BWXT Announces $2.2 Billion in Contracts for Naval Nuclear Reactor Components and Fuel

Rhea-AI Summary

BWX Technologies (NYSE: BWXT) has secured U.S. Naval Nuclear Propulsion Program contracts worth approximately $2.2 billion, including future options, for producing naval nuclear reactor components and fuel. This continues a long-standing partnership with the U.S. government spanning over 65 years. The contracts, initiated in 2021, will be fulfilled over an 8-year period across multiple facilities in Virginia, Ohio, and Indiana. The projects are vital for the Columbia and Virginia-class submarines, supporting U.S. strategic defense.

Positive

• Awarded contracts valued at approximately $2.2 billion, supporting the U.S. Navy's nuclear program.
• Continues a partnership exceeding 65 years with the U.S. government.
• Will provide significant work across multiple states, ensuring job retention and growth.

Negative

• Contract options depend on annual Congressional appropriations, introducing potential revenue uncertainty.
• Forward-looking statements indicate risks including modification or termination of contracts.

BWX Technologies, Inc. (NYSE: BWXT) announced today the award of U.S. Naval Nuclear Propulsion Program contracts totaling approximately $2.2 billion, including future-year options, for the manufacture of naval nuclear reactor components and fuel.

“Today’s announcement marks a continuation of a more-than 65-year-old trusted relationship with the U.S. government to provide the reactors that power our nation’s nuclear navy,” said BWXT Nuclear Operations Group, Inc. President Joel W. Duling. “We are proud to continue manufacturing essential components for this generation of sailors.”

The initial contracts were awarded in the first quarter of 2021 and will constitute approximately half of the $2.2 billion. The contract options are subject to annual Congressional appropriations and constitute the remainder of the total value.

Columbia and Virginia-class naval nuclear reactor component manufacturing and material procurement activities will be performed at BWXT Nuclear Operations Group, Inc. locations in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana over an 8-year period beginning in 2021. Including future year options, this work is valued at more than $1.8 billion.

The balance of the work – manufacture and delivery of fuel and support activities for the U.S. Naval Nuclear Propulsion Program, as well as development work for future Naval Reactors programs – will be performed by Nuclear Fuel Services, Inc. in Erwin, Tennessee.

“Columbia is critical to our nation’s strategic defense requirements,” BWXT Government Operations President Dr. Rob Smith said. “BWXT is pleased to support the U.S. Navy’s top priority in achieving on-time deployment of these new ballistic missile submarines while continuing production of Virginia-class components for the Navy’s mission.”

Forward Looking Statements

BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing, impact and value, to the extent contract value can be viewed as an indicator of future revenues, of the contracts, execution of future-year options and future contracts. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contracts and failure to exercise the options or receive the necessary Congressional appropriations. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Va., BWXT provides safe and effective nuclear solutions for national security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,700 employees, BWXT has 12 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXTech and learn more at www.bwxt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210420005140/en/

FAQ

What contracts did BWXT secure in 2023?

BWXT secured U.S. Naval Nuclear Propulsion Program contracts totaling approximately $2.2 billion.

How long will the contracts for BWXT last?

The contracts will be executed over an 8-year period starting from 2021.

Where will BWXT perform its contract work?

Work will be conducted in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana.

What is the significance of these contracts for BWXT?

These contracts affirm BWXT's critical role in supporting U.S. naval strategic defense initiatives.

What are the risks associated with BWXT's contracts?

The contracts are subject to Congressional appropriations and could be modified or terminated.