This Is My Favorite Nuclear Stock, and it Looks Like a Great Long-Term Buy

BWX Technologies (NYSE: BWXT) has been on an incredible bull run this year. The stock is up 73% YTD, and it's one of the best performers in my personal portfolio. I bought BWX in mid-August, and I'm up almost 12%.

But despite that run, I think this stock is just getting started. And, thanks to a new military project, BWX is perhaps the single best nuclear energy stock to add to your portfolio for the long haul right now.

Image source: Getty Images.

The military's nuclear engineer

BWX Technologies is a Virginia-based nuclear engineering company that sits at the nexus of several major trends in the industry, namely small modular reactors, or SMRs.

These reactors, exemplified by BWX's own BWXT Advanced Nuclear Reactor (BANR), are small nuclear power plants that are usually prefabricated at a factory and constructed on-site, where they provide power to data centers, military installations, or remote locations like an ordinary nuclear plant. The BANR reactor can generate 50 MW of electricity, enough to power 9,000 homes.

SMRs are the cutting edge of nuclear science today, but the core of BWX's business is its naval nuclear engineering. Since the 1950s, the company has built 400-plus nuclear propulsion systems for submarines and aircraft carriers. The government is BWXT's largest customer and is responsible for roughly 71% of its revenue.

BWX is also involved in terrestrial nuclear engineering for the Army through Project Pele, which is attempting to create a microreactor small enough to be transported on a flatbed truck.

The project is not complete yet, but it has already yielded the first electricity-producing Gen IV nuclear reactor under construction outside of China.

Already a very strong buy

BWX is a great stock even without any new military projects. It released its Q3 earnings on Nov. 3 and, as expected, they were pretty great.

Revenues surged 29% over Q3 2024 to hit $866 million, revenue from government operations was up 10% and commercial operations grew 122%. Net income grew 19% over the same time frame, and EPS grew 20%, beating expectations by 17%.

The company also raised its guidance; it now expects 2025 annual revenue to exceed $3.1 billion and EPS to hit $3.75-$3.80, compared to $3.65-$3.75 previously.

In all, even without Project Janus, everything is looking promising for BWX. But there's one catalyst I expect will send BWX even higher.

Project Janus, the ultimate long-term catalyst

Back in May, President Trump signed Executive Order 14299, which prompted the Secretary of Defense to create Project Janus, named for the ancient two-faced Roman god of doorways, gates, transitions, and time. The goal of the project is to have a nuclear reactor deployed to power a domestic military base no later than Sept. 30, 2028.

Janus will be modeled on NASA's COTS program, which saw NASA collaborate with private companies to facilitate space travel. Essentially, it outsources the creation of new rockets and space transportation vessels to companies like SpaceX.

Now, while no companies have yet been selected to work with the Army on Project Janus, BWX could be an obvious potential partner for two reasons.

One, the company already has a seven-decade relationship with the military through its naval nuclear propulsion systems.

Two, in the press release for Project Janus, it was directly stated that the project would learn from and work closely with Project Pele, which is led by BWX and is already producing results.

I would be absolutely shocked if BWX wasn't involved in Project Janus. The company is already a strong buy based on secular tailwinds and its solid balance sheet. But if BWX lands some Project Janus contracts, it's primed for even more explosive growth

Even after 2025's rally, now is the time to buy

Despite BWX Technology's incredible bull run in 2025, I think it still has quite a long runway ahead of it, thanks to Project Janus and the Trump administration's very pro-nuclear energy policy.

Aside from any military uses for nuclear energy, the Department of Energy is aiming to quadruple America's nuclear capacity, from 100 gigawatts today to 400 gigawatts by the middle of the century. Once the Project Janus contracts start rolling out, I expect BWX's growth streak to continue on for years to come. While nothing is guaranteed, investors might want to consider adding BWX Technologies to their portfolios.

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