An In-Depth Look at NuScale Power and BWX Technologies in the Nuclear Energy Landscape

In the rapidly evolving world of nuclear energy, NuScale Power and BWX Technologies (BWXT) stand out as pivotal players, each contributing in unique ways to the industry. With a shared focus on enhancing the nuclear energy sector, these companies are both innovating and shaping the future of clean energy. However, they approach the market from different angles, leading to distinct investment potentials.

The Booming SMR Market

According to a report by Fortune Business Insights, the global small modular reactor (SMR) market is projected to grow from an estimated $5.81 billion in 2024 to $8.37 billion by 2032, representing a robust compound annual growth rate (CAGR) of 4.98%. This growth is driven by increasing demand for safe, reliable, and carbon-free nuclear energy solutions, making both NuScale Power and BWXT ideally positioned to capitalize on this trend.

The Case for NuScale Power Stock

NuScale Power is making strides in the small modular reactor space and has achieved a significant milestone by becoming the only SMR vendor with U.S. NRC design approval. This position gives it a competitive edge in the marketplace. Recently, NuScale announced a crucial 6-GW plan with ENTRA1 and the Tennessee Valley Authority (TVA), which encompasses an ambitious deployment of 72 modules across up to six plants.

The company has confirmed that 12 modules are already in production for the first project, demonstrating its commitment to becoming a cornerstone in new nuclear power initiatives. The TVA leadership has shown enthusiasm for new nuclear power developments, aligning with NuScale’s objectives. Additionally, NuScale was selected as part of a new U.S.-Japan framework, potentially allowing ENTRA1 to secure up to $25 billion to support nuclear projects, further solidifying the company’s place in the nuclear sector.

NuScale is also advancing its RoPower project in Romania, aiming to deploy a plant featuring six NuScale Power Modules. With Fluor’s Phase 2 of the front-end engineering design study nearing completion, this initiative is projected to generate consistent revenue.

Challenges Faced by NuScale Power

Despite these promising advancements, NuScale faces substantial risks. The company reported only $8.2 million in revenue for Q3 2025 and has committed to $128.5 million to ENTRA1 during the same period as part of its milestone agreement. Overall, it anticipates that total payments across TVA projects could amount to several billion dollars prior to receiving any equipment orders.

Furthermore, the TVA agreement is currently not a binding Power Purchase Agreement (PPA), raising concerns about potential delays in order fulfillment and subsequent revenue generation. Project timelines also pose a challenge, with the first plant not expected until around 2030, which places significant pressure on future profitability.

The Case for BWXT Stock

In contrast, BWX Technologies is seeing substantial momentum within its governmental and commercial nuclear divisions. The company reported a remarkable 29% revenue growth year-over-year, totaling $866 million in Q3 2025. BWXT has expanded its backlog to $7.4 billion, reflecting an impressive 119% increase from the previous year, indicating a solid demand for its nuclear solutions.

BWXT’s recent contracts further underscore its significance in national security, with a $1.5 billion deal to develop domestic uranium enrichment capabilities and a $1.6 billion contract to supply high-purity depleted uranium over ten years. These agreements promise consistent, multi-year revenues, securing BWXT’s role in U.S. defense strategies.

The company also recorded a 10% growth in Government Operations, driven by increased activity in naval propulsion, special materials, and long-lead materials. BWXT’s Project Pele microreactor program is on track for a 2027 delivery, and its commercial operations have surged, seeing a 122% increase in revenues due to the Kinectrics acquisition and heightened demand.

Strong Standing for BWXT

The demand for nuclear components is rising across several key markets, including Canada, the U.S., the U.K., and Europe. BWXT collaborates with various SMR developers like GE Hitachi, TerraPower, and Rolls-Royce. Recently, it signed a contract to design steam generators for Rolls-Royce’s smart modular reactor, further enhancing its prospects.

Investment Perspectives: Earnings Estimates and Valuation

Currently, both companies are being evaluated by analysts, with a trend suggesting a more favorable outlook for BWX Technologies. Year-to-date, shares of NuScale Power have gained 4%, while BWX Technologies has skyrocketed by 56.2%.

In terms of valuation, NuScale Power’s forward sales multiple stands at 60.54X, which is significantly higher than BWX Technologies’ 4.52X. This substantial discrepancy suggests that NuScale Power may appear overpriced compared to BWXT, which has a more compelling valuation for investors.

Market Positioning

From a financial health perspective, BWX Technologies displays stronger fundamentals with robust revenue growth and a significant backlog that ensures long-term visibility. While NuScale Power boasts key technological advantages, it still grapples with limited revenue, extended project timelines, and a lack of binding agreements that could enhance immediate financial stability.

In summary, both NuScale Power and BWX Technologies are critical players in the nuclear energy sector, poised to benefit from an expanding market. However, their current financial standings, growth trajectories, and valuation metrics present a more robust investment case for BWX Technologies at this time.