BWXT Awarded $1 Billion in Naval Nuclear Propulsion Program Options

Rhea-AI Summary

BWX Technologies (NYSE: BWXT) announced that the U.S. Naval Nuclear Propulsion Program has exercised contract options worth approximately $1 billion for producing naval nuclear reactor components and fuel. BWXT Nuclear Operations Group will handle $840 million in reactor components manufacturing across various U.S. locations, while $200 million will cover fuel manufacture at Nuclear Fuel Services in Erwin, Tennessee. This collaboration extends BWXT's 65-year history with the U.S. Navy, which includes supplying reactors for major naval vessels.

Positive

• Contract options worth approximately $1 billion exercised by U.S. Naval Nuclear Propulsion Program.
• $840 million for reactor components manufacturing, indicating strong demand.
• Continued support for U.S. Navy enhances BWXT's long-standing relationship and stability.

Negative

• Potential risks associated with contract modifications or terminations.
• Delays could affect the execution of future options or contract awards.

LYNCHBURG, Va.--(BUSINESS WIRE)-- BWX Technologies, Inc. (NYSE: BWXT) announced today that the U.S. Naval Nuclear Propulsion Program has exercised contract options totaling approximately $1 billion for manufacturing naval nuclear reactor components and fuel.

“BWXT is gratified to continue to support the U.S. Navy as the sole manufacturer of naval nuclear reactors and fuel for U.S. submarines and aircraft carriers,” BWXT Nuclear Operations Group, Inc. President Joel W. Duling said. “For more than 65 years, we have enabled U.S. sailors to fulfill their missions across the globe, while also supporting our communities here at home with thousands of manufacturing jobs.”

BWXT Nuclear Operations Group, Inc., a subsidiary of BWXT, will complete this work on Columbia and Virginia-class reactor components at sites in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana. Reactor component manufacturing under this option is valued at nearly $840 million. Manufacture and delivery of fuel, and development work for future Naval Nuclear Propulsion programs, valued at nearly $200 million, will be performed at BWXT subsidiary Nuclear Fuel Services, Inc. in Erwin, Tennessee. The options were awarded in the fourth quarter of 2021.

BWXT has manufactured naval nuclear components and reactor since the 1950s. Its reactors power the U.S. Navy’s Ohio, Virginia, Seawolf and Los Angeles-class submarines, as well as the Nimitz and Ford-class aircraft carriers. The company anticipates completion of the first set of components for the new Columbia-class ballistic missile submarine next year.

Today, those ships and submarines represent more than 40% of the U.S combat fleet.

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 naval nuclear reactor options and execution of any future options or contract awards. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and delays. 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, 2021 and subsequent quarterly reports on Form 10-Q 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, Virginia, BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,600 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 @BWXT and learn more at www.bwxt.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220223005335/en/

Media Contact

Chris Dumond

Communications Manager

434.522.5015

cmdumond@bwxt.com

Investor Contact

Mark Kratz

Vice President, Investor Relations

980.365.4300

investors@bwxt.com

Source: BWX Technologies, Inc.

FAQ

What is the recent contract announcement by BWXT on February 23, 2022?

BWXT announced a $1 billion contract option exercise from the U.S. Naval Nuclear Propulsion Program for naval nuclear reactor components and fuel.

What is the total value of the reactor components and fuel manufacturing awarded to BWXT?

The contract options total approximately $1 billion, with $840 million for reactor components and $200 million for fuel manufacturing.

Where will BWXT manufacture the naval nuclear reactor components?

Manufacturing will take place in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana.

How does the contract affect BWXT's relationship with the U.S. Navy?

The contract reinforces BWXT's role as the sole manufacturer of naval nuclear reactors and fuel for U.S. submarines and aircraft carriers, solidifying a 65-year partnership.

What are the potential risks mentioned in BWXT's press release?

BWXT cautions about the risks of contract modifications, terminations, and potential delays that could impact future revenues.