BWX Technologies, the U.S. Navy's main nuclear reactor supplier, announced Tuesday it has been awarded a $1.5 billion contract by the Department of Energy's National Nuclear Security Administration (NNSA) to support the Trump administration's goal of increasing U.S. domestic uranium enrichment capabilities. The contract comes after Trump's top energy official on Monday said the U.S. should boost its strategic uranium reserve, sending uranium-related stocks higher.
Under the contract, BWX Technologies will initiate requirements to build a Domestic Uranium Enrichment Centrifuge Experiment pilot plant. The company will design the plant, apply for the necessary licenses, procure equipment, prepare the physical site, demonstrate centrifuge manufacturing readiness and operate the plant. BWXT would then be involved in low-enriched uranium production for NNSA's defense missions, before ultimately being repurposed to produce highly enriched uranium for naval propulsion applications, according to the company's release.
BWXT stock edged a fraction higher to 176.95 at Wednesday's stock market open after advancing 1.4% to on Tuesday after the news broke. William Blair analyst Jed Dorsheimer wrote early Wednesday that this government move "brings another player into building domestic uranium enrichment capacity."
"We do not expect any capacity to come online before 2030, and any enrichment is strictly for defense purposes, with no commercial nuclear fuel applications. What this demonstrates is the government's willingness to allocate significant dollars to enrichment," Dorsheimer noted.
The nuclear stock enters Wednesday's market up 4.9% on the week as it rebounds from support at its 10-week moving average. Shares are in the sixth week of a possible cup-base pattern, with a buy point at 189.25.
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Trump Fuels Uranium Stocks
The BWX Technologies landed the uranium enrichment contract just a day after Energy Secretary Chris Wright proclaimed the U.S. must boost its strategic uranium reserve and bolster domestic uranium production.
President Donald Trump previously signed executive orders that partly targeted increasing U.S. domestic uranium production and enrichment capabilities. The U.S. currently imports the vast majority of its uranium, according to the Energy Information Administration.
Wright's comments sent uranium-related stocks soaring this week.
Uranium miner Centrus Energy enters Wednesday's stock market up 5.2% on the week, part of a 15.8% advance this month. Centrus has shaped a cup base with a 264.90 entry.
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Meanwhile, Canada-based uranium refiner Cameco gained more than 10% on Monday, but then retreated 7% in Tuesday's stock market. It is attempting to break above resistance near 80 following seven weeks of tight trade.
Cameco, which owns a 49% stake in nuclear reactor builder Westinghouse, recently announced better-than-expected second-quarter earnings, with quarterly profit soaring 410%.
Uranium Energy has soared 15.4% this month while fellow uranium stock Energy Fuels is up 16%.
Meanwhile, advanced nuclear fuel play Lightbridge has rallied 8.5% this week on the uranium news.
BWX Technologies Is A 'Robust Pure Play In Nuclear'
In early August, BWX Technologies reported much better-than-expected second-quarter earnings and revenue, with EPS growing 23% and sales increasing 12%. The company also raised its 2025 financial guidance, expecting adjusted EPS of $3.65 to $3.75 and free cash flow of $275 million to $285 million. BWX Technologies previously predicted 2025 profit between $3.40 and $3.55 per share.
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Dorsheimer wrote, at the time, that BWX Technologies' earnings report demonstrates "why it is our most robust pure play in nuclear" and that BWXT should be seen by investors as a "core holding" in the nuclear energy space.
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BWXT stock has a robust 95 Composite Rating out of a best-possible 99. The nuclear stock also has a 92 Relative Strength Rating and an 88 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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