BWXT Announces $2.1 Billion in Price Agreements for Naval Nuclear Reactor Components and Fuel

Business Wire 11-Feb-2019 6:45 AM

BWX Technologies, Inc. (NYSE:BWXT) announced today that two of its subsidiaries, BWXT Nuclear Operations Group, Inc. (BWXT NOG), and Nuclear Fuel Services, Inc. (NFS), have reached price agreement with the U.S. Naval Nuclear Propulsion Program on new contracts totaling approximately $2.1 billion, including future-year options, for the manufacture of naval nuclear reactor components and fuel.

"We are exceedingly pleased to continue supporting the Navy's shipbuilding plans," said BWXT President and Chief Executive Officer Rex D. Geveden. "This work is the centerpiece of our nuclear national security portfolio and reflects our position as a trusted supplier for these critical systems."

Initial contract awards are anticipated to occur in the first quarter of 2019 and will constitute the bulk of the $2.1 billion. The remaining contract option awards are expected in 2020, subject to annual Congressional appropriations.

A variety of naval nuclear reactor component manufacturing and material procurement activities performed over the term of these contracts will primarily support Virginia-class and Columbia-class submarine construction at BWXT NOG locations in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana. Including future year options, this work is valued at more than $1.7 billion.

The balance of the work – manufacture and delivery of fuel and support activities for the U.S. Naval Nuclear Propulsion Program, as well as development work for future Naval Reactors programs – will be performed at NFS in Erwin, Tennessee.

Additional proposal actions are underway for components for the second carrier in the U.S. Navy's plans to procure two Ford-class aircraft carriers in a single purchase. That pricing agreement is anticipated later this year.

Forward Looking Statements

BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing, impact and value, to the extent contract value can be viewed as an indicator of future revenues, of the pricing agreement, execution of future-year options and future pricing agreements. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and delays. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT's annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,250 employees, BWXT has 11 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter @BWXTech and learn more at www.bwxt.com.

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