Why BWX (BWXT) Shares Are Getting Obliterated Today

What Happened?

Shares of aerospace and defense company BWX (NYSE:BWXT) fell 5.1% in the morning session after the company reported third-quarter earnings that beat expectations, but investors focused on valuation concerns and a slight miss in future revenue guidance. 

BWX Technologies, a maker of nuclear power plant parts, announced strong results for its third quarter. Revenue climbed by 28.9% from the previous year to $866.3 million, and adjusted earnings came in at $1.00 per share, both ahead of analyst forecasts. The company even raised its earnings outlook for the full year. Despite the positive results, the stock price fell. The drop appeared to be driven by worries that the company's stock was already priced at a high valuation. Adding to these concerns, while BWX reconfirmed its full-year revenue forecast, the $3.1 billion midpoint of the guidance range still fell slightly below what analysts had projected. This combination of a high valuation and a slightly underwhelming sales outlook led investors to sell shares.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy BWX? Access our full analysis report here.

What Is The Market Telling Us

BWX’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 3.3% on the news that the company announced it secured a nuclear steam generator design contract and a Memorandum of Understanding (MoU) with Rolls-Royce SMR. The agreements supported the development of Rolls-Royce's small modular reactor (SMR) program. Under the terms, BWXT was tasked with the detailed design of the steam generators. The MoU also established a framework for future collaboration, with Rolls-Royce SMR indicating it was prepared to purchase steam generators from BWXT for multiple reactor units. This deal highlighted BWXT's deep experience in the nuclear industry, where it has engineered and manufactured more than 315 steam generators over its 60-year history.

BWX is up 78.9% since the beginning of the year, and at $199.44 per share, it is trading close to its 52-week high of $215.86 from November 2025. Investors who bought $1,000 worth of BWX’s shares 5 years ago would now be looking at an investment worth $3,674.

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