American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
Amid the global wave of nuclear energy revival, BWX Technologies (BWXT) has become a focus of capital market attention with its 73% year-to-date surge. This company, with over seven decades of accumulated nuclear engineering expertise, is demonstrating sustained growth potential through its unique military collaboration background, technological barriers, and policy tailwinds.
The stock’s sharp rise is supported by solid performance. In its Q3 earnings report released on November 3, the company reported revenue surged 29% year-over-year to $866 million, with government business revenue growing 10% and commercial business soaring 122%. Net profit and earnings per share (EPS) increased by 19% and 20% respectively, both exceeding market expectations. Management also raised its full-year guidance, projecting 2025 revenue to exceed $3.1 billion and EPS to reach $3.75-$3.80.
Despite the substantial stock price increase, analysts believe its valuation remains reasonable. The high barriers to entry in its core business and long-term orders provide a stable profit foundation.
Firstly, BWX’s cooperation with the U.S. military dates back to the 1950s, having cumulatively built over 400 nuclear propulsion systems for the Navy. Government contracts account for 71% of its total revenue, forming a long-term cooperative relationship that constitutes a “moat.” Currently, the company is developing micro-reactors for the Army through “Project Pele,” achieving a breakthrough in fourth-generation nuclear power technology and becoming the first Gen IV nuclear facility under construction outside China.
Meanwhile, BWX’s self-developed BANR reactor has a unit capacity of 50 MW, capable of powering 9,000 households, making it particularly suitable for data centers, military bases, and similar scenarios. With growing global demand for clean energy and power supply stability, the micro-reactor market is expected to become a new growth driver for the company.
In May 2025, the Trump administration signed an executive order initiating “Project Janus,” aiming to deploy nuclear reactors at domestic military bases by September 2028. Modeled on NASA’s collaboration approach with companies like SpaceX, BWX is considered one of the most likely winners due to its technical accumulationin “Project Pele” and long-standing military ties. Successful participation could open up a multi-billion dollar incremental market.
The U.S. Department of Energy plans to increase domestic nuclear power capacity from the current 100 GW to 400 GW, while over 20 countries worldwide announced nuclear expansion plans in 2025. Against this backdrop, BWX’s technological advantages and policy support create positive momentum.
However, investors should note two risks: first, the uncertainty of project bidding outcomes; second, the long construction cycles of nuclear facilities potentially affecting short-term performance realization.
In summary, with its technological monopolistic advantages, policy catalysts, and resilient performance growth, BWX has become one of the few nuclear sector stocks combining defensive attributes with growth potential. Despite significant gains this year, the company’s布局 in both military and civilian nuclear energy continues to offer imagination space for long-term investors. For those seeking long-term returns, the current price level still presents allocation value.
