BWX Technologies (BWXT) Is Up 11.8% After Major European SMR Supply Deal With Rolls-Royce SMR

• In late October 2025, Rolls-Royce SMR announced a new partnership with BWX Technologies, engaging BWXT to provide detailed design work for nuclear steam generators and aiming to purchase these components for multiple small modular reactor projects across Europe, including major new builds in the UK and Czech Republic.
• This collaboration highlights BWXT's established expertise in nuclear equipment manufacturing and expands its participation in the accelerating European transition toward next-generation nuclear energy solutions.
• We’ll explore how BWXT’s expanded supplier role in European SMR projects could reshape its investment narrative and future growth outlook.

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BWX Technologies Investment Narrative Recap

To be a shareholder in BWX Technologies, you need confidence in long-term demand for nuclear components and engineering, driven by both defense programs and the global transition to advanced nuclear energy. The new Rolls-Royce partnership expands BWXT’s international market access, but doesn’t directly address the most urgent risk: continued margin pressure in commercial operations, which could limit earnings leverage even as revenue opportunities increase.

Of recent announcements, the signed contract and Memorandum of Understanding with Rolls-Royce SMR is most relevant, as it indicates BWXT will be supplying key reactor components for multiple European new builds. This raises BWXT’s profile in the international SMR ecosystem yet comes as organic commercial revenue growth and profitability remain sensitive to project timing, mix, and capital intensity.

By contrast, even with headline opportunities in new markets, investors should also be aware that margin compression in core commercial operations is still a...

Read the full narrative on BWX Technologies (it's free!)

BWX Technologies is projected to achieve $3.9 billion in revenue and $494.7 million in earnings by 2028. This outlook requires 11.1% annual revenue growth and a $200 million increase in earnings from the current $294.4 million.

Uncover how BWX Technologies' forecasts yield a $203.30 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Eight separate fair value estimates from the Simply Wall St Community range from US$93.14 to US$250 per share. Against this wide spectrum, the biggest current risk remains that BWXT’s margin challenges in commercial segments could affect overall profitability, which makes it vital to consider several different viewpoints when evaluating the stock’s prospects.

Explore 8 other fair value estimates on BWX Technologies - why the stock might be worth less than half the current price!

Build Your Own BWX Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your BWX Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free BWX Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BWX Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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