning and execution, with future upside dependent on accelerated commercial nuclear deployment and successful expansion in medical isotopes [6][7]

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] - The global small modular reactor (SMR) market is projected to grow from $5.81 billion in 2024 to $8.37 billion by 2032, with a CAGR of approximately 4.98% from 2025 to 2032, benefiting both companies [2] NuScale Power Overview - NuScale Power is the only small modular reactor vendor with U.S. NRC design approval, providing a competitive edge [4] - The company has a significant project with ENTRA1 and TVA, planning 6 GW of capacity across six plants, with 12 modules already in production [5] - NuScale is also working on the RoPower project in Romania, which is nearing completion and generating steady revenues [6] - Despite these advancements, NuScale's revenues remain low at $8.2 million for Q3 2025, and it faces high milestone payments and non-binding agreements that could delay revenue generation [7][8] BWX Technologies Overview - BWX Technologies reported a 29% year-over-year revenue growth to $866 million in Q3 2025, with a backlog increase of 119% to $7.4 billion, indicating strong demand [9][10] - The company secured significant defense contracts totaling over $3 billion, enhancing its revenue visibility [10][11] - BWXT's revenues from government operations grew by 10%, supported by naval propulsion and special materials [12] - The commercial segment also performed well, with a 122% revenue increase, bolstered by the Kinectrics acquisition [12][13] Comparative Analysis - Analysts are more optimistic about BWX Technologies, as indicated by the earnings estimate revision trend [14] - Year-to-date, NuScale Power shares have increased by 4%, while BWX Technologies shares have surged by 56.2% [19] - NuScale Power's forward sales multiple is 60.54X, significantly higher than BWX Technologies' 4.52X, suggesting that NuScale may be overvalued [21] Conclusion - BWX Technologies is currently viewed as the stronger investment option due to its financial strength, revenue growth, and established government contracts, while NuScale Power, despite its technological advantages, faces challenges with revenue generation and project timelines [26][27]