NASA Plans Lunar Nuclear Reactor, This Stock Could Profit

The Lunar Race and the Rise of BWX Technologies

The phrase "to the moon" has long been a metaphor used by retail investors and meme stock enthusiasts to express their belief in an undervalued company with potential for significant growth. However, this week, the expression took on a more literal meaning as the space race between the United States and other global powers intensified.

BWX Technologies, a Virginia-based manufacturer of nuclear reactors for the U.S. government, saw its market value surge by around 18%—or $2.5 billion—after being linked to a key NASA initiative. This development highlights the growing interest in nuclear technology as a critical component of future space exploration efforts.

A New Era of Space Exploration

NASA's Fission Surface Power Project, which initially aimed to have a nuclear reactor ready for the moon by 2030, received a major boost when Transportation Secretary Sean Duffy, who also serves as the acting administrator for NASA, announced plans to fast-track the project. This move came in response to China and Russia’s accelerated efforts to establish an atomic energy source on the lunar surface by 2036.

Duffy emphasized the importance of this technology, stating, “We’re in a race to the moon, in a race with China to the moon. And to have a base on the moon, we need energy.” He outlined the goal of deploying a reactor capable of generating 100 kilowatts of power within the next five years to support NASA’s broader mission of increasing manned space flights.

Strategic Collaborations and Market Growth

BWX Technologies has been actively involved in developing nuclear solutions for space exploration. Since 2017, the company has worked with NASA and the Department of Energy on a nuclear thermal propulsion design. In 2022, BWX partnered with defense giant Lockheed Martin to secure a $5 million NASA contract for the initial designs of lunar power systems. Other companies, including Westinghouse, Aerojet Rocketdyne, and a joint venture involving Boeing, were also selected for the project.

CEO Rex Geveden highlighted the growing demand for nuclear solutions across various sectors, stating, “The demand for nuclear solutions in the global security, clean energy, and medical markets continues to accelerate.” Over the past year, BWX’s overall order backlog has increased by more than 70%, reaching a record $6 billion. The company is projected to report adjusted earnings of approximately $570 million, or $3.70 per share, for the current financial year.

The Future of Lunar Missions

NASA is expected to select two companies for its accelerated Fission Surface Power Project from a list of industry proposals over the next two months. This selection process underscores the agency’s commitment to leveraging private sector innovation to reduce costs and increase capacity for space missions.

BWX Technologies’ stock had experienced a slight dip of 1.8% during midday trading but remains up over 92% for the year. This performance reflects investor confidence in the company’s role in shaping the future of space exploration.

As the race to the moon intensifies, the collaboration between government agencies and private companies like BWX Technologies is becoming increasingly vital. With the potential to provide sustainable energy for lunar bases and future Mars missions, nuclear technology is playing a pivotal role in the next chapter of space exploration.

The phrase “to the moon” may have started as a metaphor, but it now carries a new significance in the context of technological advancement and international competition. As the world watches closely, the journey to the moon is no longer just a dream—it’s a reality in the making.