Centrus vs. BWX Technologies: Which Nuclear Supply Chain Stock Is the Better Buy After the Sell-Off?

After the 2011 Fukushima nuclear disaster, the industry stalled for years as plants closed and new projects stalled. Now, surging electricity demand from AI data centers, robotics, and advanced manufacturing is changing the equation. Add ambitious carbon-reduction targets, and reliable, emissions-free nuclear energy looks increasingly appealing.

Centrus Energy (NYSE: LEU) and BWX Technologies (NYSE: BWXT) occupy critical positions in the U.S. nuclear supply chain. Both stocks soared with the nuclear revival narrative last year but have since declined 54% and 22%, respectively, in 2026. With shares down significantly, which nuclear supply chain stock is the better buy right now?

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Nuclear energy will be crucial in helping address growing energy needs

Energy demand is projected to grow faster. According to the Bank of America Institute, U.S. electricity demand is projected to grow 5 times faster over the next decade than it did over the last. Power-hungry data centers drive this growth, as they require significantly more power and cooling. Electrifying the power grid (think electric vehicles) and reshoring industrial operations also contribute to rising electricity demand.

Other factors are also at play. For example, the U.S. Department of Energy is taking steps to accelerate the construction of new nuclear power plants and to develop next-generation reactors and fuels. Small modular reactors (SMRs) could change the game for nuclear energy, and many require specialized fuel that the U.S. doesn't yet manufacture at scale.

Centrus Energy supplies nuclear fuel for traditional and next-gen nuclear plants

This is where Centrus Energy has an opportunity. Centrus has operated as a nuclear fuel supplier for power plants, sourcing low-enriched uranium (LEU) through long-term supply agreements from international enrichers. However, the company is pivoting to become a domestic producer of enriched uranium as the U.S. looks to onshore production of these critical fuels.

With the Prohibiting Russian Uranium Imports Act set to take full effect in 2028, the U.S. is scrambling to secure enriched uranium. Centrus is currently the only U.S. company licensed by the Nuclear Regulatory Commission with ready-to-deploy gas centrifuge technology to enrich uranium to LEU and to high-assay, low-enriched uranium (HALEU) for advanced microreactors.

Over the past few months, Centrus has announced several fuel supply agreements with nuclear developers, including Oklo, X-energy, Radiant, and Antares. Centrus plans to deliver fuel to these developers by the end of the decade. Because nine out of 10 reactor designs under the DOE's Advanced Reactor Demonstration Program require HALEU, these deals show Centrus as the primary domestic supplier.

BWX Technologies' exclusive arrangement with the Navy provides stability

While Centrus aims to manufacture fuel for nuclear reactors, BWX Technologies has done so for the U.S. Navy for the past five decades. BWXT is the only manufacturer of naval nuclear reactors and nuclear fuel for the Naval Nuclear Propulsion Program.

Its exclusive status with the Navy stems from the sensitive nature of the nuclear fuel it uses. While Centrus looks to manufacture HALEU nuclear fuel, which contains 5% to 25% uranium-235 (U-235), BWXT manufactures weapons-grade, highly enriched uranium containing 93% U-235.

Because of the highly sensitive nature of developing weapons-grade nuclear fuel, regulatory oversight is incredibly stringent, and employees need special security clearance. This highly exclusive position gives BWXT a strong competitive moat and high barriers to entry, and its importance to defense gives it visibility into earnings for years to come.

In May 2026, the company secured U.S. Naval Nuclear Propulsion Program contracts totaling $1.4 billion. The company is also leveraging its expertise to manufacture heavy equipment needed for nuclear reactors.

BWXT fabricates the reactor pressure vessel for GE Vernova's BWRX-300 small modular reactor and also supports next-generation developers by engineering specialized hardware, such as the intermediate heat exchanger for TerraPower's Natrium design.

Centrus Energy or BWX Technologies: Which stock is right for you?

Centrus Energy and BWXT have seen their stocks fall significantly over the past year. Centrus is pivoting from sourcing nuclear fuel to manufacturing it in the U.S. As a result, the company is in a capital-intensive phase, expanding its manufacturing footprint to become a domestic producer, a move that will weigh on earnings over the next couple of years.

If you want upside from the nuclear build-out, next-generation reactors, and the fuel they require, and you don't mind the volatility over the next several years, Centrus could be for you. However, if you want more stability from an exclusive relationship with the U.S. Navy and long-term contracts that extend years into the future, BWX Technologies is the nuclear stock for you.

Bank of America is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in Centrus Energy, GE Vernova, and Oklo. The Motley Fool has positions in and recommends BWX Technologies and GE Vernova. The Motley Fool has a disclosure policy.