BWX Technologies (BWXT)

Naval nuclear reactors + SMR components (BWX) — the US naval-nuclear monopoly + nuclear manufacturing

AI exposure 6% — derived from reported segment revenue, not asserted.

Where it sits

Frontier & Emerging Bets → Defense & Government AI · figures rebased to Q2 2026, reported 2026-08-03

No business is a majority here. Naval nuclear reactors (submarines/carriers — sole-source US Navy) is 49% of revenue, ahead of Small Modular Reactors (SMRs) at 38% — placement rule 2 puts the primary with the largest business, so Defense & Government AI. The rest is tagged separately: Small Modular Reactors (SMRs) at 38%; Healthcare AI & Medtech at 13%.

Also tagged: secondary in Energy Supply & Critical Minerals → Small Modular Reactors (SMRs); emerging in Frontier & Emerging Bets → Healthcare AI & Medtech.

Reported segments

• Government Operations — 67% of revenue
• Commercial Operations — 33% of revenue

BWX Technologies (~$3.8B FY2026 guided) — nuclear components/reactors. Government Operations ~67% (naval nuclear reactors for US Navy subs/carriers = purpose-built defense, sole-source = B7 Defense; + DOE + defense microreactors/Project Pele = SMR). Commercial Operations ~33% and rising (+72% YoY Q2 2026 with Kinectrics; PCG closed Jul 6; FY commercial growth guided ~45% — commercial nuclear components + SMR mfg = B4 SMR, AI/data-center nuclear tailwind; + medical isotopes = small B7 Healthcare). Primary B4 SMR (the nuclear/SMR core); B7 Defense large (naval nuclear). NOTE: naval nuclear is…

How the 6% is built

• Government Operations — 67% of revenue × 2% AI-driven (estimate). Naval nuclear reactors for US Navy submarines and carriers, DOE work and defence microreactors are sole-source national-security programmes on multi-decade cycles with no AI or data-center linkage; grew just 2% YoY in Q2 2026 while the AI-narrative segment grew 72%
• Commercial Operations — 33% of revenue × 15% AI-driven (estimate). Lowered from 30. The +72% was 33% organic plus the Kinectrics and Precision Components Group acquisitions, and management credited 'commercial nuclear power and nuclear medicine' — the medical/isotope piece (~$130M of 2026 revenue) is now being SOLD to Nordic Capital for up to $800M, removing a non-AI slice but also…

Investment read

Moat. Sole-source on US naval nuclear reactors and fuel — decades of qualification, no competitive bid — now layered with a second sole-source stack (the ~$1.5B NNSA domestic enrichment award and ~$1.6B depleted-uranium supply). Commercial nuclear has stopped being optionality: $302.5M in Q2 2026, +72% YoY, ~34% of revenue.

Bottleneck / pricing power. Strong pricing power: captive government pricing with no bid risk on the naval franchise, behind an $8.4B backlog (+40% YoY, ~2.2x FY2026 revenue). The offset is mix — commercial nuclear prices below the naval annuity, and FY2026 adjusted EBITDA margin is held at ~17.5% even on a raised revenue guide.

Role in the AI stack. The naval-nuclear + SMR-components manufacturing layer.

Connected companies

• Oklo (OKLO) — BWXT supplies: reactor components
• Mirion Technologies (MIR) — BWXT is supplied by: radiation detection for nuclear components/defense
• Centrus Energy (LEU) — BWXT is supplied by: HALEU/enrichment feedstock for BWXT advanced-reactor work
• NuScale Power (SMR) — BWXT supplies: BWXT Canada engaged on the upper reactor pressure vessel and steam generator for the NuScale Power Module
• Cameco (CCJ) — BWXT competes with: Partial microreactor overlap — BWXT (Project Pele) vs Westinghouse eVinci; Cameco's exposure is indirect (fuel + 49% Westinghouse)
• GE Vernova (GEV) — BWXT supplies: manufactures the reactor pressure vessel for GE Hitachi (GE Vernova) BWRX-300 SMRs — first North American SMR RPV work

Others in Defense & Government AI

• Palantir Technologies (PLTR)
• Axon Enterprise (AXON)
• Teledyne Technologies (TDY)
• Kratos Defense (KTOS)

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