What Happened?
Shares of aerospace and defense company BWX (NYSE: BWXT) jumped 3.3% in the morning session after the company announced it secured a nuclear steam generator design contract and a Memorandum of Understanding (MoU) with Rolls-Royce SMR.
The agreements supported the development of Rolls-Royce's small modular reactor (SMR) program. Under the terms, BWXT was tasked with the detailed design of the steam generators. The MoU also established a framework for future collaboration, with Rolls-Royce SMR indicating it was prepared to purchase steam generators from BWXT for multiple reactor units. This deal highlighted BWXT's deep experience in the nuclear industry, where it has engineered and manufactured more than 315 steam generators over its 60-year history.
After the initial pop the shares cooled down to $208.86, up 2.4% from previous close.
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What Is The Market Telling Us
BWX’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 3.6% on the news that Wyoming's top energy agency recommended a $100 million grant to support the company's proposed TRISO nuclear fuel manufacturing plant. The grant would support a $500 million facility that BWXT proposed to build in Gillette, with construction slated to start in about a year and an in-service target of 2030. This move signaled potential government backing for the company's expansion into advanced nuclear fuel. Adding to the positive sentiment, analysts at Baird raised their price target on the stock to $250 from $166, while Bank of America Securities also increased its price objective to $220, citing continued demand.
BWX is up 87.6% since the beginning of the year, and at $208.86 per share, it is trading close to its 52-week high of $209.01 from October 2025. Investors who bought $1,000 worth of BWX’s shares 5 years ago would now be looking at an investment worth $3,893.
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