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BWXT or OKLO: Which Nuclear Stock Should You Choose and Why?
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Key Takeaways
BWXT offers established earnings and cash flow, while its nuclear rival faces commercial deployment hurdles.
BWXT's $8.4 billion backlog and projected 2026 free cash flow of $345 million-$360 million support expansion.
OKLO has $3 billion in liquidity and Meta's support, but fuel supply, construction and approvals remain woes.
BWX Technologies (BWXT - Free Report) and Oklo Inc. (OKLO - Free Report) offer two ways to invest in nuclear power. BWXT sells equipment, fuel and services to established customers. OKLO is developing reactors it plans to own and operate, alongside fuel recycling and isotope businesses. The choice depends on how investors weigh BWXT’s current earnings against OKLO’s plans for commercial power production.
The Case for BWXT Stock
BWX Technologies has an established source of business in naval nuclear propulsion and commercial nuclear equipment. It ended the second quarter with an $8.4 billion backlog. Orders over the preceding 12 months were 1.7 times sales, suggesting demand was outpacing deliveries. That gives investors something concrete to assess while the company pursues newer reactor markets.
Canadian reactor refurbishments and planned construction create opportunities for equipment sales and services. Buying Precision Components Group adds U.S. manufacturing capacity and lets BWXT handle some work it previously outsourced. Management expects $345 million to $360 million in free cash flow for 2026. Cash from operations makes expansion easier to fund than for a company still developing its main business.
BWXT also has work tied to advanced reactors. Its multiyear agreement with Antares sets out a framework for TRISO fuel production, with an initial allocation of one metric ton of uranium. Actual delivery schedules and quantities will depend on future task orders. This gives BWX Technologies a way to earn money from reactor developers without depending entirely on its own reactor design reaching the market.
BWXT faces near-term pressures, too. Government budgets and contract delays can affect revenue. Spending on facilities and workers can hold back margin improvement before new capacity produces enough business. Its existing operations make the investment case easier to judge, though they do not remove the risk of higher costs or late deliveries.
The Case for OKLO Stock
OKLO’s appeal rests on what its plants could earn once they supply electricity. Owning and operating reactors could bring recurring revenue over time. Meta’s commitment to OKLO’s 1.2-gigawatt Ohio campus gives the company a customer around which it can plan deployment. Its work with Kiewit could help it develop construction methods it can use across several plants. Investors still need evidence that those plants can be built and run economically.
The Groves isotope test reactor provides some evidence of execution. It reached criticality in less than a year, giving OKLO experience with procurement, construction and authorization. The next project, Groves-2 Forge, was selected for the Department of Energy’s Nuclear Energy Launch Pad initiative. It plans to produce and process isotopes, starting with lutetium-177 for cancer treatments. Commercial production requires the appropriate licenses.
Fuel supply is another unfinished part of the plan. OKLO is pursuing commercial fuel, government materials and recycling. A letter of intent with Centrus could provide fuel for up to five Aurora powerhouses, with potential deliveries starting in 2029. These efforts give it options, but the arrangements still need to translate into fuel available at workable prices and on schedule.
OKLO had $3 billion in cash and marketable securities at the second quarter’s end. That gives it room to spend, although operating activities used $65.5 million in the first half. Aurora projects need further safety approvals and startup authorization. Experience at Groves may help, but an isotope test reactor does not establish the economics of commercial electricity generation.
Price Performance
BWX Technologies has lost 35.6% over six months, while OKLO fell 58%. BWXT outperformed by 22.4 percentage points, although both declines were substantial.
Image Source: Zacks Investment Research
Earnings Estimates
The Zacks Consensus Estimate for BWX Technologies’ 2026 earnings is $4.75 per share, up 18.5% from 2025’s reported number.
Image Source: Zacks Investment Research
OKLO is expected to incur a loss of $1.01 per share, 40.3% wider than the year-ago figure. BWXT therefore has the stronger near-term earnings outlook.
Image Source: Zacks Investment Research
Which Stock Looks Better Now?
BWX Technologies offers the stronger investment case today, with established customers, positive earnings and cash flow to support expansion. Its nuclear equipment and fuel businesses provide a firmer base while new opportunities develop. OKLO has growth potential, but its commercial power plans still face construction, fuel and regulatory hurdles. BWXT carries Zacks Rank #3 (Hold), making it better placed than Zacks Rank #4 (Sell) OKLO for investors seeking clearer earnings prospects and less dependence on milestones.
