LYNCHBURG, Va.--(BUSINESS WIRE)--BWX Technologies, Inc. (NYSE: BWXT) announced today that the U.S. Naval Nuclear Propulsion Program has awarded subsidiary BWXT Nuclear Operations Group, Inc. a contract with options totaling approximately $806 million for the procurement of long-lead materials required for the manufacture of naval reactor components.
“BWXT remains committed to fulfilling our mission to deliver the highest quality nuclear propulsion components to the U.S. Navy,” said Rex Geveden, BWXT’s President and Chief Executive Officer. “This award enables us to begin critical procurements for long-lead items to meet the rising demand for naval nuclear propulsion systems.”
In February, BWXT announced price agreement with the U.S. Naval Nuclear Propulsion Program on new contracts totaling approximately $2.1 billion, including future-year options. The contract announced today is in addition to that award and provides a significant portion of the material required for fabrication of components for those previously announced Virginia and Columbia-class submarines, and for Ford-class carrier options.
The base material procurement contract for fiscal year 2019 is valued at $75 million and is the first of seven annual options available through 2025. The remaining six options have an average annual value of about $122 million, contingent on U.S. congressional appropriations.
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 long-lead materials contract, future work under the long-lead materials contract, or the exercise of any contract options. These forward-looking statements involve a number of risks and uncertainties, including, among other things, delay, modification or termination of the contract. 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, 2018 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 6,350 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 at @BWXTech and learn more at www.bwxt.com.
