BWXT's Breakthrough in TRISO Fuel Manufacturing and Its Implications for the Advanced Nuclear Energy Sector

The U.S. energy transition is accelerating, and BWX Technologies (BWXT) is emerging as a cornerstone of this transformation. At the heart of its strategy lies a revolutionary advancement in TRISO (tristructural-isotropic) fuel manufacturing—a technology hailed by the Department of Energy (DOE) as “the most robust nuclear fuel on Earth.” With production-scale capabilities now operational, BWXT is not only redefining the economics of nuclear energy but also positioning itself as a strategic leader in the small modular reactor (SMR) and microreactor markets. For investors, this represents a high-conviction opportunity to capitalize on the convergence of technological innovation, government-driven demand, and the urgent need for decarbonized energy solutions.

TRISO Fuel: The Enabler of Next-Gen Nuclear Reactors

TRISO fuel consists of uranium kernels coated with layers of carbon and ceramic, creating a particle that can withstand extreme temperatures and radiation without releasing fission products. This makes it ideal for advanced reactors, including high-temperature gas-cooled reactors (HTGRs), microreactors, and space applications. BWXT's mastery of TRISO production is a game-changer. In 2025, the company completed the installation of a chemical vapor infiltration (CVI) furnace at its Lynchburg Technology Center, a critical tool for solidifying pre-forms filled with TRISO particles. Combined with its additive manufacturing capabilities and non-destructive testing systems, BWXT now produces Uranium Nitride (UN) TRISO fuel with a higher uranium density than traditional compacts, reducing reactor costs and extending operational lifespans.

The implications are profound. TRISO fuel's inherent safety and efficiency align perfectly with the goals of SMRs and microreactors, which require compact, transportable, and fail-safe designs. BWXT's vertically integrated approach—from uranium processing to fuel recovery—ensures cost control and scalability, a rarity in the nuclear sector. This is particularly relevant as the U.S. government and private sector race to deploy microreactors for defense, remote communities, and industrial applications.

Strategic Partnerships and Government Contracts: A Tailwind for Growth

BWXT's credibility is bolstered by its partnerships with the Department of Defense (DOD), NASA, and the DOE. For instance, the company is supplying Uranium Oxy Carbide (UCO) TRISO fuel for the DOD's Strategic Capabilities Office (SCO) Pele program, a mobile microreactor designed to power military operations. Similarly, its involvement in the Advanced Reactor Demonstration Program (ARDP) and the DARPA DRACO project (a nuclear thermal rocket engine for space exploration) underscores its technical leadership. These contracts are not just short-term wins; they establish BWXT as a trusted supplier for mission-critical applications, a rare asset in the nuclear industry.

The BWXT Innovation Campus in Lynchburg, a 170,000-square-foot facility, further cements its role as a hub for nuclear innovation. Here, the company develops the BWXT Advanced Nuclear Reactor (BANR), a 50 MWt high-temperature gas reactor that can be transported by rail, ship, or truck. A letter of intent with Tata Chemicals Soda Ash Partners LLC to deploy eight BANRs at a Wyoming mining site demonstrates the commercial viability of this technology.

Market Dynamics: A $10–$50 Billion Opportunity by 2035

The U.S. SMR market is projected to grow from $5.81 billion in 2024 to $8.37 billion by 2032, with the global market expected to reach $558.4 million for TRISO fuel alone by 2034. BWXT's expertise in TRISO production positions it to capture a significant share of this growth. The company's recent $2.6 billion Naval Nuclear Propulsion Program contracts for submarine and aircraft carrier components also highlight its diversified revenue streams.

Financially, BWXT is undervalued relative to its peers. While NuScale Power trades at a stratospheric multiple, BWXT's valuation reflects its established nuclear manufacturing base and near-term revenue visibility. The Zacks Consensus Estimate for BWXT's 2025 earnings is $3.55 per share, a 6.61% year-over-year increase, signaling confidence in its growth trajectory.

Investment Thesis: A High-Conviction Play on the Energy Transition

BWXT's breakthroughs in TRISO fuel manufacturing address a critical bottleneck in advanced reactor deployment: the scalability and cost of fuel. By integrating production from feedstock to reactor core, the company is creating a self-sustaining ecosystem that lowers barriers to entry for SMRs and microreactors. This is particularly relevant as the U.S. government allocates $900 million in 2025 to de-risk SMR deployment, with BWXT likely to benefit from these initiatives.

For investors, the key risks include regulatory delays and competition from emerging startups. However, BWXT's first-mover advantage in TRISO production, combined with its defense and space contracts, provides a moat against these challenges. The company's collaboration with Wyoming to assess industrial footprints for TRISO fuel manufacturing also indicates a long-term vision for scaling production to meet global demand.

Conclusion: A Strategic Leader in a Decarbonized Future

BWXT is not merely adapting to the energy transition—it is leading it. Its TRISO fuel technology, coupled with strategic partnerships and a vertically integrated production model, positions it as a linchpin in the SMR and microreactor markets. For investors seeking exposure to the nuclear renaissance, BWXT offers a compelling combination of technical innovation, government support, and scalable growth. As the U.S. and global markets pivot toward clean, reliable energy, BWXT's advancements in TRISO fuel are poised to unlock value that extends far beyond its current valuation.