BWX Technologies BWXT shares have lost 13.3% in the past month, underperforming the Zacks Computer & Technology sector’s decline of 5.7% and the Zacks Electronics - Miscellaneous Components industry’s fall of 2.7%.

BWX Technologies’ share price decline can be attributed to a slight downturn in its government operations segment revenues and a contraction in the EBITDA margin in the fourth quarter of 2024.

However, BWXT delivered strong financial results in other key areas in the reported quarter, supported by record equipment orders, strategic acquisitions and backlog growth. Its robust guidance reflects sustained demand and reinforces its long-term growth potential.

Should investors evaluate the BWXT stock in light of these factors? Let us take a closer look.

BWXT Expands Its Footprint with Acquisitions & Key Deals

BWX Technologies has expanded its portfolio through acquisitions and deals, enhancing its capabilities in the nuclear and advanced materials sectors.

In January 2025, BWXT announced a $525-million agreement to acquire Kinectrics, strengthening its service offerings in the nuclear power and medical markets. This acquisition aims to enhance BWXT’s portfolio by offering comprehensive end-to-end lifecycle solutions for both small modular reactors and traditional large-scale nuclear reactors.

On Jan. 3, 2025, BWX Technologies finalized the acquisition of Aerojet Ordnance Tennessee (“AOT”), strengthening its position in advanced materials. As the sole supplier of depleted uranium to the U.S. government, AOT brings expertise in specialized metals and high-strength alloys, enhancing BWXT’s capabilities in commercial, military and space applications. This acquisition expands BWX Technologies’ special materials portfolio, reinforcing its long-term growth potential and positioning it as a key player in high-value defense and aerospace markets.

BWXT secured a pricing agreement for naval reactor components and equipment in the fourth quarter of 2024. Additionally, the company won key technical services contracts, including projects at Pantex and Hanford, and was awarded a reactor pressure vessel manufacturing contract for North America's first small modular reactor project.

BWXT secured key equipment for the Pickering life extension project and finalized commercial supply agreements with multiple radiopharmacy networks for Technetium-99 generators. These moves reinforce BWXT’s position in the nuclear services market, driving long-term revenue growth and expanding its footprint in medical isotopes.

BWX Technologies Provides Strong FY25 Guidance

The company's focus on growth initiatives and efficiency improvements, including supply-chain optimization, working capital management, tax planning and digital transformation, drove its financial performance. This momentum supports a strong 2025 guidance.

For 2025, BWX Technologies anticipates revenues of $3 billion. The Zacks Consensus Estimate for revenues is pegged at $3.01 billion, indicating year-over-year growth of 11.49%.

The company expects non-GAAP earnings between $3.40 and $3.55 per share. The Zacks Consensus Estimate for earnings is pegged at $3.45 per share, which has inched up 0.9% over the past 30 days. The estimate indicates a year-over-year rise of 3.60%.

BWX Technologies has a long history of reporting strong quarterly performances, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.33%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

BWXT Outperform Peers

Despite a 13% plunge in the past month, BWX Technologies has outperformed industry peers, including nVent Electric NVT, Ballard Power Systems BLDP and Ouster OUST. Over the past month, nVent Electric, Ballard Power Systems and Ouster shares have lost 21.4%, 25.9% and 37.4%, respectively.

BWX Technologies currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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