Orin
BWXTNYSE·Aerospace & Defense

BWX Technologies, Inc. BWXT

Market cap $12.7BP/E 35.7× trailingGross margin 22.1%Reports Mon 2 Nov, after the close
$138.20
−0.48 (−0.35%)live 11:25 ET
52-wk $136.50 – $241.82
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Orin's take
0.65conviction · moderate
Refreshed 19 Aug · take v4. A new filing or a print queues the next refresh.

BWXT remains a hold as the nuclear thesis is real but the financials and technicals do not yet justify adding. FY2025 revenue grew 18.3% to $3.2B and EPS rose 16.9% to $3.59, yet operating margin compressed for a third consecutive year to 10.11% (from 15.35% in FY2023), with operating income falling to $323M from $381M in FY2024, while total debt nearly doubled to $2.0B.

At 42.5x earnings — an 84% premium to the peer median of 23.1x — and trading at $165.01, below both the 50-day ($182.19) and 200-day ($195.41) moving averages, the stock has corrected but remains expensively priced against deteriorating margins and rising leverage, with insiders net sellers over 24 months (-$19.7M).

What could go wrong

  • Margin compression persists. Operating margin has declined for three straight years from 15.35% (FY2023) to 10.11% (FY2025) despite 18.3% revenue growth, suggesting cost pressures or mix shift that could further erode earnings quality.
  • Valuation premium unwinds. At 42.5x PE versus a peer median of 23.1x (84% premium) and 29.9x EV/EBITDA versus 14.0x median (113% premium), any disappointment in growth or margin recovery could trigger a sharp de-rating.
  • Leverage increase. Total debt nearly doubled from $1.06B in FY2024 to $2.0B in FY2025 against stockholders' equity of $1.23B, increasing financial fragility if commercial nuclear growth timelines slip.
  • Insider selling acceleration. Insiders were net sellers over the trailing 24 months (-30,144 shares, -$19.7M), with the CEO selling shares as recently as August 12, 2026 at ~$172-174.

What would change my mind

Operating margin inflection. Quarterly operating margin rebounds above 12% with revenue growth sustaining double digits, indicating cost absorption is catching up to top-line expansion.bullish
Debt reduction progress. Total debt declines toward $1.5B or below, demonstrating free cash flow deployment toward deleveraging rather than further capex commitments.bullish
Further margin deterioration. Operating margin falls below 9% or revenue growth slows to single digits, confirming that scale is not translating to profitability.bearish
Technical breakdown. Stock closes decisively below $160 on high volume, extending the downtrend below both major moving averages and signaling loss of institutional support.bearish

Where this comes from: FMP annual fundamentals + derived_metrics FY2025 · derived_metrics FY2023-FY2025 + FMP annual fundamentals · FMP annual fundamentals FY2024-FY2025 · peer_relative composite. Orin's read on BWXT; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Portfolio Management$925.6M0.0% of fund
Vanguard Capital Management$805.9M0.0% of fund
State Street$739.5M0.0% of fund
Jpmorgan Chase &$503.1M0.0% of fund
Franklin Resources$375.7M0.1% of fund
Geode Capital Management$362.3M0.0% of fund

90 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 311 Form 4 filings, net −$19.4M. Of the 50 on hand, 0 were open-market purchases and 9 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

· Industrials
MetricNowOwn medianSector
P/E35.7×—44.5×
EV/EBITDA25.5×——
P/S3.61×——
P/B9.5×——
What the price assumes

18.1%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.3B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

16 firms · 2026-09-24
Consensus target

$208

$170 – $255 · +50% against today's price

How they rate it
  • 11 buy or overweight
  • 4 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 27.5× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
BWXTBWX Technologies, Inc.$13B35.7×25.5×22.1%10.1%28%
AVAVAeroVironment, Inc.$8B——26.5%-14.5%-7%
CHRWC.H. Robinson Worldwide, Inc.$17B27.5×19.1×10.1%3.7%36%
HIIHuntington Ingalls Industries, Inc.$10B15.8×12.0×12.6%5.0%13%
RBARB Global, Inc.$15B35.1×13.7×42.1%10.0%8%
TXTTextron Inc.$13B14.3×9.1×16.5%6.1%12%
WWDWoodward, Inc.$19B35.2×23.7×29.5%13.2%22%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 29.8% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 80.3×FY25 48.0×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $138.20
52-week range$139 – $242
Analyst targets$170 – $255
At sector P/E (45×)$173

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.