Atomic Bets & Miniature Suns

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Right. Nuclear power. It’s a funny thing, isn’t it? For decades, perfectly good atoms have been sitting around, practically begging to be split and put to work, while everyone chases after the whims of the sun and the breeze. Honestly, it’s like ignoring a perfectly serviceable dragon in favor of a particularly enthusiastic hamster wheel.1 But things, thankfully, appear to be changing. It’s not a revolution, mind you. More of a… recalibration. And where recalibration happens, opportunities arise. Opportunities, my friends, that can be rather profitably exploited.

You see, we’re entering an age of insatiable power demands. Not just for keeping the lights on (though that’s still important), but for feeding the digital gods. Artificial intelligence, data centers… these aren’t powered by good intentions and wishful thinking. They require serious juice. And while some continue to believe in the fairy tale of 100% renewables, reality has a habit of being stubbornly… atomic. Nuclear delivers. Safely, reliably, and with a carbon footprint smaller than a pixie’s footprint in a snowdrift.

Now, safety is, naturally, the first concern. People remember things exploding. It’s a human trait. But consider this: statistically, nuclear power is surprisingly benign. According to those number-crunchers at Our World in Data, it’s second only to solar in terms of deaths per terawatt-hour. Solar, of course, benefits from the fact that most of the deaths occur during installation, which are rarely attributed to the energy source itself. A clever bit of accounting, if you ask me. Coal, on the other hand… well, let’s just say coal is a bit of a brute. And wind? Don’t even get me started on the bird situation.2

And the cleanliness? Nuclear leaves a considerably smaller smudge on the cosmic ledger. A typical solar plant, over its lifespan, coughs out 53 tons of greenhouse gases. Wind farms manage 11. A nuclear plant? A mere 6. Plus, a nuclear reactor will happily hum along for 40 years, while wind turbines and solar panels are looking for replacement parts after a quarter of that. It’s not just about power; it’s about sustained power. It’s a bit like comparing a reliable, if slightly eccentric, wizard to a particularly enthusiastic firefly.

Finally, and this is crucial, nuclear plants actually work when you need them to. They aren’t reliant on the mood of the weather. They operate at a staggering 92% capacity, compared to a paltry 35% for wind and 24% for solar. In the realm of reliable energy, that’s the difference between a dependable workhorse and a… well, a rather optimistic houseplant.

2025 was a good year for nuclear, but I suspect we’re only at the beginning of something significant. And the company best positioned to capitalize on this resurgence? BWX Technologies (NYSE: BWXT). It’s a bit like finding a master artisan in a world obsessed with mass production.

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The Art of Shrinking Suns

BWX doesn’t build the enormous, traditional reactors. They specialize in nuclear propulsion systems for the U.S. Navy, having constructed over 400 reactors for seaborne use. This provides a remarkably stable revenue stream while they pioneer the next generation: small modular reactors (SMRs). It’s a bit like having a well-established alchemy guild funding research into transmuting lead into, well, more useful things.

Their BANR microreactor is a marvel of engineering. It can be built in pieces, shipped by road or rail, and assembled on-site. It generates up to 50 megawatts of power in a fraction of the space of a traditional plant, and requires considerably less water cooling. It’s a compact power source, ideal for locations where space is at a premium. The American Society of Civil Engineers has even suggested they’re perfect for powering data centers, providing near-continuous power without straining the local grid. It’s a sensible idea, really. A little bit of contained atomic fury keeping the digital world spinning.

But BWX isn’t stopping at ‘small.’ They’re working with the U.S. government on Project Pele, a microreactor capable of fitting on a truck. The idea? A mobile nuclear reactor that can power forward operating bases. A truly portable power source. It’s a bit like equipping an army with miniature suns.3

And here’s the key: BWX isn’t a startup. It’s a profitable, established company with rapidly growing revenue. This makes it, in my estimation, the safest bet on SMR technology currently available. A solid foundation for a potentially explosive investment.

The Atomic Ledger

In their latest quarter, Q3 2025, BWX brought in revenue of $866 million, a 29% increase over Q3 2024. This translated to a 20% increase in earnings per share (EPS) and a net income margin of 10%. Not bad, not bad at all.

Over the past three years, BWX’s revenue has grown at a compound annual growth rate (CAGR) of 11.6%. They consistently beat earnings expectations, having done so in each of the past five quarters. A track record of success. It’s a bit like a consistently accurate fortune teller.4

And to sweeten the pot, BWX pays a dividend of $1 per share annually, yielding just shy of 0.5% at current prices. They’ve increased that dividend for 10 consecutive years, at a rate of 5.6% over the past five years. A reliable income stream. A bit like a consistently overflowing wishing well.

If you’re looking for a single investment in the nuclear energy sector, BWX Technologies makes a compelling case. Their expertise in small, efficient reactors, their long-standing relationship with the U.S. military, and their strong financial position make them a worthy contender. It’s certainly worth a closer look. After all, a little bit of atomic power never hurt anyone… much.

1

The Guild of Alchemists and Venture Capitalists, you see, has a vested interest in maintaining the illusion of scarcity. Makes everything more profitable.

2

The avian community, understandably, takes a dim view of wind turbines. It’s a matter of principle, you see. And feathers.

3

One must, of course, be careful not to accidentally create a localized singularity. It’s happened before.

4

Their secret? A team of highly trained gnomes. Don’t ask.

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2026-01-24 12:53