BWX Technologies has become a cornerstone supplier for the nuclear energy revival driving the artificial intelligence industry forward, with its backlog surging 50% to $7.3 billion in 2025 as AI hyperscalers race to secure reliable power sources. The company manufactures critical nuclear components, fuel, and technologies for everything from U.S. Navy submarines to next-generation small modular reactors (SMRs), positioning it at the intersection of two massive trends: government defense spending and the urgent need to power data centers consuming as much electricity as mid-sized cities .

Why Is Nuclear Power Suddenly Central to AI's Future?

The numbers tell a striking story. AI hyperscalers alone are projected to spend between $600 billion and $700 billion building out their artificial intelligence ecosystems in 2026, up from around $400 billion in 2025. Large AI data centers consume enormous amounts of electricity, and U.S. electricity demand is expected to increase 75% to 100% by 2050 due to AI growth, reshoring, and the energy transition . The U.S. government has responded by setting an ambitious goal: quadruple nuclear energy capacity by 2050.

This is where BWX Technologies enters the picture. The company is not a household name, but it operates behind the scenes in critical infrastructure that few people think about until they realize their smartphone or cloud storage depends on it. Meta, Microsoft, and other AI giants have already signed significant long-term nuclear power deals, recognizing that renewable energy alone cannot meet their power demands .

What Makes BWX Technologies Different From Other Nuclear Suppliers?

BWX Technologies operates across multiple high-growth segments that create a diversified revenue stream. The company's business spans several key areas:

• Naval Propulsion: BWX is a cornerstone supplier for the U.S. Navy and one of only a few companies trusted with classified, mission-critical nuclear energy work for submarines and ships.
• Commercial Nuclear Expansion: The company manufactures components for traditional nuclear power plants and cutting-edge small modular reactors, partnering with industry leaders like GE Vernova and Westinghouse.
• Uranium Enrichment: In January 2025, BWX opened its Centrifuge Manufacturing Development Facility in Tennessee after securing a $1.5 billion contract from the Department of Energy's National Nuclear Security Administration to support enriched uranium supply for defense fuel needs.
• Defense and Space: Beyond nuclear, the company serves the broader defense, medical, and space exploration sectors, creating multiple revenue drivers.

The company's work is both highly technical and heavily regulated, creating significant barriers to entry for competitors. Many of its projects are tied to long-term government contracts, providing revenue stability that investors find attractive .

How Strong Is BWX's Financial Momentum?

The numbers suggest exceptional growth. BWX Technologies grew its revenue by 18% in 2025 to $3.20 billion, accelerating from an average of 8.4% annual sales expansion over the previous three years. The company posted record revenue and GAAP earnings in 2025, with adjusted earnings per share growing 20% and GAAP earnings per share expanding 17% .

Looking ahead, analysts project another 17% revenue growth in 2026 and 10% growth in 2027, reaching $4.13 billion by then. That would more than double the company's 2019 revenue. Earnings are expected to grow 13% in both 2026 and 2027 . The company's backlog, which represents future contracted work, grew 50% year-over-year to $7.3 billion, driven by large multi-year naval propulsion, special materials, and commercial nuclear power awards.

Wall Street has taken notice. Consensus earnings estimates jumped 6% for 2026 and 9% for 2027 since the company's fourth-quarter earnings release, earning it a Zacks Rank #1 (Strong Buy) rating. The stock has surged 100% over the past 12 months and 230% over the past three years, though it trades at a price-to-earnings-to-growth ratio that represents a 50% discount to its five-year highs .

What Are the Key Catalysts Driving Growth?

Several major trends are converging to benefit BWX Technologies. First, the U.S. government is aggressively pushing nuclear energy expansion through tax incentives, streamlined permitting, and direct partnerships with innovators. Second, AI companies are making long-term commitments to nuclear power because it provides the reliable, carbon-free electricity they need to operate data centers 24/7. Third, the company is expanding its manufacturing capacity to support both traditional large-scale reactors and next-generation small modular reactors, which are attracting significant investment from both government and private sectors .

The company also made two strategic acquisitions in 2025 and captured significant high-value awards across both government and commercial segments, signaling management's confidence in the market opportunity ahead.

How to Evaluate Nuclear Stocks in the AI Energy Boom

• Backlog Health: Look for companies with growing order backlogs that extend multiple years into the future, providing revenue visibility and reducing business uncertainty.
• Government Relationships: Prioritize suppliers with established, long-term contracts with U.S. government agencies, which provide stable cash flows and regulatory protection through high barriers to entry.
• Diversification: Seek companies serving multiple end markets, such as defense, commercial nuclear, medical, and space, to reduce dependence on any single industry trend.
• Earnings Momentum: Monitor whether analyst estimates are rising or falling; rising estimates often signal confidence in future growth and can drive stock outperformance.
• Valuation Context: Compare current valuations to historical averages; stocks trading at discounts to their five-year averages may offer better risk-reward profiles despite recent gains.

BWX Technologies exemplifies these characteristics. The company has a $7.3 billion backlog, deep government relationships spanning decades, revenue streams across multiple sectors, rising analyst estimates, and a valuation that remains attractive relative to its growth prospects .

The broader context matters too. The U.S. is not alone in its nuclear ambitions. Japan, India, China, and the European Union are all pursuing aggressive nuclear energy expansion, suggesting that demand for nuclear equipment and expertise will remain strong globally for years to come .

For investors seeking exposure to the intersection of AI energy demand and nuclear power growth, BWX Technologies represents a company with tangible assets, proven execution, and multiple growth drivers. The stock briefly reached all-time highs in March 2025 before pulling back during broader market volatility, but analysts remain bullish on its long-term prospects as the AI energy revolution unfolds.