Key Takeaways:
Activist investor Ananym Capital Management argues BWX Technologies could double its market value by reviving a dormant nuclear reactor design to meet surging energy demand from data centers.
Shares of BWX Technologies have surged 93% in the last year, but activist investor Ananym Capital Management believes the stock could double if the company commercializes its mothballed small modular reactor design.
"BWX Technologies' stock price could grow by roughly 45% if it remains a so-called picks-and-shovels supplier," Ananym co-founder Alex Silver said at the Sohn Investment Conference in New York, but reviving its mPower technology could unlock significantly more value.
Ananym argues that while the supplier path offers a solid return, the real opportunity lies in developing its mPower pressurized water reactor, a type of small modular reactor (SMR). The firm sees no clear market leader for this technology, creating a significant opening for BWXT. Nearly a decade ago, BWXT archived the design, but Ananym believes it could now be competitive as demand for clean energy from data centers is booming.
The push comes as the market for nuclear energy components and services expands, driven by government spending and commercial investment. With a market value of $19 billion, BWXT's decision on the mPower technology could determine whether it remains a profitable, dividend-paying supplier or becomes a leader in the next generation of nuclear power.
Unlike pure-play SMR startups like Oklo and NuScale Power, BWXT is already a profitable enterprise with a significant backlog. The company generated $3.2 billion in 2025 revenue, with the bulk ($2.3 billion) coming from its government operations segment, which supplies nuclear reactors to the U.S. Navy. This government work provides a stable revenue stream, evidenced by a $5.5 billion backlog for that segment alone.
The company reported a net income of approximately $329 million in 2025. While its primary business is stable, its commercial operations segment is growing rapidly.
Revenue from commercial operations, which includes nuclear components and medical sales, grew 63% to $853 million in 2025 and continued that trend with a 121% increase in the first quarter of 2026.
Further bolstering this growth is the potential acquisition of Precision Components Group, which generated $125 million in 2025 revenue. BWXT says the deal will "establish additional U.S. commercial nuclear production capacity to serve growing domestic demand," positioning it to better supply reactor makers like the GE Vernova and Hitachi partnership.
This article is for informational purposes only and does not constitute investment advice.
