BWX Technologies Already Builds Reactors for the Navy. Here's Why It's My Top Nuclear Pick.

Nuclear power is experiencing a major global renaissance, but it has quietly powered the U.S. Navy for over 50 years, and BWX Technologies (NYSE: BWXT) has been central to this. BWX designs and builds nuclear reactor components and fuel for U.S. Navy submarines and aircraft carriers, and is its exclusive fuel supplier.

BWXT possesses an unrivaled competitive moat that delivers predictable, long-term growth and stands to benefit from growing support for nuclear energy technologies. Here's why BWX Technologies is my top nuclear pick right now.

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BWX Technologies has a robust moat

BWX Technologies holds a strong competitive position as the exclusive manufacturer of naval nuclear reactors and nuclear fuel for the Naval Nuclear Propulsion Program. Over five decades, BWXT has delivered 420 compact naval nuclear reactors to the U.S. Navy. In May 2026, the company secured U.S. Naval Nuclear Propulsion Program contracts totaling $1.4 billion.

BWXT is leveraging its nuclear expertise to capitalize on growing demand

Beyond defense, BWXT draws on decades of expertise in nuclear components and is well-positioned to capitalize on surging commercial nuclear demand as a merchant supplier. It manufactures heavy equipment that makes nuclear energy possible and is contracted by GE Vernova to fabricate the reactor pressure vessel for the BWRX-300 small modular reactor.

BWXT also supports next-generation developers by engineering specialized hardware, such as the intermediate heat exchanger for TerraPower's design. It also develops the BWXT Advanced Nuclear Reactor, a modular, factory-fabricated microreactor utilizing tri-structural isotropic (TRISO) fuel pellets. To expand its domestic manufacturing capacity, BWXT acquired Precision Components Group, adding over 500,000 square feet of heavy-manufacturing space across Pennsylvania and New Jersey.

In addition to manufacturing components, BWXT is expanding its fuel production capabilities. As part of this, the company is deploying prototype centrifuges at its Oak Ridge facility. It is also leading in advanced fuels such as TRISO and high-assay, low-enriched uranium (HALEU).

Time to buy the dip on BWX Technologies?

Despite the strong secular tailwinds behind nuclear energy and BWXT's $8.4 billion backlog, the stock is down 44% from its 52-week high. The decline reflects short-term concerns, including temporary margin compression and heavy capital expenditures as it scales domestic manufacturing capacity. However, these investments position it to benefit from the growing tailwinds behind the nuclear energy industry.

BWX Technologies is anchored by its exclusive agreement with the Navy, giving it a strong moat and long-term earnings visibility. With its business spanning reactor manufacturing and fuel infrastructure, BWXT is positioned to capture value across the nuclear value chain.

The stock is now priced at 28 times forward earnings, well below its peak forward P/E of 50 times earlier this year. Given its robust competitive position and strong growth prospects, the pullback presents investors with a compelling opportunity to invest in BWX Technologies now.

Courtney Carlsen has positions in GE Vernova. The Motley Fool has positions in and recommends BWX Technologies and GE Vernova. The Motley Fool has a disclosure policy.