BWX Technologies (BWXT) has acquired Precision Components Group to expand nuclear manufacturing

TLDR

• BWX Technologies announced on April 20 that it has agreed to acquire Precision Components Group (PCG), a US-based manufacturer of complex, heavy-walled and heat transfer components.
• The deal adds more than 500,000 square feet of heavy manufacturing capacity in the United States and more than 400 employees to the BWXT portfolio.
• PCG generated approximately $125 million in revenue last year and will join BWXT’s business operations segment.
• BWXT beat Q4 expectations with EPS of $1.08 vs. $0.91 estimate, and revenue of $885.8 million vs. $837.5 million expected, with FY2026 guidance set at $4.55-$4.70 per share.
• Institutional ownership is approximately 94.39%, and Alkeon and Invesco were among the top recent buyers, while insiders sold approximately 13,327 stock units worth US$2.73m over the last 90 days.

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BWX Technologies (NYSE: BWXT) is making a move to grow its commercial nuclear footprint with the planned purchase of Precision Components Group.

BWX Technologies, Inc., BWXT

The deal, announced April 20, will bring PCG and its subsidiaries — Precision Custom Components and DC Fabricators — under the BWXT umbrella. PCG will be brought into BWXT’s business operations segment and will continue to operate from its existing facilities.

BWXT says the acquisition adds more than 500,000 square feet of heavy manufacturing space in the United States. It also brings in a workforce of over 400 skilled employees.

PCG generated revenue of approximately $125 million last year, adding a significant portion of business to BWXT’s books. The deal was framed by management as the first step in building a US-based business Nuclear Manufacturing ability.

John McQuarrie, BWXT’s president of commercial operations, said the acquisition “builds on BWXT’s strong performance in the commercial nuclear industry” and is designed to meet what he called “the accelerating needs of commercial nuclear customers in the United States.”

Strong finances support the deal

BWXT entered this acquisition on solid ground. The company beat analyst estimates in its most recent quarter, reporting EPS of $1.08 versus consensus of $0.91. Revenue was $885.8 million, beating expectations of $837.5 million.

This revenue number was up 18.7% year-over-year, and for all of 2025, BWXT’s total revenue increased 18% to $3.19 billion. EPS grew 20% over the same period for a net margin of 10.3%.

For fiscal 2026, the company set EPS guidance of $4.55 to $4.70. Analysts currently have a “Moderate Buy” rating on the stock with a price target of $207.60.

BWXT stock opened at $223.54 on Friday, above its 50-day moving average of $211.42 and its 200-day moving average of $198.99. The stock has a 52-week range of $102.42 to $241.82 and a market cap of $20.48 Billion.

The company also raised its quarterly dividend slightly, moving to $0.27 from $0.25, representing $1.08 annually and a yield of about 0.5%.

Institutional interest remains high

Institutional ownership of BWXT is approximately 94.39%. Several large funds have added to their positions in recent quarters. Alkeon Capital Management increased its stake by 163% in the third quarter, now owning more than 1.57 million stock units worth approximately $291 million. Invesco increased its position by 60.1% to more than 2.5 million units.

for. Metzler Cell. Sohn & Co. opened. AG gained a new position in the fourth quarter, acquiring 9,481 units worth approximately $1.64 million.

On the internal side, the picture is different. Insiders sold approximately 13,327 units worth $2.73 million over the last 90 days. CAO Kevin James Gorman sold 1,344 units in early March for an average price of $214.71. Insiders now own about 0.60% of the company.

Among analysts’ ratings Wells Fargo I initiated coverage with an “Underweight” rating and a $200 price target. TD Cowen assigned a “buy” rating with a target of $230. Zacks upgraded BWXT from a “hold” to a “strong buy” in January.

BWXT remains the sole manufacturer of naval nuclear reactors for U.S. submarines and aircraft carriers, and has built more than 400 naval reactors since the USS Nautilus.