Nuclear energy has been a stock market hotspot this year, with the VanEck Uranium and Nuclear ETF (NLR) surging 40%. Today’s earnings from one nuclear technology company ignited the entire sector. However, early results from the latest earnings season show that while the market enthusiasm has some justification, the anticipated “nuclear renaissance” remains a distant goal.
Virginia-based nuclear technology company BWX Technologies (BWXT) reported earnings Monday evening that blew past analysts’ expectations, driving its stock price up 17% on Tuesday. Fueled by this positive report, the nuclear stock group rose: small modular reactor (SMR) developer Oklo gained nearly 18% over two days, NuScale Power and Nano Nuclear Energy rose 4% and 6.7% respectively, and uranium miner Centrus Energy gained 1.7%.
BWX Technologies Q2 results showed:
The company also raised its 2025 financial guidance:
BWX Technologies supplies reactor components for naval nuclear submarines and other equipment, while also serving the commercial nuclear sector. William Blair analyst Jed Dorsheimer emphasized in a report that BWXT is the most resilient company in the nuclear energy field and advised investors to continue holding the stock despite its premium valuation.
However, as the most important buyers and producers of nuclear power, utility companies expressed caution. During Q2 earnings calls, several firms balked at investing in new nuclear generation. Andrew Marsh, CEO of US nuclear operator Entergy, stated that the financing and construction challenges for new reactors remain unsolved, expressing concern about the financial risks of adding nuclear reactors. North America’s largest uranium miner, Cameco, issued a stronger warning, stating that new nuclear power plants won’t happen on the timelines and budgets currently being proposed.
Major players in the nuclear energy industry are set to report earnings in the coming week, including reactor operators Constellation Energy and Vistra, as well as nuclear developers Oklo and NuScale.
Separately, Politico reported that Transportation Secretary and acting NASA Administrator Duffy will announce expedited plans for a nuclear reactor on the moon this week. The Trump administration has ordered NASA to solicit industry proposals for a 100-kilowatt-class nuclear reactor targeted for launch by 2030. NASA had previously funded research for a 40-kilowatt lunar reactor, with original plans targeting readiness for launch in the early 2030s.
