BWX Technologies Will Build Its U.S. Heavy-Component Plant With Or Without Firm Orders, CEO Says
CEO Rex Geveden separated the U.S. plant from any Poland investment, which he said would need firm orders, with a U.S. decision due by year-end.
BWX Technologies, which makes nuclear components, reactors and fuel, will go ahead with a new U.S. plant for large steam generators and reactor pressure vessels whether or not firm orders arrive, CEO Rex Geveden told analysts on the company's third-quarter earnings call Monday. A Poland investment, he said, would be a different matter, and the company intends to make a final investment decision on the U.S. facility by the end of the year.
No firm orders required in the U.S.
Jeffrey Campbell of Seaport Research asked whether the firm-order condition BWXT attached to a possible Poland investment also applies to the U.S. plant. Geveden answered: "No, Jeff. No, that U.S. facility does not depend on firm orders."
He said the pipeline is so full that the company is "compelled to go ahead," adding, "we're going ahead with the U.S. plan regardless." The company is still finalizing design details for the facility, which Geveden said will complement existing operations.
Poland is a different case. Geveden, who recently met government officials and business leaders there, described a strong appetite for nuclear power. He said any decision to invest in manufacturing capacity there would be backed by firm orders and appropriate government partnerships, after talks about what he called gigawatt-scale demand for micro-reactors and small modular reactors.
Stacking up capacity
Geveden said the company is "stacking up our capacity." The expansion of its Cambridge, Ontario plant lifted heavy-component output by about 50% and finished slightly under budget and about on schedule. He also called the asset bought in the PCG acquisition roughly 50% underutilized, with room to build capacity there for medium reactor components.
BWXT's Government Operations segment builds naval nuclear components, reactors and fuel, while Commercial Operations makes steam generators, heat exchangers and pressure vessels for utilities. The commercial side grew revenue 25% in the quarter, with 15% organic growth, CFO Mike Fitzgerald said. Total company revenue was $953 million, up 10%, and adjusted EBITDA rose 19% to $180 million. Adjusted earnings per share rose 26% to $1.26.
The company booked its annual naval propulsion fuel contract for $189 million in the quarter.
Orders still the missing piece
The plant is meant to serve demand that has yet to show up as orders. Geveden said he expected new U.S. reactor-build orders by the end of this year and still considers that possible, though he put the outer edge around the first half of next year.
He sees small modular reactor work coming first, starting with the Darlington project in Canada, followed by the Tennessee Valley Authority's planned reactors. Fitzgerald said the company raised the low end of its 2026 free cash flow guidance to a range of $350 million to $360 million.
The final investment decision on the U.S. plant is due by the end of the year, and Geveden expects the next U.S. reactor-build orders no later than around the first half of next year.
Sources
- BWX Technologies Reports Third Quarter 2026 Results – Company Announcement - FT.com — Financial Times
- BWX Technologies Stock In Focus After Multi Year Nuclear Fuel Supply Deal — Yahoo Finance
- BWX Technologies to Report Q3 Results: What's in Store for the Stock? — Yahoo Finance
- BWX Technologies Non-GAAP EPS of $1.26 beats by $0.07, revenue of $953M misses by $19.42M (BWXT:NYSE) — seekingalpha.com
- What Investors Got Wrong About BWX Technologies Before The Drop — Yahoo Finance
