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NuScale Power SMR and BWX Technologies BWXT are both important companies in the nuclear energy industry. NuScale Power focuses on building small modular reactors for clean energy projects. BWX Technologies is engaged in supplying nuclear components and fuel to the U.S. government, including for naval reactors, and is also working on its own small reactor technology for defense and commercial use.
According to a report from Fortune Business Insights, the global SMR market was valued at $5.81 billion in 2024 and is expected to grow to $8.37 billion by 2032, with a CAGR of about 4.98% from 2025 to 2032. Both NuScale Power and BWX Technology are well-positioned to benefit from this growth because their technologies can help meet rising demand for safe, reliable, and carbon-free nuclear energy.
However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
NuScale Power is moving forward in the small modular reactor market. The company is still the only small modular reactor vendor with U.S. NRC design approval, which gives it a clear advantage over other players. NuScale Power also received approval for its 77-MW uprate, which strengthens its product and is important for customers who need more reliable power.
A key development is the 6-GW plan announced by ENTRA1 and TVA. This is the largest small modular reactor program announced in the United States and represents 72 modules across up to six plants. NuScale Power stated that it already has 12 modules in production for the first project. TVA leadership has also publicly shown that they want new nuclear power. In addition, a new U.S.-Japan framework names ENTRA1 and NuScale Power as the only group selected for power development for AI, and ENTRA1 may receive up to $25 billion to support nuclear projects.
NuScale Power is also progressing its work on the RoPower project, which aims to deploy a power plant with 6 NuScale Power Modules in Romania. The Fluor’s Phase 2 of the front-end engineering design study project for RoPower’s power plant in Doicesti is close to completion and is bringing in steady revenues.
However, the company faces several risks. NuScale Power’s revenues are still very small, with $8.2 million reported for the third quarter of 2025. The company also paid $128.5 million to ENTRA1 during the third quarter as part of its milestone agreement. Moreover, the management stated that total payments across all six TVA projects could reach several billion dollars before NuScale Power receives any equipment orders.
Another key risk is that the TVA agreement is not a binding Power Purchase Agreement (PPA) yet, and delays in signing PPAs could push out orders and revenues. Additionally, Project timelines are long, with the first plant expected around 2030, which shows that meaningful revenues are still years away.
BWX Technologies is making steady progress across its government and commercial nuclear businesses. The company reported strong growth in the third quarter of 2025. Revenues grew 29% year over year to $866 million. BWXT also expanded its backlog to $7.4 billion, which is up 119% from the previous year, showing strong long-term demand for its nuclear products and services.
The company has added several new large national security programs. BWXT received a $1.5 billion contract to build a domestic uranium enrichment capability for defense use and a $1.6 billion contract to supply high-purity depleted uranium over 10 years. These new awards support steady, multi-year revenues and strengthen BWXT’s role in U.S. national security.
Revenues from Government Operations also grew 10% during the third quarter, supported by higher work in naval propulsion, long-lead materials, and special materials. BWXT is also progressing well on Project Pele, its microreactor program, which remains on schedule for delivery in 2027. BWXT’s commercial business is also performing well. Commercial Operations revenues grew 122% during the third quarter, supported by the Kinectrics acquisition and strong demand for nuclear components and life-extension work in Canada.
Furthermore, demand for nuclear components in Canada, the United States, the United Kingdom, and Europe continues to increase. The company works with several small modular reactor companies, such as GE Hitachi, TerraPower, and Rolls-Royce. Furthermore, BWXT recently signed a contract to design steam generators for the Rolls-Royce smart modular reactor and also signed an agreement for future manufacturing, which bodes well for the company's prospects in the upcoming quarters.
The earnings estimate revision trend for the two companies reflects that analysts are turning more bullish toward BWX Technologies.
Year to date, NuScale Power shares have gained 4%, while BWX Technologies shares have surged 56.2%.
Currently, NuScale Power is trading at a forward sales multiple of 60.54X, higher than BWX Technologies’ forward sales multiple of 4.52X. NuScale Power does seem pricey compared with BWX Technologies.
Both NuScale Power and BWX Technologies are poised to benefit from the nuclear energy boom. However, based on financial strength, revenue growth, backlog visibility, and analyst estimate trends, BWX Technologies is the stronger choice at this time. NuScale Power has important technology advantages and major long-term project announcements, but its revenues remain very small, project timelines are long, and key agreements are not yet firm.
BWX Technologies appears to have the edge with stronger earnings potential, established government contracts, and diversified nuclear operations. Moreover, the company’s reasonable valuation makes the stock look more attractive.
BWX Technologies carries a Zacks Rank #3 (Hold), making it a clear winner over NuScale Power, which has a Zacks Rank #5 (Strong Sell) at present. 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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