1 Excellent Energy Stock to Buy Now Before the Next Phase of America's Nuclear Renaissance

If you read any of my other articles here, it will become apparent to you that I have a bit of a fixation on nuclear power.

That's because nuclear energy is enjoying a long-deserved renaissance after decades of being rejected by politicians on both sides of the aisle and ignored by green energy advocates in favor of solar or wind.

Image source: Getty Images.

Because, given the energy needs of artificial intelligence (AI) alone, we need lots of power and we need it produced safely, cleanly, and reliably. Nuclear checks all three boxes.

First, safety, which is a reasonable concern about nuclear energy. According to Our World in Data, nuclear is the second-safest energy option behind only solar.

Considering both air pollution and accidents, nuclear only results in 0.03 deaths per terawatt hour of electricity produced while coal results in 24.6 and oil results in 18.4. Solar only beats nuclear by 0.01 fewer deaths per terawatt hour.

In terms of carbon emissions there's no contest: Nuclear is by far the cleanest option. Over its lifetime, the average solar plant will produce 53 tons of greenhouse gas emissions, a wind farm will produce 11 tons, and a nuclear plant will produce just 6 tons. And consider the average lifespan of a nuclear reactor is 40 years, almost twice the average wind turbine or solar panel at 25 years.

Finally, a nuclear plant can operate at peak output 92% of the time while wind and solar can only manage 35% and 24%, respectively.

Nuclear energy had a banner year in 2025 but I think the growth phase is only just getting started. And the best way to play it by my math is BWX Technologies (NYSE: BWXT).

Immense cosmic power, itty-bitty living space

BWX's main business is nautical nuclear propulsion systems for the U.S. Navy. Since the 1950s it has built more than 400 nuclear reactors for seaborne use. That gives it a stable and reliable source of revenue as it develops the bleeding edge of nuclear technology, small modular reactors (SMRs).

The company's BANR microreactor is an excellent example of an SMR. It can be built in pieces in a factory, shipped out by road or rail, and then constructed at its final destination. From there, it can generate as much as 50 megawatts of power in a plant a fraction of the size of a traditional nuclear plant and without the need for the same water cooling infrastructure.

And the American Society of Civil Engineers has highlighted that SMRs like BWX's BANR would be a perfect solution to the energy demands of data centers. It makes sense: Plop an SMR in the middle of a bunch of data centers and they have near-continuous power without spiking demand on the local power grid.

While SMRs are very cool, the U.S. government is aiming to go even smaller and has partnered with BWX Technologies on Project Pele, which is a microreactor capable of fitting on a truck. The idea is to create a mobile nuclear reactor capable of being set up and taken down to power forward operating bases for an army on the move. The core of the first prototype is under construction now.

And BWX doesn't have the same problem many other SMR companies have. Namely, it isn't a start-up. BWX is a profitable company with rapidly growing revenue. And that makes it easily the safest bet on SMR technology on the market today and a compelling option for a bet on nuclear power more broadly.

The atomic profit machine

In BWX's latest quarter, Q3 2025, it brought in revenue of $866 million, up 29% over Q3 2024. That was good for a 20% increase in earnings per share (EPS) over the same time frame and a net income margin of 10%.

In the longer term, BWX's revenue has shown a compound annual growth rate (CAGR) of 11.6% during the past three years. It also routinely beats earnings expectations and has done so in each of the past five quarters.

Finally, to sweeten the pot as a long-term buy and hold, BWX Technologies also pays a dividend of $1 per share annually, which yields just shy of 0.5% at current prices. However, it has increased that dividend for 10 years in a row and at a rate of 5.6% during the past five years.

If you can only make a single investment in nuclear energy, BWX Technologies makes a compelling case between its expertise in engineering small, efficient reactors, its long-standing relationship with the U.S. military, and its strong financial position. It's certainly worth a look at the very least.

James Hires has positions in BWX Technologies. The Motley Fool has positions in and recommends BWX Technologies. The Motley Fool has a disclosure policy.