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February 24, 2022

US Navy awards $1bn contract options to BWX Technologies

The company will continue to manufacture naval nuclear reactor components for the US Navy.

The US Naval Nuclear Propulsion Programme has awarded new contract options, worth a total of nearly $1bn, to BWX Technologies.

The contract will see the company continue to manufacture naval nuclear reactor components and fuel for the US Navy.

BWXT Nuclear Operations Group president Joel Duling said: “BWXT is gratified to continue to support the US Navy as the sole manufacturer of naval nuclear reactors and fuel for US submarines and aircraft carriers.

“For more than 65 years, we have enabled US sailors to fulfil their missions across the globe, while also supporting our communities here at home with thousands of manufacturing jobs.”

Under the first contract option, the company’s subsidiary BWXT Nuclear Operations Group will manufacture reactor components for the US Navy’s newest Columbia and Virginia-class submarines.

Work will be carried out in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana, US.

This production work is valued at around $840m.

BWXT subsidiary Nuclear Fuel Services will be responsible for production and delivery of fuel as part of the second option.

With an estimated value of $200m, work will be performed in Erwin, Tennessee, US.

BWXT’s reactors power the US Navy’s Ohio, Virginia, Seawolf and Los Angeles-class submarines, along with the Nimitz and Ford-class aircraft carriers.

The firm aims to finish the first set of components for the Columbia-class in 2023.

Both the options were granted in the last quarter of 2021.

Further, BWX Technologies reported full-year 2021 revenue of more than $2.1bn, GAAP net income of $306m, or $3.24 per diluted share. 

In its 2022 guidance, the company expects revenue to be up 3% to 4% and adjusted EBITDA of 3% to 4%.

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