BWXT Shares Climb On Department Of Energy’s $1.5B Contract

BWX Technologies (BWXT) shares rose over 2% by midday trading on Tuesday after the U.S. Department of Energy’s National Nuclear Security Administration (NNSA) awarded a sole-source contract to the company’s subsidiary.

The contract was given to BWXT Enrichment Operations for the licensing, manufacturing development, facility construction, and operations of a Domestic Uranium Enrichment Centrifuge Experiment (DUECE) pilot plant. The Department of Energy (DOE) stated that the pilot plant scope will be implemented through an Indefinite Delivery, Indefinite Quantity (IDIQ) contract vehicle, valued at $1.5 billion, utilizing discrete task orders.

Retail sentiment on BWX Technologies improved to ‘bullish’ from ‘neutral’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

The DOE stated that the DUECE pilot plant is required to reach key technological readiness milestones in support of NNSA’s strategy to establish a reliable and economical supply of unobligated enriched uranium for defense purposes–specifically, low-enriched uranium (LEU) for tritium production, and highly enriched uranium (HEU) for naval nuclear propulsion.

The DUECE technology will not be used to produce enriched uranium for the commercial nuclear power industry, DOE added.

BWX Technologies is a Defense manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine, and space exploration. The company has 10,000 employees, with BWXT and its affiliated companies having 20 major operating sites in the U.S., Canada, and the U.K.

Shares of BWX Technologies jumped over 59% this year and gained nearly 82% in the last 12 months. 

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