BWX Technologies Inc.

This report does not constitute a rating action. Overview Key strengths Key risks Sole manufacturer of nuclear reactors for the U.S. Navy. Significant customer and contract concentration. Robust defense spending. High capital spending requirements. Above-average profitability. Potential for increased acquisitions or shareholder returns. Naval capabilities remain a priority for the U.S., and we expect the budget to continue to support shipbuilding. BWX's position on platforms including the Virginia- and Columbia-class submarines, and Gerald R. Ford-class aircraft carriers, will remain funded to support growth over time. The latest shipbuilding budget includes funding for new construction on two Virginia-class submarines annually and one Columbia-class submarine annually beginning in 2026 and a plan to build one aircraft carrier every four to five years

...U.S. defense spending supports naval platforms that drive revenue for BWX Technologies Inc. Naval capabilities remain a priority for the U.S., and we expect the budget to continue to support shipbuilding. BWX's position on platforms including the Virginia- and Columbia-class submarines, and Gerald R. Ford-class aircraft carriers, will remain funded to support growth over time. The latest shipbuilding budget includes funding for new construction on two Virginia- class submarines annually and one Columbia-class submarine annually beginning in 2026 and a plan to build one aircraft carrier every four to five years from 2030 through 2052. With a backlog of about $4.9 billion as of March 31, 2025--representing more than one and a half years' worth of sales--BWX has good revenue visibility. Continued strong defense spending, combined with...

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