View the Zacks #1 Rank List
Image: Bigstock
BWXT or OKLO: Which Nuclear Stock Should You Choose and Why?
Key Takeaways
BWX Technologies (BWXT - Free Report) and Oklo Inc. (OKLO - Free Report) offer two ways to invest in nuclear power. BWXT sells equipment, fuel and services to established customers. OKLO is developing reactors it plans to own and operate, alongside fuel recycling and isotope businesses. The choice depends on how investors weigh BWXT’s current earnings against OKLO’s plans for commercial power production.
The Case for BWXT Stock
BWX Technologies has an established source of business in naval nuclear propulsion and commercial nuclear equipment. It ended the second quarter with an $8.4 billion backlog. Orders over the preceding 12 months were 1.7 times sales, suggesting demand was outpacing deliveries. That gives investors something concrete to assess while the company pursues newer reactor markets.
Canadian reactor refurbishments and planned construction create opportunities for equipment sales and services. Buying Precision Components Group adds U.S. manufacturing capacity and lets BWXT handle some work it previously outsourced. Management expects $345 million to $360 million in free cash flow for 2026. Cash from operations makes expansion easier to fund than for a company still developing its main business.
BWXT also has work tied to advanced reactors. Its multiyear agreement with Antares sets out a framework for TRISO fuel production, with an initial allocation of one metric ton of uranium. Actual delivery schedules and quantities will depend on future task orders. This gives BWX Technologies a way to earn money from reactor developers without depending entirely on its own reactor design reaching the market.
BWXT faces near-term pressures, too. Government budgets and contract delays can affect revenue. Spending on facilities and workers can hold back margin improvement before new capacity produces enough business. Its existing operations make the investment case easier to judge, though they do not remove the risk of higher costs or late deliveries.
The Case for OKLO Stock
OKLO’s appeal rests on what its plants could earn once they supply electricity. Owning and operating reactors could bring recurring revenue over time. Meta’s commitment to OKLO’s 1.2-gigawatt Ohio campus gives the company a customer around which it can plan deployment. Its work with Kiewit could help it develop construction methods it can use across several plants. Investors still need evidence that those plants can be built and run economically.
The Groves isotope test reactor provides some evidence of execution. It reached criticality in less than a year, giving OKLO experience with procurement, construction and authorization. The next project, Groves-2 Forge, was selected for the Department of Energy’s Nuclear Energy Launch Pad initiative. It plans to produce and process isotopes, starting with lutetium-177 for cancer treatments. Commercial production requires the appropriate licenses.
Fuel supply is another unfinished part of the plan. OKLO is pursuing commercial fuel, government materials and recycling. A letter of intent with Centrus could provide fuel for up to five Aurora powerhouses, with potential deliveries starting in 2029. These efforts give it options, but the arrangements still need to translate into fuel available at workable prices and on schedule.
OKLO had $3 billion in cash and marketable securities at the second quarter’s end. That gives it room to spend, although operating activities used $65.5 million in the first half. Aurora projects need further safety approvals and startup authorization. Experience at Groves may help, but an isotope test reactor does not establish the economics of commercial electricity generation.
Price Performance
BWX Technologies has lost 35.6% over six months, while OKLO fell 58%. BWXT outperformed by 22.4 percentage points, although both declines were substantial.
Earnings Estimates
The Zacks Consensus Estimate for BWX Technologies’ 2026 earnings is $4.75 per share, up 18.5% from 2025’s reported number.
OKLO is expected to incur a loss of $1.01 per share, 40.3% wider than the year-ago figure. BWXT therefore has the stronger near-term earnings outlook.
Which Stock Looks Better Now?
BWX Technologies offers the stronger investment case today, with established customers, positive earnings and cash flow to support expansion. Its nuclear equipment and fuel businesses provide a firmer base while new opportunities develop. OKLO has growth potential, but its commercial power plans still face construction, fuel and regulatory hurdles. BWXT carries Zacks Rank #3 (Hold), making it better placed than Zacks Rank #4 (Sell) OKLO for investors seeking clearer earnings prospects and less dependence on milestones.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.